ONGC, Oil India incur Rs4,745 crore loss on sale of APM gas

New Delhi: State-owned oil firms incurred Rs4,745 crore annual losses on pre-revised rates, prompting the government to more than double the price of state administered natural gas to $4.2 per million British thermal units (mmBtu), reports PTI quoting minister of state for petroleum and natural gas Jitin Prasada in the Rajya Sahba.

The cost of production of natural gas for national oil companies has risen since the last increase in 2005, the minister said during Question Hour.

"Oil & Natural Gas Corporation (ONGC) and Oil India Ltd (OIL) incurred Rs4,745 crore of loss on sale of APM (administered priced) gas," he said.

The price was raised from just under $2 per mmBtu to $4.2 per mmBtu to bridge the difference in cost of production and sale price and also to provide level playing field with Reliance Industries (RIL), which sells natural gas from its eastern offshore KG-D6 field at $4.2 per mmBtu, he said.

The hike had necessitated an increase in compressed natural gas (CNG) and piped natural gas (PNG) price in Delhi and Mumbai.

"Following the APM price increase, Indraprastha Gas Ltd, which supplies CNG in and around Delhi, increased its CNG price in Delhi from Rs21.90 per kg to Rs27.50 per kg and Mahanagar Gas Ltd, which supplies CNG in and around Mumbai, increased its CNG price from Rs24.65 per kg to Rs31.47 per kg," he said.

VAT on gas varies from 5% in Delhi to 12.5% in Gujarat to 21% Uttar Pradesh, he said.

Mr Prasada said urea manufacturing units have been given top most priority in allocation of natural gas from KG-D6 fields of Reliance. Fertilizer units have been allocated 15.77 million standard cubic meters per day (mmscmd), power plants 32.677 mmscmd and LPG extraction units 3 mmscmd.

"Demand for gas is greater than supplies," he said.


SMX to start trade from Aug 31, to launch gold, oil futures

Singapore: Financial Technologies (India) group's Singapore Mercantile Exchange (SMX) today said it will start trading from 31 August, 2010, launching contracts in gold, currency and crude oil futures initially, reports PTI.

The pan-Asian multi-product commodity and currency derivatives exchange has completed conformance testing with independent software vendors and industry-wide testing with member firms prior to its impending launch, the exchange said in a statement.

The first phase of product launches would include a gold futures contract, West Texas Intermediate crude oil, Brent-euro crude oil and Euro-US dollar futures contracts, amongst others.

The first phase of product launches would be followed by multiple product launches to be introduced in the market after consultation with industry participants, said SMX, which is backed by Financial Technologies (India), the operator of exchanges in India, Dubai, Africa, Mauritius and Bahrain.

"SMX's platform will herald Asia's first stand-alone and next-generation global derivatives exchange for unrestricted cross-border trading in futures, options and other derivatives across multiple asset classes," SMX vice-chairman Jignesh Shah said.

"SMX is well poised to unlock the immense potential of Asia and further position the region as a leading derivatives trading hub," added Shah, also CEO of Financial Technologies Group.

The Monetary Authority of Singapore recently granted SMX 'Approved Exchange' status to operate as a regulated and fully licensed exchange.


Mahindra Satyam wins lawsuit against UK's Upaid Systems

New Delhi: Mahindra Satyam on Monday said a New York court has given a favourable judgment in its lawsuit against Upaid Systems and ruled that the British company is responsible for all the tax liability on the settlement amount of $70 million paid by the IT firm, reports PTI.

"The court adjudged and declared that the settlement agreement requires that Upaid must cooperate with the escrow agent (IDBI Bank) to allow the latter to withhold any applicable taxes from the $70 million settlement amount," Mahindra Satyam said in a statement.

Mahindra Satyam, earlier known as Satyam Computer Services, had filed a lawsuit in a New York court against Upaid, seeking enforcement of a legal settlement agreement between the two signed in December, 2009.

At issue is the tax liability on the settlement amount, which Satyam claims is Upaid's responsibility under the agreement.

In the lawsuit, Satyam had asked the court to confirm that Upaid is responsible for any tax liability arising from the settlement.

In December, 2009, Satyam agreed to pay $70 million to settle all outstanding legal disputes with Upaid.

As part of the December agreement, Satyam entered into an escrow agreement with Upaid and deposited the settlement amount of $70 million into an escrow account.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)