Stock Manipulation
Unquoted: Midland Polymers
Despite no business activity for years, the stock price of Midland has shot up by 271%

Midland Polymers used to manufacture polypropylene film used in packaging. Its plant was shut in 2009 and, since then, there has been no income from operations. In 2013, this Indore-based company started ‘exploring’ projects in textiles, pharmaceuticals, securities trading and real estate. However, none of these businesses has taken shape and no operating income has been reported over the past year. The only income generated has been from interest on investments. Midland has been suspended in the past for not complying with listing agreement. It has also failed to comply with other regulatory requirements (submitting shareholding pattern and corporate governance report). For the quarter ended March 2014, Midland reported ‘other income’ of Rs42 lakh and net profit of Rs18 lakh. You would think that the share price of a dormant company would also remain dormant. Not in India where stocks can be manipulated at will. Despite no business activity for years, the stock price of Midland has shot up by 271% from Rs5.66 on 1 January 2013 to Rs21 on 10th July this year. We don’t expect the market regulator or the stock exchange to either notice this rampant manipulation or do anything about it. 


Ambitious aviation plans: Private airport getting ready near Durgapur in West Bengal
Durgapur, the steel city can hope to welcome visitors by air ,when the new and first private airport in  West Bengal begins its operations at Andal
Decades ago, India's first Prime Minister, Late Pandit Jawaharlal Nehru called various gigantic steel projects and huge dams as India's temples of the future. He was referring to the steel mills at Bhilai, Durgapur and Rourkela as they began their operations. In those days, for most of these industrial towns, the only means of transportation was by road or by rail. Aviation facilities, for most came much later.
Now, Durgapur, the steel city can hope to welcome visitors by air when the new and first private airport in West Bengal begins its operations at Andal, nearby. At present its nearest major international airport, is at Kolkata, some 200kms away.
The Bengal Aerotropolis Projects Ltd (BAPL) is responsible for the airport. It is spread over 2,000 acres and has Changi Airport of Singapore as its largest shareholder. This new private airport is expected to follow the successful work pattern practiced at Changi.
To make this economically viable and attractive for airlines to use, West Bengal Government has already offered a three year remission of Aviation Turbine Fuel taxes (ATF). It may be remembered that ATF amounts to 45% of the operational cost of airlines and this waiver would make the airport attractive for a number of airlines for refuelling. Both national and regional airlines would benefit from such a move. BAPL may also offer attractive overnight parking rates to invite regional airlines to use the facility.
It appears, from the newspaper reports, that the airport was completed more than one year ago but the delay in removing the high tension transmission lines, running across the airstrip has obstructed BAPL plans. This appears to have been caused by land acquisition problems in the alternate route. It has been overcome, by revised plans to lay cables under the ground. Once, this job is completed, BAPL is likely to seek DGCA's final clearance.
Regional airlines may find this new airport at Andal, named after famous Bengali poet Kazi Nazrul Islam, convenient and competitive for their flights to and from the North Eastern Region. Zav Airways, which has recently received the approval for its planned operations to this region, is likely to enjoy the benefit from the outset.
Civil Aviation Minister, Ashok Gajapathi Raju has ambitious plans ahead for developing the aviation industry in the country. According to the press, although there are about 400 air strips, only 120 are functional and just 65 of these are used every day. In due course, the Ministry may carry out actual field tests to find out how many of these could be made functional. This is important considering the ambitious plans of the government to have at least 200 operational airports in the country.
However, the development costs for airports are not cheap. Hence, it is most likely that the government may choose the route to permit private airports, after studying how some of these do in their operations.
The other issue that the Ministry may also study seriously is the current rule of distance made mandatory between airports. It is fixed at 150kms. Should this be continued, or waived? There are many cities in the world, where there are two airports operating, and Kuala Lumpur is a good example. This has helped the flow of traffic and easy passenger movement. For successful operation of regional airlines, which may be using smaller aircrafts, low cost airports in two and three-tier cities and towns would be a boon.
In the meanwhile, in reply to a question in the Lok Sabha, it was confirmed that 15 green field airports have been granted in-principle approval. All these would increase the economic activities in the country and the employment potential.
(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)


CCEA allows sale of 10 million tonnes of wheat in open market

The reserve price for wheat under OMSS has been fixed at Rs1,500 per quintal plus freight charges for old crop and 5% premium for new crop


The union government on Thursday approved sale of 10 million tonnes of wheat from the stocks of Food Corp of India (FCI) in the open market to boost domestic supply and check prices.


A decision in this regard was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi.


"The CCEA has cleared sale of about 10 million tonnes of wheat via the open market sale scheme (OMSS) to bulk buyers," sources said.


The reserve price under OMSS has been fixed at Rs1,500 per quintal plus freight charges for old crop and 5% premium for new crop.


Wheat would be sold through e-tendering process by FCI with an aim to improve domestic supply of wheat and check prices, besides reducing storage pressure on the state-run company.


Wheat prices have firmed up in the last few days. Wholesale price of wheat has increased to Rs19 per kg in the national market in July, from Rs16.10 per kg in the same month last year, as per official data.


In 2013-14, the government had announced sale of 8.5 million tonnes of wheat via OMSS, but was able to sell only 5.8 million tonnes, earning about Rs9,310 crore.


Till early this month, the FCI had a wheat stock of 40 million tonnes, against the requirement of 20 million tonnes.


The country had produced a record 95.60 million tonnes of wheat in the 2013-14 crop year.


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