Iran Plays Hardball With European Oil Buyers, Slowing Exports

LONDON: Iran has managed to sell only modest volumes of oil to Europe since the lifting of sanctions seven weeks ago and several former buyers are staying away, citing legal complications and Tehran's reluctance to sweeten terms to win back customers.

Tehran had been unable to sell crude to European firms since 2012 when the EU imposed sanctions over its nuclear programme, depriving it of a market that accounted for over a third of its exports and leaving it relying completely on Asian buyers.

Since the restrictions were lifted in January, Iran has sold four tankers - 4 million barrels - to Europe, including to France's Total, Spain's Cepsa and Russia's Litasco, according to Iranian officials and ship-tracking data.

That equates to only around five days' worth of sales at the levels of pre-2012, when European buyers were purchasing as much as 800,000 barrels per day (bpd) from the country

Many former big buyers - including Anglo-Dutch major Shell, Italy's Eni, Greece's Hellenic Petroleum and trading houses Vitol, Glencore and Trafigura - are yet to resume purchases.

A lack of dollar clearing, the absence of an established mechanism for non-dollar sales and the reluctance of banks to provide letters of credit to facilitate trade have been obstacles since sanctions were lifted.

But some former major buyers also cited Tehran's unwillingness to loosen its selling terms from four years ago, and offer flexibility on pricing, despite the world having become oversupplied with oil and Iran's European market share seized by Saudi Arabia, Russia and Iraq.

"Iran is not flexible with terms. They still impose very old-fashioned destination clauses telling you where you can and cannot take your crude," said a senior oil trading executive, who asked not to be named due to the sensitivity of the issue.

"It was okay a decade ago but the world doesn't look like this anymore."

Iran, like top OPEC exporter Saudi Arabia, generally imposes destination clauses that forbid reselling of its crude, to retain control over who receives its supplies, and sets official selling prices for its crude grades every month.

By contrast, Iraq - the world's fastest-growing oil exporter in the past year - allows buyers to resell crude at prices below its official ones.

A spokesman for the state-run National Iranian Oil Company (NIOC) could not be immediately reached for comment.

But its oil export chief Mohsen Ghamsari told Reuters last week that European buyers were cautious about boosting trade immediately because of banking and ship insurance difficulties, and that he expected sales to rise from this month.

He ruled out applying discounts to monthly official selling prices but said he could consider improving the pricing mechanism on some cargoes to attract European buyers.

NO DISCOUNTS

Before 2012, Iran was exporting around 2 million bpd, with the bulk going to the Asian countries, which retained most rights to buy Iranian oil when the EU imposed sanctions but informally agreed to limit their collective purchases of Iranian crude to around 1.2 million bpd. Tehran has been banned from selling oil to the United States since the 1979 revolution.

NIOC aims to increase exports by 500,000 bpd this year, said Ghamsari. Other than Europe, its main targets for increased sales in Asia are China, India and South Korea, he added.

Iranian oil sales to Asia are estimated to have increased by around 100,000-200,000 bpd in February, after the end of sanctions, which paved the way for Iran to rejoin the global banking transaction network.

The terms being offered to Asian buyers are unchanged since before the lifting of sanctions, but companies in Asia face fewer obstacles than in Europe when buying Iranian oil.

"We looked at options of buying Iranian oil," said another senior executive, from a major trading house in Europe. "We saw that shipping complications made it around $1 per barrel more expensive than rival grades. But when we spoke about discounts - we were told it would not happen."

Olivier Jakob from Petromatrix consultancy said it was possible that Iran did not want to appear "distressed" by offering discounts.

"But maybe it is a sign that unlike Iraq they don't have a massive surplus of oil they need to sell urgently," he added. "When your oil is flowing fast and filling up tanks, you need to get rid of it quickly. So it remains unclear how fast Iran can ramp up output and exports after years of sanctions."

Iran and Saudi Arabia, whose status as the world's top exporter gives it more market clout, are the main oil producers to set their monthly official prices using the BWAVE index.

Iraq and its semi-autonomous region of Kurdistan set prices against dated Brent and Kuwait has also recently switched to dated Brent from BWAVE, citing requests from customers and the need to become more competitive.

Most European buyers say they prefer the dated Brent index to BWAVE, which has proven to be a more expensive option over the past year due to its calculation method.

Russian, Nigerian and Angolan crudes trade at daily changing differentials versus dated Brent, often giving buyers even more flexibility.

Ghamsari said he could consider selling some spot cargoes at dated Brent while sticking with BWAVE for its term contracts. Most buyers say, however, they haven't seen many spot cargoes being offered by Iran so far.

LESS FLEXIBLE

A third trading source suggested Iran may be waiting until oil prices - hovering at $40 per barrel, near lows seen during the 2008 financial crisis - pick up further before taking steps to regain market share.

"It is a very strange dynamic. As soon as Iran opened up they became less flexible. This is the wrong strategy with too much oil around," said the source.

"You could think the Iranians have no incentive to increase their production while the prices are low. They lived like it for years already - they can cope with another few months."

A source familiar with NIOC's thinking said it would not consider offering discounts to win back market share as it would mean an escalation of a price war and would not benefit Iran or its customers.

All in all, Iran seems to be taking its usual "slow and rather philosophical approach", according to another senior trading source.

"When you ask them: "Why are your prices so bad?", they tell you: "You see - you are asking and that means you are interested."

 

Source :economictimes.indiatimes.com

Renault Bets High On Mauritius As First Export Market For Kwid

Renault, which shipped the first lot of Kwid to Mauritius last month from Chennai port, is aggressively tapping the island country as its first export market for the hatchback.

The company had earlier said that it would begin exports of the Kwid to SAARC countries. While the carmaker has shipped some units to Sri Lanka, full-fledged exports have started to Mauritius, according to foreign trade data.

Sumit Sawhney, CEO and MD, Renault India, had earlier said that the company was initially looking to export the Kwid into foreign markets and would ramp up volumes later. A total of 37 cars were shipped to Mauritius on February 5.

Meanwhile, with increased domestic demand for the Kwid, the carmaker was finding it difficult to ramp up the export volumes.

Based on the CMF-A platform and developed by the Renault-Nissan Alliance, the Kwid has received a tremendous response from Indian customers and there is a waiting time of four-six months at present.

Given the overwhelming response, Renault India aims to ramp up production of Kwid to 10,000 units this month. The Renault-Nissan factory in Oragadam, near Chennai, will soon begin the third shift to increase the output of Kwid.

The alliance plant of Renault and Nissan will begin third shift operations to increase production of Renault cars-most of which are Kwid. At present the factory works in two shifts and rolls out 1,000 cars a day. The increase in production will bring down the current waiting period to three months from the current six to seven months.

Apart from the SAARC region, Renault India would also be exporting the Kwid to Brazil, Africa and other parts of Latin America through the CKD route.

Source :.business-standard.com

Low Production Likely To Shrink Pepper Exports

 Vietnam has pushed India to third position in the global pepper market and exporters now foresee competition from Sri Lanka and Brazil.

India's average production of pepper is 65,000 tonnes in the last three years and the country exports 20,000-22,000 tonnes a year. Unfavourable weather in Kerala and Karnataka may cause production to decline to 53,000 tonnes in 2015-16. Production in Vietnam may rise 10 per cent to 150,000 tonnes.

"Indian production has declined and competing nations have raised their output in recent years," said Jojan Malayil, chief executive officer at Bafna Enterprises, an export house in Kerala.

The Spices Board has estimated 53,000 tonnes of pepper production in 2015-16 against 65,000 tonnes a year ago and exports are likely to be 20,000 tonnes.

"Unfavourable weather in Kerala and Tamil Nadu caused the fall in production. Some parts of Karnataka, too, have faced a pest attack," said A Jayathilak, chairman of the Spices Board.

India consumes 80-85 per cent of its production but this year pepper prices have climbed, making exports unviable. "Lower production has raised Indian pepper to over $10,000 a tonne while Vietnam is offering the spice at $7,500 a tonne," Malayil said.

Low production likely to shrink pepper exports
The price of pepper has risen from Rs 630 per kg in December to Rs 700 now.

The Indian spice industry feels the country needs to import 20,000 tonnes of pepper to meet demand for value addition. "We need to import about 20,000 tonnes this year against 17,000 tonnes last year," said a Kochi-based spice trader.

Of the 10,000 tonnes black pepper imported between April and September, the major chunk is from Sri Lanka and Vietnam.

According to Jayathilak, the carry forward stock in world markets this year will be 17,000 tonnes lower because of rise in consumption. In India, the carry forward stock for next year will be 2,598 tonnes against 9,598 tonnes in the current year.

 

Soucre :.business-standard.com

Global Cues May Push Up Sugar Prices

Sugar prices are likely to move up in local markets following global trends and the possibility of exports incentives by the Maharashtra government.

Against a four per cent increase to Rs 33.5 a kg in the local wholesale markets so far in 2016, sugar prices are up 18 per cent in the world market.

If prices rise further, it would be a breather for crushing mills. Barring a couple of sporadic instances, prices have remained way below production cost during the past four years. Most mills incurred massive losses in the past few financial years. Both the central and state governments have announced incentives to save mills from going bankrupt.

“Of late, sugar prices in India have started following the global trend. Over the past few months, sugar prices have moved up significantly in global markets but lagged locally. From now on, sugar prices would move up in local markets,” said an analyst with one of the largest trading firms.

International Sugar Association and some other research organisations have forecast a global deficit of 2-4 million tonnes (mt) in 2016 due to crop damage in Brazil.

“So, this will give a chance to India to export a large quantity of sugar this year to which the government has fixed a cap of 3.2 mt. The quantity equivalent to export would reduce domestic availability and supply pressure thereupon. Since we have forecast sugar output in India to remain lower at 26 mt, exports are needed to reduce domestic supply pressure,” said Abinash Verma, director general, Indian Sugar Mills Association.

The sugar sector estimates 7.5 mt of carryover stocks from the last year. There would be a surplus production of 3 mt, which would result in 10.5 mt of overall supply for the current crushing season ending September 2016.

To reduce supply pressure, the Centre has announced Rs 4.5 per quintal of cane crushed production subsidy, which helped producers to contract 1.25 mt of white sugar for exports. Of this, 1 mt have moved out of factories.

The Centre recently held a meeting with state chief and corporation ministers briefing them about the lackadaisical performance of fulfilment of export quota by mills in Maharashtra, the largest producing state contributing 25 per cent of India’s sugar output.

 

 

source :.business-standard.com
 

Made-In-India Baleno Goes On Sale In Japan

Speaking at the launch ceremony held in Tokyo today, H.E. Sujan R Chinoy, Ambassador of India to Japan, said, “Maruti Suzuki exports to over 125 countries including those in Europe, which is proof of their quality. The Baleno is a state-of-the-art car developed and manufactured in India through Suzuki’s excellence. It will be exported to 100 global markets including Japan. I am confident that the Baleno will prove to be a huge success in Japan. I wish the launch complete success.”

Kenichi Ayukawa, MD and CEO, Maruti Suzuki India, said, “A landmark moment like this is a true testimony to the success of Indian government’s ‘Make in India’ campaign. The launch of the made-in-India Baleno in Japan is a proud moment for all of us. This reaffirms Maruti Suzuki’s manufacturing potential and growing importance of Maruti Suzuki India in Suzuki Motor Corporation’s global business strategies. I am confident our Baleno would be well accepted by Japanese customers as well.”

The made-in-India Baleno, which was shipped to Japan last month, will be offered in two variants — 1.0 Boosterjet direct-injection turbo engine (XT) and 1.2 Dual-jet naturally-aspirated engine (XG). While the 1.2-litre variant is on sale now, the 1.0-litre variant will be available from May 13.
japanes-baleno

SMC claims the Japanese-spec Baleno delivers fuel efficiency of 20 kilometres per litre (kpl) for the 1.0 Boosterjet variant and 24.6kpl for the 1.2 Dualjet variant. In comparison, Maruti Suzuki India claims the Indian-spec, 1.2-litre VVT petrol Baleno delivers 21.4kpl.  

Among the additional features available on the Japanese-spec model are Radar Brake Support (RBS) and Adaptive Cruise Control, similar to the left-hand-drive Balenos exported to Europe last month.

Autocar Professional had exclusively reported last month that the first export consignment of 1,760 made-in-India Balenos had reached Japan. The right-hand-drive, automatic (CVT-equipped) hatchbacks, which were despatched from Mundra Port in Gujarat, were unloaded at the Toyohashi Port on February 15.

This marks the first time that a domestic carmaker has exported an India-made car to the Japanese market. Maruti also plans on exporting the Baleno to over 100 markets worldwide. Initial volumes of 5,000-6,000 units a month are on the radar as exports to Japan and Europe.

Launched on October 26, 2015 in India, the Baleno has been a big hit in the Indian market and has managed to capture a significant share in the premium hatchback segment. Till January 2016, the carmaker had sold over 38,000 Balenos in the Indian market till date and is said to have over 100,000 bookings in the bag.

While the India-spec car is available in both petrol and diesel engine options, the 1.0-litre Boosterjet version (Baleno RS), showcased at the Auto Expo 2016, is set to be launched in India later this year.

 

Source :.autocarpro.in

Soya Meal Exports Hit New Lows In Feb

 

India’s soya meal exports are losing market to competing suppliers from North and South America. Exports from India dipped to a historic low at 1,127 tonnes for the month of February 2016, as against 64,515 tonnes in the same month last year.

The decline was due to sustained higher prices of the domestic soybean, which made meal production costly, thereby making it unviable to compete globally.

Currently, FOB/FAS Indian soybean meal is quoted at $480 per tonne against Argentina origin soybean meal CIF Rotterdam at $321 per tonne. Indian soybean meal is out priced by about $160 per tonne in the international market.

Davish Jain, Chairman of The Soybean Processors’ Association of India (SOPA), Indore, maintained that the rising cost has made it unviable to compete globally.

“We are completely out-priced by global competitors. Crushing activity has reduced and several millers have closed their operations because of the disparity in prices,” said Jain.

So far, during the current financial year up to February 2016, soya meal exports stood at 70,392 tonnes as compared to 5,99,818 tonnes in the same period last year, showing a drop of 88.26 per cent.

At Indore spot market, soya meal prices have come down from ?39,250 per tonne in May 2015 to about ?32,800 by February 2016. However, it continues to be costlier to export it to the key markets like Japan, the US and Iran, where the Indian soya meal commanded almost monopoly.

Meanwhile, in the current oil year (October 2015-September 2016), total exports of soya meal till February 2016 stood at 27,647 tonnes, as against 5,02,958 tonnes last year, down by 94.50 per cent.

Solvent Extractors’ Association of India (SEA) data put the total oil meal exports for February 2016 at 53,866 tonnes, as compared to 208,499 tonnes in the same month last year, indicating a drop of 47 per cent. Raising its concerns about dipping exports and its impact on crushing activity, the SEA noted that capacity utilisation has touched its lowest, and that the industry was experiencing a tough time with many plants operating at low capacity or even closing down.

The overall export of oil meals during the April 2015-February 2016 period, fell 52 per cent to 1,092,905 tonnes, against 2,256,436 tonnes during the same period of the last year. The same was 3,969,903 tonnes in 2013-14, a SEA statement said.

Rapeseed meal exports have also reduced to one-third of last year primarily due to high cost. Average FOB price continued to be higher for rapeseed meal which stood at $304 per tonne in February, which was $253 in March last year.

Among the oil meal complex, castorseed meal had encouraging export numbers, with growth registered over the last month. Castorseed meal exports grew to 414,311 tonnes in the April-February period, against 386,831 in same period last year.

 

Source :.thehindubusinessline.com

Rupee Trades Weaker Against Us Dollar At 67.38

Mumbai: The Indian rupee on Tuesday weakened against the US dollar, tracking losses in the local equity and Asian currencies market.

At 4.10pm, the home currency was trading at 67.38, down 0.42% from its previous close of 67.10. The rupee opened at 67.21 and touched a high and a low of 67.21 and 67.42 respectively.

India’s benchmark Sensex index gained 0.050% or 12.75 points to 24,659.23.

Meanwhile, India’s 10-year bond yield was at 7.629%, as compared with its Friday’s close of 7.633%.

Since the beginning of this year, the rupee has lost 1.81%, while foreign institutional investors have sold $2.01 billion from local equity and $1.12 million in debt markets.

Most of the Asian currencies were trading lower. Indonesian rupiah fell 0.57%, South Korean won 0.437%, Singapore dollar 0.469%, Malaysian ringgit 0.508%, Taiwan dollar 0.082%. However, Japanese yen was up 0.523%, China renminbi 0.166%, Philippines peso 0.32%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.056, down 0.02% from its previous close of 97.071.

China’s overseas shipment tumbled 25.4% in US dollar terms from a year ago, while imports extended a streak of declines to 16 months, slumping 13.8%, leaving a trade surplus of $32.6 billion.

Traders are cautious ahead of the European Central Bank (ECB) meets on Thursday and there is expectation of further action from the ECB especially since the inflation data was weaker than expectation.

 

Source :.livemint.com

Steel Imports Have Come Down By 1/4Th Against Fy15: Steel Ministry

NEW DELHI: Steel Ministry has brought down the import of steel, an issue that has eroded profitability of the domestic producers, by almost one-fourth in the first eleven months of this fiscal.

"Through various measures like import and safeguard duty, minimum import price and quality control order, the ministry has curtailed steel imports by almost one-fourth in April-February period this fiscal," Steel and Mines Minister Narendra Singh Tomar told PTI.

During last fiscal, imports of the metal had risen by about 71 per cent, he added.

The minister said the checks were needed to protect the domestic industry as the global downturn led to countries including China dumping cheap steel in India, which has impacted the sales and profits of the companies.

According to data by Joint Plant Committee of the Steel Ministry, imports grew 71 per cent to 9.321 million tonnes (MT) in 2014-15 compared to the previous fiscal, with India remaining a net importer in the previous fiscal.

Import of steel during the eleven months of the current fiscal grew 20.5 per cent to 10.215 MT, while inbound shipment in February 2016 decreased 0.1 per cent to 0.91 MT compared to previous month and was down 7.3 per cent against February 2015. This has been four consecutive months of decline in steel imports.

However, India remained a net importer of total finished steel in the current fiscal so far.

Tomar said to protect the domestic producers, government has imposed a minimum import price in 174 steel products last month.

In July and August last year, the peak customs duty was raised on steel to 15 per cent, while anti-dumping duty was imposed on certain grades of steel products during June and December 2015, he added.

Besides, a provisional safeguard duty of 20 per cent was levied on hot rolled steel coils for a period of six months, Tomar said.

Speaking to reporters later, Tomar said India has become the world's third largest steel producer last year leaving behind the US.

"Since May 2014, steel companies, including state-run SAIL and RINL, have added 16 MT of capacity with an investment of around Rs 1 lakh crore," he said.

India's steel production rose 7.9 per cent to 88.12 MT in 2014-15 fiscal compared with the previous fiscal.

On the ongoing first phase of mine auctions, Tomar said out of the 43 blocks offered, six have been auctioned.

"The states will earn a total revenue of Rs 14,855 crore from these six blocks. In the second phase the 12-mineral bearing states will offer about 42 mineral blocks for auction, which will take place in the next fiscal," he added.

 

Source :economictimes.indiatimes.com

February Coal Imports Inch Up For First Time In 8 Months, Official Says

NEW DELHI: India's coal imports inched up 1.7 per cent in February, the first rise in eight months, coal secretary Anil Swarup told Reuters on Monday, but suggested it may have been a temporary increase based on deals signed earlier.


Imports rose to 16.79 million tonnes from 16.51 million a year ago, ending a downward trend that began in July and lasted until January.


"This is just a marginal increase ...," Swarup said. "It could be on account of a booking made earlier by an importer."
Top Comment
okdeepak baindur


State behemoth Coal India has been boosting output at a record pace though consumption has grown slower than expected, forcing the company to scale down activity in some mines.


India does not have enough good quality resources of steelmaking coal and that grade is imported from countries such as Australia and South Africa.

 

Source :timesofindia.indiatimes.com

Indian Railways Plans To Import Crude Oil To Improve Finances

The rail ministry has embarked on a drive to reform the financially struggling 160-year-old national transporter through a range of initiatives.

The plan, described by the Railway Board's Financial Commissioner S Mookerjee as a "dream", would be implemented over five years. It includes cost optimisation by importing crude oil and procuring refining capacity from oil marketing companies on lease, which would reduce diesel inventories by a third to a mere five days. The railways would raise additional revenue by focusing on export of rolling stock, expanding the freight basket and monetising its vast data bank.

"We are working on a policy that would allow 10 per cent of our rolling stock production capacity to go into producing and exporting rolling stock rather than having it in-house so that our production facilities also stand up on their own feet. We have a target of Rs 4,000 crore of exports by 2020, through exports of machinery and plant," Mookerjee said.

Stressing on cost optimisation, he said reduction in expenditure by cutting down diesel inventories had given the railways relief of around Rs 2,000 crore. "We are also exploring a policy to procure crude oil and then take refining capacity on lease. This is a new thing we are trying to do from next year. This will be in addition to the savings from continued direct purchase of electricity," he said.

Indian Railways consumes around 2.8 billion litres of diesel annually, costing Rs 18,000 crore (around 18 per cent of the net ordinary working expenses).

In addition, the transporter spends around Rs 12,300 crore annually to purchase 17.5 billion units of electricity. About 30 per cent of the fuel bill goes into paying state taxes.

Other initiatives on cards are setting up a dedicated planning and investment organisation for strategic appraisal of projects; redesigning the Railway Board by reclassifying Board Members as Member-Mechanical or Member-Engineering with a new classification on "functional lines" including Member-Freight and Member-Passenger; and creating new directorates for speed and information technology services.

To shore up revenues, the ministry would focus on monetising its data and Intellectual Property Rights (IPRs) and also revamp focus on advertising revenue. Further, the ministry might soon announce a revised freight tariff structure to claw back the Railways' lost modal share in freight.

Mookerjee said the Railways' total cost savings of about Rs 8,700 crore for 2015-16 announced in this year's Budget was likely to go up to Rs 10,000 crore by the end of March 2016. The rail ministry also wants to tackle the Pay Commission impact of Rs 12,000 crore on account of salaries and another Rs 8,000 crore on pension payments by tapping into the debt service fund, which has a balance of Rs 4,000 crore, apart from the Rs 3,000 crore parked in the pension fund.

 

Source :business-standard.com

India's Oilmeals Exports Down 74% In February: Solvent Extractors Association

NEW DELHI: Oilmeals exports fell by 74 per cent to 53,866 tonnes last month due to a sharp fall in soyabean and rapeseed meal shipments, industry body SEA said today.

The country had shipped 2,08,436 tonnes of oilmeals, used as animal feed, in the same period last year.

The overall export of oilmeals during the April-February period of this fiscal fell 52 per cent to 10.92 lakh tonnes, against 22.56 lakh tonnes in the previous year, Solvent Extractors Association (SEA) said in a statement.

"The export of soyabean meal is at a historical low... Soyabean crushing is very much reduced due to continuous disparity and high price of domestic market affecting overall domestic availability of both oils and meals. The capacity utilisation is at the lowest," Mumbai-based SEA said.

The industry is passing through a very "tough and rough time" and many plants have been closed down or operating at very low capacity due to disparity in crushing and export, it said.

Currently, Indian soyabean meal is quoted at USD 480 per tonne on Freight on Board (FOB) against Argentina origin soyabean meal at USD 321 per tonne. "Indian soyabean meal is totally outpriced by about USD 160 per tonne in international market," the industry body said.

As per the SEA data, soyabean exports declined to 1,127 tonnes in February this year, from 64,514 tonnes in the year-ago period.

Similarly, rapeseed meal exports dropped to 9,803 tonnes from 62,545 tonnes, while that of ricebran extraction declined to 2,000 tonnes from 29,820 tonnes in the said period.

Export of castorseed meal also declined to 40,440 tonnes in February this year from 51,494 tonnes in the year-ago period, the data showed.

India exports oilmeals to countries including South Korea, Vietnam, Thailand, Taiwan, Indonesia, Oman and Myanmar.

 

Source :economictimes.indiatimes.com

India's Oil Import From Iran Rises By A Fifth In February

India's oil imports from Iran rose by over a fifth in February, the first month after a nuclear deal that lifted restrictions on Tehran's oil exports, preliminary tanker data obtained by Reuters shows.

Iran emerged from years of economic isolation in January when world powers led by the United States and the European Union lifted crippling sanctions against the OPEC oil producer in return for curbs on Tehran's nuclear ambitions.

Iran is working to regain market share after sanctions relief and exports had already risen by 500,000 bpd in February, Mohsen Ghamsari, director of international affairs at National Iranian Oil Co, told Reuters on Tuesday.

New Delhi shipped in 215,500 bpd from Tehran in February, a rise of about 21 per cent from last month and more than double the about 111,000 bpd in the same month a year ago, the data showed.

India had to cut imports from Iran in February 2015 under pressure from western sanctions.

The sanctions had cut Iranian crude exports from a peak of 2.5 million barrels per day (bpd) before 2011 to just over 1 million bpd in recent years.

In February Essar Oil was the biggest buyer of Iranian oil, shipping in 110,200 bpd, followed by about 69,500 bpd by Mangalore Refinery and Petrochemicals Ltd.

MRPL shipped in just one cargo of Iranian oil in February.

Indian Oil Corp, which rarely buys Iranian oil, received a cargo of oil equivalent to about 35,800 bpd.

A true reflection of the step-up in Indian purchases of Iranian oil will emerge from April, the new contract year, as in the last leg of a fiscal year most companies cut purchases to maintain low inventory ahead of annual results.

Reliance Industries Ltd, which halted supplies from Iran in 2010, is preparing to lift a million barrels each of condensate and oil next month.

Source:- english.manoramaonline.com

Apple Wants To Sell Pre-Owned Iphones In India

Tech giant Apple has sought permission from the government to import pre-owned iPhones for sale in India, Parliament was informed today.

"An application from Apple regarding import of certified pre-owned iPhones for sale in India and manufacturing certified pre-owned iPhones for sale in India has been received in the Ministry of Environment and Forests," Telecom Minister Ravi Shankar Prasad said in a written reply to Rajya Sabha.

Mr Prasad was replying to a question on whether any company has sought permission for refurbishing and selling used mobile phones in the country.

The minister further said the government has not taken any decision on the matter.

Apple is putting more energy in India to cash-in on the booming smartphone market in the country.

The California-based company, which saw total iPhone sales grow by 76 per cent in the country, had earlier said it will continue to invest in markets like India in the long-term.

Recently, Apple has also sent an application for approval to the Department of Industrial Policy and Promotion (DIPP) for setting up retail outlets in India.

India is one of the fastest growing handset markets globally and is poised to overtake the US soon.

Source:- ndtv.com

Make In India: Automakers Ramp Up Production As Export Opportunities Knock At The Door

Three global automobile powerhouses either have started operating their India factories round the clock or are in the process of doing so to meet increasing export demand, in a resounding endorsement of the Prime Minister's call to make in India.

For the past six months, Ford Motor's manufacturing facility in Tamil Nadu is having three shifts a day, which is uncommon in the US carmaker's global operations. Europe's largest car maker, Volkswagen, is set to start a third shift starting next week, while the US No. 1, General Motors, is expected to add another shift from the beginning of 2017.

Interestingly, these companies aren't doing so well in the Indian market, and the incremental output is to cater to markets in Latin America, Europe and Africa.

Auto makers have committed to invest billions of dollars in India, enticed by the local market opportunity as well as its frugal manufacturing capabilities and abundant skilled manpower, which offer a cost-effective location to make small cars and sell them at competitive prices internationally.

In fact, even before Narendra Modi made the call to make in India a year and half ago, making in India for the world had already become part of global car makers' strategy and boardroom discussions. Hyundai Motor and Maruti Suzuki have long been shipping India-made cars to foreign markets, even as they ruled the domestic market as well. Companies such as Nissan and Renault, too, target foreign markets with compact vehicles produced in India. But now, with the government's new push to promote manufacturing in India, companies are expanding production and exporting more, even though the domestic market remains stuck in the slow lane.

"We are committed to position India as a global centre of excellence for manufacturing small cars and low-displacement engines," said a spokesperson for Ford India, which is churning out EcoSport compact SUV for the global markets at its plant near Chennai. "Our unflinching commitment to India is reflected in the aggressive implementation of our growth plans, including more than $2 billion we have invested here so far," he said.

Volkswagen and GM are witnessing strong demand for their India-made cars in Mexico - for the Vento and Beat, respectively. The Vento is already the segment leader in the Latin American country, where it sells double the number compared with India.

With demands of Indian customers also aligning to global markets, it is becoming easier for car makers to serve global markets of Europe and other developed markets out of India

While these car makers have a market share of less than 3-4% in India, experts say high export volume is helping them make local operations viable.

Several vendors supplying to these car makers said while the domestic market is expected to grow by single digit, the likes of Ford India, General Motors India and Volkswagen India are targeting 20-60% jump in 2016 production, clearly indicating their export plans.

The Ford India spokesperson said, with the recently inaugurated manufacturing facility at Sanand in Gujarat and the Chennai factory, the company is well on course to triple its exports from India and sell made-in-India products in nearly 50 markets over next five years.

Volkswagen India managing director Andreas Lauermann said going past the capacity of the two-shift system due to higher demand is an important milestone for the company.

"Volkswagen Pune plant will start off with the third shift soon and will ramp-up the production over the year. This step is necessary due to the rising demand from exports as well as domestic market, especially through the new Ameo. Exports have helped VW to create a natural hedging against the weak Indian rupee and fluctuating domestic demand," Lauermann said.

Volkswagen sees the share of exports to contribute equally with the domestic sales to its total production in the coming few years.

GM, as part of global manufacturing realignment, has given responsibility to India to focus on growth markets. "India will focus mostly on growth markets, as part of GM's global growth strategy and Korea will focus mostly on mature markets," said the company spokeswoman.

With demands of Indian customers also aligning to global markets, it is becoming easier for car makers to serve global markets of Europe and other developed markets out of India.

The quality of cars produced out of India has also improved to such a level that Maruti Suzuki will be exporting India-made Baleno hatchback to Japan and Ford will be shipping the EcoSport to North America starting 2017.

Source:- auto.economictimes.indiatimes.com

Indian Mills Clinch Sugar Exports Deals, First In 2 Months

Indian sugar mills signed export deals this week, the first in nearly two months, as an incentive by the top producing state Maharashtra and a rally in global prices of the sweetener made overseas sales attractive, industry sources told Reuters.

A pick up in exports by the world's second-biggest producer could put a lid on world sugar prices, which climbed to more than one-month highs on Thursday amid worries about lower shipments from top supplier Brazil.

Indian sugar export deals, absent earlier this year due to uncompetitive local prices, are trickling in now following a decision by Maharashtra to "exempt cane purchase tax for mills exporting their quota", said Sanjeev Babar, managing director of Maharashtra State Co-operative Sugar Factories Federation.

Just last week, the western Indian state said it would waive a 3 percent tax on cane purchases for mills that export 12 percent of their output in the year ending Sept. 31.

"This decision, along with the rally in global prices, is encouraging mills to export sugar," Babar added.

According to three dealers, mills have signed contracts this week to export 7,000 tonnes white sugar to Myanmar at around $411 per tonne, free on board (FOB).

"Mills have started approaching us. Earlier we were approaching them, but they were not interested in exports," said a Mumbai-based dealer with a global trading firm.

Offers of Indian sugar need to be at a discount of about $10 a tonne to ICE London front-month futures to be attractive in export markets, dealers said.

But in January, Indian mills were quoting a $30 premium as a threat to domestic output from the first back-to-back drought in three decades kept local prices high. The spread has now turned in favour of the country's exporters as world prices have spiked more than $50 in two weeks.

Indian mills have so far contracted to export 1.15 million tonnes of sugar since the start of season on Oct. 1, of which nearly 1 million tonnes have been dispatched. They have shipped mostly white sugar to Asian countries like China, Myanmar, Sri Lanka and Bangladesh, dealers said.

Indian mills, which have concentrated on exporting whites due to strong demand from Myanmar, are unlikely to produce much raw sugar now as the crushing season is coming to an end.

Already a scarcity of cane has forced more than 100 sugar mills to shut operations ahead of normal schedule.

India's total sugar exports in the current season will be at least 2 million tonnes, said a government official, who did not want to be named as he was not authorised to speak to media.

"We will try to meet our target of 3.2 million tonnes."

Source:- reuters.com

Rupee Trades Higher At 67.32 Against Us Dollar

The Indian rupee on Friday strengthened for the sixth consecutive session against the US dollar, after local equity markets continued to gain. The currency has appreciated in eight out of nine sessions.

At 2pm, the home currency was trading at 67.32, up 0.03% from its previous close of 67.34. The rupee opened at 67.23 and touched a high of 67.22, a level last seen on 14 January.

India’s benchmark Sensex index lost 0.20% or 48.81 points to 24,558.18. Sensex gained over 1,600 points from the last four trading sessions.

Indian markets will remain closed on Monday on account of Mahashivratri.

Traders are cautious ahead of the release of US non-farm payrolls data to be released later in the day

The report on US non-farm payrolls will give investors further insight into the health of the world’s biggest economy and the likelihood of further interest rate hikes by the US Federal Reserve, while China will announce its 2016 growth forecast when the National People’s Congress gets under way on Saturday, Bloomberg reported.

Meanwhile, India’s 10-year bond yield was at 7.652%, as compared with its Thursday’s close of 7.662%.

Since the beginning of this year, the rupee has lost 1.74%, while foreign institutional investors have sold $2.18 billion from local equity and $1.10 million in debt markets.

Most of the Asian currencies were trading higher. Taiwan dollar was up 0.316%, Indonesian rupiah 0.532%, South Korean won 0.952%, Philippines peso 0.224% and China renminbi 0.209%. However, Japanese Yen and Thai baht were down 0.114% and 0.40%, respectively.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 97.723, up 0.13% from its previous close of 97.592.

Source:- livemint.com

Ioc Against Import Duty On Crude Oil

India imported 189 mt of crude oil in 2014-15, valued at $112 billion. In the current financial year, the value of imports is expected to come down to $61 billion

Ahead of the Union Budget to be tabled in Parliament on February 29, Indian Oil Corporation (IOC), the nation's largest fuel retailer, has urged the government not to consider reimposing a five per cent customs duty on crude oil imports arguing the levy would jack up costs.
Read our full coverage on Union Budget 2016

"Considering the investment plans of the refining companies and the current burden of steep and continuous fall in the prices of finished petroleum products, the refining companies are not in a position to absorb the additional cost of imposition of customs duty on crude oil, if any, since it is not a pass-through levy in the ultimate sales prices of products," IOC Chairman B Ashok told Business Standard.

The Centre had cut Customs duty on crude oil imports from five per cent to zero in June 2011 when global crude oil prices had shot up to around $100 a barrel. However, the government might now look at introducing the duty again in the Union Budget 2016-17 with the oil prices having crashed below $30 a barrel - a 12-year-low.

India imported 189 million tonnes (mt) of crude oil in 2014-15 valued at $112 billion. In the current financial year, the value of imports is likely to come down to $61 billion even as volumes are expected to remain flat at 188 mt, thanks to the slump in crude rates.

The government maintains a 2.5 per cent import duty differential between crude oil and petroleum products, petrol and diesel, to protect the domestic industry. Currently, while crude oil attracts nil import duty, the levy on petrol and diesel stands at 2.5 per cent.

A five per cent import duty likely to be imposed on crude in this year's Budget could, therefore, be accompanied by an increase in petrol and diesel import duty to 7.5 per cent.

The Centre might look at tweaking the current Rs 4,500 a tonne cess on crude production by making it ad valorem to align with global oil prices or cut it down to a low fixed per tonne levy.

The move, if implemented, would benefit producers of oil from pre-NELP (New Exploration Licensing Policy) blocks - Oil and Natural Gas Corporation and Oil India apart from the Rajasthan field of Cairn India - but offset the government's gains from a possible import duty hike on crude oil.

The Oil Industry (Development) Act provides for a cess as duty of excise on indigenous crude oil.

This is a production cess, which is not a pass-through and has to be borne by the producer. However, this is not applicable to domestic oil produced from blocks auctioned under NELP.

The cess was increased to Rs 4,500 a tonne from Rs 2,500 a tonne in 2012 when the crude oil prices rose to $100 a barrel and remain at that level even now.

 

Source :.business-standard.com

Budget 2016 Title Sponsors Co-Sponsors Associate Sponsors Partners Home » Money Last Modified: Wed, Feb 17 2016. 03 49 Pm Ist Rupee Off Day’S Low, Trades Weaker Against Us Dollar At 68.52

Mumbai: The Indian rupee on Wednesday came off the day’s lows against the US dollar amid expectations of a steady outflow of dollars from local equity and debt markets.

At 2.46pm, the home currency was trading at 68.52, down 0.2% from its previous close of 68.38. The local currency opened at 68.52 a dollar and touched a low of 68.67—a level last seen on 4 September 2013.

Foreign institutional investors (FIIs) have been sellers for the 10th consecutive session and fifth consecutive session, respectively in equity and debt markets. The Sensex index rose 0.92%, or 221.19 points, to 23,413.16. So far this year, the Sensex has fallen 11.5%.

“It all now depends on what the Reserve Bank of India does in the market. If the current momentum continues, it is quite possible that rupee will hit its all-time low. We see a range of 68.50-68.80 for the session, Ashutosh Raina, head of forex trading HDFC Bank.

The Indian currency is just 0.4% away from its all-time low of 68.85 a dollar hit in August 2013. Since January, the rupee has lost 3.55% on the back of $2.32 billion outflow from the local equity markets.

Weak Asian currencies continued to weigh on the rupee. Malaysian ringgit was down 1.54%, South Korean won 0.85%, Indonesian rupiah 0.7%, Taiwan dollar 0.66%, Philippines peso 0.31%, China offshore spot 0.14%, China renminbi 0.14%, Singapore dollar 0.07%. However, Japanese yen was up 0.32%, Thai baht 0.08%.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.666, down 0.21% from its previous close of 96.868.

Meanwhile, the yield on India’s 10-year benchmark bond was trading at 7.797% against Tuesday’s close of 7.783%. Bond yields and prices move in opposite directions.

 

Source:.livemint.com

Cotton Output Shortage To Affect Textile Exports Of Pakistan

Pakistan cotton crop for the year 2015/16 due to its sharp reduction in output, textile manufacturers are anticipate serious affects on export activities for which they demand for an immediate tax holiday on import of cotton, that might off-set decline in the textile exports.

All Pakistan Textile Manufacturers Association (Aptma) has sent a letter to the finance minister, informing that the cotton crop for the year 2015/16 had miserably failed to meet the industry requirement. There is a shortage of approximately, four million cotton bales compared to the last year and the industry will have no option but to import cotton, it added.

The finance minister has been informed that five percent sales tax and three percent customs duty was levied on the import of cotton. In order to make the basic textile industry competitive for the entire textile value chain, the levy on import of cotton should be withdrawn, Aptma said in its letter.

The communication also said the sales tax up to six percent had also been imposed on import of polyester staple fibre (PSF) and Viscose Staple Fibre (VSF).

A textile manufacturer said that the local industry consumed about 15.5 – 16 million bales annually. Previously, the imports stood around 2.5-3 million bales annually. However, the shortage this year has been projected at 10.8 million bales, which means the industry will need around 5-6 million bales to meet the manufacturing demand.

The manufacturer said that fall in production and high rates of duty and taxes had already started affecting textile exports.

Textile exports have already posted 9 percent decline to $6.27 billion during the first half of the current fiscal year as compared with $6.88 billion in the corresponding half of the last fiscal.

On the other hand, cotton import grew sharply due to output shortage. The import of raw cotton posted 175 percent growth to $311 million in July-December 2015 as compared with $113 million in the same months of last year.

The Pakistan Cotton Ginners Association (PCGA) estimates the current year’s output at a 12-year low, as production was recorded at 10.05 million bales back in 2003-2004.

The United State Department of Agriculture (USDA) has projected 10.24 million bales this year output in Pakistan even lower than local estimates.
The USDA projected world-wide decline in cotton production for this year. According to the USDA global data, cotton production may face 13 percent decline this year.

Source:.yarnsandfibers.com

Maharashtra Goes All Out To Prevent Hitches In Mango Exports This Season

Having learnt some bitter lessons from the ban on Indian mango by the European Union (EU) in the past, both government authorities and mango growers from Maharashtra do not wish to repeat their mistakes in the coming season.

This time, officials from the Maharashtra agriculture department, Maharashtra State Agriculture Marketing Board (MSAMB) and Agricultural and Processed Food Products Export Development Authority (APEDA) have decided to coordinate to ensure that there are not traceability issues and there are no hurdles in exports. Around 70,000 tonne of mango are expected to be exported this season and some 10,000 tonne are slated to be exported to the EU, top officials said. Last year, India exported some 50,000 tonne, very little of this to Europe.The EU had imposed a temporary ban on Alphonso mangoes and four vegetables from India, stating that it had found fruit fly infestation in the fruit and the ban on the mango was later lifted last year towards the end of the season

“These targets will be possible when mango growers from Maharashtra and the rest of the country follow the ‘Mangonet’ protocol. When the Indian mango is banned by some nations, it is not the mango from Maharashtra but mangoes from other states as well and therefore, all the mango growing states need to follow the protocol. MSAMB will be writing to APEDA to ensure that this is followed strictly across the country so that export is not affected,” Milind Akare, MD, MSAMB said after the meet in Pune.

Government agencies had worked to put in place MangoNet — an online traceability system that registers mango growers and exporters and enable importers and supermarkets in the EU to check complete details of their shipments — on the lines of the successful ‘Grapenet’. Maharashtra is the largest mango exporter in the country and accounts for 90% of the total export of the country. A meet has been planned on February 29 at Ratnagiri by the three government agencies to sensitize mango growers in the Konkan region.

According to Akare, although there are some 25,000 mango growers in the state, only 2000 of these are registered on MangoNet. This is because most farmers find it difficult to meet the protocol developed in MangoNet, which includes timely spraying cycles and application of pesticides among other things.

Moreover, APEDA has made it mandatory for exporters to pick mangoes for export only from growers registered on MangoNet. MSAMB has therefore established 22 teams to monitor farmers.

 

source :.financialexpress.com
 

Jsw Steel's Plan To Build A Mega Steel Project In Jharkhand Remains Uncertain

MUMBAI: JSW Steel's plan to build a 10 million tonne steel plant in Jharkhand remains uncertain as excess domestic capacity combined with unabated influx of cheap imports from China, Japan and South Korea in the last one year prove to be real dampeners on the future of mega steel projects in the making.

Sajjan Jindal-led JSW Steel's Rs 35000 crore Jharkhand project was stuck on the drawing board since 2005 due to lack of direct supply of raw material iron ore mines and land acquisitions issues. But high imports from China have added another problem to the list.

"Jharkhand is a long-term plan for JSW Steel. We are waiting for the right time. Presently there is overcapacity in the steel industry and China is dumping steel into India," said Jayant Acharya, Director for Commercial & Marketing at JSW Steel, on the sidelines of Jharkhand seminar at 'Make in India' week on Wednesday.

He added the company was also awaiting clarity on the iron ore linkages in the state.

JSW SteelBSE 1.10 % reported a consolidated net loss of Rs. 923.34 crore for the quarter ended December against a profit of Rs. 328.94 crore in the same quarter last year, hurt by impairment charges and higher competition from Chinese imports.

Indian government's plan to convert India into a manufacturing destination is led by the belief that more factories in India will lead to job creation and reduction in expensive imports.

While the government is trying to make in easy to do business in India global commodity meltdown and insufficient demand to absorb the supply of steel is becoming a stumbling block. Indian government recently imposed a minimum import price on steel, giving some breathing space to steelmakers caught in losses.

JSW Steel is the process of increasing capacity at its existing plants in India. But mega investments like Jharkhand may have wait until the company is sure about demand and link to iron ore mines.

Earlier JSW Steel, which has no captive iron ore mines, suffered in Karnataka as allegations of illegal mining shut access to most commercial mines in the region. It led to increase in production costs.

 

Source :economictimes.indiatimes.com

Indian Car Makers Exports

Passenger-car shipments from India fell 18.85 per cent to 33,909 components in January thanks to challenges in leading export markets like Algeria, Europe and neighboring countries.

Indian car-makers had shipped 41,787 the same month of the previous year.

In 2014/2015, Indian companies released passenger vehicles (PVs) worth $293 million to Algeria. Furthermore, PVs worth $158 million were exported to Sri Lanka. $335 million was accounted for by United-Kingdom.

According to Deputy Director General of SIAM, Sugato Sen : “We are facing issues in Algeria as they have brought in some changes in technical regulations. We have visited the country to sort out the issues. It is bothering us”.

 

Source :indiatransportportal.com

India To Save Rs 30,000 Crore In Fy16 By Cutting Down Coal Imports

MUMBAI: India will save Rs 30,000 crore in 2015-16 by cutting down on coal imports as domestic production has picked up, coal secretary Anil Swarup said. The government is aiming to completely eliminate the import of the kind of coal that is available domestically, he added.

Coal India, the state-run company that is the largest coal producer in the country, plans to double its production to 1 billion tonne by 2020. In the current year through March, it would have scaled up production to 550 million tonne which is likely to increase to 600 million tonne next year.

"Imports have already started coming down. This year, imports are already down by 16% resulting in savings of Rs 22,000 crore so far. We would probably save Rs 30,000 crore by the end of this year," Swarup told ET on the sidelines of the Edelweisss India Conference.

Typically, Indian coal is almost 40% cheaper than imported coal. So far, India has been importing coal as Coal India was unable to match growing demand.

"We will eliminate import of such quality of coal which is available in India in two years," he said. Power plants in the coastal areas are designed to run on high-grade coal, which has higher calorific value and low ash content as compared with the local coal and, to that extent, the country would continue to import this grade of coal. Of the total 212 million tonne of coal imported last year, around 30-40 million tonne were of the quality that is not available locally. "We have so far focused on increasing quantity and its showing results.

Now, the focus is on improving quality of coal. We want to ensure only crushed coal moves out of mines and from January 1st, it has already started happening. This ensures that power plants don't receive coal with high amount of stones as they did in the past," Swarup said.

The ministry has also set up a mechanism for third-party coal sampling to avoid slippages and has pushed for setting up 15 coal washeries to ensure quality.

Swarup said of the 29 mines that were in production were de-allocated and then bid out, 10 have started production again. "These 10 mines are producing 8 million tonne so far. Other mines had issues and some are in court. But we are hopeful that over two-three months, other mines will also start (production)."

Swarup said the power ministry's Ujjwal Discom Assurance Yojana initiative will benefit power distributors, increase power demand and subsequently boost coal production.

 

Source :economictimes.indiatimes.com

Store Our Oil And Take Two-Thirds For Free: Uae's Offer To India

The United Arab Emirates' national oil company - Abu Dhabi National Oil Company (ADNOC) - has in the first deal of its kind agreed to store crude oil in India's maiden strategic storage and give two-third of the commodity to it for free.

India, which is 79 per cent dependent on imports to meet its crude oil needs, is building underground storage facilities at Visakhapatnam in Andhra Pradesh, and Mangalore and Padur in Karnataka to store about 5.33 million tonnes of crude oil to guard against global price shocks and supply disruptions.

Adnoc is keen on taking half of the 1.5 million tonnes Mangalore facility, Oil Minister Dharmendra Pradhan said on Wednesday.

It will stock 0.75 million tonnes or 6 million barrels of oil in one compartment of Mangalore facility. Of this, 0.5 million tonnes will belong to India and it can use it in emergencies. Adnoc will use the facility as a warehouse for trading its oil.

The 1.33 million tonnes Visakhapatnam storage and 2.5 million tonnes Padur stockpile together with the 1.5 million tonnes Mangalore storage will be enough to meet nation's oil requirement of about 10 days.

After talks with visiting UAE Minister for Energy Suhail Mohammed Al Mazrouei, Mr Pradhan said the tax issue remains to be sorted out before Adnoc can begin storing oil at Mangalore.

Congress-ruled Karnataka government has not yet agreed on waiving VAT (value-added tax) on the crude oil imported for the strategic storage, which UAE wants to use to stock oil when prices are low and supply to its customers when rates are good.

"This will be beginning of our strategic ties," he said, adding that Prime Minister Narendra Modi's visit to UAE in August last year, the first by an Indian Prime Minister in 38 years, laid the foundation of closer cooperation.

The UAE had then committed to invest $75 billion in India, and Mr Pradhan on Wednesday showcased to Mr Mazrouei opportunities for that investment.

"We have offered them refinery projects, petrochemical plans, pipelines and LNG terminals for investment," he said.

On offer was 26 per cent stake for $700 million in ONGC's about-to-be-commissioned petrochemical project at Dahej in Gujarat and 24 per cent equity for $200 million in expansion being planned by BPCL of its subsidiary Bina refinery in Madhya Pradesh from 6 million tons to 7.5 million tonnes.

Also, an investment of $530-850 million can get the UAE 25-40 per cent stake in HPCL's planned petrochemical plant on the Andhra coast, he said, adding that the Gulf national can also invest in the planned 60 million tons in Maharashtra and the Jagdishpur-Haldia and Paradip-Surat gas pipelines.

"UEA makes up for 8 per cent of our oil imports. We are trying to import more oil from UAE. In 2016-17, we plan to import 2.5 million tonnes more oil than current year's purchase of 16.11 million tonnes," he said.

Mr Pradhan said areas of mutual interest were discussed during his meeting with UAE Energy Minister.

Indian firms are not present in upstream oil exploration and production business in the UAE, he said, and mentioned the interest of companies like ONGC Videsh Ltd (OVL) to secure producing or prospective assets there.

Also, they are interested in taking stake in Abu Dhabi Company for Onshore Petroleum Operations Ltd (ADCO), he said, adding that Engineers India Ltd (EIL) was interested in engineering and consultancy contracts in UAE.

"We also offered them partnership in building of second phase of strategic crude oil storages," he said.

India is looking at building four more strategic crude oil facilities at Bikaner in Rajasthan, Rajkot in Gujarat, Padur in Karnataka and Chandikhole in Jajpur district of Odisha.

Besides Adnoc, Kuwait Petroleum Corp (KPC) has also evinced interest in hiring a part of the maiden strategic storage.

Source:- profit.ndtv.com

Need To Withdraw Duty On Import Of Used Cooking Oil To Be Used As Bio-Diesel: Nitin Gadkari

Union minister for road transport, highways and shipping Nitin Gadkari at an event said that the government is mulling to withdraw duties imposed on import of used cooking oil to be used as an alternate, cheap fuel for transportation.

Addressing an ASSOCHAM event in New Delhi, Gadkari said that the Govt intents to build smart cities at 10 major ports; needs to construct houses worth less than Rs. five lakh to promote low-cost housing for poor

“I have requested Commerce and Industry Minister, Nirmala Sitharaman to withdraw duties on import of fried oil which is often discarded as waste after being used once and is available in abundance across the world,” said Gadkari while addressing a global summit on ‘Smart Cities-Smart India,’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“If that oil comes in our country it will help in making bio-diesel and its cost is about Rs. 3-4 per litre cheaper than petroleum diesel and when we will withdraw duties imposed on the same its price will come down by another Rs 6-7/litre,” said Gadkari.

“The average is almost the same and it will help reduce pollution, so we are encouraging use of bio-diesel,” he added.

Highlighting the importance of promoting low-cost housing across India, Gadkari “The biggest stumbling block is that only about one per cent of people in India can purchase house costing above Rs. 10 lakh, so if we are able to make houses worth less than Rs. five lakh about 30 percent of people would be able to buy those houses which will help us build smart cities and provide housing to poor,” said the union minister.

Talking about use of waste material in constructing low-cost houses, Gadkari said, “Conversion of waste into wealth will be promoted and it will prove to beneficial.”

The union minister also said that central government will build one smart city each at 10 out of country’s 12 major ports, union minister for road transport, highways and shipping.

“Apart from our ports at Mumbai and Kolkata, we have planned to develop smart cities at 10 out of 12 major ports in India,” said Gadkari.

He also said that in the times ahead, use of electric cars and buses would be promoted for transportation in smart cities to reduce air pollution, besides it is very cost effective.

He also informed that government is constructing waterways on a 1,620 kilometer stretch on Ganga between Varanasi and Haldia.

“Varanasi, Haldia and Sahibganj will be developed as multi-modal hubs with roadways, waterways and railways. For this, we have acquired land, our designs are ready, we have given work order for all three places, so before March we will begin work,” said Gadkari.

He also informed that government had initiated river traffic control system from Haldia to Farakka and it will initiate in next six months from Farakka to Patna and thereafter from Patna to Varanasi.

The union minister further informed that government will start RO-RO (Roll-on Roll-off) service at five places - Haldia, Patna, Varanasi, Sahibganj and one more place needs to be selected.

Source:- http://ift.tt/JUEAQD

Gold Imports Up In 2015, Demand Stagnant

 India has seen a surge in gold demand in second half of 2015 but overall the year ended with total demand remaining stagnant. According to the report of gold demand trend for Q4 of 2015 and full year report released today. India's total demand for gold in 2015 was 848.9 tonnes compared to 842.7 tonnes in 2014. In value terms however due to lower price import bill has not seen any significant increase. It was around $35 billion.

In the calendar year ended December 2015, second half has seen a sharp surge in demand due to lower prices with total demand at 502.3 tonnes. However against this as per WGC data, total net bullion imports was 897.5 tonnes which was 769 tonnes in 2014. The rising import at a time when demand is stagnant represents some inventory with jewellers and fall in unofficial imports.

The demand trend report for 2015 released today also says that in the year China remained top gold consuming country keeping India second. China's total demand was 984. 5 tonnes against 813.6 tonnes in previous year. Traditionally India had been a top gold consumer but in 2013 and 2015 China remained at the tope while in 2014 India was number one consumer. In 2015 following depreciating currency in China especially in second half and crashing stocks consumers preferred to move back to gold.

Globally total gold demand in 2015 was virtually flat compared to 2014 at 4,212 tonnes said the council. Despite a challenging start to the year, gold demand rebounded in the second half of 2015 as a result of sustained buying from central banks and a strong second half from China and India.

This was particularly evident in the retail investment, where bar and coin purchases were led by China and Europe, with strong support from the US, as investors took advantage of weaker prices amid a softening economic backdrop, financial turbulence and ongoing geopolitical tension.

Global investment demand for the full year 2015 grew by 8% to 878 tonnes.

Overall jewellery demand for the full year 2015 was down 3% to 2,415 tonnes. Following a slower start to the year, "the third and fourth quarters combined produced the strongest second half-year total for gold jewellery in 11 years," said the report.

Central Bank demand for the full year 2015 saw a small uptick of 4 tonnes in 2015 to 588 tonnes as the need for further diversification was reinforced by a tumbling oil price and reduced confidence in the global economy. Central banks demand recovered in december quarter. It went up 25% to 167 tonnes, making this the 20th consecutive quarter of net purchasing.

Alistair Hewitt, Head of Market Intelligence at the World Gold Council, said, "Looking ahead, physical demand will continue to be supported by strong central bank purchases, and continued buying of jewellery, bars and coins by households across the world, led by India and China. If we just look at the year to date, the investment case for gold is as strong as ever. While stock markets have wobbled, gold has performed well."

Total supply for the year experienced a drop of 4% to 4,258 tonnes due to lower recycling supply and most importantly mine production growth falling to its lowest level since 2008. Mine production contracted in Q4, the first quarterly contraction since 2008, as cost cutting took effect. In december quarter it substantially declined by 10% to 1,037t as primary production slowed as a result of weaker gold prices, mine closures and project delays.

Source:- http://ift.tt/15HW3lL

Understanding India’S Export Predicament

India’s commodity exports fell by 18.4 percentage points year-on-year during April-December 2015. In percentage terms, this is the worst fall in export values since 2001, and around 5 percentage points more than the previous high of 13.8 percentage points in April-December 2009.

It might be tempting to put the entire blame for the fall in exports on the sluggish global economic scenario. However, it is also a fact that India’s performance on the external trade front has been found wanting even during better times. Here are some facts which can help understand India’s export predicament during the post-reform period.

India’s pre-liberalization growth strategy was criticized by many on the ground that it stifled exports. It was argued that opening up the economy would open up avenues for increased exports and hence more earnings for the economy. Exports did increase at a faster rate in the post-reform period. Annual percentage growth of exports (in dollar terms) was 37.7% between 1955-56 and 1990-91. It went up to 70.4% between 1991-92 and 2014-15. However, these gains were more than neutralized by a much faster growth in imports. Annual percentage growth of imports (in dollar terms) was 38.4% and 95.1% for the two periods, respectively. As a result, there has been a significant increase in the percentage share of trade deficit to GDP for India. Prior to the reform period, the highest level of five-year moving average of trade deficit as a percentage of GDP was just above 3%. This figure has continued to increase and reached an all-time high of 9% a couple of years ago.

Source:- livemint.com

Rupee Hits Fresh 29-Month Low Against Us Dollar

The Indian rupee on Thursday hit fresh 29-month low against the US dollar after local equity markets fell over 800 points.

At 3.58pm, the home currency was trading at 68.31 per US dollar, down 0.66% from its previous close of 67.86. The local currency opened at 67.95 a dollar and touched a low of 68.31—a level last seen on 4 September 2013.

The Sensex index fell 3.4%, or 807.07 points, to 22,951.83. This was the fourth consecutive session when the index closed lower. Since 5 February till date, the index has fallen 6.82%. So far this year the index is down 12.17%.

Traders are also cautious ahead of the Index of Industrial Production (IIP) and Consumer Price Index (CPI)-based data due on 12 February after 5.30pm. According to Bloomberg estimates, IIP will be at zero for December as compared with -3.2% in November. CPI will be at 5.4% in January from 5.61% a month ago.

“Our equity markets are tanking and that’s getting reflected in the currency’s movement,” Bloomberg report said, quoting Gaurav Sharma, a senior currency analyst at Religare Commodities Ltd in Noida. “The rupee will chart its own course once the sell-off abates,” he said.

The yield on India’s 10-year benchmark bond was trading at 7.722% against Wednesday’s close of 7.817%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has lost 3.05%, the worst performing currency in Asia, while foreign institutional investors have sold $1.89 billion from local equity and bought $444.10 million in bond markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.787, down 0.11% from the previous close of 95.888.

Asian currencies were trading mixed. Japanese yen was up 1.8%, Taiwan dollar 0.4%, China offshore 0.23%, Thai baht 0.16%, Indonesian rupiah 0.1%, Singapore dollar and Hong Kong dollar rose 0.08%. However, Malaysian ringgit was down 0.47%, South Korean won 0.35%, Indonesian rupiah 0.1%, Philippines peso and China renminbi declined 0.08%.

Source:- livemint.com

Rupee Trades Marginally Lower At 67.91 Against Us Dollar

The Indian rupee on Wednesday was trading little changed against the US dollar in mid-day trading session.

At 2.14pm, the home currency was trading at 67.91, down 0.02% from its previous close of 67.90. The local currency opened at 67.90 a dollar and touched a high and a low of 67.84 and 67.99, respectively.

The Sensex index fell 1.4% or 329.96 points to 23,683.52 points. So far this year, Sensex fell 9.5%.

The yield on India’s 10-year benchmark bond was trading at 7.825% against Tuesday’s close of 7.838%. Bond yields and prices move in opposite directions.

Since the beginning of this year, the rupee has lost 2.6%, the worst currency in Asia, while foreign institutional investors have sold $1.8 billion from local equity and bought $457.40 million in bond markets.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 95.967, down 0.11% from the previous close of 96.071.

Most Asian currencies were trading higher. Indonesian rupiah was up 1.3%, Malaysian ringgit 0.87%, South Korean won 0.74%, Taiwan dollar 0.59%, Philippines peso 0.47%, Japanese yen 0.34%, Singapore dollar 0.32%, China offshore 0.19%, Thai baht 0.11% and Hong Kong dollar 0.05%.

Traders are cautious as the Federal Reserve chairman Janet Yellen will address the US Congress later in the session, for fresh cues and possible relief. Yellen is expected to defend the Fed’s first rate hike in a decade and is likely to insist that further rises remain on track, any signs of a departure from such a stance could provide risk assets with a breather, Reuters reported.

Source:- http://www.livemint.com

Domestic Cotton Prices To Stay Under Pressure In Fy17, Says India Ratings

Domestic cotton prices will stay under pressure in FY17 as volumes are unlikely to match Chinese demand, said India Ratings and Research (Ind-Ra). The rating agency has maintained a negative outlook on the cotton sector for FY17. The rating agency on Tuesday said the continuation of Chinese direct subsidy-based policy and lower demand from spinning mills will keep domestic cotton prices under pressure.

Though Bangladesh, Pakistan and Vietnam have replaced China with India as a supplier, volumes are picking up at a slow pace and are unlikely to match Chinese demand. The operating margins will stay in the 1-2% range for ginners and traders, but the profit after tax margins may improve as sector companies reduce stocks and focus on receivables management. International cotton prices, however, will remain sensitive to the release of cotton by China from its cotton reserves, which estimates to be around 59% of global cotton stock at FYE16.

According to Ind-Ra, Chinese cotton reserves will directly impact the quantum of imports in that country and consequently the global stock levels outside China.

The cotton industry is likely to revive moderately in CY17 as exports to Vietnam, Pakistan, and Bangladesh grow. Vietnam is likely to increase its spindle capacity by 30% in FY17. The local cotton production in Pakistan and Bangladesh is unable to keep pace with the increasing demand for apparels from these locations, providing opportunities to Indian exporters.

However, the report said that in view of China reducing imports significantly and the moderating demand from the Indian spinning mills industry, it is believed that the demand for cotton will increase at a marginal rate in CY17 and the prices are unlikely to increase materially from the current levels.
 

Source :.financialexpress.com

Remove Duty On Coking Coal, Auction Ore To Rescue Industry: Indian Chamber Of Commerce

NEW DELHI: Seeking Centre's intervention in rescuing iron and steel sectors, which are facing multiple problems, industry body ICC has demanded removal of 6 per cent duty on coking coal, including 2.5 per cent import duty.

It has also emphasised the need to ramp up iron ore production to meet the needs of steelmakers.

"A duty of 2.5 per cent was imposed on coking coal in 2014. This has increased the cost of steel making in India that is impacting the competitiveness of manufacturing steel products in India," Indian Chamber of Commerce (ICC) has said in a letter to Finance Minister Arun Jaitley.

Urging the finance minister to remove this import duty on coking coal in the ensuing budget, ICC said imports of coking coal had been without any duty for several years before 2014.

Also seeking removal of clean energy cess, the body said a cess of Rs 200 per tonne on coking coal equates to 3.5 per cent duty.

"Coking coal is different from thermal coal and the clean energy cess should be applicable only on thermal coal and not coking coal. Thermal coal is used for providing heat and during the process, the carbon burns and produces carbon dioxide and hence there is logic of imposing clean energy cess on thermal coal," ICC Director General Rajeev Singh said in the letter.

Singh added that coking coal is used for producing metallurgical coke and during the process no carbon is burnt and hence no carbon dioxide is produced.

"There is no substitute to coking coal as a raw material for production of metallurgical coke which is required for steel making whereas in case of thermal coal alternate sources of energy such as hydro, wind, solar etc are available," the letter said.

In a separate letter to Steel Minister Narendra Singh Tomar, ICC said the iron ore production needs to be ramped up to rated capacity of mine.

"In Odisha, against a capacity of 90 million tonnes per annum for captive mines, the annualised production rate for the current year is 50 MTPA," the letter said.

It also demanded that the entire ore production should be sold through auction to avoid hoarding saying, "The total stockpile of iron ore is approx 128 MT, out of which Odisha has a stockpile of approx 77 MT."

Demanding sale of stock through auction, the chamber has alleged the prices being quoted by mining companies are abnormally high and unviable for steelmakers.

Also demanding reduction of floor price to cost of production during e-auction of iron ore, the Chamber has stressed that there is a need to fix fair floor price as though steel prices have fallen drastically, iron ore prices have not fallen correspondingly.

Also, it urged the government to finalise a roadmap for auction of non-captive iron ore mining leases.

 

Source :economictimes.indiatimes.com

Govt Should Take Measures To Curb Chinese Aluminium Imports: Debnarayan Bhattacharya

Debnarayan Bhattacharya, managing director at Aditya Birla Group company Hindalco Industries, is steering the company at a very difficult time. The company’s stock is down 52 per cent in the past year due to falling aluminium prices. In an interview, Bhattacharya tells Dev Chatterjee and Aditi Divekar about Hindalco’s measures to ramp up productions at its new plants to curtail cost of production. Edited excerpts:

How big a damage is cheap Chinese aluminium imports causing to the Indian market. What are the steps the industry is taking to tackle this?

There are almost 750,000 people who are directly or indirectly engaged in the aluminium industry in the domestic market. So, it is important that the government takes some measures to curb Chinese imports in the national interest. The Aluminium Association of India has, therefore, made representation to the government asking them to raise import duty on the metal to 15 per cent from five per cent at present. Currently, of the total domestic demand, about 50 per cent is being met by cheap imports from China, which is hurting domestic producers.

How do you see Hindalco Industries’ cost of production going ahead. Is there any room to lower it further?

There are several steps we are taking to keep our cost of production lower going ahead. Our ramp-ups at Mahan and Aditya aluminium smelters and Utkal refinery are going superb as efficiencies at each of these plants are hitting desired levels. Moreover, coal prices have come down globally and so there is some benefit towards power costs, although it could have been higher if the rupee was stronger. Given that Coal India is to increase its production, supply is expected to rise and hence we see energy costs coming down. Alongside, Hindalco has shut 42 per cent of capacity at the Hirakud plant since it was higly inefficient and could have been a cost burden.

What is your outlook on copper and aluminium businesses? Can you give an update on your capex plans for copper segment?

Treatment-and-refining charges have come down for 2016 compared to last year and this will have a negative impact on the copper business in the coming quarters. However, we are planning to go ahead with our capex in this business where we plan to set up a copper rod unit, which is a value-added product. We are yet to arrive what the fund size would be for this plant. For aluminium, I think prices have bottomed out but cannot say how it would go from here. Premiums for aluminium, however, have seen marginal improvement.

What is your outlook for Novelis, which has shown operational improvement in December quarter?

Novelis’ performance is improving quarter-after-quarter as demand from the auto sector has exceeded expectations. Demand from the beverage industry is also looking positive and so in the coming quarters we expect Novelis to do better.

 

Source :.business-standard.com

Essar Oil Says “Advanced Talks” With Rosneft On; No Comments On Aramco Stake Sale Talk

MUMBAI: Essar Oil's is in advanced talks with to sell 49 per cent stake to Russian energy major OAO Rosneft but the deal is likely to take more time. The company's management declined to comment of media reports of a likely stake sale to Saudi Arabian Oil Co (Aramco).

Billionaire brothers Shashi and Ravi Ruia have agreed to sell a 49 per cent stake in Essar OilBSE -0.15 % to Rosneft, providing the Indian company an assured supply of crude while its Russian counterpart obtains a foothold in Asia's third largest economy. While the companies did not disclose the

 

Source :economictimes.indiatimes.com

Renault India To Export Kwid, Ramp Up Production

CHENNAI: French automobile maker Renault would start exports of its car Kwid to South Asian Association for Regional Cooperation (SAARC) countries and the car's parts to Brazil from March onwards and grow over 100 percent in the domestic market, a top official of the group's Indian subsidiary said.

The company would sell more than 100,000 units in the domestic market in 2016, launch a revamped Duster model and ramp up production of its car Kwid to 10,000 units next month, he said.

"Currently we are not big exporters of cars. But starting next month we will be exporting Kwid's parts to Brazil and completely built units (CBU) of the car to SAARC countries. We are also exploring African countries," Sumit Sawhney, country CEO and managing director, Renault India told reporters here late on Tuesday.

Without putting a number to export target, Sawhney said the company has also opened a parts distribution centre here where auto components are sourced and shipped out to Renault's other vehicle plants.

According to him car segment priced less than Rs.8 lakh is logging growth for the industry.

On Renault India's domestic plans Sawhney said the company is on target to have five percent market share by 2017 as the current market share is around four percent.

He said the company will not only expand its distribution network to 240 by 2016 end but also introduce a mobile workshop.

"The mobile workshop will be a proper workshop that can service around six cars a day. Our Lodgy car has been remodelled as a workshop. These vehicles can reach smaller towns for servicing," he added.
According to him, Renault India has over 100,000 bookings for its Kwid model and is the number two in its segment.

 

Source :timesofindia.indiatimes.com

Govt Starts Probe Into Dumping Of Spandex Yarn By China, Others

India has started a probe into the alleged dumping of spandex yarn — used in the manufacturing of hosiery, swimsuits, and diapers — from China and three other countries.

The Directorate General of Anti-Dumping and Allied Duties (DGAD) has initiated the investigation in the imports after Indorama Industries sought imposition of anti-dumping duty on the alleged cheap shipments.
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In a notification, the DGAD said prima facie sufficient evidence of dumping of the product originating or exported from China, South Korea, Taiwan and Vietnam exists to justify initiation of the anti-dumping investigation.

"...The Authority (DGAD) hereby initiates an investigation into the alleged dumping, and consequent injury to the domestic industry... To determine the existence, degree and effect of alleged dumping and to recommend the amount of anti-dumping duty, which if levied, would be adequate to remove the 'injury' to the domestic industry," it said.

'Elastomeric Filament Yarn' is commonly referred to as Spandex or Elastane. In common parlance, these yarns are also referred to as 'Lycra' in the market even though it is a specific brand name.

Spandex yarn is mainly used to make garments that require great comfort and fit. It find applications in manufacturing of hosiery, swimsuits, aerobic or exercise wear, ski pants, golf jackets, disposable diaper and waist bands, among others.

Countries initiate an anti-dumping probe to determine whether their domestic industries have been hurt because of surge in cheap import of any product. As a counter measure, they impose duties under the multilateral regime of the WTO.

The duty is aimed at ensuring fair trading practices and creating a level-playing field for domestic producers vis-a-vis foreign producers and exporters resorting to dumping of goods at below-cost rates.

 

Source :business-standard.com

Rupee Trades Lower At 67.82 Against Us Dollar

Mumbai: The Indian rupee on Monday weakened against the US dollar amid caution ahead of key gross domestic product (GDP) data due after 5.30pm.

At 2.07pm, the rupee was trading at 67.82 a dollar, down 0.25% from its previous close of 67.65. The local currency opened and touched a low of 67.87 a dollar.

India’s GDP data for the third quarter (October-December) of 2015-16, to be released on Monday, will be a crucial input into the budget to be presented by finance minister Arun Jaitley on 29 February.

According to Bloomberg estimates, GVA (gross value added) will be at 7.1% from 7.4% in the September quarter, while GDP will be at 7.1% from 7.4% a quarter ago.

India’s benchmark equity index, BSE Sensex, was trading at 24,602.64 points, down 0.06% or 14.33 points. So far this year, the Sensex has lost over 5.8%

Year-to-date, the rupee weakened 2.5%, while foreign portfolio investors sold $1.72 billion from local equities and bought $468.30 million in debt.

The yield on India’s current 10-year benchmark bond stood at 7.829% compared with its Friday’s close of 7.821%. Bond yields and prices move in opposite directions.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 96.95, down 0.08% from its previous close of 97.031.

Asian shares got off to a rocky start on Monday after mixed US jobs data helped sink shares on the Wall Street, but trade was thin with many regional markets closed for the Lunar New Year holiday.

US non-farm payrolls increased by just 151,000 jobs last month, falling well short of expectations for a rise of 190,000. But the unemployment rate fell to 4.9%, the lowest since February 2008, and wages rose, indicating some signs of underlying strength in the labour market despite the weak headline figure, Reuters reported.

Data released over the weekend showed China’s foreign reserves fell for a third straight month in January, as the central bank dumped dollars to defend the yuan and prevent an increase in capital outflows, the report added.

Source :livemint.com/Money

India-Uae To Ink 16 Pacts; Investment, Oil And It Top Agenda

NEW DELHI: At least 16 pacts in a wide range of sectors like nuclear energy, oil, IT, aerospace and railways, facilitating billions of dollars of investment by UAE in India, are likely to be inked during Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayad Al Nahayan's visit here beginning Wednesday.

Ways to contain radicalism, stepping up counter-terrorism cooperation and dealing with the ISIS will figure prominently in talks Al Nahayan will have with Prime Minister Narendra Modi on Thursday, UAE Ambassador Ahmed Al Banna said.

A major focus of the three-day visit by the influential UAE leader, which comes around six months after Prime Minister Narendra Modi's trip to UAE, will be on stepping up economic ties.

Abu Dhabi, the UAE capital, has a sovereign wealth fund of about USD 800 billion. India has been eying the fund, parked with the Abu Dhabi Investment Authority, for its infrastructure sector and the envoy said there may be some announcements to this effect during Al Nahayan's visit.

"We have on hand around 16 agreements for cooperation between different ministries and authorities. Out of 16, almost 12 have been finalised and ready for signature. Hopefully all the 16 will be signed," said Al Banna.

The envoy said the agreements will lead to "huge investment portfolio" in diverse areas including renewable energy, oil and gas and some other major sectors.

The pact on nuclear cooperation will provide for peaceful use of atomic energy as research and development in the area. UAE has similar pact with France and some other countries.

India is UAE's number one trading partner and the annual trade currently stands at around USD 60 billion. UAE, a major player in the Gulf region, is a strategically important country for India.

The country is home to around 2.6 million Indians who constitute nearly 30 per cent of its population. It was the sixth largest supplier of crude oil to India in 2014-15.

Al Banna said Modi's visit to his country, after a gap of 34 years by an Indian Prime Minister, has opened a new path in strengthening ties and Al Nahayan's trip will further build on it.

"It (the visit) will reinforce the ongoing relationship and will take us to the next (level) that both sides are looking at which is strategic cooperation, strategic coordination and strategic relationship," the envoy said.

Identifying terrorism as a major threat facing the world, the envoy said both India and UAE are increasing security and counter-terrorism cooperation to deal with the menace.

On the issue of checking radicalism, he said India and UAE will work "hand in hand to fight them. Yes there will be some cooperation on this".

Source :economictimes.indiatimes.com

India Sets Floor Price For Steel Imports To Stem Flow From China

India set a floor price for imports of steel products to deter countries such as China from undercutting local mills, the first time it has taken such a step in over 15 years even as the country remains the world’s only major growing steel market.

Top Indian steel makers such as JSW Steel, Tata Steel Ltd, Jindal Steel & Power Ltd and Kalyani Steels have been lobbying the government to take more steps to protect their margins after a hike in the import duty last year failed to cut shipments from China.

“The implementation of the minimum import price will give stability to the local steel industry,” Steel and Mines Minister Narendra Singh Tomar said. “This is an important step towards the success of ‘Make in India’ (manufacturing push).”

The duty on various steel products ranges between $341 per tonne and $752 a tonne, the government said in a statement.(bit.ly/1ocN9Lk)

Indian steel companies, shares in many of whom rose on Friday in anticipation of the measure, welcomed the move but said more needs to be done, such as raising the import duty further to 25 percent.

“This measure will ensure a level playing field to Indian steel industry which has been adversely affected by dumped imports from various sources,” Shivaramkrishnan, chief commercial officer of Essar Steel India, told Reuters.

“We are thankful to the government of India and hope this will suitably address the concern of surging cheap imports.”

India is the third largest steel producer in the world with a total installed capacity of 110 million tonnes. But the industry says it has seen a hefty squeeze in margins due to an onslaught of cheap imports from China, as well as Russia, Japan and South Korea.

Imports of steel surged by 22.8 percent in December 2015 over the previous month and the country’s trade minister had called the recent fall in China’s yuan a “worrying development” that could have pushed up inbound shipments further.

China produces nearly half the world’s 1.6 billion tonnes of steel, and exported more than 100 million tonnes of the alloy last year, more than four times the 2014 shipments from the European Union’s largest producer, Germany.

The floor price on steel imports will be valid for six months.
Source: Reuters (Reporting by Sankalp Phartiyal, Krishna N. Das and Promit Mukherjee, editing by David Evans)

 

Source :.hellenicshippingnews.com

Service provider couldn't raise plea of financial hardship if it failed to deposit service tax in Go

Service Tax: Where assessee has already collected Service tax from its client, then, at time of payment of same to Government, assessee cannot raise argument of non-taxability or financial hardship or ignorance in paying such 'collected taxes' to Government

General provisions of the Act couldn't be applied once TP provisions applied to an international tra

IT/ILT : Once a transaction is undisputedly subject matter of Chapter X of Act, then other general provisions of Act cannot be applied simultaneously

Govt. enhances list of transactions to be filed with Central Registry under SARFAESI Act

SARFAESI/INDIAN ACTS & RULES : Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Central Registry) Amendment Rules, 2016 – Amendment in Rules 4, 5 and 7

Time-limit to file refund claim won't apply on refund of service-tax which was deposited mistakenly

Service Tax : Double payment of service tax is a mere deposit and does not amount to payment of 'tax'; hence, time-limit of section 11B and principle of unjust enrichment would not apply to refund thereof

CBDT notifies procedure for appointment of Chairman and Vice-Chairman of AAR

IT/ILT/INDIAN ACTS & RULES : Authority for Advance Rlings (Procedure for Appointment as Chairman and Vice Chairman) Rules, 2016

Subscribers opting for 'Atal Pension Yojna' before March 31, 2016 are entitled to receive Govt's con

IT : Atal Pension Yojana (APY) – Amendment In Notification F.No.16/1/2015-Pr- Atal Pension Yojana, Dated 16-10-2015

MCA springs surprise; allows companies to choose vague names, eases incorporation rules

COMPANIES ACT, 2013/INDIAN ACTS & RULES : Companies (Incorporation) Amendment Rules, 2016 – Amendment in Rules 8 & 36 and Substitution of Rule 9 & Form INC-1

Govt. notifies rules for appointment of President of CESTAT

EXCISE/SERVICE TAX/INDIAN ACTS & RU : Customs, Excise & Service Tax Appellate Tribunal (Procedure for Appointment as President) Rules, 2016

Cases of earlier years couldn't be kept pending for purpose of consolidation with cases having simil

IT: Cases of earlier years couldn't be kept pending for purpose of consolidation with cases having similar issues

HC can transfer suit for infringement of Trademark to other convenient place of jurisdiction

Trade Marks Act: If court where suit is instituted, in spite of having territorial jurisdiction finds that suit can be tried more conveniently at other place which also has territorial jurisdiction, appropriate High Court is entitled to transfer suit to other convenient place

CESTAT and HC couldn't admit an appeal where it was filed before CCE(A) beyond condonable period

Service Tax : Appellate authorities and High Court have no power to admit an appeal where it is filed beyond condonable period of Commissioner (Appeals)

Details given to police about lavish wedding of daughter couldn't be used by AO to reopen a case

IT : A statement recorded by Police Officer under section 161 of Code of Criminal Procedure, 1973, is neither given 'on oath' nor it is tested by cross examination and, therefore, such a statement cannot be treated as substantive evidence to reopen assessment proceedings

Royalty paid to director for using technology devised by him is deductible

IT : Royalty paid by assessee-company to its director in his individual capacity for using technology devised by said director, would be deductible under section 37(1)

Service tax paid by exporters on terminal handling charges is eligible for refund

Service Tax: An exporter of goods is eligible for refund under Notification 41/2012-ST in respect of service tax paid on terminal handling charges, inland haulage service and other documentation charges for export goods.

Govt. notifies norms for appointment of Multi-Tasking Staff in various Debt Recovery Tribunals acros

DEBTS RECOVERY TRIBUNAL/INDIAN ACTS & RULES : Debts Recovery Appellate Tribunal, Kolkata (Multi-Tasking Staff) Recruitment Rules, 2016

Govt. establishes Centralized Registration Centre for processing name reservation requests under Cos

COMPANIES ACT, 2013 : Section 396 of The Companies Act, 2013 – Registration Offices - Establishment of A Central Registration Centre (CRC) Having Territorial Jurisdiction All Over India, for Discharging or Carrying out Function of Processing and Disposal of Applications for Reservation of Names

No disallowance if cash exceeding 20,000 is directly deposited in bank account of supplier

IT: No disallowance if cash exceeding 20,000 is directly deposited in bank account of supplier

HC dismissed winding up plea against respondent-co. as arbitral award had already been passed in fav

CL : Where arbitration award had already been passed in favour of respondent-company, winding up petition filed by petitioner to pay bona fide disputed debt was to be dismissed

SC denied to entertain revenue's appeal due to lower tax effect

IT: In view of fact that Department had not filed appeal even before High Court in a similar case, Revenue's appeal before Supreme Court in instant case had to be dismissed as issue involved low tax effect; however, question of law was left open

HC allows credit of outward transportation up to buyer's premises for destination based sales

Cenvat Credit : Where sales invoice showed that prices were inclusive of freight up to buyer's premises and sales was made on FOR destination basis, place of removal would be buyer's premises and, therefore, outward transportation services up to buyer's premises would be eligible for input service credit

Final order isn't sustainable if passed after one month of DRP's directions

IT/ILT : Where DRP gave directions on 24-9-2014 to Assessing Officer to pass order and such directions were received by concerned Assessing Officer on 28-10-2014, but assessment order was passed on 30-1-2015, beyond period of limitation as prescribed under section 144C, it was not sustainable

Cash purchases disallowed as assessee failed to prove that purchases were made via agents located in

IT : Where assessee made cash payments in excess of Rs. 20,000 for purchase of crackers, in absence of even names of agencies or agents or retailers living in villages to whom said payments were made on a day-to-day basis, impugned disallowance made by authorities below under section 40A(3) was to be confirmed

ALP of services couldn't be taken as 'Nil' by assuming that assessee wasn't benefited from services

IT/ILT : Where assessee-company received support services from AE in terms of marketing services, operations and logistics services etc. on basis of which it managed to reduce its raw material cost and achieve higher sales, TPO could not determine ALP of said services at nil taking a view that services so rendered had not resulted in any benefit to assessee

"Aquachem" used for purification of water to manufacture cement is eligible for input credit

Cenvat Credit : "Aquachem" used for purifying water used in manufacture of cement is eligible for input credit and parts/accessories used in construction/manufacture of 'plant and machinery' are eligible for capital goods credit

Director of a trading member or clearing member can't be part of governing board of stock exchange:

SEBI : Amendment to Sebi Circular CIR/MRD/DSA/33/2012, Dated 13-12-2012 Pursuant to Amendment in Regulation 2(1)(b) of Secc Regulations, 2012

No withdrawal of sec. 54 relief if new house was transferred to daughter within 3 years

IT: Where assessee had sold his residential property in April, 2010 and invested sale proceeds in August, 2010 in another residential property and in November, 2010 he had settled new property to his daughter out of love and affection, settlement of property was a gift falling under section 47(iii) and assessee was entitled to exemption under section 54 in respect of capital gains arising on sale of property

Govt. notifies pay scale for post of Private Secretary under CCI employees' rules

COMPETITION ACT/INDIAN ACTS & RULES : Competition Commission of India (Salary, Allowances, Other Terms and Conditions of Service of The Secretary and Officers and Other Employees of The Commission and The Number of Such Officers and Other Employees) (Second Amendment) Rules, 2016 – Amendment in Schedule I

Dept. can't issue second notice on same ground for different period where first notice was dropped o

Excise & Customs : Where all relevant facts were within knowledge/notice of Department while issuing first notice and said notice was even dropped on merits, department cannot issue second notice invoking extended period alleging mis-statement/mis-declaration on part of assessee

No TP adjustment in respect of AMP exp. if transaction with AE doesn't fall in ambit of 'internation

IT/ILT : Where existence of an international transaction involving AMP expense with an ascertainable price is unable to be shown to exist, even if such price is nil, Chapter X provisions cannot be invoked to undertake a TP adjustment exercise

Revenue faces ITAT's flak for filing appeal with tax effect below specified monetary limit

IT: Where department against order of Commissioner (Appeals) dated 15-1-2009 filed appeal before Tribunal, wherein tax effect was less than Rs. 10 lakhs, keeping in view Circular No. 21 of 2015, dated 10-12-2015 and also provisions of section 268A, department should not have filed instant appeal

HC sanctions amalgamation scheme as there was nothing prejudicial to interest of creditor, members o

CL: Where there was nothing prejudicial to interest of creditors, members of both transferor and transferee company or to public interest and all required procedures had been followed, scheme of amalgamation so proposed had to be sanctioned

CBEC prescribes sun-set date of excise exemption for new industries in J&K

EXCISE/NT : Section 5A of The Central Excise Act, 1944 - Power to Grant Exemption from Duty of Excise - Amendment in Notifications No.56/2012-C.E. and No.57/2002-C.E., Both Dated 14-11-2002

SEBI clarifies on operational aspects of voluntary adaption of aadhar based e-KYC process

SEBI : Know Your Client Requirements – Clarification on Voluntary Adaptation of Aadhaar Based E-Kyc Process