Nik's Diary
Indian markets opened flat to positive tracking positive opening
in most of the Asian markets, backed by better than expected manufacturing data
from China with its PMI index for March coming in at 51.7 from 50.4 in
February. US stocks ended higher over the course of the day yesterday after the
Federal Reserve said it would continue to support the US economy. The FOMC
decided to keep the target range for the federal funds rate at zero to 0.25%
and said it would continue its asset purchase program at a pace of US$85bn a
month. In his subsequent press conference, Federal Reserve Chairman Ben
Bernanke expressed confidence in the economic recovery but indicated that
the central bank would maintain its quantitative easing program for the
foreseeable future. Also, market gained early strength as Cyprus' parliament
rejected a proposed Cyprus European Union bailout plan that would tax bank
deposits. Indian markets extended losses yesterday on continued political
uncertainty despite Finance Minister P Chidambaram dismissing reports of threat
to the government in the aftermath of the withdrawal of support to the ruling
UPA coalition by the DMK over the issue of alleged human rights violations of
Sri Lankan Tamils. Worries about situation in Cyprus also kept investor sentiment
subdued.
Fed to stay firm on stimulus push
The Federal Reserve said yesterday that the U.S.
economy has strengthened but still needs the Fed’s extraordinary support to
help lower high unemployment. In a statement after a two-day meeting, the Fed
stood by its plan to keep short-term interest rates at record lows at least
until unemployment falls to 6.5 percent, as long as the inflation outlook
remains mild. And it said it would continue buying $85 billion a month in bonds
indefinitely to keep long-term borrowing costs down. Chairman Ben Bernanke
stressed that while the economy has improved, the Fed won’t ease its aggressive
stimulus policies until it’s convinced the economic gains can be sustained. An
unemployment rate of 6.5 percent is a threshold, not a “trigger,” for a
possible rate increase, he said. Bernanke also said the Fed might vary the size
of its monthly bond purchases depending on how much the job market improves.
The unemployment rate has fallen to a four-year low of 7.7 percent, among many
signs of a healthier economy. Source:
Concordmonitor
CCI clears five oil and gas blocks
The Cabinet Committee on Investment (CCI) today
cleared Reliance Industries’ KG-D6 block and gas discovery area NEC-25 along
with three other areas where the defence ministry had either barred oil and gas
activity or placed stringent conditions. In all, eight blocks were declared
“no-go” zones for reasons such as overlap with a proposed naval base or being
close to missile launching and air force exercise areas. Stringent conditions
were placed on another 31 exploration areas. The CCI, which had asked the
ministries of petroleum and defence to sort out differences, cleared five of
the barred blocks, official sources said. However, two blocks of Oil and
Natural Gas Corporation and one block of BG Group in the KG basin will remain
out of bounds as they fall directly within the boundaries of a proposed naval
base. The CCI said the oil ministry would take steps to terminate the contracts
for these blocks. Explorers have already spent $13.4 billion on the 40 blocks
and another $2.5 billion is likely to be invested in the next three to four
years. Reliance and its partner BP had recently announced an investment of $5
billion over the next three to five years to boost gas output from the KG
basin, which fell to an all time low of 19.4 million metric standard cubic
meters (mmscmd) of gas per day because of geological complexities. Sources said
30 per cent of the 7,645 square kilometre KG-D6 block overlapped with the
navy’s firing and exercise area. The ministry of defence felt that any
exploration and production activities near its naval base would hamper
surveillance and noise generated from exploration activities would affect the
sonar and radar functionalities. RIL agreed to relinquish the 495 sq km that
fell in the “no-go” area, following which the navy agreed to realign the
boundary required for naval operations for its proposed base to allow oil and
gas activities in the remaining block. In the NEC-25 block, about 60-70 per
cent area fell within the 50km radius of the Chandipur Missile launch pad and
about 50 per cent of the block fell within the danger zone of the Balasore
air-to-air firing range of the IAF. Source:
telegraph India
Sadbhav Engg has bagged `382cr order from NHAI
Sadbhav Engineering BSE 5.54 % today
said it has bagged a Rs 382-crore order from NHAI for widening of an
80-km stretch of NH-210 in Tamil Nadu. "The company has been declared
the successful bidder in respect of the bid invited by National Highways
Authority of India (NHAI)," the Ahmedabad-based firm said in a BSE
filing. The scope of the work, it said, includes two-laning with paved
shoulder of Karaikudi-Ramanathapuram section NH-210. It would be executed as
DBFOT (Annuity) basis. "The estimated total cost for the development
of the said project stands at Rs 382 crore. The concession period of the
project is 15 years, including construction period of two years from the
appointed date," Sadbhav said. "There are 26 numbers of semi annuity.
The amount quoted for each semi annuity is Rs 39.06 crore," it
added. Annuity charge is the periodic payment government makes to the
concessionaire for financing, construction, operation and maintenance of a PPP
project. Source:
economic times.indiatimes
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