Gold coin, bar sales on hold for 6 months

July 11, 2013

Gold_coinNew Delhi, Jul 11:In an unprecedented move, top jewellery retailers and bullion traders across the country have decided to suspend sale of gold coins and bars for six months. The measure is aimed at helping the government curb imports and keep the current account deficit under check.

Several prominent chains, including TBZ, Gitanjali, Tanishq and Mukesh Ambani's Reliance Jewels, will voluntarily stop sales. Coins and bars account for more than a third of gold sales in the country. India is the world's largest gold buyer, at 860 tonnes a year. Market estimates suggest that the demand for coins and bars surged 150% in the past four years.

The move by top jewellery retailers and bullion traders to suspend sale of gold coins and bars for six months comes at a time when the government and the Reserve Bank of India have asked banks to go slow on selling gold coins and bars and players such as Anil Ambani's Reliance Capital have pulled out of the business.

Although the government had taken several steps to tame sales, the impact has been slow and it was only in June that there were signs of demand cooling down. "We had a meeting with the government last month after the restrictions on gold imports were introduced. As an industry body, we realized we have to regulate ourselves. If the sale of coins and bars is stopped, it will restrict imports significantly," said Ashok Minawala, board member at the All India Gems and Jewellery Trade Federation which asked traders across the country to stop taking orders for bars and coins.

"Demand for gold jewellery in the last 10 years has remained more or less constant. But investment demand has increased manifold. We will not promote the sale of coins and bars till CAD issue is resolved," said Sanjeev Agarwal, CEO of Gitanjali. The jewellery brand has stopped purchase of coins and bars already and is currently only liquidating its stocks.

While consumers will find it tougher to get hold of gold coins, retailers will not be hit due to the low profit margins. Against a profit margin of 8-12 % on diamond and gold jewellery, the margin on coins and bars is as low as 1-2 %. "Jewellers stock coins and bars only because consumers ask for them on special occasions or for investment purpose. Most of it is converted into jewellery after couple of years," said Agarwal.

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News Network
April 30,2020

Belagavi, Apr 30: Police Sub-Inspector attached to Sadalaga Police Station Anil Kumbar was suspended on Wednesday pending inquiry for negligence and misbehavior in Examba incident, Superintendent of Police Laxman Nimbargi said.

According to him, the PSI was suspended as he misbehaved with Sachin Sawant a Centeral Reserve Police Force (CRPF) Cobra Commando on April 23 at his native village Yakshamba village and arrested him on charges of not wearing mask. On scuffle with the constable the commando was handcuffed and chained at Sadalaga police station.

Sachin Sawant was sent to Hindlaga Jail by the Court and was released on conditional bail on Tuesday.

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News Network
April 18,2020

Ballari, Apr 18: Hosapete town in Ballari district of Karnataka gasped in disbelief as it turned out that 11 members of one single family are positive for the coronavirus.

The whole town has been declared a containment zone and is being surveilled 24X7.

The family includes seven members whose tests returned positive today, three who tested Covid-19 positive on March 30 and one other member subsequently.

The seven who tested positive today had been negative when they were earlier tested along with the others.

They have all now been shifted to isolation wards at the District Hospital in Ballari.

Including this family of 11, Ballari has 13 positive cases so far, with one case each reported from Ballari and Siraguppa towns.

Startled by this sudden upsurge from Hosapete, the district administration has set up 16 fever clinics to screen people and six COVID care centres to treat positive cases. There are two dedicated COVID hospitals, one at Ballari and another at Torangallu in Sandur.

A team of psychological counsellors have been put on duty to provide support to the patients at the isolation centres.

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May 19,2020

Bengaluru, May 19: Containment zones in Karnataka will be much smaller in size under the latest lockdown norms. However, rules and loopholes will be tightened and action against violators will be stringent in order to check the spread of the disease.

Revised guidelines issued by the Centre to the state, reveal containment zones are delineated based on mapping of cases and contacts. Intensive action will be carried out in these areas with the aim of breaking the chain of transmission. Therefore, the area of a containment zone should be appropriately defined by the district administration/local urban bodies with technical inputs at local level.

The health department is considering shrinking the size of containment zones from the existing 100 metres to open up more space for economic activities. Medical education minister K Sudhakar, also a member of the Covid taskforce, said additional chief secretary (health department) Javed Akthar will issue a new definition of a containment zone after the Covid-19 taskforce holds its next meeting.

“We are planning to further shrink it and restrict containment zones to an apartment complex, independent house or even a lane where the Covid-19 patient resides,” Sudhakar said. He went on to say bigger containment zones will impede businesses and normal activities in the vicinity, something which the government wants to avoid.

The minister said Karnataka will also do away with colour-coding districts. “With restrictions being relaxed for almost all activities, it does not make sense to pursue with colour codes. It is either containment zone or outside containment zone,” he said.

In rural areas, the minister said containment zones will be identified by the taluk heads. Government sources say it is difficult to restrict activities to certain areas or smaller location in rural areas as farmers and people will have to travel to the outskirts of their villages for their livelihood.

An official said, a containment operation (large outbreak or cluster) is deemed successful when no case is reported in 28 days from the containment zone.

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