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New Delhi, Aug. 8 The Prime Minister, Dr Manmohan Singh, on Saturday asked States to ensure effective enforcement of stockholding limits and action against black marketers as part of the contingency measures to tackle the effect of the ...
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NHPC IPO: Invest at cut-off Patel Engineering: Buy Supreme Industries: Buy Exide Industries (Rs 81.15): Sell Judging an IPO RBI survey sees agriculture growth slowing down Significant rise in Indian investments in tax havens Weekly News Round Up http://www.thehindubusinessline.com/
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Petroleum minister Murli Deora said NELP was an Indian success story in its endeavour to achieve self-sufficiency in hydrocarbons. "Under the NELP regime, major natural gas production in KG basin commenced from April 2009. With this, the gas production in the country would be doubled, and in monetary terms, it would be about $42 billion."
This is the first time that the government has admitted to drought, price rise and specific shortfall in kharif sowing.
Addressing a meeting of the State Chief Secretaries on agriculture and food here, Dr. Singh assured them of the Centre's full support for tackling drought. The States should quickly send detailed memoranda for assistance under the Calamity Relief Fund or the National Calamity Contingency Fund.
He said no State had so far sent its memorandum. Funds to increase food production under the Rashtriya Krishi Vikas Yojna and the Food Security Mission were also lying unutilised with some States.
The Prime Minister stayed for longer than planned at the meeting to hear several States seek a higher allocation of subsidised foodgrains, diesel and power to meet the situation. Maharashtra sought extension of the loan waiver scheme. Some States pointed out that there was a lull in crop sowing in the last one week and the picture was grim. Bihar and Haryana are said to be the worst hit.
Observing that "in no case should we allow citizens to go hungry," Dr. Singh said, if need be, the government would take strong measures and intervene in the market. "We are helped by the fact that there were adequate food stocks owing to record production and procurement of foodgrains in 2007-08 and 2008-09." "We expect the State governments to intervene in procurement and act against hoarders."
Dr. Singh wanted the States to operate a contingency plan for crops, drinking water, fodder, human and animal health and keep a close watch on foodgrains and the prices.
Union Minister seeks new laws to tackle crime
Hyderabad: Parliamentary Affairs and Water Resources Minister Pawan Kumar Bansal has stressed the need for new laws and a national investigation agency without loss of time to tackle major crime in the country.
He also emphasised re-examination of certain offences that had inter-State or national ramifications and incorporate them in a statutory law. The offences that could be included in this category were : organised crime, terrorism, acts threatening national security, trafficking in arms and human beings, sedition and serious economic offences, Mr. Bansal said in his convocation address to the seventh batch of NALSAR University of Law on its Shamirpet campus here on Sunday.
He recalled in this context the observation of the Second Administrative Reforms Commission that dealing with crisis situations like terrorists taking hostage, hijacking of aeroplanes or disruption to public order neededa strong legal framework. Incidentally, Union Law Minister Veerappa Moily who headed this commission was conferred honorary doctorate at the convocation.
Discussing globalisation of legal profession, Mr. Bansal said the entry of foreign lawyers into India may become a common sight as the World Trade Organisation (WTO) regime has imposed a number of obligations on member countries. It could lead to tough competition in the profession not only from within but also outside the country.
As a leading player in world trade in goods and services, he warned that there might be no escape for India from treating the foreign lawyers as those representing the `most favoured nation' and also provide them withmarket access and national treatment. He also noted that many lawyers in the country were working with offshore law firms in major financial centres of the world. Mobility of lawyers with the right legal skills and experience had increased substantially.
Mr. Veerappa Moily said he conceived the National Law School of India University in Bangalore which inspired the birth of NALSAR and some other national law universities with a view to give law education its rightfulplace. Eight law graduates received their degrees at the hands of the Chancellor of NALSAR and Chief Justice of AP High Court Anil R. Dave.
Agrarian crisis dominates AIAWU general council meeting
Malavalli: The two-day general council of All India Agricultural Workers Union (AIAWU) which commenced here on Sunday touched upon the unfolding agrarian crisis and its socio-economic impact on the peasantry.
The meeting being held in the backdrop of drought plaguing large parts of the country which has accentuated the grim living conditions of the peasants and farmers, also sought the implementation of the National Rural Employment Guarantee Scheme (NREGA) in letter and spirit in addition to pressing for a comprehensive Central Legislation for agricultural labour and installation of a universal public distribution system which was systematically being dismantled to pave way for targeted PDS that has come under flak for its limitations.
Speaking to The Hindu on the sidelines of the general council meeting A.Vijayaraghavan, MP and general secretary, AIAWU, said the general council meeting was significant in view of the unfolding crisis in the agricultural sector. The crisis further aggravated by decline in food production and price rise which directly affects the agricultural workers. Mr.Vijayaraghavan warned that about 20 crore people were directly affected by the emerging crisis and this could lead to starvation deaths while pointing out that the country was going through such a crisis for the first time since Independence.
The Government came under flak for ignoring the conditions of agricultural workers and doing little to ensure the purchasing capacity of the rural people while displaying concern towards investors entering the agro-business sector. The Government's failure to pursue policies that would help the farmers, and to ensure that nearly 82 crore people who earn less than Rs.20 a day get enough work and food, has worsened the agrarian crisis, said Mr.Vijayaraghavan.
In all, 105 members of the AIAWU from across the country are attending the general council meeting during which they will also focus on the declining share of agriculture to the GDP and its decrease from 21.7 per cent in 2003-04 to 17.8 per cent in 2007-08; the negative growth in food production which fell short of the actual target by -1.4 per cent while coarse grain, the staple food of the poorest sections showed a decline of 7.9 per cent while the total area under crop cover was down 30 per cent this year compared to 2007-08.
"This was reflective of Government's focus on turning attention to cash crops in lieu of food crops and was hampering the country's food security", said Mr.Vijayaraghavan.
Mr.Suneet Chopra, Joint Secretary of AIAWU attributed the rise in price of essential commodities to the speculative investment in food grains leading to futures trading that has created an artificial scarcity adding it was a parody that the Government allowed food export when there were alarming levels of hunger in most States. Hence the general council will also focus on the proposed National Food Security Act and its implications for the country. Mr.Chopra and Mr.Hannan Mollah, former MP and Joint Secretary, AIAWU, pointed out that public distribution system had collapsed and even the proposed Food Security Act would reduce the number of beneficiaries by excluding a large section of people.
Hence the AIAWU will seek revamping of the PDS on a war footing with adequate funding to help provide full quantity of grains to BPL and APL card holders as well as Antyodaya beneficiaries while seeking a ban on speculative trading in food grains and hoarding and profiteering from scarcity.
The AIAWU office bearers questioned Government's claims of registering 7 to 8 per cent economic growth despite recession and said such claims will have no buyers in the light of stagnation in agriculture, closure of small and medium scale industries and the decline of the manufacturing sector. Atrocities against Dalits, condition of women agricultural labourers are other issues of importance to be taken up in the meeting.
The meeting is being attended by S.Ramachandra Pillai, president, All India Kisan Sabha and Politbureau Member of CPI(M) P.Ramaiah, former MLA and president of the AIAWU, G.N.Nagaraj, vice-president, Karnataka Prantha Krishi Cooliekara Sangha and other office bearers.
UPA working for 'khaas aadmi', not 'aam aadmi', says CPI(M)
Agartala (IANS): The Congress-led United Progressive Alliance (UPA) government has forgotten its electoral promise and is working hard for 'khaas aadmi' (special people) instead of 'aam aadmi' (the common man), said senior Communist Party of India-Marxist leader Brinda Karat here.
"The Left parties would launch a nation-wide stir with a mass convention in New Delhi on Aug 26, demanding food for all and adequate food security for people living below the poverty line, " the CPI(M) Polit Bbureau member said here on Saturday evening.
Ms. Karat and Tripura Chief Minister Manik Sarkar, who is also a Polit Bureau member, with other senior party leaders addressed the nineteenth central conference of Tripura Rajya Upajati Ganamukti Parishad, the frontal tribal organisation of the CPI(M).
Ms. Brinda Karat said: "The increase in the prices of essential commodities, particularly of food items, has become unbearable especially for the poor and the common people who can no longer afford the essential commodities, while the UPA government remained quiet and sincere towards the interest of the millionaires."
Referring to the Maoist violence in Lalgarh in West Bengal, Karat said nobody would succeed in eliminating the CPI(M)by violent means and the party flag would continue to fly high.
Ms. Karat said Tripura had topped the Indian states in handing over ownership rights of forest lands to tribal people.
"After the enactment of the Scheduled Tribes and Other Traditional Forest Dwellers (recognition of forest rights) Act, 2005, by the central government, 2.1 million tribal people across the country sought 'patta' (title deeds) of the forest land on which they had been residing for years," she said.
"But so far 400,000 tribals got it, while a tiny state like Tripura has provided 'patta' to 78,000 tribals," she added.
Addressing the gathering, Manik Sarkar said: "Taking advantage of the lesser strength of the Left parties in parliament, the UPA government is depriving the poor people."
"Bihar Chief Minister Nitish Kumar has sought our support to jointly categorise the system of identifying the below poverty line (BPL) category families as the UPA government is wrongly classifying them," Mr. Sarkar added.
The chief minister asserted that "the people would soon revolt against the anti-people stand of the centre for their survival."
"The centre has enacted a food security bill only to deprive the poor people of food protection."
The Marxist leader said that a small section of people got carried away and did not vote for the Left parties but their mindset would soon change against the Congress and the UPA government.
Referring to West Bengal politics, the Tripura chief minister said a deep-rooted conspiracy had been hatched involving the Raj Bhavan and others to destabilise the Left Front government in the state.
"The Left movement in Bengal and across the country are mature enough and have full strength to tackle the Maoist hostilities and the associated enmity in (West) Bengal," Mr. Sarkar told the gathering.
Tribals should organise themselves to press for rights: Brinda
Agartala (PTI): Accusing the ruling classes in some States of ignoring the tribals, CPI(M) politburo member Brinda Karat has asked the community to strengthen their organisations to press for their due rights in a more effective manner.
"Over 3000 children died of malnutrition in tribal inhabited areas of Maharashtra and the rate of child death in tribal areas is highest in Madhya Pradesh where the victim of poverty and exploitation by the ruling classes," Ms. Karat said.
Addressing an open session of tribal unit of CPI(M) at Jirania in West Tripura district yesterday, she appealed to the tribals to strengthen their organisation so as to fulfil their aspirations.
Lauding the Tripura government for its efforts towards upliftment of tribals, Karat said "Tripura has created a model of development for the tribals constituting one-third of the state's population."
"When tribals in other parts of the country are living in darkness and backwardness, Left-ruled Tripura is like a luminous lamp in terms of upliftment and development of tribals," she said.
Law Commission recommends legal sanction to surrogacy
New Delhi (PTI): The Law Commission has recommended giving legal sanction to surrogacy and to prohibit its commercial use by making it mandatory for one of the parents wanting to have child through it to be a donor.
"Non-intervention of law in this knotty issue will not be proper at a time when the law is to act as an ardent defender of human liberty and an instrument of positive entitlement," the Commission headed by Justice A R Lakshmanan, a retired Supreme Court judge, said in its latest report.
Emphasising on the need to have a legislation to deal with issues related to surrogacy, the Commission said legal issues related with surrogacy are very complex and need a comprehensive legislation.
"The need of hour is to adopt a pragmatic approach by legalising altruistic surrogacy arrangements and prohibit the commercial ones," the report said.
It felt that such a legislation dealing with surrogacy would help reduce the chances of various kinds of child abuse in cases of adoption.
Advocating the cause of surrogacy as a matter of right the Commission in its report said, "If reproductive right gets constitutional protection, surrogacy which allows an infertile couple to exercise that right also gets the same protection."
The Commission was against putting any kind of ban on surrogacy since it comes as a boon for childless couples.
"Prohibition on vague moral grounds without a proper assessment of social ends and purposes which surrogacy can serve would be irrational," it said.
The Commission recommended comprehensive provisions dealing with pre and post surrogacy period and also rights and protection of surrogate mother and child as well as intending parents.
Taking up the issue on its own, it observed that comparative cost advantage in India has made it a favourable destination for foreign couples and a whole branch of medical tourism has flourished on the surrogate practice.
"It seems that wombs in India are on rent which translates into babies for foreigners and dollars for Indian surrogate mothers," the report said.
Supreme Court upheld conviction of securities scam accused
New Delhi (PTI): The Supreme Court has upheld the conviction of former Uco Bank Chairman and Managing Director K Margabandhu and former General Manager Ramaiya Venkatkrishnan, in the 1992 securities scam case.
A Bench headed by Justice S B Sinha, while upholding the ruling of the special court set up to try cases related to the securities scam, also asked each of them to pay a fine of Rs one lakh. However, it said the period of imprisonment undergone would be deducted from the sentence.
The Bench didn't intervene in the punishment given to Margabandhu, who was sentenced to rigorous imprisonment for six months and a fine of Rs one lakh was imposed by the special judge.
However, it set aside the sentence given by the special judge and awarded Venkatkrishnan rigorous imprisonment for one month.
The special judge had sentenced Venkatkrishnan to three months' rigorous imprisonment and ordered a fine of Rs 50,000.
"We hold K. Margabanthu, Ramaiya Venkatkrishnan, Ashwin Mehta and Sudhir Mehta guilty of the offence of Criminal conspiracy. We need not interfere with the conviction of Munipally Subramanium Eshwar Chandra, Sunil Samtani and Pankaj Brijlal Shah. Former Uco division manager S.V. Ramanathan is acquitted of the charge of Criminal Conspiracy ..." the Bench said.
Assess tax dues after accounts restatement: Mahindra Satyam
New Delhi (PTI): Mahindra Satyam on Sunday said the government should not assess the income tax liability of the IT firm before the restatement of financial accounts is completed.
Reacting to a government statement which says that Satyam Computer, which is now rebranded Mahindra Satyam, owes Rs 532 crore to the income tax department, a Mahindra Satyam official said, "Our accounts are still being restated and the assessment must be subject to the final outcome and any tax liability calculated based on the previous financial may not be accurate."
The person added that "the parallel process of the investigation by the regulatory authorities and the ongoing forensic auditing, once completed will provide the true picture on the financial performance and related amounts payable if any, to the authorities."
KPMG and Deloittee were mandated to restate financial accounts after Satyam's disgraced founder B Ramalinga Raju confessed to fudging the books in January this year. The restatement of accounts of Mahindra Satyam is expected to be completed by December, 2009.
Three US banks bite the dust last week; 72 failures this year
New York (PTI): The signs of economic recovery notwithstanding, woes are mounting on the American banking sector, as 72 banks have collapsed so far this year, nearly three times more than the number of bank failures in 2008.
On an average, 10 banks have gone belly up every month this year. In 2008, 25 banks went out of business.
In the first week of August, the authorities closed down three entities -- First State Bank, Community National Bank of Sarasota County and Community First Bank.
According to the Federal Deposit Insurance Corporation (FDIC), which is often appointed as the receiver of failed banks, the collapsed three entities would cost the agency about USD 180 million.
Small and regional banks are bearing the brunt of the economic turmoil as increased unemployment is resulting in more defaults. The count of failures is expected to rise before the economy is out of recession and fully stabilises.
In July, a whopping 24 banks went belly up, the highest for any month in 2009.
Interestingly, in the second quarter, the American GDP contracted just one per cent, much less than anticipated.
Further, the jobless rate has dipped to 9.4 per cent in July.
Seven banks each were closed down on July 2 and July 24.
The authorities shut down nine banks in June and seven in May.
There were 10 bank failures in February. MORE PTI RAM MR
The entities which bite the dust this year include First State of Altus, Peoples Community Bank, Temecula Valley Bank, Waterford Village Bank and Vineyard Bank.
Going by recent official data, the number of "problem banks" in the US has jumped to a 15-year high of 305 in the first quarter of 2009 against 252 in the December quarter last year.
ISRO chief takes IITians on journey to future
New Delhi (PTI): The world of nano-wires, ion thrusters to launch satellites and propelling elevators to space were a part of the new scientific ensemble discussed by ISRO Chairman G Madhavan Nair with the students at the IIT here on Sunday.
The 20-minute Convocation Address by Nair at IIT-Delhi was an out of the world experience for the students who have gathered to receive their degrees as they look to fulfill their visions and aspirations in life.
"Several alternatives to conventional chemical rockets have been proposed, which include a space tower" the ISRO said adding it could stretch all the way to geosynchronous orbit at 36,000 km altitude.
However, he pointed out that the current technology is not capable of manufacturing practical engineering materials that are sufficiently strong and light to build an earth-based space elevator.
US to probe unauthorised CIA interrogation techniques
Washington (PTI): US plans to appoint a criminal prosecutor to probe whether CIA interrogators used techniques, including excess waterboarding that were not authorised on terror suspects, a media report said on Sunday.
A top juctice department official said Attorney General Eric H Holder Jr intends to hold an inquiry focussing on "whether people went beyond the techniques that were authorised" in Bush administration memos that liberally interpreted anti-torture laws.
CIA officials who have first-hand knowledge of the interrogation files contend that criminal convictions will be difficult to obtain because the quality of evidence is poor and the legal underpinnings have never been tested.
Some cases have not previously been disclosed, including an instance in which a CIA operative brought a gun into an interrogation booth to force a detainee to talk, officials said, the Los Angeles Times reported.
Other potentially criminal abuses have already come to light, including the waterboarding of prisoners in excess of Justice Department guidelines, and the deaths of detainees in CIA custody in Afghanistan and Iraq in 2002 and 2003.
Nagasaki mayor urges worldwide nuclear arms ban
Tokyo (AP): The mayor of Nagasaki called for a global ban on nuclear arms at a ceremony marking the 64th anniversary of the devastating U.S. attack on the Japanese city that killed about 74,000 people.
In a speech given just after 11.02 am — the time when a plutonium bomb flattened Nagasaki on August 9, 1945 — Mayor Tomihisa Taue said some progress had been made toward eliminating nuclear weaponry but more needed to be done.
He cited a speech by President Barack Obama in April calling on the world to rid itself of atomic weapons, but also noted a nuclear test blast by North Korea in May.
"We, as human beings, now have two paths before us. While one can lead us to a world without nuclear weapons, the other will carry us toward annihilation, bringing us to suffer once again the destruction experienced in Hiroshima and Nagasaki 64 years ago," he said.
The Japanese government recognises a total of about 1,50,000 victims of the atomic attack on Nagasaki, including those who have died from related injuries and illness in the years since.
Nagasaki was attacked three days after an atomic bomb was dropped on Hiroshima, in which 1,40,000 people were killed or died within months. Japan surrendered on August 15, 1945, ending World War II.
At Sunday's ceremony, a moment of silence was observed at the time of detonation 64 years earlier, while a large bell in the city's Peace Park was rung repeatedly. As Taue finished his speech, doves were released and circled over the park, where hundreds of brightly colored strings of origami cranes had been hung by local residents.
About 5,800, including dignitaries and representatives from 29 countries, attended the ceremony.
Taue had invited leaders of countries possessing nuclear arms, including Obama and Russian President Dmitry Medvedev, to travel to Nagasaki.
Prime Minister Taro Aso and other dignitaries, as well as local resident Ayako Okumura, who was a child in the city when it was bombed, also spoke at the ceremony.
"To avoid a repeat of the tragedies of Hiroshima and Nagasaki, we must devote all of our energy in the pursuit of international peace," Mr. Aso said.
9 Aug 2009, 0202 hrs IST, Anand Rawani, ET Bureau
The average net NPAs as a percentage of advances of the PSBs stood at 0.88%, whereas it is 1.11% for the private banks. This is much above the overall industry averge of 0.98% during the quarter ended June, 2009, according to a SundayET analysis of the banks present in the banking index of the Bombay Stock Exchange, the Bankex. In fact, the net NPA of the industry has grown by 25% to Rs 21,848 crore during FY09.
Out of this, private banks have net NPA of Rs 6,310 crore and public sector banks account for the rest Rs 15,538 crore. Among the private banks, Kotak Mahindra Bank and ICICI Bank had the highest net NPAs as a percentage of their advances. It stood at 3.07% and 2.33%, respectively.
On the other hand, none of the PSBs have NPA level of more than 2%. SBI, Indian Overseas Bank, IDBI Bank and Canara Bank are a few banks among the PSBs, which have a little more than 1% of net NPA of their respective advances.
Apart from these three, all other PSBs present in the index - Allahabad Bank, Oriental Bank of Commerce, Bank of India, Union Bank of India, Bank of Baroda and National Bank - have net NPA level of less than 1% of their respective advances. A loan is termed as NPA if the payments have not been made for a certain period of time which is usually two consecutive quarters.
Although in the absolute term the NPAs of private sectors banks are relatively lesser due to their lower base of advances. But the private sector banks witnessed faster growth in their NPA. During FY09, their net NPAs grew by 32% from Rs 4,763 cr a year ago. Also, in the preceding year net NPAs doubled. Public sector, too, saw their NPAs growing as it grew by about 23% during FY09.
Among the private banks, ICICI Bank and HDFC Bank have the highest NPAs due to their large lending base. For PSBs, SBI leads thanks to the same reason. According to UCO Bank CMD SK Goel, private banks are very aggressive in retail lending and the probability of a loan turning into NPA is higher in this category.
Also, the private banks have more exposure to the NPA-prone credit card businesses. On the contrary, PSBs are not major lenders so far as retail loans are concerned. However, executive director at Bank of Rajasthan KK Sharma says it's mainly because of base effect.
Since the base is lower in case of private banks, the NPA figures are higher in percentage terms. Based on the RBI guidelines, banks have restructured their loans during the last year, which were due for payment. This has saved banks showing their bad loans.
Economy and Politics
Is there one rule for judges, another for MPs?
Ruhi Tewari
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New Delhi: Earlier this week, the Congress-led United Progressive Alliance was forced to defer the introduction of the judges' assets Bill in the Rajya Sabha after rival parties, even some Congressmen, opposed it because it entitles judges to keep information about their wealth out of the public realm.
It emerges that information on the net worth or wealth of the country's elected representatives is also termed "confidential" according to Indian law. This, despite a sunshine law that requires everyone contesting an election to declare their wealth.
Plugging loopholes: Parliament House in New Delhi. Anyone contesting an election is required to declare their wealth as per legal requirement. Reuters
"At the time of election, candidates have to declare assets which are made public but once elected, there is no annual update available publicly, until perhaps the next election," said T.S. Krishnamurthy, former chief election commissioner of India. The irony, added Krishnamurthy is that these representatives "want judges to make information about their wealth public."
Rules on the declaration of assets and liabilities by members of the Lok Sabha (framed by the Speaker in exercise of the powers conferred upon him by sub-section (3) of section 75 A of the Representation of the People Act, 1951), clearly state that while every elected candidate shall furnish details of his assets and liabilities within 90 days of taking oath, and would be maintained in a register, the "information contained in the register shall be treated as confidential and it shall not be made available to any person except with the written permission of the Speaker."
"What is the secrecy that you are trying to maintain by giving the power to the Speaker? There certainly is justification for making this information public," Krishnamurthy said.
The judges' assets Bill was opposed by members of Parliament (or MPs) because it effectively exempts judges from disclosing their wealth.
"There is a distinction between information of assets and liabilities of candidates contesting elections and that of MPs. As far as the former is concerned, it is in the public domain. But for MPs, the rules continue to apply. At present, till the matter is taken up by the CIC (Central Information Commission) and it rules otherwise, the Speaker has the discretion to decide whether the information should be made public," said Subhash Kashyap, former secretary general of the Lok Sabha and constitutional adviser to the government of India.
There's also the possibility of MPs' wealth increasing significantly while they are in office and the current laws make no effort to disclose it in the public domain.
Interestingly, while it is a 2002 ruling by the Supreme Court that paved the way for publicizing assets of candidates contesting elections, it was only in 2004 that the rules made the disclosure of wealth by MPs compulsory and adjudged it confidential.
The enactment of the Right to Information or RTI Act in October 2005—this gives citizens of India the right to secure access to information under the control of public authorities—made the situation more complex. The CIC, meanwhile, referred one such RTI application to former Lok Sabha speaker Somnath Chatterjee (speaker between 2004 and May 2009), acknowledging Lok Sabha rules that say information on MPs' wealth can be made public only after the Speaker's nod.
Chatterjee issued an order asking the designated staff to make the information public.
While that sets a precedent, the decision in each case is "entirely up to the Speaker," said Kashyap. "He can decide not to allow it (the sharing of information.)."
The rules for Rajya Sabha MPs, meanwhile, are slightly different. The rules (Declaration of Assets and Liabilities Rules, 2004) state that MPs should declare their assets and liabilities to the Speaker within 90 days of taking oath and this information "shall be made available to any person with written permission of the chairman". Unlike the Lok Sabha, rules for the upper house do not classify this information as "confidential".
"The word confidential does make a difference because when it is used, it means the information would be disclosed only if there is an absolute need," said Krishnamurthy. Some activists, however, believe that the precedent set by the previous Speaker is enough to ensure future transparency as well.
"Because of the precedent, the Speaker now would be hard-pressed to explain why the information cannot be disclosed. RTI does not apply to any information which violates the privileges of the House. It was believed that disclosure of this information would violate that privilege and hence the rule was inserted saying only the Speaker could allow it. But in light of the previous order (Chatterjee's decision to make it public), it can be said that it does not violate Parliament's privilege," said RTI activist Arvind Kejriwal. "But theoretically, yes, even now it is up to the Speaker."
While the Bharatiya Janata Party's Arun Jaitley said the "observation that the details of the MPs are kept secret is pointless" because candidates declare their wealth during the polls, Communist Party of India (Marxist) leader Sitaram Yechury said the rule that treats the information on MPs' wealth as confidential is "tantamount to creating two classes of citizens, which is against the Constitution".
Liz Mathew and Santosh K. Joy contributed to this story.
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 12:52 AM | August 08,2009 It emerges that the wealth of elected representatives is also termed as 'confidential' according to the law 11:3 PM | August 07,2009 The textile minister has asked commerce ministry to increase duty drawback rates across the textile sector 05:20 PM | August 07,2009 The new rules were to enable medium and long-term 'open access´ or easy transfer of power across states  05:2 PM | August 08,2009 India appreciates the fact that Australian government has stepped up police patrolling in the problematic areas and has taken several other measures to deal with the safety issue of Indians, external affairs minister S M Krishna said 01:56 PM | August 08,2009 Government on Saturday relaunched its largest ever auction of oil and gas exploration areas, aiming to attract an investment of $3-4 bn towards boosting energy security 12:56 AM | August 08,2009 It will be the first time the bank is looking beyond the circle of bureaucrats and "government economists" to fill the post, traditionally reserved for a macroeconomist Most Read Most E-mailed Editor's Picks
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| PTI 01:53 PM | August 08,2009 The government has enough cushion on account of bumper production in the previous two years |  |
| Reuters 02:28 PM | August 07,2009 Reservoirs at 36% capacity vs 10-yr average of 38%; weak rain likely in soybean, cane regions in next 5 days; rain 64% below normal may damp stock market sentiment |  |
| Samanth Subramanian 04:42 PM | August 06,2009 We examine what makes a monsoon succeed and fail; and indeed, what even makes a monsoon in the first place |  |
| PTI 11:07 AM | August 01,2009 Initially the fertilizer subsidy scheme would be introduced in two districts of Tamil Nadu, union minister for chemicals and fertilizers M K Azhagiri said |  |
| Jacob P Koshy 09:44 PM | July 31,2009 Reservoir level in 15 dams, which chip in 33% of the country's water storage were nearly 80% of their 10-year-average |  |
| PTI 02:41 PM | July 28,2009 A late monsoon has delayed sowing of the Kharif crops which account for nearly 57% of the country's total agricultural output |  |
| Jacob P. Koshy 12:05 AM | July 28,2009 Area sown under rice in the year to 17 July fell to 11.46 million ha, from 14.52 million ha in 2008, a fall of 21% |  |
| Ajayan 01:15 AM | July 27,2009 The use of pesticides, fertilizers, fungicides is common in this Kerala wetland ecosystem; scientific study sought |  |
| Anup Roy 10:29 PM | July 23,2009 PNB has officially declared a discount of as much as 15% in addition to the 25% offered to clear loans |  |
| PTI 02:28 PM | July 23,2009 "Exports have risen mainly due to price competitive of Indian tobacco in the global market," a senior Tobacco Board official said |  |
| Rasul Bailay 11:03 PM | July 21,2009 While organized retail chains in urban India are shutting stores and scaling down ambitions, Hariyali Kisaan Bazaar is looking to add 200 rural stores to its existing chain of 300 in two years |  |
| PTI 03:29 PM | July 21,2009 The average temperature across the region has risen by five degree celsius affecting agriculture and daily activities of the people |  |
| Jacob P. Koshy 01:15 AM | July 21,2009 At least 20 universities and research organizations in India will collaborate to identify genes in plants that may be combined to produce zinc-enhanced rice |  |
| 06:55 PM | July 19,2009 India's leadership in agriculture is absolutely crucial and US will support its initiative, US secretary of state Hillary Clinton said |  |
| Reuters 11:53 AM | July 17,2009 Farm commissioner, N B Singh said sugarcane cultivation may fall 2.4% |  |
| Ajayan 02:13 AM | July 17,2009 Sales of the epic reaches up to 150,000 copies--from pocket editions and larger versions with big fonts for the elderly to compact discs--ahead of and during the season |  |
| PTI 03:59 PM | July 16,2009 The state has witnessed a 37.15% drop in normal rainfall adversely affecting agriculture |  |
| Tony Munroe / Reuters 01:58 PM | July 16,2009 Rains to remain a key factor without agricultural reforms; monsoon has improved in July after worst June in 8 decades |  |
| Reuters 12:02 PM | July 16,2009 Rainfall is expected to increase after two days, it said |  |
| Ajayan 12:51 AM | July 16,2009 Plantation owners in Kerala no longer have to transport people from neighbouring TN to pluck the pods |  |
| 07:09 PM | August 09,2009 IIFCL has already disbursed Rs1,080 crore during the first quarter of 2009 for five major projects in power and road sectors |  |
| PTI 04:50 PM | August 09,2009 NTPC is exploring possibility of setting up new coal power project, taking up R&M of old stations |  |
| P. Manoj 09:55 PM | August 07,2009 Though the Centrally owned ports were working at full capacity, recession was a constraint last fiscal |  |
| A Staff Writer 10:03 PM | August 06,2009 Having discussed the politics and the legislative lapses in land acquisition, the authors of 'India Infrastructure Report 2009' look at solutions |  |
| P. Manoj 09:57 PM | August 06,2009 Shipping companies have reintroduced the bunker adjustment factor, a surcharge on ship fuel, from 1 August |  |
| PTI 04:21 PM | August 06,2009 The Metro Railways (Amendment) Bill would provide legal sanction to extend the operation of the Delhi Metro Rail service to neighbouring Noida, where services are expected to begin later this month |  |
| A Staff Writer 12:47 AM | August 06,2009 As the debate over the legality of acquiring land for SEZs heats up, Mint gets you some informed opinion on the issue |  |
| PTI 03:52 PM | August 05,2009 An outlay of Rs200 crore have been approved for modernisation of forensic application and Rs100 crore is for creation of RFSLs and DMFUs in the states and union territories |  |
| Sangeeta Singh 01:02 AM | August 05,2009 The focus of the accelerated second phase of the programme is on clearing backlog, setting higher targets |  |
| A Staff Writer 12:14 AM | August 05,2009 Why do some industrial projects face opposition and not others? Mint engages the authors of 'India Infrastructure Report 2009' to find out |  |
| Madhurima Nandy 10:40 PM | August 04,2009 Some of the 14 firms left in the fray may be edgy after cancellation of financial bids by Maharashtra govt |  |
| Bharghavi Nagaraju / Reuters 10:03 AM | August 04,2009 The company has been granted a concession period of 95 years with a construction period of 18 months, for the project which IRB will design, build, finance and operate |  |
| Padmaparna Ghosh 12:12 AM | August 04,2009 The ministry says states will need to get a letter from each gram sabha concerned |  |
| PTI 06:01 PM | August 03,2009 DoNER minister B.K. Handique told Rajya Sabha that out of total 666 sanctioned projects, 402 have not started yet due to various bottlenecks |  |
| PTI 03:52 PM | August 03,2009 Civil aviation minister Praful Patel said the government would look into genuine grievances of the sector but made it clear that their would no financial package for the ailing industry |  |
| Staff writer 10:23 PM | July 30,2009 CCI also cleared a range of proposals pertaining to highway construction projects across the country |  |
| PTI 06:22 PM | July 30,2009 The minister further said the country is in a position to absorb $500 billion worth of investment in the next decade |  |
| PTI 04:48 PM | July 30,2009 The new department would help the state in getting benefits from Centre sponsored schemes |  |
| PTI 03:32 PM | July 30,2009 According to the production-sharing contract, the RIL-Niko combine is allowed to first recover the investment it had made from the revenue earned out of the sale of oil or gas |  |
| Samanth Subramanian 09:22 AM | July 29,2009 Professor Usha Raghupathi, from the National Institute of Urban Affairs and A Srivatsan, a Chennai-based urban planning expert, talk about why our infrastructure collapses every monsoon |  |
http://www.livemint.com/2009/08/07234720/Is-there-one-rule-for-judges.html
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| India invests in US debts worth $38.8 bn till May '09 9 Aug 2009, 1245 hrs IST, PTI
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| NEW YORK: India has invested in US debt securities worth USD 38.8 billion till May this year, nearly four-fold rise when compared to the same month Even as the world's largest continued to reel under one of the worst recession in 80 years, India has been steadily increasing its exposure to American debt since May last year, when the holdings were worth just USD 10.3 billion. According to data available with the US Treasury Department, India bought American debt worth USD 38.8 billion till May 2009. India has purchased more American debt since October 2008, when the financial turmoil turned for the worse with the failure of then Wall Street major Lehman Brothers. India's exposure has jumped more than two-fold till May this year, in comparison with just USD 18.3 billion in October last year. Till April this year, India's holding stood at USD 38.5 billion. India has foreign exchange reserves of more than USD 260 billion. Neighboring China continues to be the biggest buyer of American debt, with holdings worth USD 801.5 billion till May 2009. At the second spot is Japan, with holdings to the tune of USD 677.2 billion. | |||||||
"My colleague, the agriculture minister (Sharad Pawar) is making the assessment (about the rainfall). We are also making an assessment..but this problem is a reality and we are trying to handle it," the minister told Lok Sabha members during Question Hour.
Mr Mukherjee added that the government would take all steps to mitigate the problems caused by inadequate rainfall. He, however, admitted that "even if we take action today, it will take some more time to get its full impact on the economy."
The minister said the main reason for deceleration of credit growth was sharp slowdown in growth of the economy during the latter half of 2008-09 with both industry and export sectors recording negative growth for several months.
A number of steps have been taken by the government, like two stimulus packages in December last year and January this year, he said. "We settled with growth rate of 6.7% in 2008-09 against a projection of 5.4 %," he said.
"Even if we take action today by adjusting the credit policy, it will take some more time to get its full impact on the overall economy," Mr Mukherjee said.
Justifying government's huge borrowing for the current fiscal, the minister said there were very limited options and priority was to arrest the slowdown in the economic growth rate.
The minister assured the House that there was no reason for elbowing SMEs who need credit. "This will be a balancing act and we will take measures after consulting the Reserve Bank of India (RBI) to ensure that the private sector is not elbowed out in the market," he said.
The drilling is expected to be completed in 100 days, by which time ONGC expects to get a clear picture of the availability of oil and natural gas in the vicinity
Ajayan
Kochi: State-owned explorer Oil and Natural Gas Corp. Ltd, or ONGC, has for the first time begun ultra deep-sea drilling off the Kochi coast in Kerala. ONGC also proposes to start another drilling operation not far from the location.
Mega plans: ONGC chairman and managing director R.S. Sharma. Rajkumar / Mint
ONGC chairman and managing director R.S. Sharma said the drilling, which can go up to 6.5km deep into the sea, and costing at least Rs400 crore was launched on Sunday, some 70 nautical miles (1 nautical mile is roughly 1.9km), from Kochi.
The drilling is expected to be completed in 100 days, by which time ONGC expects to get a clear picture of the availability of oil and natural gas in the vicinity. The area to be covered is roughly 55 sq. km. If oil is struck, it would take six-seven years before it could be tapped commercially, said D.K. Pande, director of exploration at ONGC.
He added that ONGC had hired rigs from Reliance Industries Ltd to overcome an acute shortage of rigs. The state-owned explorer is expected to get a new rig in December and another in September 2011.
Because rentals for hired rigs are high, with the cost rising to as much as Rs4 crore a day, exploration has to be undertaken under a strict time schedule. However, ONGC faces the prospect of inclement weather and extreme temperatures and water pressure affecting the schedule, Pande said.
9 Aug 2009, 1907 hrs IST, PTI
LONDON: The world has spent a staggering 11.9 trillion dollars to wriggle out of the financial crisis, the sum which is enough to finance a 1,779 "The cost of mopping up after the world financial crisis has come to USD 11.9 trillion (7.12 trillion pound) -- enough to finance a 1,779 pound handout for every man, woman and child on the planet," the newspaper said in a report. Citing IMF calculations, the news report said, "Most of the cash has been handed over by developed countries, for which the bill has been USD 10.2 trillion, while developing countries have spent only USD 1.7 trillion -- the majority of which is in central bank liquidity support for their stuttering financial sectors. The whopping total cost of crisis is equivalent to around a fifth of the entire globe's annual economic output and includes capital injections pumped into banks in order to prevent them from collapse, the cost of soaking up so-called toxic assets, guarantees over debt and liquidity support from central banks. "Although much of the total may never be called on, the potential outlay still dwarfs any previous repair bill for the global economy," the newspaper said. Taxmen should start dialogue with financial institutions: IMF Taxmen worldwide should see the global downturn as a chance to start a better dialogue with financial institutions keeping in view the fact that the economic crisis has made them a risk area for the tax authorities, an IMF paper said. "Tax agencies may use the financial crisis as an opportunity to enter into a more co-operative relationship with financial institutions...," the paper on 'Collecting Taxes During an Economic Crisis: Challenges and Policy Options' said. A paper prepared by John Brondolo of the multilateral lending institution said that even before the crisis set in, the financial sector's size and complexity made for a difficult and specialised environment for the tax-collecting authorities. "During 2008 and into 2009, many financial institutions have experienced large losses, some have collapsed and others are undergoing restructuring or mergers," the paper said. In order to have better co-operation with financial institutions, the tax authorities could work on a unilateral statement on how it intends to work with them or a joint charter by tax agencies and stakeholders could help the move, it said. The major tax-compliance risk for banks and other financial institutions involves tax avoidance schemes. These usually have highly structured financial transactions, circular and cross-border flows of funds, and intra-group exchanges, the IMF paper said. Besides, banks' capital-raising operations present another risk for the tax authorities, the paper said. During the economic downturn, financial institutions like others are bound to have huge losses. Tax laws in many countries permit loss-sustaining firms to carry forward or carry back their losses. "Tax agencies will need to carefully evaluate the losses reported by financial institutions," the paper added. |
The Comptroller and Auditor General has written to the ministry as it has not been able to access the accounts of RIL to conduct the audit of the government's production-sharing contract with the company for Krishna-Godavari basin gas, a top official associated with the matter said.
The Ministry, in turn, has favoured a meeting "very soon" between the CAG and the contractor, RIL, the official added.
"Audit has gone into a limbo, so we cannot share much detail," a top CAG official said on condition of anonymity, when asked if the audit on the capital expenditure of Rs 45,000 crore by RIL in its KG basin blocks has been done.
Another official, who did not want to be named, said that the CAG was trying to work out a solution to take forward the audit that started about two years ago, and accordingly it had written to the Ministry of Petroleum and Natural Gas.
Earlier this week, oil and gas regulator Directorate General of Hydrocarbons (DGH) Director General V K Sibal had said that "the CAG team has carried out the audit work.
When contacted, Sarma told media that he had written a series of letters to Prime Minister Manmohan Singh and other government functionaries since 2006 and had warned of a catastrophe-like situation, the Ambani brothers' dispute, but did not receive a response.
"... the natural gas is the property of the people of India. Its pricing should have been entrusted to the statutory regulator but the relevant law has been drafted unsatisfactorily," said Sarma, who had been Secretary (Power) and Secretary (Expenditure) with the Government of India and also Adviser (Energy), Planning Commission. He was also member, Gas Pricing Committee.
The remarks clearly run contrary to a statement by Director General of Hydrocarbons V.K. Sibal recently that the office of the Comptroller and Auditor General (CAG) of India had already carried out the necessary audit on the matter.
"We are still to complete the audit of Reliance Industries' books. We don't have the mandate to audit the books of a private company. That is why the books were not made available to us," said Vinod Rai, CAG of India.
"We are in touch with the government to complete the audit at the earliest," Rai said, even as officials at the audit office said a letter had been written to the oil ministry to get relevant documents and responses from Reliance.
Subsequently, the Director General of Hydrocarbons - the regulator and custodian of the country's oil assets - had said that the capital expenditure was above board since the official auditor has duly looked it into the same.
"The CAG (Comptroller and Auditor General) team has carried out the audit work. A CAG audit has recently been completed," Sibal had said in a statement, while seeking to give a clean chit to Reliance Industries.
"The idea of gold-plating betrays a lack of knowledge of business economics. Inflating the expenditure does not benefit any stakeholder -- neither the contractor nor the government," he said.
"No company would like to increase its investment unproductively. Every additional dollar of wasteful investment dents the profit of the contractor."
But the Anil Ambani group had said that Reliance Industries had deliberately inflated the capital expenditure, adding that the same will result in losses worth billions of dollars to the government.
The Anil Ambani group said based on the original estimate of the gas output of 40 million units a day, when the fields were handed over to Reliance Industries, the capital expenditure was pegged at $2.5 billion.
How can this more than triple to $9 billion when the output has been envisaged to only double to 40 million units, questioned the Anil Ambani group which is fighting a bitter legal battle with Reliance Industries over the Krishna-Godavari gas.
In June, the Bombay High Court asked Reliance Industries to supply 28 million units of gas from the fields to Anil Ambani-led Reliance Natural Resources for 17 years at $2.34 per unit.
But Reliance Industries challenged the verdict in the Supreme Court, which heard the case July 20 and fixed Sep 1 as the next date of hearing. The court also asked all parties to file their replies on the government position on the matter by then.
The MoU, signed on June 18, 2005, states: "Kokilaben recognises...a long-term stable source of gas from RIL, which has the largest find of gas, was absolutely essential for the growth plans of the Anil Ambani Group and in order to enable Anil to carry REL to even greater heights. Kokilaben has therefore specially stressed and impressed upon Mukesh, and Mukesh shall personally ensure that at the time of finalisation of the binding gas supply agreement the terms provide the required comfort and stability in this agreement.''
This portion of the MoU was read out to TOI on Saturday by Anil Ambani during a phone conversation. He did so in response to a question about the basis of his claim that Mukesh had broken his trust.
Anil said: "I can do no better than to quote the relevant extracts from the corporate restructuring MoU of 18th June 2005, which fully capture what Mukeshbhai had committed to my beloved mother, Kokilaben.''
If Anil Ambani's claims are right, this is the first time Kokilaben's views, as recorded in the MoU between the brothers, are coming to light in public.
Quoting the MoU, Anil said this was why he insisted that Mukesh was violating the word given to their mother. "If you do not respect the very word given to your mother, then what is left in life?'' he asked rhetorically.
Anil also maintained that Mukesh was unwilling to let Kokilaben settle the dispute. He said: "My respected elder brother has already made it amply clear, both within the family and externally, that he does not visualise any further role for my respected mother in resolving this matter or any other matter.''
At one stage of the conversation, Anil said the family dispute over gas was affecting his immediate family. "Tina (his wife) and Anmol (his elder son) were present during my speech (at the recent RNRL AGM). They so were so emotionally distraught they simply could not hold back their tears. When I reached home, my younger son Anshul was in tears when he saw me.''
Asked about his accusations against oil minister Murli Deora, and why he would favour Mukesh when he was close to the entire family, Anil said, "I have known Murli uncle and Hema aunty (Deora's wife) and their sons Mukul and Milind for several decades...almost my entire life. But more on his relationship with Mukeshbhai and with me perhaps some other time.''
http://economictimes.indiatimes.com/News/News-By-Industry/Energy/Oil-Gas/Ambani-MoU-has-mothers-views-on-gas/articleshow/4873066.cms
CAG has no access to RIL's capex data
9 Aug 2009, 0204 hrs IST, Rajeev Jayaswal & Supriya Shrinate, ET Now
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'CAG couldn't audit capex of KG-D6 as it has no access to its accounts,' he said requesting anonymity. According to the law, CAG's jurisdiction is limited to the public sector. A minister confirmed that CAG is yet to audit KG-D6 capex plan. 'Its (auditing) is already in the process,' he said requesting anonymity.
Earlier this week, VK Sibal, director general in the Directorate General of Hydrocarbon (DGH) had said: 'A CAG audit has recently been completed.'
Refuting the allegation in a message on his website that the RIL-Niko combine has escalated cost for development of KG-D6 Mr Sibal said: 'Even the whole process of expenditure starting from management committee review/approval of work program and budget to purchase and procurement of materials & equipments are amenable to CAG audit. The CAG team has carried out the audit work.'
The DGH, a technical arm of the oil ministry, is also custodian of the country's hydrocarbon assets. The oil ministry is still hopeful to conduct a CAG audit on the capex of gas production from the KG-D6. 'The process is on but it is not progressing as RIL is not willing to provide required information,' a ministry official requesting anonymity said. The government is trying to audit KG-D6 since 2007. RIL didn't respond to an ET query. According to the oil ministry officials, CAG has been also undertaking audits of several oil companies such as ONGC and OIL.
| Also Read |
| → Not favouring Mukesh: OilMin to PMO |
| → Ambani dispute to have no impact on NELP auction: Govt |
| → Mukesh Ambani 'hurt' by personal comments |
| → Gas row: Ambani brothers trade charges |
The controversy over the KG-D6 capex issue erupted earlier this week after the Anil Ambani-led Reliance Natural Resources Ltd (RNRL) demanded that the CAG audit should be made public. RNRL alleged that by inflating expenditure, the contractor is making unjustified profit.
The oil ministry refuted the charge. 'The development cost (capex) approved by the management committee (having representation of the government and DGH) are broad numbers which are used to work out the economics of a project over its life time,' an official in the ministry, who didn't wish to be named, said.
'On direction of the petroleum ministry, DGH had already verified the capex of KG-D6 through two reputed experts. Both the reports validated the capex estimates as approved by the management committee,' he said
| Drill starts for new oil hunt - RIL gas row fails to deter aspirants | ||
| OUR SPECIAL CORRESPONDENT | ||
Mumbai, Aug. 8: The government today launched the eighth round of the New Exploration Licensing Policy (Nelp-VIII). This is the largest-ever auction of oil and gas exploration blocks and the Centre hopes that the latest edition will attract $3-4 billion in investments from both domestic and foreign players. The exercise comes at a time when the Ambani brothers are engaged in a dispute over gas supply from the Krishna Godavari basin. However, petroleum ministry officials feel the row will not have any impact on the auction. "There will be no effect because of this. I don't see any adverse effect on the bidding rounds," petroleum secretary R.S. Pandey said. On April 9, India had launched the eighth round of auction of blocks under Nelp and August 10 was fixed as the last date for bidding. But it was deferred within a week over ambiguity on tax holidays for natural gas. After finance minister Pranab Mukherjee extended the seven-year income tax holiday to natural gas production in this year's budget, the government decided to relaunch the auction. The last date for bidding is October 12. Several multinational and domestic oil companies were present at the first roadshow for Nelp-VIII today. Apart from domestic majors such as Oil and Natural Gas Corporation Ltd, Bharat Petroleum, Hindustan Petroleum, Indian Oil and Reliance Industries, overseas majors Niko, BG, Cairn Energy and Shell were present. Under Nelp-VIII, the government is offering 70 exploration blocks covering an area of 1,63,535 sq km. It is also making a simultaneous offer of 10 blocks under the fourth round of coal bed methane policy (CBM-IV) for exploration and production of the gas. The blocks offered under CBM-IV cover an area of about 5000 sq km and are spread over seven states. So far, 68 oil and gas discoveries have been made under Nelp in 19 exploration blocks Pricing issue Reiterating its earlier stand, the Centre today said that while oil and gas prices would continue to be fixed on an arm's length basis, it would be subject to the government's approval before sale. "The production sharing contract provides for gas sales on arm's-length basis, but there is another provision that it has to be approved by the government prior to the sale," Pandey said. |
Indian ADRs gain $3 bn in a week
For the week ended August 7, Indian entities listed on the New York Stock Exchange and Nasdaq added USD 2.97 billion to their market capitalisation, with Wipro's valuation alone climbing by USD 1.23 billion.
Among the 16 companies trading as American Depository Receipts (ADRs), another major gainer was auto maker Tata Motors whose valuation shot up by USD 383 million.
IT firm Mahindra Satyam's market capitalisation rose by USD 323 million, while that of IT bellwether Infosys Technologies grew by USD 316 million.
Apart from Wipro, Mahindra Satyam, Infosys and Tata Motors, BPO firm Genpact and private sector lender ICICI Bank too witnessed significant increase in their respective market capitalisation.
Genpact's valuation went up by USD 248 million, while market capitalisation of ICICI Bank ascended to USD 150 million in the last week.
However, during the week, telecom major Mahanagar Telephone Nigamm Ltd (MTNL), IT firm Patni Computer System and outsourcing company EXLService were the only three losers.
Patni Computer shed USD 36 million, MTNL declined by USD three million and EXLService dipped 0.6 million to its valuation.
Far-fetched it may seem, but the analysis holds good even on a three year and one year timeframe. Over a three year period, twelve companies, which are currently trading in the Bombay Stock Exchange, have appreciated by around 54%, which is about 10 percentage points higher than the Sensex rise.
A total of about 77 companies were incorporated in 1947, of which 12 companies are currently trading on the Bombay Stock Exchange. Of these 12, four companies — Grasim Industries, Wyeth, Novartis India and Piramal Healthcare — have a stock market trading history since 1991. Other companies got listed later.
In the last one-year, the 23-year-old Sensex has appreciated merely 3%, whereas these 62-year-olds companies as a group rose 17%. Of these, companies such as Avery India, Novartis India and Wyeth rose 119%, 50% and 58% respectively in the last year.
Experts say their success has less to do with the year they were born, and has more to do with their inherent performance and the sectors they are in.
According to Aseem Dhru, MD & CEO at HDFC Securities, the main focus of the government in the years after independence was on the core sector, an area that continues to be in vogue, despite the disparaging "old economy" tag associated with these industries.
"In current market condition when focus is on the domestic demand, there is no surprise if companies from old economy are performing well," he said. The country's largest maker of auto batteries Exide Industries, one of the companies born in 1947, for instance generated a return of 358% and 146% in the last five and three years respectively.
In the last six months, it shares have appreciated more than 28%, tracking the 40% growth in its operating profits.
According to Vineeta Jain, head of research & index management at Eastwind Capital Advisors, a major reason for the better performance of these companies is their long history, which also showcases their resilience.
It probably helps that four of these companies are from the pharmaceutical sector, which showed a relatively better performance in the last year.
In the last six months, it shares have appreciated more than 28%, tracking the 40% growth in its operating profits. According to Vineeta Jain, head of research & index management at Eastwind Capital Advisors, a major reason for the better performance of these companies is their long history, which also showcases their resilience. It probably helps that four of these companies are from the pharmaceutical sector.
Top 10 companies lose Rs 35,020 cr mcap in a week
The country's most valued firm, RIL, and state-run NMDC added Rs 6,106.61 crore and Rs 7,314.87 crore, respectively, to their valuations during the week ended August 7. RIL's market cap rose to Rs 3,14,129 crore at the end of the week.
Among losers, Bharti Airtel suffered the most with its market cap falling by Rs 10,157 crore to Rs 1,45,723 crore during the week. Shares of the company plunged 6.51 per cent last week and closed at Rs 383.80 on the BSE on Friday.
State-run firms ONGC and NTPC lost Rs 5,657.31 crore and Rs 2,762.23 crore respectively in their market cap last week. The total market valuation of ONGC stood at Rs 2,43,414 crore, while that of NTPC was Rs 1,75,010 crore on Friday last week.
NMDC jumped to fourth last week from the sixth slot in the previous week after adding Rs 7,315 crore to its market cap, taking its market valuation to Rs 1,49,707 crore.
Trading firm MMTC slipped to the sixth slot last week from its earlier fourth position after losing Rs 4,679 crore from its market valuation. Its market cap was Rs 1,44,197 crore on Friday last week.
IT bellwether Infosys Technologies lost Rs 1,261 crore from its market cap at Rs 1,17,013 crore last week. The valuation of country's largest lender, SBI, dipped by Rs 4,581 crore to Rs 1,10,587 crore during the week.
Power equipment maker BHEL lost Rs 2,372 crore in its valuation, while market cap of Tata Consultancy Services declined by Rs 3,552 crore last week.
Besides the top-10 firms, two private sector lenders ICICI Bank and HDFC Bank together lost Rs 6,830 crore from their market valuations. At the end of the week, the total market cap of ICICI Bank stood at Rs 82,170 crore and HDFC Bank at Rs 59,418 crore.
In the club of top-10 firms, RIL is followed by ONGC (Rs 2,43,414 crore), NTPC (Rs 1,75,010 crore), NMDC (Rs 1,49,707 crore), Bharti Airtel (Rs 1,45,723 crore), MMTC (Rs 1,44,197 crore), Infosys (R
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