Motorcycle industry : New entrant policy termed ‘disaster

Motorcycle industry : New entrant policy termed ‘disaster’

Staff Report 

ISLAMABAD: Pakistan’s motorcycle industry here on Monday termed new entrant policy for new motorcycle manufacturers as a disaster for the existing industry and warned that this would result in promoting organised sector into an unorganised sector.

The representatives of the motorcycle industry informed a selected group of reporters that the new entrant policy is being formulated to benefit one new manufacturing company, which intends to manufacture motorcycles above 100cc.

The representatives of the industry were of the view that the policy would not benefit the company being rewarded at the cost of the existing industry as it would only hurt the expansion in the existing industry. They were of the view that at a time when motorcycles are being sold at $110 to $1,200 in other countries, due to localisation of parts in Pakistan motorcycles are being sold at less than $500. Localisation has benefited the consumers in Pakistan and new entrant policy will promote imports and would have a very negative impact on localisation efforts being made by the existing industry. The country would turn into a trading hub if the proposed policy is approved and implemented as local players would prefer importing motor cycles rather than manufacturing them locally.

The proposed import tariff for new entrants has been proposed at 5.0 percent against the 65 percent for others who would be importing motorcycles in Completely Built Unit (CBU) condition.

They feared that existing manufacturers of motorcycles would get themselves as new entrants and would like to benefit from import tariff incentives proposed in the policy and local vender industry, which has already achieved localisation up to 93 percent in 70cc would get hurt badly along with loss of thousands of job opportunities in the country.

Attock Refinery increases lube oil price by Rs 9

Attock Refinery increases lube oil price by Rs 9

Staff Report

KARACHI: Attock Oil Refinery (ARL) has increased the prices of lube base oil by Rs 9 per litre, which would result in sharp increase in all the lubricating oils, adding another burden of Rs 11 per litre to the end-consumers.

All Pakistan Lubricants Manufacturers Association (APLMA) Chairman Mian Zahid Husain while condemning this arbitrary act of the refinery announced on Saturday, said that this is the sixth increase by Attock and National Refinery Limited (NRL) and they have become habitual of increasing prices unabatedly and unchecked.

He warned that this increase could result in the price spiral of every brand of lubricating oil by another Rs 11 per litre in the retail market and on all brands.

While demanding imposition of a price control mechanism on lube base oil manufacturers, Husain said that ARL and NRL, the major shareholders of the lube base oil manufacturers had so far increased the price by Rs 51.50 per litre in the last 14 months and this was the sixth announcement of price increase in the lube base oil during the period.

“The lubricating oil manufacturers are constantly being ignored by the lube base oil manufacturer and raising prices without any consultation with the stakeholders on vague pretexts,” alleged Husain, and asked the government to intervene into the matter and get the refinery’s decision reversed.

Husain said that the oil refinery was increasing prices frequently on various pretexts and warned that if the trend continued the lubricant manufacturers would be forced to shut down their businesses.

Serious planning urged to boost rice industry

Serious planning urged to boost rice industry

KARACHI: The Union of Small and Medium Enterprises (UNISAME) has urged the candidates for managing committee (MC) elections of Rice Exporters Association of Pakistan (REAP) to declare their groups manifesto for the tenure they are seeking to be elected as members of the MC. The rice exporters are eager to know how the candidates plan to promote the industry to make it competitive and overcome the challenges faced by the big and small rice exporters. President UNISAME, Zulfikar Thaver said the rice industry was stagnating and facing tough times due to lack of planning on the side of the ministries of agriculture, commerce and finance. The rice exporters deserve the best attention from the government, as next to textile it was the most important foreign exchange earning sector. The export of basmati rice has suffered a setback and non-basmati rice is not fetching good price. The farmers are in turmoil because of high cost of inputs. They are getting inferior seeds, fertilizers and the pesticides and insecticides are counterfeit and fake. Surprisingly the growers associations are passive and not taking up the matter with the authorities. If this state of affairs continues it will damage the industry. The milling plants have old machinery and are not resorting to paddy drying by machines. The merchants in UAE are importing our rice and blending it with Indian rice and exporting it as Indian rice. Pakistani exporters have worked hard to establish their brands but are facing decline in buying due to the unfair practices of Indian merchants in UAE. The rice commissioner is not playing an effective role as banned varieties are being cultivated and there is less focus on our superior varieties of rice known for their aroma, length, taste and cooking abilities. REAP would advocate the cause of the rice exporters and enable the rice exporters to repay the banks the huge amounts borrowed under export refinance scheme. ppi

Indian group visits PSF

Indian group visits PSF

ISLAMABAD: The Indian Working Group on Science and Technology (S&T) visited Pakistan Science Foundation (PSF). The Indian Working Group (IWG) comprised Dr Akhilesh Gupta, head of Climate Change Programme and Shri R K Sharma from International Cooperation Division in Department of Science and Technology were given presentation on PSF activities. The PSF chairman explained the Foundation’s activities for promotion of science and technology in Pakistan. The IWG is a part of Pakistan-India Joint Commission, which met during the visit of Indian Foreign Minister to Pakistan. The IWG members briefed the host on the programmes and activities of DST and said the ratio of Indian students’ enrollment in science subjects stood at around 27 percent and most of the students opt for humanity subjects. staff report

Domestic debts, liabilities up 26 percent in a year

Domestic debts, liabilities up 26 percent in a year

Staff Report

KARACHI: The government’s domestic debts and liabilities have seen a whopping yearly surge of Rs 1,648 billion or 26 percent to reach overall burden of Rs 7,879 billion by end of financial year 2011-12 as compared with Rs 6,231 billion in the previous financial year 2010-11, State Bank of Pakistan (SBP) data showed.
The government borrowed the colossal amount through its federal government bonds particularly Pakistan Investment Bonds (PIBs) and Ijara Sukuk whereas its debts expanded through Market Treasury Bills.
The debts under federal government bond increased to Rs 1,395 billion by June as against Rs 844.4 billion amount stood in the same month of yesteryear, showing an increase of 61 percent or Rs 515.2 billion in a year’s period. The debts accumulated under Pakistan Investment Bonds (PIBs) rose to Rs 974 billion by end of June as against Rs 618.5 billion recorded in the same months, up by 57.5 percent in a year.
Government’s Ijara Sukuk Bonds witnessed a surge of 70 percent from 2010-11 to 2011-12, reaching the level of Rs 3,383.5 billion after addition of $158.9 in the worth during the outgoing financial year.
Similarly, it borrowed an amount of Rs 56.3 billion in a year through prize bonds, which stood at Rs 333.4 billion by end of 2011-12.
As far as floating debts are concerned, it surged by 28 percent or Rs 907 billion up to June 2012. The overall amount of debts increased to Rs 34,143.1 billion from Rs 3,235 billion in a year.
The government accumulated debts more than Rs 565.8 billion through Market Treasury Bills, which were up 31 percent in a year to reach Rs 2,383 billion as of June 2012 from Rs 1,817 billion since the same month of previous year.
Analysts said that the massive debts expansion was recorded in a year by the government in order to meet its budgetary expenses.

Pakistanis spending 42% income on food, beverages

Pakistanis spending 42% income on food, beverages

* Seminar highlights food industry has become second largest economic sector sharing 17% of GDP in Pakistan

Staff Report

LAHORE: Despite the food shortage in the country, food industry in Pakistan has become the second largest industry sharing 17 percent of the gross domestic product (GDP) as Pakistanis are spending 42 percent of their total income on the food and beverages.

Food industry is facing the problem of food shortage caused by improper handling of produced items and the magnitude of post-harvest losses in vegetables and fruits is 40 percent while in case of grains 20 percent.

This was disclosed by the speakers in a seminar on ‘Current Status of Food Industry in Pakistan: Threats and Challenges’ organised by the Pakistan Council of Scientific and Industrial Research (PCSIR) at its auditorium here on Thursday in which stakeholders of the food industry also participated. Different food processors and exporters have set up stalls to exhibit their products there too.

Federal Minister for Science and Technology Mir Changez Khan Jamali chaired the seminar while PCSIR Chairman Dr Shoukat Pervaz, PCSIR Director General Dr Shahzad Alam, World Food Programme Pakistan Chapter Country Director Jean-Lue Siblot, PCSIR’s Planning and Development Director Dr Nusrat Ejaz and other scientists also highlighted the problems of the food industry and its solutions.

Addressing the seminar, the chief guest Jamali said that in a developing country like Pakistan, technical advancement couldn’t be achieved through imported technologies only and there was a need to get skills in these sectors. Our local food industry can play a major role in the economic growth of Pakistan as huge gap exists between production and preservation. He informed that his ministry had decided to embark upon a comprehensive program for close collaboration with all stakeholders, keeping in view, their needs for national interest in food industry. He further informed that they had established a commercialisation cell in Islamabad to build a close contact among industries and its research organisations.

The PCSIR chairman addressing the participants said that all the problems facing by the food industry could only be ended through advancement of scientific and technological skills by all the stakeholders. He informed that PCSIR had been able to establish a network of 14 research institutions and laboratories, where 850 scientists, technologists and engineers were engaged in scientific food research. He said that there might be more than 1,000 larger-scale food-processing enterprises in Pakistan and overall food retail and wholesale business accounts for 17 percent of the GDP.

taly’s APC consortium offers solution to save 100BCF gas

taly’s APC consortium offers solution to save 100BCF gas

* Offer includes replacement of existing gas meters with smart meters and gas leakage detection and reduction in existing gas transmission and distribution system

Staff Report

ISLAMABAD: The Asia Pacific Corporation (APC) consortium from Italy has offered Pakistan replacement of existing gas meters with smart meters and gas leakage detection and reduction in the existing gas transmission and distribution system of the Sui Northern Gas Pipelines Ltd and Sui Southern Gas Company Ltd networks. It is estimated that potentially 100 billion cubic feet (BCF) gas could be saved from the solution presented by APC.

Adviser to the Prime Minister on Petroleum and Natural Resources Dr Asim Hussain has said that the government’s top priority is to solve existing energy crisis, for which a number of steps are underway. An important area is the high Unaccounted-for-Gas ratio, which has to be brought down. He said this while meeting a delegation of the APC consortium that met Hussain on Thursday. The meeting was also attended by Ambassador of Italy in Pakistan Adriano Chiodi Cianfarani, Petroleum Secretary Waqar Masood Khan and senior officers of the Ministry of Petroleum and gas companies.

The APC consortium in their presentation provided an outline of the feasibility assessments and engineering, project development, financing and risk minimisation. The proposed solution will entail complete real-time information about each consumer and meter and its two-way linkage with head-end. It is estimated that potentially 100 BCF gas can be saved from the solution. The consortium also informed that they want to make investments in this project and repayment would be made from the sale of gas and decreased losses, which would entail no debt burden on the companies or the consumers.

While welcoming the proposed solution, the adviser informed the delegation that proper procurement procedures as per Public Procurement Regulatory Authority Rules have to be followed in implementation of the proposal and directed gas companies to work out the modalities within two weeks to save the precious gas.

In a separate meeting with CEOs of Oil Marketing Companies (OMCs), Dr Hussain emphasised on monitoring of retail outlets for quality product sale and elimination of hoarding and stocking. OMCs requested the adviser on petroleum to facilitate them in clearance of their receivables. Dr Hussain assured the delegation that these issues would be taken up with the concerned departments immediately. OMCs were further informed that the government is taking various measures to resolve the issue of inter-corporate circular debt and in this regard, OMCs were requested to cooperate with the government.

Etisalat yet to pay $799m for PTCL privatisation’

Etisalat yet to pay $799m for PTCL privatisation’

ISLAMABAD: Minister for Privatisation Ghous Bux Khan Mahar on Thursday told the Senate that 26 percent shares of Pakistan Telecommunication Company Limited (PTCL) were sold to Etisalat for $2.598 billion and the company had paid $1.799 billion so far.

Replying to a question during question hour, he said that the total outstanding amount Etisalat was $799 million.

He said that as per terms of the agreement the amount would be paid after transfer of properties in possession of PTCL to Etisalat.

To another question, he said that PTCL was privatised through sale of 26 percent shares (1,326,000,000) along with transfer of management control.

Reference price of Rs 62 per share was approved by the Cabinet Committee on Privatisation, he said and added that Etisalat offered $2.599 billion, China Mobile $1.409 billion and Sing Tel $1.167 billion for buying shares of PTCL. app

YPF oil: EU condemns Repsol state seizure

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Repsol YPF SA

LAST UPDATED AT 20 APR 2012, 11:57 GMT

price	change	%
14.61	- -0.08	- -0.54

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The European Parliament has passed a resolution condemning a nationalisation that has strained relations between Spain and Argentina.

Argentina has nationalised YPF, wiping out the Spanish firm Repsol's controlling-stake in the oil firm.

The resolution asks the European Commission to consider a "partial suspension" of tariffs that benefit Argentine exports into the EU.

Shares in Repsol has another decline, falling 2.3% on Friday.

Over the week, Repsol stock has lost almost a fifth of its value.

MEPs in the European Parliament said the institution "deplores" the decision taken by Argentina and describes it as an "attack on the exercise of free enterprise".

Decisions such as that taken by the Argentine authorities "can put a strain on the climate of understanding and friendship needed to reach" a trade agreement between a South American bloc and the EU, it said.

The resolution, which is non-binding, received 458 votes in favour, 71 against and 16 abstentions.

'Not valid'

It also emerged that Repsol may be obliged to buy a minority shareholder's YPF stake if it ever lost majority control, which Repsol denied.

Twenty-five percent of YPF is owned by Argentina's Eskenazi family through its firm, Peterson.

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Nationalising YPF

• Spain's Repsol has hitherto owned 57.4% of shares with 25.5% belonging to Argentina's Petersen, 0.02% to the Argentine government and 17% traded on stock exchanges
• The Argentine government proposes to seize 51% of the shares, all of which will be taken from Repsol's stake, leaving the Spanish firm with 6.4%
• The expropriated shares will in turn be divided between the Argentine government and provincial governors
• Following the expropriation, Petersen will retain its 25.5% stake and 17% of the shares will continue to be traded

• 
  

According to regulator filings of a 2008 agreement, Repsol must "maintain directly or indirectly through controlled companies an ownership interest greater than or equal to 50.1%".

If it does not, Repsol is obliged to buy back the loans used to secure the Eskenazis' shares.

But Repsol told the BBC that the expropriation of its stake in YPF had invalidated the agreement.

"The agreement is not valid under Spanish law in these conditions," said Kristian Rix, a Repsol spokesman. "The law is unequivocal, there is no debate."

Trade war brewing?

Spain has threatened retaliation against Argentina over the forced nationalisation of oil firm YPF, raising the prospects of a trade war between the nations.

Spanish Trade Secretary Jaime Garcia Legaz said the European Union would intervene over Argentina's seizure of YPF.

Argentina is taking over 51% of YPF, wiping out Repsol's 57.4% majority stake.

The move has wide support in Argentina but has provoked outrage in Spain.

Spain's Foreign Minister Jose Manuel Garcia-Margallo said US Secretary of State Hillary Clinton had also offered support.

Repsol has said it wants around $10bn (£6.2bn) for its stake in YPF, but Argentina has said it does not accept that valuation.

YPF, Argentina's biggest oil company, was privatised in 1993. Last year it announced huge new finds of shale oil and gas.

Nestle having 'challenging' 2012

The Swiss company said its sales in the first three months of 2012 were 21.4bn Swiss francs ($23.4bn; £14.6bn), up 5.6% from the same period last year.

The world's biggest food group Nestle has reported rising sales but says it is having a "challenging year".

The group behind KitKat and Nespresso said that the trading environment had been subdued in many developed markets.

But it added that in most emerging markets "conditions remain dynamic and rich in growth opportunities".

Nestle struggled in 2011 with the strength of the Swiss franc, which cut its earnings by 13.4% in the full year.

But in the past six months the Swiss central bank has been intervening to weaken its currency and support the country's exporters.

Nestle said an expected "improved raw material environment" in the second half of the year together with rising prices meant it could maintain its forecast of improved earnings and profit margins for the full year.

It did not comment on the deal it is expected to finalise this month to buy Pfizer's infant nutrition business for about $9bn (£5.6bn).

Ford unveils further investment in China

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US carmaker Ford has announced further investment in China, with plans to build a $760m (£474m) factory in Hangzhou.

Ford wants to boost its manufacturing capacity in China 

Car production at the new plant is expected to start in 2015.

Ford already has a big complex in Chongqing, which is its largest global manufacturing location outside south-east Michigan.

Two weeks ago, the company said it would build a third plant there by investing $600m.

Ford has been boosting its manufacturing capacity in China as part of its effort to raise global sales by nearly 50% to about 8 million cars by 2015.

"So far, Ford's investments in China and across Asia represent its largest and most rapid global expansion in 50 years," said Joe Hinrichs, president of Ford Asia Pacific.

Catching up

China is already the world's biggest car market and Ford expects sales there to nearly double from 18.5 million last year to about 30 million by 2020.

In order to meet growing demand, Ford aims to double the number of its dealerships and employees there by the end of the decade.

The latest announcement brings the firm's total investment in China to approximately $4.9bn since 2006.

However, Ford was a relative late-comer in the market and has been playing catch-up with the likes of General Motors and Germany's Volkswagen.

While Ford sold 320,658 vehicles in China last year, both GM and VW sold more than 2 million.

Ford makes cars there in a tie-up with Chongqing Changan Automobile and Japan's Mazda Motor.

It also holds 30% of Jiangling Motors which produces light commercial vehicle Ford Transit vans.

Japanese exports rise as car shipments surge in March

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Japan's exports rose in March, boosted by a surge in shipments of cars as the sector continues to recover from last year's natural disasters.

             Car exports are a key contributor to Japanese economic growth 

Car exports rose 33.6% from a year earlier, with overall exports up by 5.9%, latest trade data showed.

Japanese carmakers have also benefited from growing demand from key markets such as the US.

Sales of cars and light trucks in the US rose 13% in March, with Toyota's sales up by 15% and Nissan gaining 13%.

Ryoji Musha of Musha Research told the BBC that the "improvement of exports indicates that the Japanese and the global economy are recovering".

Mr Musha added that the recent weakness of the Japanese yen had also played a part in boosting exports.

The currency fell more than 8% against the US dollar between February and March this year, making Japanese goods more affordable to foreign buyers.

Growing imports

Japanese imports rose by 10.5% in March, resulting in a trade deficit of 82.6bn yen ($1bn; £632m) during the month.

The jump was driven largely by a 21.8% increase in imports of liquefied natural gas (LNG).

Japan has seen imports of LNG and other fuels rise in recent months.

Last year it shut down almost all of its nuclear power stations in the wake of radiation leaks at the Fukushima Daiichi nuclear plant after the earthquake and tsunami.

As a result the country's electricity providers have been relying more heavily on thermal power plants, which require coal, oil and LNG to operate.

Analysts said that growing imports of fuel are likely to affect Japan's trade numbers in the coming months.

"Exports to the United States such as autos are unlikely to keep growing, while the levels of imports will remain high, driven by purchases of natural resources," said Hideo Shimamine, chief economist at Daiichi Life Research Institute.

"It looks like we will be having trade deficits for the time being."

The Largest Marginal Tax Rate Ever?

By CASEY B. MULLIGAN

Casey B. Mulligan is an economics professor at the University of Chicago.

In 2012, the Treasury Department began a new phase of its Home Affordable Modification Program, or HAMP. In doing so, it may have the distinction of putting into place the largest marginal income tax rate ever in a non-Communist country.

TODAY’S ECONOMIST

Perspectives from expert contributors.

For home mortgage borrowers who appear to be headed for foreclosure, mortgage programs typically recommend a revised mortgage payment amount that is lower than the payment specified in the original mortgage contract. The new payment is set in proportion to the borrower’s income at the time of the modification.

The more the borrower is earning at the time of the modification, the more she will be required to pay her lender over several years. Typically, each additional $100 a borrower is earning (on an annual basis) at the time of the modification adds $31 to the annual amount of the mortgage payment recommended by the Treasury’s mortgage modification guidelines. (This modification is not revisited over time; the income is examined one time and payments set.)

The HAMP program, and its predecessor at the Federal Deposit Insurance Corporation, usually modified the mortgage payments by adjusting the loan interest rate over the subsequent five to seven years.

Thus, assuming a five-year modification time frame, each $100 earned at the time of the modification would add $155 to the borrower’s total mortgage payments, or about $130 in present value.

It is done this way with the intention of creating a monthly payment that is “affordable” (defined as 31 percent of income). But there’s a flip side to the argument: the disadvantage of higher earnings in calculating the resulting payment. To an economist looking at it that way, it’s the equivalent of a 130 percent marginal tax rate: a $130 payment differential solely as a consequence of earning an extra $100.

This year the Treasury decided to encourage changes in this procedure. In particular, it will now subsidize lenders for modifying mortgage principal balances rather than interest payments. Because the principal balance determines payments for the life of the loan, in effect Treasury is asking lenders to modify payments for the life of the loan and not just five to seven years.

Take a 30-year mortgage originated in 2006: it has 24 years left. Under the new rules, an extra $100 earned by the borrower at the time of modification costs her $31 a year for 24 years, which amounts to a total of about $390 in present value. That’s a 390 percent marginal tax rate that applies to borrowers who are having, or expect to have, their mortgage modified.

Economists agree that marginal income tax rates of 100 percent or more are destructive to the labor market and strongly encourage corruption. The best we can hope for is that people subject to such confiscatory marginal tax rates are and remain oblivious of the incentives that Treasury is presenting them.

Marginal tax rates in excess of 100 percent are also present in antipoverty programs, especially in what is known as the Medicaid notch, where an additional $1 of income can mean the complete loss of coverage. In a sense, the Medicaid notch is a marginal tax rate in the thousands of percent, because beneficiaries lose benefits valued in thousands of dollars as a consequence of earning an additional $1.

But while a few thousands of dollars are at stake with one family’s Medicaid coverage, tens of thousands, sometimes hundreds of thousands, are at stake in each mortgage modification transaction.

For this reason, I think Treasury officials have earned the award for largest marginal income tax rate ever. Let’s hope they are not in training to yet again break their record.

NAB 2012: Blackmagic Unveils Surprise 2.5K Cinema Camera for Unprecedented $3,000

The postproduction technology developer draws crowds as it enters the camera business.

LAS VEGAS--Attendees expected announcements from camera makers such as ARRI, Canon, Red and Sony this week at the National Association of Broadcasters (NAB) Show -- but fewer expected postproduction equipment maker Blackmagic Design to unveil its first camera, a 2.5K camera for just $3,000.

The manufacturer's exhibition stand was crowded with those wanting to get a look at the new camera, which Blackmagic reported would offer 13 stops of dynamic range; a 2.5K sensor; a built in SSD recorder; support for open file formats including CinemaDNG RAW, ProRes and DNxHD; a built-in Thunderbolt connection; and a built-in touch screen LCD with metadata entry.The Blackmagic Cinema Camera is targeted at uses including feature and TV series production.

The camera -- scheduled for availability in July -- is being developed to support 2.5K and 1080 high definition resolution at frame rates of 24, 25, 29.97 and 30.

Blackmagic -- best known in Hollywood as the company behind the DaVinci Resolve digital color grading software -- has also included a copy of its DaVinci Resolve version 9.0 (which was also introduced Monday at NAB) for color grading and Blackmagic UltraScope software for waveform monitoring.

Canon EF and Zeiss ZF mount lenses can be used with the Blackmagic camera.

"Ever since I was a telecine engineer back in the 1990s I have wished that video cameras would include features that allowed them to perform creatively similar to film," said Grant Petty, CEO of Blackmagic, in a statement. "However current digital cameras are too heavy, way too expensive and need costly accessories to work. We felt there was a need for a camera that delivered these features in a design that's optimized for professional video shoots, as well as being a compact, elegant design that's easily affordable."

Blackmagic’s product lines include video converters, routers, live production switchers, and disk recorders, for production, postproduction and television broadcast industries. The company has offices in the US, UK, Japan, Singapore, and Australia.

Mark Zuckerberg Kept Facebook Board Out of the Loop on Instagram Buy (Report)

The CEO of the social network, which is planning to go public soon, negotiated the $1 billion deal on his own.

When negotiating the deal for Facebook's $1 billion purchase of Instagram, Mark Zuckerberg kept his board of directors out of the action, the Wall Street Journal reported.

Following three days of talks with Instagram CEO Kevin Systrom, the Facebook founder alerted the board of the intended acquisition -- the company's largest-ever -- on the morning of April 8, the day the buy became a done deal.

Negotiations happened at Zuckerberg's $7 million Palo Alto home, according to the Journal, with Systrom initially starting with a price of $2 billion for the sale of his wildly popular photo-sharing company.

Sources familiar with the situation told the newspaper that the board was "told, not consulted," and that Zuckerberg opted for a solo approach out of worry that Systrom might get turned off if approached by lawyers rather than the Facebook CEO.

STORY: Experts Weigh In On Facebook's Instagram Buy

Zuckerberg, in fact, owns 28 percent of Facebook stock and 57 percent of its voting rights, giving him the power to bypass board-related red tape in such deals.

Also kept in the dark, albeit not for long: Facebook's COO, Sheryl Sandberg, who learned of the talks via Zuckerberg the Thursday before the company announced the buy.

San Francisco-based Instagram has experienced tremendous growth since launching in 2010. The company most recently reported about 30 million users, about double from the beginning of the year. A recent launch onto the Android platform had the potential of doubling the number of users again.

PHOTOS: 2012 Digital Power 50

Launched in 2010 by Systrom and Mike Krieger, Instagram instantly took off in the social media universe by allowing users a way of more conveniently sharing photos from their mobile phones.

Instagram is the first big purchase by the social media giant, which is expected to go through with its IPO as soon as next month. The IPO will raise about $5 billion for Facebook, though Zuckerberg cautions not to expect many more splashy acquisitions.

Shaw’s launches ‘From Deli to Dugout Sweepstakes’ on Red Sox Radio Network

By Chris Reidy, Globe Staff



Radio station operator Entercom Communications and Shaw’s Supermarkets said they are launching a “From Deli to Dugout Sweepstakes” promotion as part of the ongoing relationship between Shaw’s and Entercom’s WEEI Sports Radio and the Red Sox Radio Network.

The sweepstakes will reward one customer each week for buying specific Dietz & Watsondeli items with their Shaw’s Rewards Card. Shaw’s Rewards Card members who purchase the deli item of the week will receive automatic entry into the “From Deli to Dugout Sweepstakes” with a chance to win such prizes as an opportunity to watch batting practice on-field, Shaw’s said.

The promotion is designed to highlight Shaw’s deli offerings, the West Bridgewater-based chain said.

Given Shaw’s 150-year history, a relationship with WEEI and the Red Sox Radio Network is “a natural fit” for the supermarket chain, Shaw’s president Mike Stigers said in a statement.Chris Reidy can be reached at reidy@globe.com.

New FDI Norms For FIIs

The government ON 10TH march announced new Foreign Direct Investment, FDI norms for Foreign Institutional Investors, FIIs. Under the new norms, FIIs can now invest up to 23 per cent in commodity exchanges without seeking prior approval of the government. However, FDI will continue to require the approval of the Foreign Investment Promotion Board. The Department of Industrial Policy and Promotion's, consolidated FDI policy and the new norms came in force from today. At present both type of foreign investments, 23 per cent through FII route and 26 per cent through FDI route in commodity exchanges require government approval.
This change aligns the FDI policy for foreign investment in commodity exchanges, with that of other infrastructure companies in the securities markets, such as stock exchanges, depositories and clearing corporations.
DIPP has also decided that the consolidated FDI circular will be announced every year instead of six-monthly basis. The revised FDI policy would be announced on 29th March next year.

Centralised Electronic Payment Systems

 In a move to popularise electronic payment system, the Reserve Bank of India (RBI), on 9th April 2012, allowed all licensed banks, including urban co-operative banks, State co-operative banks and district central cooperative banks, to transfer funds through the centralised electronic payment system as sub-members. These banks would participate in the centralised electronic payment systems, Real Time Gross Settlement System (RTGS), and the National Electronic Funds Transfer (NEFT), through their sponsor bank, which is a direct member of this system, the RBI said in a notification to all banks.

“This would be an alternative mechanism to all licensed banks, which have the technological capabilities but are not participating in centralised electronic payment systems on account of either not meeting the access criteria or because of cost considerations,” the RBI said. There is no restriction on the number of sub-members a sponsor bank could sponsor.

“The charges for customer transactions of sub-members cannot exceed the charges applicable to customers of sponsor-banks of the centralised electronic payment system,” the RBI added.

India Qatar Sign Oil And Gas Pact

India and Qatar have signed and initial agreement in for cooperation in oil and gas sector. The co-operation will focus in refining the oil besides gas exploration. The oil and gas agreement was signed after Qatar's Emir Emir Sheikh Hamad bin Khalifa al-Thani met Prime Minister, Dr. Manmohan Singh in New Delhi on 9th April and discussed the issue.

From the Indian side the agreement was signed by Oil and Natural Gas Minister Jaipal Reddy and Energy Minister of Qatar Mohammed Bin Saleh al-Sada.
It envisages cooperation in the areas of upstream and downstream oil and gas activities. It is expected to encourage and promote investment and cooperation between two ministries of oil and gas and through affiliated companies.
Qatar is the largest supplier of LNG to India, which buys 7.5 million tonnes/per year of LNG from it. India wants to have huge additional supply of oil and LNG from Qatar but pricing is an issue.

Pak Notifies Negative List For Trade With India

Posted on : Mar 22,2012
The Pakistan government today issued a notification for switching over to a negative list regime for trade with India, under which the import of only 1,209 Indian products will be barred.

Officials said in Islamabad that the Commerce Ministry issued the Statutory Regulatory Order for trade with India under the negative list regime.

The notification says that a total of 1,209 items have been included in the negative list for trade with India and will not be importable from India.

Of the importable items from India, 137 products can be brought in from India through the Wagah land border crossing.

Till now, Pakistan traded with India under a positive list regime that allowed the import of less than 2,000 items.

Mukul Roy Announces Partial Rollback In Rail Fare Hike

Posted on : Mar 28,2012
The government on 22nd march announced partial roll back in the passenger fares in the Railways for the benefit of the common man. Rail Minister Mukul Roy announced roll back in third AC, AC Chair Cars, Sleeper classes and sub-urban trains.

There are no changes in the passenger fares for the first and the second AC classes. Replying to the discussion on the Railway Budget 2012-13, Mukul Roy said the roll back is aimed at giving relief to the people. Mr. Mukul Roy said the entire railway system will be revamped. Altogether one lakh people will be recruited in the Railways.

Mukul Roy said new railway tracks will be laid as announced in the Rail Budget besides giving an increased thrust to schemes intended for passenger amenities including safety, cleanliness and catering. He also announced the roll back of the proposal for restructuring the Railway Board.

Later, the House passed the Railway Budget 2012-13. The Rajya Sabha also resumed discussion on the Rail Budget.

CAG Says Coal Scam Media Report Misleading

The CAG has told the Prime Minister that the media reports on alleged coal scam published in a newspaper is exceedingly misleading. Quoting CAG, the daily claimed that the government has lost 10.7 lakh crore rupees by not auctioning coal blocks.

Rejecting the claim, the CAG in a letter to Dr Manmohan Singh, said the details being brought out were observations which are under discussion at a very preliminary stage. These do not even constitute its pre-final draft.

Terming that such leakages causes very deep anguish, the CAG said the leak of the initial draft causes great embarrassment as the Audit Report is still under preparation. In the excerpts of its letter released by PMO to the press, CAG also said it has changed its mind following clarification provided by the Ministry in exit conferences held on 9.02.2012 and 9.03.2012.

In fact it is not even its case that the unintended benefit to the allocatee is an equivalent loss to the exchequer, the CAG said.

Finance Minister Pranab Mukherjee described the CAG's report as only a draft and not yet a CAG report. Speaking to reporters in New Delhi Mukherjee said the normal practice is after the CAG's draft report, ministry's comments come and after the comments there is a regular system through which it will be placed on the table of both Houses of Parliament.

Centre Decides To Open 11 New International Routes Under ASAs Posted on : Mar 31,2012 The Government on 23rd march decided to open 11 new International routes under Bilateral Air Services Agreements (ASAs) to the national carrier Air India as well as to other Indian Scheduled Carriers. A release issued by Ministry of Civil Aviation said, the decision will help expand global networks of such carriers as well as to make air travel more affordable to people. The sectors which have been decided to open include Mumbai-Dar-es-Salaam, Delhi-Guangzhou, Delhi-Yangon, Delhi-Tashkent, Delhi-Hanoi, Delhi-Addis Ababa , Delhi-Melbourne and Delhi-Sydney. The decision to allow all Indian scheduled carriers to use the air traffic rights under the existing ASAs, was taken after Civil Aviation Minister Mr Ajit Singh reviewed their utilisation.With this decision, the international services of Air India and its subsdiary Air India Express will increase from 430 flights per week now to 471 services per week this summer. Similarly,the number of global flights of all private carriers would also go up.The release said, the private airlines would continue to operate on these international sectors till such time they reach the maximum permissible limit under ASAs. In order to safeguard the interests of Air India, the Ministry decided that the national carrier's operational plan would receive due consideration in allocation of the traffic rights and entitlements.

Posted on : Mar 31,2012

The Government on 23rd march decided to open 11 new International routes under Bilateral Air Services Agreements (ASAs) to the national carrier Air India as well as to other Indian Scheduled Carriers.

A release issued by Ministry of Civil Aviation said, the decision will help expand global networks of such carriers as well as to make air travel more affordable to people. The sectors which have been decided to open include Mumbai-Dar-es-Salaam, Delhi-Guangzhou, Delhi-Yangon, Delhi-Tashkent, Delhi-Hanoi, Delhi-Addis Ababa , Delhi-Melbourne and Delhi-Sydney.

The decision to allow all Indian scheduled carriers to use the air traffic rights under the existing ASAs, was taken after Civil Aviation Minister Mr Ajit Singh reviewed their utilisation.With this decision, the international services of Air India and its subsdiary Air India Express will increase from 430 flights per week now to 471 services per week this summer.

Similarly,the number of global flights of all private carriers would also go up.The release said, the private airlines would continue to operate on these international sectors till such time they reach the maximum permissible limit under ASAs.

In order to safeguard the interests of Air India, the Ministry decided that the national carrier's operational plan would receive due consideration in allocation of the traffic rights and entitlements.