100% FDI in Cold Storage

100% Foreign Direct Investment (FDI) is allowed under automatic route in storage and warehousing including warehousing of agriculture products with refrigeration (cold storage). Also, the existing policy allows for 51 % Foreign Direct Investment (FDI), in only single brand retail trade, subject to specified conditions. Government has received suggestions from associations, trade bodies for allowing FDI in multi brand retail. The objective is to enhance the operational efficiency of back-¬end infrastructure in the retail sector, reduce wastage in the agricultural sector, enhance benefit to producers, integrate the retailer in the value chain and benefit consumers through greater competition. Towards this end, the Department of Industrial Policy and Promotion has released a Discussion Paper titled "Foreign Direct Investment in Multi¬-Brand Retail Trading", with the aim of generating informed discussion on the subject and obtaining the views and comments of various stakeholders.

This information was given by Shri Arun Yadav, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Lok Sabha today.

PEEL SECURES HIGH-GRADE SILVER PROJECT

 

Highlights:

 

·                EL7711 covering historic Ruby-Tulloch-Rockvale silver-field granted 22 February 2011

·                Ruby silver mine produced 350,000 ounces silver at 620 g/t Ag

·                Tulloch silver mine produced 50,000 ounces silver at 6,200 g/t Ag

·                Minor modern exploration - minimal drilling

·                1968 drill intercept of 5.08m at 6,700 g/t Ag from 90.5m at Ruby mine; never followed up

 

Peel Exploration Ltd is pleased to announce that it has recently been granted a 21 unit (~60 km²) exploration licence covering the historic Ruby-Tulloch-Rockvale silver-field. EL7711 is located approximately 30 km east of Armidale in north-eastern New South Wales.

 

EL7711 encompasses much of the central part of the Rockvale Adamellite which hosts silver-gold-antimony-arsenic mineralisation both at its margin and within the intrusion on northeast/northwest fracture zones, possibly associated with aplite dykes. Major known deposits are the Ruby and Tulloch silver mines and the Rockvale arsenic mine. There are, however, many other underexplored prospects and anomalies within EL7711, adding to its prospectivity for silver and gold.

 

The Ruby silver mine, associated with an outcropping aplite dyke, has a lode up to 1.4 metres wide and was worked to a depth of 120 metres between 1895 and 1905. Historic production is estimated to be about 350,000 ounces silver at a recovered grade of ~20 ounces per ton (~620 g/t Ag).

 

In 1968, a nine-hole diamond drill program was undertaken by Silver Valley Minerals to test the main workings at Ruby. Records of this work are poor, but it is known that the first hole intersected 5.08 metres at a grade of 216 ounces per ton (~6,700 g/t Ag) from 90.5 metres downhole. True width was estimated at about 3 metres. Three of the other drillholes intersected old workings, while values in a further three were reported only as “low”. No results were recorded for the other two drillholes. No further drilling has been completed at Ruby.

 

Results from an IP geophysics survey completed in 1969 suggest that sulphide mineralisation possibly extends well beyond the known silver-rich shoot at Ruby, and presents future exploration targets.

 

At the Tulloch mine, mined between 1913 and 1928, an estimated 50,000 ounces silver at a recovered grade of ~200 oz/t (~6,200 g/t Ag) have been won. The silver mineralisation is developed in fissures associated with three obliquely intersecting sets of shears near the contact of sediments.

 

The Rockvale arsenic mine was discovered in 1923, and in the period to 1928, produced 2,950 tonnes of ore containing about 600 tonnes of white arsenic. Mineralisation occurs as irregular shoots in altered aplite within the Rockvale Adamellite. Mineralisation is predominantly pyrite-arsenopyrite, but gold-silver-lead mineralisation (similar to both the Ruby and Tulloch mines) is recorded.

 

The Silver Point prospect lies about 2 kilometres along strike from the Ruby silver mine and comprises a pipe-like body of aplite approximately 50 metres in diameter. Previous exploration has identified highly anomalous silver-gold mineralisation in surface rock chips. Peel believes that Silver Point has bulk tonnage potential and should be drill tested accordingly.

 

The Happy Valley and G Reef prospects lie along strike to the west of the Tulloch silver mine. These prospects also contain historic workings, along with highly anomalous silver-gold mineralisation in surface rock chips. A strong IP anomaly between the Tulloch mine and Happy Valley which has an associated magnetic anomaly also remains untested.

 

Commenting on the acquisition, Managing Director Rob Tyson said: “The Ruby Silver Project is an excellent addition to Peel’s existing precious and specialty metals mineral assets and offers potentially high-grade exposure to an increasingly valuable metal – silver. Peel has commenced landowner negotiations and is looking to kick start exploration over the near term.” 

Manufacturing Sector Productivity Needs to be Increased



Finance Minister addresses 83rd AGM of FICCI





Finance Minister Shri Pranab Mukherjee addressed the 83rd Annual General Meeting of FICCI, here today. Following is the text of Minister’s speech delivered on the occasion:

“It gives me great pleasure to participate this morning in the 83rd Annual General Meeting of FICCI. Your chamber has an enviable pool of talent and experts in diverse areas including corporate affairs, finance, banking, capital markets, infrastructure and energy. I have often benefited from this resource through valuable and well researched inputs that you have provided from time to time and especially during the pre-budget exercises.

It is not my intention this morning to talk about the Union Budget 2011-12 that I presented yesterday in the Parliament. We shall be discussing that later in the day. Instead I would like to share some thoughts on the economy and some concerns that we have to collectively address.

India’s economy has rapidly evolved in the past two decades. More recently, in the last seven to eight years it has shifted to a higher growth path. The service sector has become the predominant contributor to the country’s Gross Domestic Product (GDP). The country’s financial integration with the world has been as rapid as its trade globalisation. Though globalisation has brought new opportunities for Indian enterprise and its people, it has also brought new challenges. Indeed the developments in the Indian economy in the last couple of years demonstrate this aptly.



There were several impulses from the external sector that had to be addressed, and we did that successfully. From an average growth of 9.5 per cent in the three year period from 2005-06 to 2007-08, GDP growth slowed to 6.8 per cent in 2008-09. It then recovered to 8 per cent in 2009-10. Even in these two years our performance was better than what was earlier believed. The fiscal 2010-11 should see us growing at 8.6 per cent. The recovery has been broad based with agriculture, industry and services all contributing to the consolidation of the growth process. More importantly, the economy has become remarkably resilient to both external and domestic shocks.



The kind of growth that we have achieved in these past years has been possible for two reasons. First, the Government is gradually putting in place an environment that encourages broad based economic growth. Secondly, businessmen from across the economy have stepped forward to take advantage of the enabling conditions that the government has created. India’s corporate sector has not only shown great global ambition and dynamism; it has also ridden out the global economic turmoil far better than corporations in other countries have managed.



This rapid recovery of the growth momentum is comforting, but we cannot be complacent as there are several challenges that the Indian economy faces from its current external and domestic context. Global recovery remains fragile. Advanced economies are exhibiting large fiscal deficit, high public debt and unemployment levels and indifferent aggregate demand. There is also the danger of sovereign debt crisis in peripheral Euro-zone countries spilling over to financial markets. The creeping increase in international crude oil and other commodity prices is a reality that we are already confronting. The possibility of the global commodity inflation adding to domestic inflationary pressures cannot be ruled out.



There are also domestic supply side pressures on food prices that we have been grappling with for the past several months. Though the total food inflation declined from 20.2 per cent in February 2010 to less than half at 9.3 per cent in January 2011, it still remains a concern. Other countries are also experiencing rising food inflation. The challenge before the Government and the monetary authority has been to support the recovery process without compromising on price stability. The task has not been easy but we are making progress.



We need to maintain our growth momentum as we go forward. As the government spending comes down as a part of the fiscal consolidation process, we need to effect adjustments in the composition of growth on the demand and on the supply side. We have to ensure that the revival in private investment is sustained and goes back close to pre-crisis growth rates. This requires a stronger fiscal consolidation to enlarge the resource space for private enterprise.



At the same time, there is need to improve the supply response of agriculture to the expanding domestic demand. There is need to significantly step up investment in agriculture sector, both by private and public sector to ensure the target growth of around 4 per cent per annum. Determined measures on both these issues will help address the structural concerns on inflation management. It will also ensure a more stable macroeconomic environment for continued high growth in the medium-term.



The recent data made available by the CSO shows an improvement in the savings and investment rates during 2009-10 after a fall in 2008-09. Investment rate has increased to 36.5 per cent of GDP in 2009-10, up from the crisis affected levels of 34.5 per cent in 2008-09. While there has been a pickup in the corporate sector investment, there is still some distance to travel before it matches the pre-crisis levels. The savings rate during 2009-10 at 33.7 per cent of the GDP is up from 32.2 per cent in 2008-09. However, the private sector savings have remained sticky in the range of about 30 to 32 per cent in the last six years. We need to address this.



There is a need to speed up development of infrastructure and remove bottlenecks. The Planning Commission has projected investment requirement in infrastructure of about $1trillion during the 12th Five Year Plan. An improvement in development of rural infrastructure also needs attention. We need to supplement budgetary resources by attracting more and more private investment, both domestic and foreign, into infrastructure development. Financing infrastructure would be a big challenge in the coming years and to meet the challenge some innovative ideas and new models of financing would be required.



For a young and growing work force it is imperative to boost our manufacturing sector productivity. A thriving manufacturing sector is necessary for generating the much needed employment opportunities for the unemployed and the underemployed in the rural sector. The manufacturing sector, despite being the driver of industry, has not been able to improve its share in the GDP. In fact India’s manufacturing sector share in the economy compares unfavorably with other emerging economies.



Productivity growth in industry is essential if it has to compete in a globalised world. We need to look at the R&D needs of the sector and the availability of skilled labour force. Education with special thrust on skill formation, health and sanitation are core areas that need urgent attention to bridge the human resource deficit constraining the growth momentum.



I have tried to address some of these concerns in the Budget proposal that I presented yesterday and laid the path for others to be addressed in due course. However, it is not sufficient to have good intentions and good policies. They have to be implemented and acted upon. That requires collective efforts. FICCI as a representative body of Indian Industry and trade has to play a vital role in translating the shared visions into reality. We have together come thus far and there is no reason that why we should not succeed in our future endeavours.”

Assessment of Black Money in The Country 
Study to be Conducted by 3 National Institutes

The Government has decided to get a fresh study conducted on unaccounted income/ wealth both inside and outside the country brining out the nature of activities engendering money laundering and its ramifications on national security. The proposal was approved by the Government in January, 2011. The study will be conducted by three national institutes with inputs from various ministries/ departments. The institutes have been finalized and the study will be assigned to them after making necessary provisions. The institutes will be given a time frame of eighteen months to complete the study.

This information was given by the Minister of State for Finance, Shri S.S. Palanimanickam in written reply to a question raised in Rajya Sabha today.

Impact of Mining on Forests

The Central Government accorded prior approval under the Forest (Conservation) Act, 1980, for diversion of forest land for mining of minerals such as iron ore, bauxite ore, coal, lignite, limestone, manganese ore, chromites, calcite, salt, granite, marble, sandstone, soap stone, sand, boulders, masonry stone, copper, etc. Some of the mines pertaining to these minerals are located in dense forests. The mineral–wise detail of the forest land diverted for mining purposes is being compiled and will be placed before the house.

Diversion of forest land for mining purpose does results in loss of the forests in the area actually broken up for mining. However, to compensate the loss of forest land and mitigate the other adverse impacts, the diversion of forest land for mining purposes is subject to the creation and maintenance of compensatory afforestation, maintenance and regeneration of safety zone, soil conservation measures, phased reclamation of mined area and payment of the Net Present Value (NPV) to be utilized for regeneration and protection of forests.

This information was given by the Minister of State for Environment and Forests (independent charge) Shri Jairam Ramesh in a written reply to a question by S/ Shri Ravi Shankar Prasad And Ram Jethmalani in Rajya Sabha today.

LEASETRADER.COM SAYS CONSUMER BEHAVIOR MAY NOT CHANGE UNTIL $4 PER GALLON

Based Off 2008 Data LeaseTrader.com Modeling Shows When Gas Price Concerns Turn To Action

MIAMI – (March 1, 2011) – While muted panic over the gas price increase stems from the 2008 price explosion, LeaseTrader.com believes drivers will continue to pump with current habits until the price exceeds $4 per gallon. The nation’s most popular online car leasing marketplace, LeaseTrader.com is using data and models from 2008 that show when consumer behavior will turn to action, with drivers reducing fuel consumption and realizing they should downsize into a more fuel-conscious vehicle.

Since 2008 the auto industry has done an exceptional job engineering more fuel-efficient cars, but there are still plenty of large vehicles on the roads, many which were culprits just a few years ago. Economists are weary that rising gas prices could potentially toss a healing American economy back into recession depending how drastically gas prices spike.

Fuel prices reached a national average of more than $4 per gallon in the summer of 2008. Many drivers turned to LeaseTrader.com and exercised their option to transfer out of their SUV leases as they sought smaller, more fuel-efficient cars. These drivers transferred their leases to small businesses and families shopping for short-term contracts with enough room for work projects and growing families. Similar trends are expected this spring and summer depending on where the price of gas lands.

"The average driver goes through a series of psychological stages when gas prices rise," said Sergio Stiberman, CEO and founder of LeaseTrader.com. "During the uptick, concerns and complaints heat up when we pass certain price benchmarks, but widespread behavior doesn’t actually change until we reach $4.00 per gallon."

Car makers today produce more fuel-efficient cars and fewer Hummer-type vehicles that filled the roads in 2008. LeaseTrader.com again anticipates an influx of vehicle models for transfer, including the Chevy Silverado and Avalanche, Cadillac Escalade, GMC Sierra, Ford Expedition, Mercedes GL, and BMW X5.

About LeaseTrader.com

LeaseTrader.com, the most recognized name in car leasing, easily and affordably matches car shoppers with individuals looking to escape their auto lease.

ArcelorMittal announces pricing of USD 3 billion Bond issue

Luxembourg, 1 March, 2011 - Yesterday ArcelorMittal ("ArcelorMittal" or "the Issuer") completed the pricing of three series of US dollar denominated notes, consisting of USD 500,000,000 aggregate principal amount of its 3.75% Notes due 2016, USD 1,500,000,000 aggregate principal amount of its 5.50% Notes due 2021 and USD 1,000,000,000 aggregate principal amount of its 6.75% Notes due 2041.
 
The proceeds to ArcelorMittal (before expenses), amounting to approximately USD 3 billion, will be used to refinance existing indebtedness.
 
The offering is scheduled to close on 7 March, subject to satisfaction of customary conditions.