The Cabinet decision reiterating revision and near doubling, from April next, the price of domestic natural gas is timely. The move would better align relative prices, coagulate much-needed funds in the high-risk upstream hydrocarbon sector and shore up investor sentiments. In the promising Krishna-Godavari basin in the eastern offshore, Reliance Industries (RIL) has had significant production shortfall for over three years now, and it would reportedly need to furnish a bank guarantee to counter perceptions that it is hoarding gas at its operational blocks. The revised gas price would be as per the Rangarajan committee formula, benchmarked to the going average price of what producers get elsewhere in the main markets. Continue reading Revised Natural Gas Pricing Better for Indian Economy
Category Archives: Government
Important Message From Ministry of Corporate Affairs India Regarding Easy Exit Scheme 2011
Ministry of Corporate Affairs India had introduced a Scheme namely, “Easy Exit Scheme, 2011” under Section 560 of the Companies Act, 1956 to give an opportunity to the defunct companies, for getting their names struck off from the Register of Companies. The said scheme was in operation from 1st January, 2011 to 31st January, 2011. Now, it has been decided to extend the Scheme for another three months i.e. upto 30th April, 2011. For details, refer to General Circulars No: 6/2010 dated 03.12.2010 and 1/2011 dated 03.02.2011.
After the closure of the Scheme, MCA would take penal action against the directors of the defaulting companies who have not taken steps for de-registration of the company.
Company Law India: Declaration of Dividend out of Reserves
Investors of profitable companies expect dividends at least once every year, and many investor friendly companies have a track record of giving dividends every year from the annual/quarterly profits. But what happens if business climate is bad and the company is unable to make profits in a year and is unable to pay dividends to shareholders? Can the company pay dividend from its Reserves? Yes.
Following is the relevant rule from Company Law India, about Declaration of Dividend out of Reserves.
Reference: [GSR No. 427(E), dated July 24, 1975] Continue reading Company Law India: Declaration of Dividend out of Reserves
Ratan Tata Shares Experience From Past On Not Paying Bribes
Ratan Tata Shares Experience From Past On Not Paying Bribes
to get Tata Airlines joint venture with Singapore Airlines about 10-12 years back. Tata’s were asked Rs 15 crore (150 mn) bribe by the then aviation minister (whoever it was). The point to note is that the work ethics of Tata Group come out strongly from his words. Good to hear the story.
Alstom India Set To Grow Revenues from Railways & Transportation
Alstom SA, the world’s second- largest trainmaker, said Indian sales growth may surpass local economic expansion as the government works on a 14 trillion rupee ($317 billion) plan to expand and modernize railroads. The company has to be prepared for India growth “which is equal to if not higher than GDP,” Sunand Sharma, 61, Alstom’s local head, said in an Oct. 15 interview at his office in Noida, near New Delhi. He declined to give specific sales numbers.
Alstom, which also makes power-plant systems, expects to eventually get a third of India sales from transportation as the government expands the railroads 10 percent a year to support economic growth. The Paris-based company has been shortlisted with General Electric Co., Bombardier Inc. and Siemens AG as a possible partner in an Indian train making venture and is considering building a rail-car plant in the country. Continue reading Alstom India Set To Grow Revenues from Railways & Transportation