Cadbury under lens for alleged excise duty evasion

It was further found during the course of investigation that mandatory licences or permissions from local bodies concerned for setting up the unit were not obtained before the last date of March 31, 2010, the sources claimed.

Armed with intelligence inputs and certain documents claiming wrong doings, the DGCEI, which began its preliminary probe last year, also carried out the searches at the various premises of the firm and other suspected people.

During the course of investigation, the statements of various persons, including Managing Director of Cadbury India Ltd and at their corporate office at Mumbai and also their ex-employees have been recorded under Section 14 of Central Excise Act, 1944, a finance ministry official said.

The Section mandates power to summon persons to give evidence and produce documents in inquiries being carried out by the revenue Department.

The investigations conducted so far has revealed that the company through its unit had filed a declaration with the office of the Assistant Commissioner, Central Excise Division, Shimla claiming that they have commenced commercial production in the June 2009.

"Whereas, the certificate of commercial production by the Industries Department of Himachal Pradesh has been issued to them somewhere in January 2011 which shows that the said unit had not commenced their commercial production up March 2010 and area based exemption has been wrongly availed," the officials said.

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Harper wants Canadian businesses to prosper in India

Prime Minister Stephen Harper, in some of his toughest remarks on foreign investment yet, signaled a willingness to block foreign purchases of Canadian companies if other countries are not open to Canadian investment.

Speaking on the eve of a trip to India and other parts of Asia, Harper said in an interview published in Saturday's Postmedia newspapers that Canada as a general rule welcomes foreign investment.

"The real issue, as we go to places like India - and I think that Canadians recognize what the real issue is, not the openness of Canada to foreign investment, because Canada is very open," he said.

"The real issue is, are we going to get that reciprocal openness in other countries? And that's the real challenge. You know, we could block a whole lot more investments than we are and be still one of the most open regimes in the world."

Harper's November 3-11 trip to India, the Philippines and Hong Kong comes against the backdrop of two major bids by Asian state-owned enterprises to buy Canadian energy firms.

The prime minister has said his government would lay out a general framework when it decides on these bids, and this will be "fairly soon," but it is increasingly clear that reciprocity will figure prominently in the guidelines.

He was asked if the waters would be muddied as he promotes Canadian business while leaving it uncertain if Canada is open to foreign investment, with these major decisions pending.

Speaking of Canada's openness, he said: "I don't think that's a serious issue. Obviously, these individual decisions are serious decisions. The government will take them seriously. But the real issue as we go to India is making sure that in the long term Canadian businesses have the opportunity to set up and to prosper in India as well."

Late on Friday, Canada extended to December 10 its review of a $15.1 billion bid made in July by China's CNOOC Ltd for Canadian energy producer Nexen Inc . Reuters had reported on Wednesday that an extension was likely.

Canada temporarily blocked Malaysian state oil firm Petronas' C$5.17 billion bid for gas producer Progress Energy Resources on October 20, giving it 30 days to make new representations to the government.

Officials say Harper has taken the opportunity of every meeting with Chinese leaders to point out the need to make economic benefits flow in both directions. Ottawa is particularly eager to see Beijing demonstrate its openness to Canadian investment in China.

Canada has twice made final decisions turning down foreign investments, both under Harper. In 2010, it rejected BHP Billiton's USD 39 billion bid for Potash Corp , the world's largest fertilizer maker.

A year earlier, it blocked a USD 1.325 billion US offer for a satellite unit of MacDonald Dettwiler and Associates .

"This government, as a general rule, welcomes foreign investment. We do review it and there are occasions on which - two, to be precise - we have turned down foreign investments," Harper said.

"But obviously we have a general policy, but we're determined to make sure that while we welcome foreign investment that we make sure that it's in the best interest of this country."

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Tribunal rejects telco pleas against TRAI regulation on VAS

Telecom tribunal TDSAT today dismissed the telecom operators' pleas against TRAI regulations that had laid down the procedures for providing
Value-Added-Services (VAS) to their customers.

The tribunal has given three months to the operators to implement the directions on VAS issued by TRAI on July 4, 2011 and said the telecom regulator would not take any action against them till that time. The TDSAT bench headed by Justice S B Sinha refused to condone 412-day delay in challenging the Telecom Regulatory Authority's direction.

TRAI, while issuing guidelines on July 4, 2011 had said that telecom operators would have to take confirmation from their customers through SMS, e-mail, fax or in writing within 24 hours of activation of VAS.

It had further said the operators could charge only after confirmation is received from their customer and if not, the service should be discontinued.
Further, every service provider shall, at least three days before the due date of renewal of a subscribed value added service, inform the consumer about it through an SMS.

Opposing the TRAI's directive, GSM body Cellular Operators Association of India (COAI) and CDMA body Association of Unified Telecom Service Providers of India (AUSPI) said this regulation was unjust and unfair to them.
They had termed TRAI's directive on VAS as "unreasonable, unwarranted and without application of mind..."

In its petition AUSPI had said that TRAI's directions are "encroaching and infringing" its right to carry on business and trade and it is against the innovative and consumer friendly ideas. While Reliance Communications , Reliance Telecom and Tata Teleservices were parties to AUSPI's petition, Bharti Airtel , Vodafone, Idea Cellular and Aircel were parties to COAI's
plea. State-run telecom firm BSNL had also challenged TRAI's regulation before the tribunal.

TDSAT had earlier said that it would first go into the applications filed by the GSM and CDMA groups on the issue of seeking condoning of the delay.
TRAI had opposed the petition.

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ACC Oct sales up 3.55%YoY, on improved demand

Moneycontrol Bureau

Cement maker ACC Ltd has reported an around 3.55 percent jump in its October sales to 2.04 million tonnes, YoY hinting that demand is gradually picking up. The company's production remained almost flat at 2.05 million tonnes compared to 2.04 million tonnes, YoY.

In its annual report, the company had said, "The demand for cement is expected to grow at 10 per cent over 2011. A lower utilisation rate coupled with increase in cost of raw materials and increasing logistics costs are likely to keep overall prices under pressure in all regions."

The company had also said that pressure on costs will continue to mount mainly due to increases in the cost of domestic coal and owing to volatility in costs of imported coal," ACC had further added that availability of fuel at reasonable rates was one of the main concerns of the company as it uses large quantities of coal annually to meet its kiln and captive power generation requirements.

 

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Govt clears 12 FDI proposals worth Rs 707 crore

The government has cleared 12 FDI proposals, including the ones by UK's footwear chain Pavers England and America's oldest clothing retailer Brooks Brothers, that envisage a total investment of Rs 706.66 crore.

The Foreign Investment Promotion Board (FIPB) in its meeting on October 19 gave its approval for induction of foreign equity worth Rs 98.26 crore by Pavers to carry out the business of single brand retail trading, a finance ministry statement said.

Permission is also given to Brooks Brothers to invest Rs 6.22 crore in its recently announced 51:49 joint venture with Reliance Brands, a unit of Reliance Industries. The proposal of Adcock Ingram Healthcare Ltd's for Rs 480 crore foreign equity investment to carry out the business of maintaining transactional support offices and proposed pharmaceutical manufacturing was also approved by the board.

The proposals cleared include the one by Larsen & Toubro for foreign equity in group company engaged in the defence sector. Another proposal of Italian jewellery brand Damiani to set up a 51:49 joint venture with Mehta's Pvt Ltd also got the approval. Damiani would bring in Rs 35 lakhs worth equity.

The FIPB, headed by Economic Affairs Secretary Arvind Mayaram, also approved PVR Leisure Ltd's proposal to induct Rs 50.10 crore foreign equity in an investing company. Besides, pharma firm Premier Medical Corporation's Rs 54.28 crore proposal was also approved by the FIPB. The FIPB, however, deferred 19 FDI proposals and also rejected five.

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Tribunal rejects telco pleas against TRAI regulation on VAS

Telecom tribunal TDSAT today dismissed the telecom operators' pleas against TRAI regulations that had laid down the procedures for providing
Value-Added-Services (VAS) to their customers.

The tribunal has given three months to the operators to implement the directions on VAS issued by TRAI on July 4, 2011 and said the telecom regulator would not take any action against them till that time. The TDSAT bench headed by Justice S B Sinha refused to condone 412-day delay in challenging the Telecom Regulatory Authority's direction.

TRAI, while issuing guidelines on July 4, 2011 had said that telecom operators would have to take confirmation from their customers through SMS, e-mail, fax or in writing within 24 hours of activation of VAS.

It had further said the operators could charge only after confirmation is received from their customer and if not, the service should be discontinued.
Further, every service provider shall, at least three days before the due date of renewal of a subscribed value added service, inform the consumer about it through an SMS.

Opposing the TRAI's directive, GSM body Cellular Operators Association of India (COAI) and CDMA body Association of Unified Telecom Service Providers of India (AUSPI) said this regulation was unjust and unfair to them.
They had termed TRAI's directive on VAS as "unreasonable, unwarranted and without application of mind..."

In its petition AUSPI had said that TRAI's directions are "encroaching and infringing" its right to carry on business and trade and it is against the innovative and consumer friendly ideas. While Reliance Communications , Reliance Telecom and Tata Teleservices were parties to AUSPI's petition, Bharti Airtel , Vodafone, Idea Cellular and Aircel were parties to COAI's
plea. State-run telecom firm BSNL had also challenged TRAI's regulation before the tribunal.

TDSAT had earlier said that it would first go into the applications filed by the GSM and CDMA groups on the issue of seeking condoning of the delay.
TRAI had opposed the petition.

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Hyundai invests $300 million in India manufacturing

Hyundai Motor Co's Indian unit will invest $300 million in a new engine plant and metal pressing shop, the company said on Thursday, to expand in the country's fast-growing diesel car segment.

Hyundai, India's second-largest carmaker, is running its Indian operations at full capacity and has lost market share over the past year due to a lack of diesel models, which are popular thanks to government subsidies on the fuel.

"This investment will help us meet the growing demand of diesel vehicles in India and reduce the waiting period," Bo Shin Seo, managing director, Hyundai Motor India, said in a statement.

The South Korean carmaker gave no details of the proposed engine plant's capacity, or when it would start production.

Hyundai said it was set to sign a memoradum of understanding with local authorities on November 5 to make the investment at its sprawling production site in Chennai in south-east India.

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Rs 26.50 hike in cooking gas cylinders put on hold

Facing stiff opposition, the government tonight put on hold the Rs 26.5 increase in price of cooking gas cylinders that consumers buy beyond their quota of six subsidised bottles.

"The price hike has been put on hold," a top oil company official said declining to give a reason for the same. The latest increase in non-subsidised cooking gas has been reversed and it will be available at old rates. The official said there is no change in the decision to hike price of commercial LPG cylinders.

Earlier in the day, the price of LPG cylinders, which consumers buy beyond the cheaper quota of six bottles, was hiked by Rs 26.50 to Rs 922 per unit on firming international rates.

The government had in September restricted the supply of subsidised domestic LPG cylinders to six per household in a year. State-owned oil firms revise rates of non-subsidised LPG on first of every month based on the average imported cost and rupee-US dollar rate during the previous month.

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AAI to move FinMin again for Rs 3,000 cr bond issue

State-run Airports Authority of India (AAI) today said it will soon approach the Finance Ministry afresh with the proposal to raise funds through a Rs 3,000-crore infrastructure bonds to finance modernisation of non-metro airports.

"The ministry has so far not agreed to our infrastructure bonds .... So we will again pitch for its sanction," AAI chairman V P Agarwal told reporters on the sidelines of the Capa India Aviation summit here.

The PSU has long been requesting the government to allow it raise Rs 3,000 crore through bonds. "We require funds to upgrade 2-tier and 3-tier airports or the secondary airports in the metros. Since these airports are not viable, we need low-cost financing," Agarwal said.

On the dues from the grounded Kingfisher Airlines , Agarwal said the airline's proposed revival plan should have the consent of the AAI. "Kingfisher will have to talk about clearing of our dues in the plan. And it should be acceptable to us as well."

Stating that dues have increased to Rs 300 crore, Agarwal said he will esnure that Kingfisher submits a plan which reflects the payment schedule of AAI dues. "Kingfigsher's dues have mounted to such a high level....which is not healthy and we have asked them to dilute these dues. So, when the airline submits its revival plan to the DGCA, that (payment schedule) should also reflect in the plan," he said.

AAI has asked the carrier to vacate the two hangers at Chennai and Kolkata airports, he said. "In any case, their licences have been cancelled and they are not flying. There are takers for these hangers and if they are given out to them, that will get us money," he said.

On the government's plan to abolish airport development fee (ADF) from January at the Delhi and Mumbai airports, the largest airports in the country, he said it will have some impact on AAI revenue.

"We have given our views to the regulator Aera that we can infuse equity if asked for. The ADF....will have an impact and we are working it out," he said.

While scrapping ADF which was levied on passengers to meet cash flow requirements before completion of an airport upgrade project, the aviation ministry had asked AAI to infuse additional equity of Rs 288 crore in the Mumbai airport and Rs 102 crore in Delhi airport, against its 26 percent share in the two joint ventures.

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EGoM to consider spectrum refarming on Thursday

The Empowered Group of Ministers (EGoM) will tomorrow consider the recommendations of Telecom Commission on spectrum refarming, which calls for existing operators to vacate their spectrum and buy less-efficient airwaves in different band.

"The Telecom Commission today finalised its response after considering the clarifications submitted by Trai and recommendations of a Department of Telecom (DoT) committee," Telecom Secretary R Chandrasekhar told reporters here.

He added the response will now be placed before the EGoM tomorrow. He, however, did not disclose the details. EGoM, headed by Finance Minister P Chidambaram, includes Defence, Telecom, I&B and Law ministers as members. Manish Tiwari and Ashwani Kumar are the new Information & Broadcasting and Law Ministers after the Sunday's Cabinet reshuffle.

Refarming recommended by TRAI calls for existing operators to give up all their spectrum in 900 MHz band when their permits come up for renewal starting November, 2014.

The operators will be given the option to buy replacement airwaves in the less efficient 1800 MHz band. The DoT has sought clarifications from TRAI due to various factors with top reason being EGoM asking for complete analysis of various options that were presented before it on spectrum refarming.

EGoM was given three different options were put before Telecom Commission including refarming (or redistribution of airwaves held by existing players) of all airwaves held by incumbents, or allowing the operators to retain either 2.5 Mhz or 5 Mhz of airwaves frequencies in 900 Mhz band.

However, TC in last meeting on October 17 decided to refarm entire spectrum. TC Chairman said the analysis was required in backdrop of representation made by the industry bodies and certain reference made by government departments including Economic Affairs Secretary Arvind Mayaram and Planning Commission Deputy Chairman Montek Singh Ahluwalia.

Chandrashekhar said clarifications from TRAI were required as recommendation with regard to the prescribed limit of spectrum, refarming, liberalisation of spectrum and auction had come in different points in time.

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