Companies & Sectors
Purchase preference to local content in oil, gas contracts announced
New Delhi : The government on Wednesday announced a 10 percent purchase preference for local products in all petroleum sector contracts towards boosting the share of domestic manufacture in projects awarded by state-run oil and gas companies.
 
"Based on discussions within an internal steering committee on the matter, companies and other stakeholders, we have decided there should be 10 percent purchase preference in tenders," Petroleum Minister Dharmendra Pradhan told reporters here.
 
"Our ministry has estimated oil companies' annual capital expenditure of around Rs. 90,000 crore. The award of these contracts should increase local manufacturing," the minister said.
 
He said the award of these contracts would not require separate approval from the union cabinet.
 
Pradhan also said the ministry will soon publish a concept paper on the proposal calling for stakeholder comments.
 
"These consultations are expected to be over by 19 February. Rolling out the new proposal would go into the next financial year," he said.
 
The policy does not differentiate between domestic and foreign companies as long as they meet the minimum cutoff of locally manufactured content in a tender.
 
Under the changed guidelines, contracts for equipment and services can attract mandatory local content share of between 10 percent to 50 percent.
 
"Based on our estimate, upto 20 percent local content can come in service and supply related contracts while 30 percent locally manufactured content can come in EPC (engineering, procurement and construction) contracts," Pradhan said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

Punishment for Honest Mistake
The law allows a lot of leeway
 
Event 1: A boy of 15 is offered a choice of presents. An Agfa camera or a Diana air rifle. The father prudently advises against the camera, photography being an expensive hobby. It is early 1957. One day, the boy wants to discharge the only pellet in the gun. He casually aims it at a metal corrugated door. He fires. The bullet ricochets and hits the father, standing next to the boy, in the chest. Fortunately, little damage is done: except a ‘birth-mark’. The father sets the boy down and tells him a story.
 
Event 2: This is his story. A kid of 10 years, son of the father’s friend, was fond of the game of darts. Innocent fun. The board was hung on a door curtain, separating two rooms in the home. One day, the boy throws a dart. His sister, entering the room, shifts the curtain. The dart penetrates her eye. She is blinded, in that eye, for life.
 
Event 3: A world-renowned athlete deified for his disability, a grown-up man, fires his high-powered rifle into a closed bathroom door, of his own home. The gun is aimed at the toilet. The shots kill his girlfriend. He claimed that he thought his girlfriend was in bed at the time and he mistook her for an intruder. The trial court finds him guilty of culpable homicide. It means death without intent to kill. Minimal punishment.
 
You be the judge.
Event 1 saw, thankfully, small damage. Moreover, the law was not as developed then as it is now. Event 2, the kid was too young to foresee the danger, though his parents should have. Family matter; end of story.
 
Event 3 saw ups and downs. In an appeal preferred by the South African state, the man is convicted of murder. The verdict hinged on the ‘Doctrine of Intent’, in the form of dolus eventualis, or manifest intention, or reasonable knowledge, that an action would have necessary consequences. The law allows one to protect his life and property; but not rashly. The reaction to the threat needs be measured. It must be just enough to protect oneself, disarm the aggressor or neutralise the threat. Here, one is reminded of Gilbert & Sullivan’s ‘Mikado’. It has a delightful piece called ‘Let the punishment fit the crime’. In the same way, let the response suit the danger. No more. Shooting several times, through a locked door, not stopping on hearing screams, is definitely an over-reaction, even to a supposedly perceived threat. 
 
 “A man’s home is his castle. He can, and must, protect it with any means at his disposal.” Brave words, quoted by many. Yet, bravado must not blinker sense. To be sure, the time between threat and response is, often, a micro second. Reflexes outrun rational thought. One shoots first and asks questions later. That could lead to trouble. 
 
What should a person do under such difficult circumstances? Unfortunately, there is no formula; there never will be. The normal answer, to a sudden fraught situation, is reaction. If attacked, an unarmed man will raise his hand in self-defence. He may take shelter behind a tree or a wall or under a table. He may turn about and run, if the situation permits and he is capable.
 
Or he may hit back. It’s this hitting back, and the intensity of the counter-attack, that weighs in court. And, if the defendant is proved to be short of temper or prone to aggression, the scale will not tilt in his favour. 
 
The law distinctly allows for a genuine mistake. It also allows for an exaggeration of the threat, if it is unseen or unfathomable. If the attack is in the dead of night, one cannot gauge the danger. Is the attacker bare-handed or armed? If armed, does he have a gun or a knife? Is he alone or with someone? Or are there many? Thought, at the speed of light, may be too slow. Quicksilver response is the need of the hour; rather, of the split second. Preservation is the overwhelming emotion. In such cases, the court understands. 
 
A word of caution, though. Do not take the court for granted.
 

User

Nifty, Sensex struggling to head higher – Wednesday closing report
Nifty may head higher, if it closes above 7,450
 
We had mentioned in our Monday closing report that Nifty, Sensex may rally subject to dips and that as long as Nifty is above 7,400, the index may rise. The indices of Indian equity markets ended flat at close of Wednesday’s trading, as investors were in a wait and watch mood on account of global cues and macroeconomic factors. The trends of the major indices in the course of Wednesday’s trading are given in the table below:
 
Caution over the upcoming rate-setting meeting of the US Fed's FOMC (Federal Open Market Committee) scheduled for January 27-28, coupled with a weak rupee dented investors' sentiments in the Indian equity markets on Wednesday leading to major indices in the Indian equity markets closing the day's trade flat. Initially, the bellwether indices opened on a flat-to-positive note in sync with their Asian peers and firm closing of the domestic markets on Monday. Moreover, short-coverings were supported by firm oil prices and expectations of healthy roll-over figures from the F&O (Futures and Options) expiry slated for Thursday. The weakness in rupee subdued sentiments too. The rupee value weakened to 68-level against a US dollar during intra-day trade. The weakness in the rupee value indicates the massive outflow of foreign funds from the Indian equity and debt markets. On Monday, the foreign institutional investors (FIIs) were net sellers. According to data with stock exchanges, FIIs divested Rs91.15 crore. 
 
HDFC on Wednesday said it would raise Rs450 crore from private placement of secured redeemable non-convertible debentures. In a regulatory filing of the term sheet for the issue of the said security under Series O-012, HDFC said the mode of raising the Rs.450 crore is through private placement mainly to augment the long term resources. The company said the issue proceeds would be used for financing and refinancing its housing finance business. The debentures carrying a coupon rate of 8.60 percent will have a tenor of three years and one month. The issue opens and closes on January 28, 2016. HDFC shares closed at Rs1,167.70, down 0.55% on the BSE.
 
HCL Infosystems on Monday said it posted a standalone net loss of Rs7.49 crore for the quarter ending December 2015. On a quarter-on-quarter basis, losses reduced by 87.8% in Q3 2015-16 compared to Rs61.47 crore losses posted in Q3 2014-15. According to the standalone results posted on the Bombay Stock Exchange (BSE), HCL Infosystems posted an income of Rs745.3 crore in the quarter under review against Rs1,015.63 crore posted in the quarter ending December 2014. Total expenses fell to Rs746.37 crore in Q3 2015-16 from Rs1,015.34 crore incurred in the like quarter of 2014-15. The company reported losses on a consolidated basis as well, it reported a consolidated net loss of Rs65.71 crore for Q3 2015-16 against a loss of Rs50.82 crore in Q3 2014-15. Losses rose by Rs14.89 crore at the rate of 29.29%.Consolidated income fell to Rs1,146.58 crore from Rs1,450.52 crore in Q3 2014-15 while the company incurred a total consolidated expenses of Rs1,184.53 crore in Q3 2015-16 against Rs1,483.64 crore in the year ago quarter. The shares of the company closed at Rs45.05, down 3.53%, on the BSE.
 
With global crude oil prices in free fall through most of 2015, the World Bank has sharply revised downwards its forecast for oil price in 2016, at an average of $37 a barrel from $51 predicted in October, in the context of the continuing supply glut and low demand prospects from emerging economies. “World Bank is lowering its 2016 forecast for crude oil prices to $37 per barrel in its latest Commodity Markets Outlook report from $51 per barrel in its October projections," the multilateral lender said in a release here on Tuesday. In this regard, the bank also scaled down its growth forecast for emerging and developing economies to 4% in 2016, from an expected 4.6 percent previously, and said the prediction was "subject to considerable downside risks in a fragile global environment". 
 
Chinese shares tumbled heavily on Wednesday with the benchmark Shanghai Composite Index nose-diving more than 3% immediately after midday break. Tokyo shares ended the trading Wednesday sharply higher on rises in oil prices, but investors' sentiment remained cautious ahead of decisions of the US and Japanese central banks. The 225-issue Nikkei Stock Average surged 455.02 points, or 2.72%, from Tuesday's 17,163.92. The broader Topix index of all First Section issues on the Tokyo Stock Exchange jumped 40.47 points, or 2.98%, higher at 1,400.70. All issues on the main board gained ground, leading by finance stocks, pulp and paper as well as banks. The turnover was around $20.72 billion.
 
The US dollar decreased against most major currencies on Tuesday as investors were awaiting the Federal Reserve statement due out Wednesday. In late New York trading, the euro rose to $1.0849 from $1.0837 in the previous session, while the dollar bought 118.48 Japanese yen, lower than 118.49 yen of the previous session.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of major Asian indices are given in the table below:
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

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)