"Retail prices of petroleum products in India must reflect international crude oil prices. Therefore, at some convenient point we should really start the process of deregulation of diesel prices also," Prime Minister's Economic Advisory Council (PMEAC) chairman C Rangarajan advocated
Chennai: The Prime Minister's Economic Advisory Council (PMEAC) chairman C Rangarajan on Tuesday favoured decontrolling of diesel prices, saying retail petroleum prices must reflect the international crude prices, reports PTI.
"I think it should happen. Because retail prices of petroleum products in India must reflect international crude oil prices. Therefore, at some convenient point we should really start the process of deregulation of diesel prices also," he told reporters on the sidelines of a function here.
He said time to time, prices of petroleum products had been increased in large steps, and therefore, "I would advocate deregulation of diesel prices."
Early this week, finance minister Pranab Mukherjee admitted the government's proposal to free prices of diesel and cooking gas. "Petrol we have done (decontrolled). Diesel, kerosene and LPG we want to do it. (But) Kerosene we may have to provide some subsidy because people who have no access to electricity, use kerosene for lighting," he had said.
While the prices of petrol are linked to market rates, the government directly and indirectly compensates the oil marketing companies for losses on account of sale of diesel, kerosene and LPG through subsidies and oil bonds.
In June last year, the government decided to deregulate the petrol prices owing to steep increase in international crude oil prices and the oil marketing companies facing severe pressure owing to increasing under recoveries.
The HSBC India Composite Index-which covers both the manufacturing and service sectors-posting 57.9, up from 56.8 in June 2011. While employment levels in the manufacturing sector increased for the first time since October 2010, this was largely offset by job cuts in the service sector-the first time in 28 months
India's services sector, as measured by the HSBC Markit Business Activity Index, stood at a three-month of 58.2 in July, up from 56.1 in the previous month, driven by new business. However, input costs and output prices also rose in the month under review.
Meanwhile, the HSBC India Composite Index-which covers both the manufacturing and service sectors-posting 57.9, up from 56.8 in June 2011. While employment levels in the manufacturing sector increased for the first time since October 2010, this was largely offset by job cuts in the service sector-the first time in 28 months.
Service providers were optimistic in July that activity would rise over the next one year. Confidence regarding future business prospects was supported by expectations of improving market conditions, plans for expansions of operations and service offerings and increased promotional activity.
Commenting on the Services PMI survey, Leif Eskesen, chief economist for India and ASEAN at HSBC said: "The service sector is humming to its own tune, with business activity and new business improving over the previous month, despite policy rate hikes and high inflation. With backlogs of work increasing, inflation pressures are set to remain significant and persistent. This also means that the RBI is not quite yet done with tightening."
The company said total expenditure increased by about Rs300 crore to Rs1,505 crore during the June quarter primarily on land, development rights and constructed properties
New Delhi: DLF, the country's largest real estate company, on Tuesday reported a 12.81% decline in its consolidated net profit for the first quarter ended 30th June at Rs358.36 crore on higher expenditure and finance charges, reports PTI.
The company had posted a net profit of Rs411.03 crore in the corresponding period last year, the company said in a filing to the Bombay Stock Exchange (BSE).
Consolidated sales during the first quarter, however, rose by 20.57% to Rs2,445.82 crore from Rs2,028.53 crore in the year-ago period, it added.
DLF's total expenditure increased by about Rs300 crore to Rs1,505 crore during the June quarter primarily on land, development rights and constructed properties. Finance charges rose to Rs496.41 crore from Rs388.44 crore earlier.
On sale of non-core assets, DLF said that it realised Rs165 crore during the April-June quarter of this fiscal. In May, the company had said that it has increased the divestment target for non-core assets (including land parcels) to Rs10,000 crore from Rs4,500 crore earlier.
Till last fiscal, the company had already raised Rs3,070 crore from sale of non-core assets such as hotel plots and plans to raise another Rs7,000 crore in the next 2-3 years to reduce its debt that stood at Rs21,424 crore by March-end.
In a statement, DLF Group chief financial officer Ashok Tyagi said: "While debt levels have remained similar to the previous quarter, our momentum on the non-core asset/business divestments have gathered pace and these coupled with operational cash flows will help us in moderating our current debt levels."
DLF achieved a sales booking of 2.2 million sq ft in the first quarter of this fiscal as against 1.9 million sq ft in the same quarter of last year.
Mr Tyagi said DLF would continue to focus on launching plots, which enables it to mitigate the current inflationary environment and accelerate our cash flows.
He pointed out that the successive hikes in interest rates by the Reserve Bank of India (RBI) should have a moderating impact on demand.
DLF also said that Income Tax authorities have slapped notice for nearly Rs550 crore during the April-June quarter and the company has challenged the order with 'appropriate authorities'.
"...the company received an assessment order for assessment year 2008-09 from the Income Tax authorities, creating an additional demand of Rs546.85 crore, out of which Rs487.23 crore pertains to demand on account of dis-allowance of SEZ profit under section 80IAB of Income Tax Act," it added.
Shares of the company were trading 3.62% down at Rs219.60 on the BSE in late morning trade today.