sweetness to come back in sugar sector

Food and Agriculture Minister Sharad Pawar today indicated that a decision on lifting the ban on sugar export would be taken in the next two weeks.

“We are seriously considering lifting the sugar export ban in the next two weeks as availability of sugar is not a concern now,” Pawar said.

He also announced slashing of interest rates on loans disbursed from the Sugarcane Development Fund (SDF) as well as on those advanced by banks to cooperative sugar mills covered under the credit restructuring package.

“Since a substantial quantity of sugar would be available in the next season, the ban on export would have to be lifted and a decision would be taken at the appropriate time,” he said at the Economic Editors’ Conference here today. The sugar output this year was expected to rise to around 22.7 million tonnes from last season’s 19 million tonnes.
The area under the sugarcane crop had gone up this year because farmers got the highest-ever prices for their cane last year.
“Though this year they may not get that kind of returns, their realisation will not be below Rs 100 to Rs 120 a quintal,” Pawar said and added that the cane yield was likely to be good this year because of favourable weather conditions.
The minister announced that the rate of interest on all outstanding SDF loans and fresh loans disbursed on or after October 21, 2004, had been reduced to 4 per cent a year (simple interest).
Besides, the normative project cost for SDF funds had also been revised for projects for bagasse-based co-generation of power from Rs 265 lakh per mega watt to Rs 293 lakh for boiler pressure up to 70 per cent atmosphere (1.03 per kg sq cm) and to Rs 363 lakh per MW for over 70 per cent atmosphere.

The SDF loan component had been stepped up from the earlier 30 per cent of co-generation project costs to 40 per cent, he said.For the cooperative sugar mills whose loans had been restructured, Pawar announced a reduction in the rate of interest charged by banks from around 14 per cent a year to 10 per cent. The Centre would reimburse about Rs 560 crore to the concerned banks for this purpose.He claimed that measures taken by the government had helped revive the sugar industry which, in turn, had facilitated timely payment of cane prices to farmers.In 2005-06, about Rs 19,667 crore had been paid by sugar mills as cane prices to farmers. The outstanding payments came to just Rs 177 crore, amounting to below 1 per cent of the total cane price payable during the season.

The recent rollout of the ethanol blending programme by the government should further strengthen the sugar industry, Pawar maintained.India plans to introduce the mandatory blending of 10 per cent ethanol into gasoline across the entire country from June 2007, Petroleum Secretary M S Srinivasan said on Wednesday.

He said the use of 5 per cent ethanol mixed petrol, currently used in three states, is expected to be spread to rest of the country by Nov 15. We have already tied up 50 per cent of the 560 million tonnes of ethanol needed for 5 per cent mixing at Rs 21.50 a litre," Srinivasan said.

India will need 1.12 billion litres of ethanol a year for the move to 10 per cent blended petrol.

"We expect substantial availability of ethanol for 10 per cent blending as new capacities are being created and we are expecting a bumper crop of sugarcane," he said Agriculture Minister, Sharad Pawar, said on Wednesday that sugar production in the cane crushing season that began in October was likely to reach 22.7 million tonnes, up from 19 million tonnes in the year ago period.
Faced with the surge in production a ban on sugar exports may be lifted within the next two weeks, Pawar said.

India also plans to replace around 5 per cent of its current 40 million tonnes of annual diesel consumption with jatropha biodiesel within about five years, as it tries to limit oil imports that account for 70 per cent of its needs
source:- financial express & business standard

Reliance bids for BP plant in Belgium

Reliance Industries is believed to have put in a $2 billion bid for the
refinery and petrochemicals facility of British Petroleum (BP) in Belgium.

Sources familiar with the development said Reliance, which had been in talks
with BP for the Belgium unit for over a year, had recently put in a formal
proposal. The deal might be announced anytime, they added. However, there
was no official confirmation on this from Reliance. When contacted, a
Reliance spokesperson declined to comment.

The sources said Reliance Chairman Mukesh Ambani would discuss
the proposed acquisition of the unit with the Belgian Prime Minister Guy
Verhofstadt who is currently in India on a six-day tour.

This deal will mark the first major acquisition of Reliance Industries,
which generates surplus cash of over Rs 17,000 crore a year, in the
exploration sector. Reliance's networth stands at Rs 54,000 crore.

The Reliance board will meet tomorrow to consider raising $2 billion (nearly
Rs 9,000 crore) to fund investment in oil and gas exploration and production
business. The instrument for the fund raising could be foreign currency
convertible bonds.

Ambani, in a recent media interview, had said the company was eyeing oil
firms in the North Sea and also aimed at acquiring oil drilling and
engineering firm in Africa, South America, the Middle East and India.

He said British companies working in the North Sea would become soft target
with dwindling reserves in the region.
bussiness standard

CUMMINS INDIA

CUMMINS INDIA has almost done its expanding triangle target of 284 and we have seen usually expanding triangles occur on tops or bottoms this one looks to be on top so any longs in this should be taken only if you see channel broken with considerable volumes else we see some fall in the script.Trade accordingly.
cheers
rish

NIFTY INTRA