23.11.2006

• Subsidy on domestic LPG
• Due to the high level of subsidy on domestic LPG, the under recovery to oil companies on sale of each cylinder is at Rs. 153.21 per cylinder during April-September 2006.
• Because of this the government is thinking of allowing indigenously produced LPG to be used for automobile as fuel. This is expected to enable the oil companies in reducing their under-recoveries.
• But this is likely to pose a problem, as this may result in companies trying to divert more of LPG for automobile use. Hence it should put an adequate mechanism in place for ensuirng that cooking gas supply to households is not affected.
• Concerns about Indo-US nuclear deal
• The US houses of Congress viz., the House of Representatives and the Senate passed two different versions of the bill enabling cooperation in the nuclear field with India.
• Concerns about the Senate version of the bill include:
• Section 106 which prohibits the export of equipment, materials or technology related to enrichment of uranium, reprocessing of spent fuel or production of heavy water.
• Section 107 which makes the case for end-use monitoring by the US of its exports or re-exports of nuclear materials, equipment and technology sold or leased to India.
• According the the US, the technologies mentioned in Section 106 are not purely civilian in nature, and are critical to the nuclear weapons programme.
• Jordanian Royals visit to India
• Jordan’s King Adbullah and his Queen Rania will make their first state visit to India at the end of November.
• IMG Bharata controversy in Andhra Pradesh
• IMG Bharata is a company which was allotted land of about 400 acres in Gachchibowli, Hyderabad and another 450 acres in Mamidipally in 2004 for setting up a world class sports complex and training academy.
• This land allotment was made by the previous TDP (Telugu Desam Party) government.
• The present Congress government, citing the company’s failure to build the proposed facilities on the given land, has taken over posesssion of the land again by passing an ordinance.
• The present government asserts that the deal signed by the previous government during its caretaker days is not valid.
• Telecom licence fee details
• There are three categories of telecom circles in the country. They are: A, B and C.
• For operating in the A category circles the licensees have to pay 10%, for category B 8% and for cateogry C 6% of their adjusted gross revenue (AGR) as licence fees.
• In addition to this they also have to pay 2-6% as spectrum charges, 12% of AGR as service tax, 1.5% access deficit charge and 5% universal service obligation.
• All these levies make up about 30% of their total revenues.
• The levies payable in contrast in other Asian countries vary between 0.5% to 7%.
• The DoT (Department of Telecom) is in favour of a flat fee of 6% in lieu of this plethora of levies. If this is acceded to, this would certainly result in a reduction of telecom charges for end users.
• Perspectives on Indo-China trade
• Gravity model: This is a notion in international trade that suggests that ceteris paribus, countries that are larger and more proximate tend to trade more with each other. The meaning of ceteris paribus here is “other things being equal”.
• By the same model, India and China should actually be trading more with each other. But this is not happening, with the trade merely pegged at $19 bn in 2005.
• Baima Si, the White Horse Temple in Henan province of China
• This is the place where there is a monument marking the arrival of Buddhism from India into China in the 3^rd Century.
• A.B. Vajpayee the then Prime Minister of India visited the temple in 2003.