Oil companies have been permitted to raise diesel prices by a small quantum periodically till such time that they are able to cover Rs9.60 per litre loss they incur on the fuel, oil minister Veerappa Moily said
New Delhi: The government of India on Thursday raised the cap on supply of subsidised liquefied petroleum gas (LPG) cylinders to nine bottles from six per year and allowed oil companies to hike diesel prices by a “small quantum” periodically, reports PTI.
There will be no change in LPG and kerosene rates, oil minister M Veerappa Moily told reporters here after the meeting on Cabinet Committee on Political Affairs (CCPA).
“I am happy to inform the Cabinet Committee on Political Affairs has decided to raise the cap on subsidised LPG to nine cylinders per household in a year from existing six cylinders,” he said.
Consumers will get a quota of five subsidised cylinders between September 2012 and March 2013 and from a April 2013, they will be entitled to nine cylinders per annum.
Moily said that the oil companies have been permitted to raise diesel prices by a small quantum periodically till such time that they are able to cover Rs9.60 per litre loss they incur on the fuel.
Refusing to provide details of diesel price increase, Moily said the raise may take place as early as Thursday night.
Reduction in the reserve price of CDMA spectrum may help companies like Sistema of Russia to bid in the auction and make up for the ones they lost when the Supreme Court cancelled 122 licences in February last year
New Delhi: The government of India on Thursday approved a 50% reduction in the reserve price of spectrum used by Code Division Multiple Access (CDMA) mobile operators, reports PTI.
“The Cabinet has approved 50% reduction in CDMA spectrum (reserve) price which was fixed earlier at Rs18,200 crore (pan India 5MHz),” telecom minister Kapil Sibal said.
All the spectrum auction, Global System for Mobile (GSM) and CDMA, will be completed by 31st March and markets will decide how much revenue the government will get, he added.
After 50% reduction, pan-India 5MHz of 800 MHz spectrum (CDMA radio-waves) will now cost Rs9,100 crore.
The Cabinet, headed by prime minister Manmohan Singh, considered the recommendation of the Empowered Group of Ministers (EGoM) which suggested a 50% cut in the reserve price of 800 MHz band.
The November auction of CDMA spectrum did not attract bidders due to high reserve price. The reserve price set was 11 times higher than what operators paid in 2008.
The government had earlier fixed CDMA spectrum price at 1.3 times more than the GSM spectrum in 1800 Mhz band.
The Cabinet has already approved a 30% cut in the reserve price of 1,800 MHz band spectrum used for offering GSM services.
Reduction in reserve price of CDMA spectrum may help companies like Sistema of Russia to bid in the auction and make up for the ones they lost when the Supreme Court cancelled 122 licences in February last year.
The apex court has recently allowed the companies whose licences were cancelled to continue operations till 4th February when the government is supposed to inform it of the final reserve or minimum price for the spectrum sale.
Earlier this week, agriculture minister Sharad Pawar, finance minister P Chidambaram and food minister KV Thomas reviewed the edible oil imports and discussed the issue of raising the duty on edible oil
New Delhi: The government today imposed 2.5% import duty on crude edible oil to protect domestic farmers, but kept duties unchanged on refined cooking oil fearing a hike in retail prices, reports PTI.
The decision was taken at the meeting of Cabinet Committee on Economic Affairs (CCEA) held here, a source said.
At present, crude edible oil attracts no import duty but there is 7.5% duty on refined edible oil.
India imports about half of total domestic requirement of cooking oil. In 2011-12 (November-October), the total import of vegetables oils (edible and non-edible oil) was an all-time high of 10.19 million tonnes. In the first two months of the current oil year, imports are up by 5%.
The agriculture ministry had proposed an increase in the duty on crude edible oil to protect the interest of palm growers, particularly from Andhra Pradesh.
Earlier this week, agriculture minister Sharad Pawar, finance minister P Chidambaram and food minister KV Thomas reviewed the edible oil imports and discussed the issue of raising the duty on edible oil.
Agriculture ministry wanted to an import duty crude edible oil to be 7.5%, 15% on refined oil. But during the inter-ministerial meeting, the finance ministry felt such a sharp rise would lead to rise in inflation.