11.12.2007

• RIL goes to Australia in search of Uranium
• Reliance Industries has struck a deal to explore uranium in Australia as soaring demand and prices turn the yellow metal into a lucrative commodity.
• It has acquired a 49% stake in eight exploration blocks owned by Uranium Exploration Australia.
• India bans private sector participation in uranium exploration and mining.
• Retail market set to double in 3 years to $30 bn
• The organized retail market is set to touch this figure in the ensuing three years. At present its share is a meagre 5% of the total retail market in the country.
• What is a 419 fraud?
• This is also known as the advance fee fraud, or more commonly the Nigerian email fraud.
• Most people with an email account would have at some point received an email seeking assistance in transferring money belonging to a deposed/dead politician overseas. The writer claims to be an associate of the account holder and often seeks a relatively small amount to be remitted towards fees. The fraud gets its name from Section 419 of Nigerian Criminal Code, which refers to obtaining property under false pretenses.
• RBI warns against fraudulent remittance offers
• Of late another type of email that we receive is announcing our email having been declared a winner in an online lottery. The ultimate aim of the sender is to collect some money from us towards the costs of claiming the prize money in the lottery.
• RBI clarified that remittance in any form towards participation in lottery schemes is prohibited under the FEMA.
• IOC bonus issue
• On 08.12.2007 we noted about this. Some more wisdom from today’s ET editorial follows.
• According to government guidelines, PSEs (Public Sector Enterprises) should consider a bonus issue if reserves to equity ratio exceeds three.
• As IOC is reportedly struggling with over Rs. 200 crore a day loss because of government mandated pricing of petroleum products, it does not make sense to force it to issue bonus shares.
• Why are small savings deposits in Post Offices (National Small Savings Fund) important for state governments?
• A decline in the growth of the fresh accretions to the post office savings schemes has implications for financially week state. States are mandatorily required to borrow from the NSSF to part finance their annual budget and the share of state’s borrowing from the NSSF depends on fresh collection in that state. To cover shortfalls in their expenditure plans, many states may be forced to borrow from the open market. For a state with a poor financial record, such market borrowings would be more expensive than loans from the NSSF.
• The government’s decision to restore bonus at the rate of 5% on the 6 year 8% monthly income schemes upon maturity will make returns on such deposits comparable with the yield on bank deposits and government securities.
• Do you know how much money is invested all over the country in such post office deposit accounts?
• Rs. 4.59 lakh crores. This is invested in about 16 crore accounts.
• Another way of looking at carbon trading
• It is a good article which gives a different perspective on carbon trading. Look at it here. Some excerpts from it:
• The global community led by the Intergovernmental Panel on Climate Change agreed upon the Kyoto Protocol in 1997 (ratified in 2005) where Annex I countries (38 industrialised/developed countries) agreed to reduce their GHG emissions by 2008-2012 to an average of about 5% below their 1990 levels.
• The Kyoto targets range from +10% (Iceland) to -8% (EU). The developing countries were exempt from targets at Kyoto. This indicates differentiated responsibility. However, the basis for targets seems to be emissions in a predefined base year. This implies that countries that have higher emissions due to higher per capita energy use would be entitled to higher targets.
• At present, the volumes of certified emission reductions of carbon dioxide (CERs) recorded annually by the UNFCCC (UN agency regulating the emission reduction) are 174 million tonnes. The price for CERs is kept quite low (less than $20 per CER).
• India, a country hosting 17% of the world population has contributed only 2.4% to the total accumulated emissions since 1750. The annual per capita energy consumption in the country is very low (0.53 tonnes of oil equivalent per person), whereas the average per capita electricity consumption in India is about 450 kWh per year — less than 1/5th of the world average and 1/30th of the US average. The economy is growing at the rate of 8%-10% in the past few years and the energy demand is on the rise.
• The article asks a very pertinent question:
• There is a belief that carbon trading offers a golden opportunity for developing countries like India to get foreign funds. However, is it ethical for richer countries to continue to contribute more than their share of global carbon emissions by buying ‘cheaper’ emission reduction opportunities in poorer countries?
• “Whenever you see rubber, think of Kerala”
• The above can perhaps be the tag line that all of us can find some reason in. (I was just recollecting the Jenson and Nicholson ad.)
• But Tripura? I was surprised to know that it is the second largest producer of rubber in India.
• India’s second rubber-based industrial park is being set up in this state to bring about a natural revolution in the elastic polymer industry.
• It is moves like these that will ultimately integrate the northeast into the mainstream. These will deliver what could not be delivered by all the talks with the insurgent groups operating in the NE region. Such development results in a Win/Win situation for the country as well as the locals there. Then surely their disgruntlement will disappear and they would want to remain as part of India.
• Remember the Poabs estate?
• We noted about it on 18^th August and 10^th February of 2007.
• It is the only Demeter-certified biodynamic organic coffee estate in India.
• Its 350 acre Thuthampara estate is on a lease from the government of Kerala since 1995. Now the Kerala government does not want to renew the lease.
• This is one of the two largest biodynamic organic estates in the world. The other is in Mexico.
• Infrastructure status to coal
• With the ECC (Energy Coordination Committee) headed by the PM himself favouring this move, the ensuing budget is expected to extend infrastructure status to coal.
• What does it mean?
• It would entitle companies in the sector for a 10 year tax holiday period. Under section 80-IA(2) of the IT Act a deduction of 100% profit is available to companies for any 10 consecutive years out of the first 15 years.
• The other sectors that are already awarded this status include: road, railway, oil and oil and gas pipeline industries.
• Maintenance of the Welfare of Parents and other Senior Citizens Bill 2007
• It was passed by both the Houses of Parliament last week.
• An earlier enactment that is there on the subject was the Parents Act which provided for the maintenance of those over 60 years of age by their adult children, grandchildren and legal heirs.
• Take a look at today’s Hindu editorial on what the recent act provides for and for some good opinion. The subject itself is not so esoteric as to elicit your own opinions on it.