NEW DELHI: Amid a furore over 26 per cent profit-sharing with locals under the proposed new mining law and demands for watering down the provision for PSUs, the Mines Ministry today said its final draft will go with the recommendations of the Group of Ministers.
"Based on the discussion of the Group of Ministers (GoM), the final draft of the new mining bill is being prepared by the Mines Ministry and will be placed before the GoM. After that it is to be sent to the Cabinet," Mines Secretary S Vijay Kumar told PTI.
Last week, the 10-member ministerial panel headed by Finance Minister Pranab Mukherjee arrived at a consensus on the Mining Bill, which, among other things, makes it mandatory for companies to share 26 per cent of the profits from mining with project-affected people.
The GoM will meet soon to clear the final draft of the Bill.
Steel Minister Virbhadra Singh, who is a part of the GoM, has sought a "special consideration" for PSUs like SAIL and NMDC, a proposal termed by industrialist-turned politician Naveen Jindal-led Jindal Steel and Power as discriminatory. The firm has also termed the proposed 26 per profit-sharing regime to be too high.
Besides Jindal, the Tatas have also criticised the proposed levy and asked the government not to charge it as a separate tax, saying that social obligation is part of the operating cost of the company.
The new Bill has proposed that companies share 26 per cent of the profits from mining with the locals who lose land. For such profit-sharing, the GoM has proposed creation of a District Mineral Foundation, for disbursement of benefits to the locals.
It also proposes that in case a mine is non-functional, or running in losses, the firms should compensate the people affected by land acquisition by paying them an amount equal to the royalty given to state governments.
The royalty paid by mining companies to state governments runs into hundreds of crores of rupees.
The new Bill seeks to expedite the grant of mineral concessions in a transparent manner and attract big-ticket investments in the sector.
Mines Minister B K Handique had earlier said the ministry plans to introduce the Bill in the Winter Session of Parliament to replace the existing Mines and Mineral Development and Regulation (MMDR) Act, 1957.
The new legislation is being framed at a time when UPA Chief Sonia Gandhi has voiced concerns over land acquisition norms. Gandhi had said she favours the Haryana model, where farmers are provided lucrative compensation in addition to annuity for 33 years.
Wednesday, September 22, 2010
Mahindra Satyam scrip scales 8-month peak, soars 15 pc on BSE
MUMBAI: IT firm Mahindra Satyam scrip on Wednesday rallied by 14.90 per cent to hit an eight-month high of Rs 109.45 at the Bombay Stock Exchange, as investors anticipated strong financial performance by the company for fiscal years 2008-09 and 2009-10.
Mahindra Satyam, formerly known as Satyam Computers, will be announcing its results on September 29. It had not published its financial results since its founder B Ramalinga Raju in January 2009 admitted to fudging the company's accounts for years.
Following the revelation, the company's administration was taken over by a government-nominated Company Law Board (CLB), which subsequently cleared sale of the company to Mahindra Group.
The CLB on a request from Mahindras had allowed the company to submit the audited re-stated accounts for the last two fiscal years by September 30, after the latter failed to meet the June 30 deadline.
"The fundamentals of the company are very strong with the management of Mahindra Group, and the market is expecting excellent results from the company next week, which is triggering the upmove in the stock," Geojit BNP Paribas Assistant Vice President Gaurang Shah said.
The rise of 14.90 percent in the company scrip price was significant as the broader market turned weak during the afternoon session, before finally ending in the negative zone.
The 30-share benchmark gauge Sensex that crossed the magical 20,000-mark yesterday after 32 months, today lost momentum and closed 59.83 points lower at 19,941.72. Mahindra Satyam was trading at Rs 107.65 at the BSE, a rise of 13.02 per cent since yesterday's close.
Exactly an year ago on Sep 22, 2009, shares of Mahindra Satyam had hit a one-year high of Rs 123 on BSE.
The scrip was doing well at the National Stock Exchange too, where it ended 13.13 per cent higher at Rs 107.70 at the day's close. In terms of volume, over 16 crore shares were traded on both the bourses.
Apart from Mahindra Satyam, most of the IT stocks underperformed, in line with the weaker broad market.
IT giant Infosys Technologies, which carries the maximum weight on Sensex after RIL, remained under pressure and ended at Rs 3.011.60, down 1.53 per cent from the previous close.
Similarly, TCS also finished the day on a weak note at Rs 936.25, down 1.73 per cent from previous close.
Satyam Computers will come out with its financials for fiscal years 2008-09 and 2009-10 on September 29, for the first time since its founder B Ramalinga Raju admitted to falsifying the company's accounts.
Mahindra Satyam, formerly known as Satyam Computers, will be announcing its results on September 29. It had not published its financial results since its founder B Ramalinga Raju in January 2009 admitted to fudging the company's accounts for years.
Following the revelation, the company's administration was taken over by a government-nominated Company Law Board (CLB), which subsequently cleared sale of the company to Mahindra Group.
The CLB on a request from Mahindras had allowed the company to submit the audited re-stated accounts for the last two fiscal years by September 30, after the latter failed to meet the June 30 deadline.
"The fundamentals of the company are very strong with the management of Mahindra Group, and the market is expecting excellent results from the company next week, which is triggering the upmove in the stock," Geojit BNP Paribas Assistant Vice President Gaurang Shah said.
The rise of 14.90 percent in the company scrip price was significant as the broader market turned weak during the afternoon session, before finally ending in the negative zone.
The 30-share benchmark gauge Sensex that crossed the magical 20,000-mark yesterday after 32 months, today lost momentum and closed 59.83 points lower at 19,941.72. Mahindra Satyam was trading at Rs 107.65 at the BSE, a rise of 13.02 per cent since yesterday's close.
Exactly an year ago on Sep 22, 2009, shares of Mahindra Satyam had hit a one-year high of Rs 123 on BSE.
The scrip was doing well at the National Stock Exchange too, where it ended 13.13 per cent higher at Rs 107.70 at the day's close. In terms of volume, over 16 crore shares were traded on both the bourses.
Apart from Mahindra Satyam, most of the IT stocks underperformed, in line with the weaker broad market.
IT giant Infosys Technologies, which carries the maximum weight on Sensex after RIL, remained under pressure and ended at Rs 3.011.60, down 1.53 per cent from the previous close.
Similarly, TCS also finished the day on a weak note at Rs 936.25, down 1.73 per cent from previous close.
Satyam Computers will come out with its financials for fiscal years 2008-09 and 2009-10 on September 29, for the first time since its founder B Ramalinga Raju admitted to falsifying the company's accounts.
U.S. Loses No. 1 to Brazil-China-India Market in Investor Poll
Sept. 21 (Bloomberg) -- The U.S. has fallen behind emerging markets in Brazil, China and India as the preferred place to invest, a Bloomberg survey shows, though the world’s largest economy still ranks highest of all major developed countries.
The U.S. ranked first three months ago in the last quarterly Bloomberg Global Poll. Along with the slipping perceptions of the U.S. markets in the most recent survey, conducted Sept. 16-17, poll respondents say the Federal Reserve is likely to take further steps to try to bolster the economy.
In the September poll of 1,408 investors, analysts and traders who are Bloomberg subscribers, respondents rate the U.S. fourth for potential returns over the next year, behind Brazil and China, tied for first, and India, in third place.
The U.S. economic situation “is obviously unsustainable, and the concerted attempt to suspend disbelief is playing increasingly poorly abroad,” says poll respondent Eric Kraus, chief strategist for Otkritie Brokerage House in Moscow. “One can delay, but no one can forestall the unwind of a multidecade credit bubble.”
Economic reports released since the June poll show U.S. GDP growth slowed to 1.6 percent in the second quarter from 3.7 percent in the first quarter. In the final quarter of last year, GDP grew at a 5.0 percent annual rate.
Expectations for U.S. GDP growth next year have dropped to a median forecast of 2.5 percent in September from 2.9 percent in June, according to Bloomberg’s monthly survey of economists.
S&P Rise
Since the June survey, U.S. stock markets have been on the rise. The Standard & Poor’s 500 Index has risen 3.62 percent since the last investor poll was completed June 3. That’s not as much as Brazil’s Bovespa Index, which is up 10.56 percent and India’s Bombay Stock Exchange Sensitive Index, which is up 10.44 percent. The U.S. stocks still did better than China’s Shanghai Stock Exchange Composite Index, which has risen 1.41 percent since June 3.
“I think the U.S. will get back on track, but not in the next 6-12 months,” says poll respondent Thomas Knudsen, a senior trader with OW Supply & Trading in Copenhagen.
Two-thirds of investors say they believe Federal Reserve policy makers, who meet today, will ease monetary policy through bond purchases by the end of the year. A similar 65 percent majority say the Fed bond purchases won’t boost U.S. economic growth.
Overall, investors give the central bank favorable marks, with a 57 percent majority believing its monetary policy is “about right.” More say it has been too aggressive, the view of 26 percent, than say it has been too timid, a view held by 14 percent.
Popular Bernanke
Fed Chairman Ben S. Bernanke is viewed favorably by 71 percent of respondents, up from 67 percent in June. He ranks highest in a list of eight global leaders and policy makers that includes President Barack Obama, Chancellor Angela Merkel of Germany and European Central Bank President Jean-Claude Trichet.
Only 1 out of 6 investors believes the U.S. economy is currently improving, though a 45 percent plurality considers the U.S. “stable.” Another 37 percent believe the U.S. is deteriorating.
The poll also shows that confidence in the dollar has slipped since June, when 63 percent of investors believed the U.S. currency would rise against the euro during the following three months. Forecasts are now evenly divided: 34 percent now expect a stronger dollar in three months; 32 percent expect little change; and 30 percent a weaker dollar.
The Bloomberg Global Poll was conducted by Selzer & Co., of Des Moines, Iowa, and has a margin of error of plus or minus 2.6 percentage points.
No ‘Lost Decade’
Investors are confident the U.S. will avoid some of the worst outcomes. Seven out of 10 investors say they believe there is little or no risk of a U.S. double-dip recession. Six out of 10 investors see little or no risk the U.S. will endure a Japan- like “Lost Decade” of minimal or no growth.
“There is a black cloud overhead, but the worst is not yet to come,” says J. Ann Selzer, president of Selzer & Co.
Still, investors are wary of the record U.S. budget deficits. A 53 percent majority sees a big or moderate risk the budget deficit will provoke a crisis of confidence within two years that will spur “a dramatic rise” in long-term interest rates.
Poll respondent Dieter Buchholz, head of equities at Falcon Private Bank in Zurich, said market sentiment could turn against U.S. debt if the bipartisan debt commission appointed by Obama fails to spur a credible reduction in long-term deficits or Congress bucks the White House to expand the deficit by extending Bush-era tax cuts for the wealthy.
‘Confidence Crisis’
“When the non-Americans see that efforts by the administration to balance the budget are fruitless, then I think you will get a confidence crisis,” Buchholz said.
In July, the White House budget office forecast the federal deficit would be a record $1.47 trillion for 2010 and $1.42 trillion for the 2011 fiscal year, which begins Oct. 1.
Poll respondents were evenly split on whether the current U.S. Treasury bond market is a bubble. In six months, 49 percent expect yields on the 10-year Treasury note to be higher versus 26 percent who expect yields to be lower.
Their view of the U.S. stock market is bullish: 49 percent expect the S&P 500 to be higher in six months, while 28 percent say it will be lower.
Poll respondents in the U.S. are more optimistic about their nation as a place for investment; 35 percent of U.S. investors name it as a top market, just behind Brazil. Outside the U.S., that number drops to 17 percent.
The U.S. ranked first three months ago in the last quarterly Bloomberg Global Poll. Along with the slipping perceptions of the U.S. markets in the most recent survey, conducted Sept. 16-17, poll respondents say the Federal Reserve is likely to take further steps to try to bolster the economy.
In the September poll of 1,408 investors, analysts and traders who are Bloomberg subscribers, respondents rate the U.S. fourth for potential returns over the next year, behind Brazil and China, tied for first, and India, in third place.
The U.S. economic situation “is obviously unsustainable, and the concerted attempt to suspend disbelief is playing increasingly poorly abroad,” says poll respondent Eric Kraus, chief strategist for Otkritie Brokerage House in Moscow. “One can delay, but no one can forestall the unwind of a multidecade credit bubble.”
Economic reports released since the June poll show U.S. GDP growth slowed to 1.6 percent in the second quarter from 3.7 percent in the first quarter. In the final quarter of last year, GDP grew at a 5.0 percent annual rate.
Expectations for U.S. GDP growth next year have dropped to a median forecast of 2.5 percent in September from 2.9 percent in June, according to Bloomberg’s monthly survey of economists.
S&P Rise
Since the June survey, U.S. stock markets have been on the rise. The Standard & Poor’s 500 Index has risen 3.62 percent since the last investor poll was completed June 3. That’s not as much as Brazil’s Bovespa Index, which is up 10.56 percent and India’s Bombay Stock Exchange Sensitive Index, which is up 10.44 percent. The U.S. stocks still did better than China’s Shanghai Stock Exchange Composite Index, which has risen 1.41 percent since June 3.
“I think the U.S. will get back on track, but not in the next 6-12 months,” says poll respondent Thomas Knudsen, a senior trader with OW Supply & Trading in Copenhagen.
Two-thirds of investors say they believe Federal Reserve policy makers, who meet today, will ease monetary policy through bond purchases by the end of the year. A similar 65 percent majority say the Fed bond purchases won’t boost U.S. economic growth.
Overall, investors give the central bank favorable marks, with a 57 percent majority believing its monetary policy is “about right.” More say it has been too aggressive, the view of 26 percent, than say it has been too timid, a view held by 14 percent.
Popular Bernanke
Fed Chairman Ben S. Bernanke is viewed favorably by 71 percent of respondents, up from 67 percent in June. He ranks highest in a list of eight global leaders and policy makers that includes President Barack Obama, Chancellor Angela Merkel of Germany and European Central Bank President Jean-Claude Trichet.
Only 1 out of 6 investors believes the U.S. economy is currently improving, though a 45 percent plurality considers the U.S. “stable.” Another 37 percent believe the U.S. is deteriorating.
The poll also shows that confidence in the dollar has slipped since June, when 63 percent of investors believed the U.S. currency would rise against the euro during the following three months. Forecasts are now evenly divided: 34 percent now expect a stronger dollar in three months; 32 percent expect little change; and 30 percent a weaker dollar.
The Bloomberg Global Poll was conducted by Selzer & Co., of Des Moines, Iowa, and has a margin of error of plus or minus 2.6 percentage points.
No ‘Lost Decade’
Investors are confident the U.S. will avoid some of the worst outcomes. Seven out of 10 investors say they believe there is little or no risk of a U.S. double-dip recession. Six out of 10 investors see little or no risk the U.S. will endure a Japan- like “Lost Decade” of minimal or no growth.
“There is a black cloud overhead, but the worst is not yet to come,” says J. Ann Selzer, president of Selzer & Co.
Still, investors are wary of the record U.S. budget deficits. A 53 percent majority sees a big or moderate risk the budget deficit will provoke a crisis of confidence within two years that will spur “a dramatic rise” in long-term interest rates.
Poll respondent Dieter Buchholz, head of equities at Falcon Private Bank in Zurich, said market sentiment could turn against U.S. debt if the bipartisan debt commission appointed by Obama fails to spur a credible reduction in long-term deficits or Congress bucks the White House to expand the deficit by extending Bush-era tax cuts for the wealthy.
‘Confidence Crisis’
“When the non-Americans see that efforts by the administration to balance the budget are fruitless, then I think you will get a confidence crisis,” Buchholz said.
In July, the White House budget office forecast the federal deficit would be a record $1.47 trillion for 2010 and $1.42 trillion for the 2011 fiscal year, which begins Oct. 1.
Poll respondents were evenly split on whether the current U.S. Treasury bond market is a bubble. In six months, 49 percent expect yields on the 10-year Treasury note to be higher versus 26 percent who expect yields to be lower.
Their view of the U.S. stock market is bullish: 49 percent expect the S&P 500 to be higher in six months, while 28 percent say it will be lower.
Poll respondents in the U.S. are more optimistic about their nation as a place for investment; 35 percent of U.S. investors name it as a top market, just behind Brazil. Outside the U.S., that number drops to 17 percent.
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