Overseas investments liberalised further

The Government today took a momentous step on the road map laid out by the Tarapore Committee on capital account convertibility by liberalising norms for Indian investments overseas through two fast track windows, over and above the existing one. The two windows include investments from balances in Exchange Earners Foreign Currency (EEFC) Accounts and investments out of Global Depository Receipts, according to a statement by the Department of Economic Affairs, Ministry of Finance.

‘Pond’s merger with HLL in due course’

The Chairman of Pond’s India, Mr. K.B. Dadi Seth, is reported to have stated that the company’s board would consider a merger with Hindustan Lever in due course. According to a company spokesman, the statement was made in response to a question to the Chairman by one of the shareholders at the 5th annual general board meeting of Pond’s India held today. Mr. Dadi Seth said the merger would bring added value to shareholders.

Petroleum subsidy: A give and take policy?

The Government may be dishing out a subsidy of Rs. 2 per litre of diesel sold in the country, but the Centre and the States together collect as much as Rs. 3.16 in the form of various taxes. This emerges from an examination of the cost structure of typical consignments of diesel import landed at the west coast (Kandla) and east coast (Chennai). The cost per litre of diesel imported after accounting for insurance, bank charges, demurrage and tankage costs is Rs. 5.98. Of course, this is before the domestic freight element is charged to the cost. A 32 per cent customs duty on the value of every tonne of imported diesel and sales tax charged by States adds up to the final retail price.