FDI in retail: Film would be successful only if it has suspense, says Karunanidhi on not committing support

November 14, 2012

nidi

 

Chennai, November 14: Continuing the suspense over its stand on any Opposition-sponsored resolution in Parliament against FDI in retail, crucial UPA ally DMK on Wednesday said its decision would be taken keeping in mind the interest of small and medium traders.

 

"Small and medium retail traders in Tamil Nadu are apprehensive that Foreign Direct Investment would greatly affect them. We would discuss and take a decision on this (FDI) keeping their interest in mind," DMK president M Karunanidhi told reporters here.

 

To persistent queries on why DMK was maintaining a suspense on its stand over the FDI issue and whether it would support a no-confidence motion against the UPA government, Karunanidhi, also a well-known screenplay writer, said: "I have written the script for more than 100 films. A film would be successful only if it has suspense."

 

When asked whether DMK would support Left parties and some other parties' proposed resolution with provision for voting in Parliament on FDI, he said the party's views would be made known after consultations with DMK Parliamentary Party members.

 

Karunanidhi had yesterday said DMK's stand on FDI in retail would be known when a Bill on it was brought before Parliament during the winter session beginning on November 22.

 

In case of voting, the support of DMK, the second largest UPA ally with 18 Lok Sabha MPs after the exit of Trinamool Congress, is crucial for the UPA.

 

DMK has opposed the Centre's decision to allow FDI in multi-brand retail sector and had even supported the nation-wide bandh called by various parties in September.

 

Karunanidhi had then said his party would support if the Opposition moved a resolution in Parliament against FDI in retail.

 

While Trinamool Congress chief Mamata Banerjee has threatened a no-confidence motion, the Left parties have decided to move motions under voting rules in both Houses of Parliament to reject government's decision on the issue.

 

BJP to oppose govt on FDI in retail


Refusing to give up on the FDI in multi-brand retail issue which could affect its core vote bank of small traders, BJP on Wednesday said it will oppose the government decision in Parliament and try to build a joint strategy with NDA partners and other political parties.

 

"BJP will strongly oppose the government decision on FDI in multi-brand retail in the forthcoming winter session of Parliament. This decision is not in the interest of the country," party chief spokesperson Ravi Shankar Prasad said.

 

He announced that BJP will discuss its strategy with other NDA partners and also get in touch with political parties which have reservations on the issue.

 

The NDA allies are likely to hold a meeting on November 21, a day before the winter session begins.

 

"We would like to put the government on the mat on this issue. In November 2011, the then finance minister had announced in the Lok Sabha that a decision on FDI in multi-brand retail will be taken only after consulting all concerned sections. A similar statement was made by the then commerce minister in the Rajya Sabha," Prasad said.

 

BJP charged that this promise has been violated by the government as it has taken the decision unilaterally.

 

But the principal opposition is not yet clear to what extent it will go against the government in Parliament.

 

Though the opposition claims to have support of majority of MPs in both Houses on the issue, the NDA is unlikely to press for a vote on the issue.

 

Asked if BJP and NDA would rally behind Mamata Banerjee's TMC in case it seeks division of votes to embarrass the government, the party said it will decide its future course of action in the NDA meeting.

 

The Left parties are also opposed to the decision.

 

But the opposition designs may be thwarted by the chair in both Houses if it denies permission for a motion on the issue. Government has the right to bring FDI in multi-brand retail through an executive decision.

 

A discussion without voting is, however, possible.


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News Network
April 21,2020

New Delhi, Apr 21: The historic rout in oil markets that sent US crude prices plummeting to as much as minus USD 40 a barrel is unlikely to translate into any big reduction in petrol and diesel prices in India as domestic pricing is based on different benchmark, and refineries are already filled up to brim and cannot buy US crude just yet.

With storage capacity already overflowing amid coronavirus-induced demand collapse, traders rushed to to get rid of unwanted stocks triggering the collapse of US West Texas Intermediate (WTI) crude for May delivery.

Indian Oil Corp (IOC) Chairman Sanjiv Singh said the collapse was triggered by traders unable to take deliveries of crude they had previously booked because of a demand collapse. And so they paid the seller to keep oil in their storage.

"If you look at June futures, it is trading in positive territory... around USD 20 per barrel," he said.

Low oil prices may seem good in short-term but in the long run it will hurt the oil economy as producers will have no surplus to invest in exploration and production which will lead to a drop in production, he said.

He did not comment on retail fuel prices that have been static since March 16.

Oil companies have not changed rates despite a fall in international prices as they first adjusted them against the increase that was warranted from a Rs 3 per litre hike in excise duty and close to Re 1 per litre additional cost of switching over to cleaner BS-VI grade fuel from April 1.

Petrol in Delhi is priced at Rs 69.59 a litre and diesel comes for Rs 62.29 per litre.

"The negative price has no direct impact on India or Indian oil prices, as this has taken place due to crude oil produced and traded within the US. India's prices are driven partly by another benchmark, the Brent, which is still trading at USD 25/barrel. Therefore, the retail price of fuels in India are unlikely to fall," said Amit Bhandari, Fellow, Energy and Environment Studies, Gateway House.

Also, Indian refineries are already overflowing as fuel demand has evaporated due to the unprecedented nationwide lockdown imposed to curb spread of COVID-19. So, they can't rush to buy US crude.

The refineries have already cut operating rate to half because the fuel they produce has not been sold yet.

India imports 4 million barrels/day (1.4 billion barrels/year) of oil. The country has been benefitting from the falling prices of oil for the last five years, when oil dropped from a peak of USD 110/barrel to USD 50-60/barrel last year, enabling India to invest in public service programmes.

"However, the additional USD 30 fall of this week is good for India - but there is also a downside. If oil prices are too low, the economies of oil-rich gulf countries will be hurt, threatening the job prospects of the 8 million Indians working in the Gulf countries. India is the largest recipient of foreign remittances due to these workers – very low oil prices will hurt this cash stream," Bhandari said.

He said the negative price of oil shows how much oil oversupply exists in international markets today. "Global oil consumption has fallen due to the COVID-19 pandemic that traders are willing to pay customers to get rid of the barrels they can't store. The world does not have enough storage capacity, and dumping the oil is an environmental crime."

The first half of April saw Brent crude oil prices plummet 63.6 per cent to USD 26.9 per barrel. Prices of Western Texas Intermediate (WTI), the American oil, had also fallen similarly by 63.1 per cent.

But on April 20, WTI prices turned rapidly negative because traders on the Nymex exchange rushed to offload their May futures positions a day before expiry of contracts (on April 21).

Such WTI futures are traded on the Nymex exchange with contracts settled in physical crude oil. Problem is, those who had gone long are unable to find storage facilities for the oil and had to liquidate their contracts before expiry. This caused the plunge in WTI prices.

Contrast to this, June WTI Nymex futures prices is hovering around USD 21, while Brent for June delivery is at USD 25.

Miren Lodha, Director, CRISIL Research said the demand for crude oil was declining already because of economic slowdown when the COVID-19 pandemic-driven lockdowns crushed it further.

Consequently, oil demand is expected to contract by 8-10 million barrels per day (mbpd) in 2020 assuming demand recovery begins from the third quarter of the year, he said, adding if recovery doesn't happen by then, further demand destruction could occur.

On the supply side, producers reining in output following a strategic deal between OPEC members, Russia and the US.

Under this agreement, OPEC+ would reduce oil production by 9.7 mbpd for May and June, but gradually ease the curb to 7.7 mbpd between July and December 2020, and to 5.8 mbpd till April 2022 to stabilise prices.

"This is expected to reduce some surplus in the market by the end of 2020," Lodha said.

Crude oil demand is expected to decline by over 20 mbpd in April alone. Typically, monthly global demand is about 100 mbpd. Given this scenario, supply curbs would have limited influence.

Consequently, Brent oil prices is expected to be in the USD 25-30 range for the second quarter while increasing marginally in the last 2 quarters of 2020.

"The gigantic inventory build-ups and lack of storage facilities would also put pressure on prices," he said, adding overall Brent could average USD 30-35 in 2020, with a strong downward bias.

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Agencies
July 13,2020

Mumbai, Jul 13: In a significant landmark, the BrihanMumbai Municipal Corporation (BMC) has achieved a doubling-rate of 50 days for COVID-19 cases, a top official said on Monday.

This was possible because of the civic body's 'open testing policy', implying tests without prescriptions, making it the only city in the country to implement it.

"After the open testing policy, our testing has gone up from 4,000 to 6,800, daily. But the total positive cases have come down from 1,400 to 1,200 now," BMC Municipal Commissioner I.S. Chahal told IANS.

Of these 1,200 positive cases, the symptomatic cases are less than 200, so the BMC needs only 200 beds daily, the civic chief said.

Even the BMC's discharge rate now stands at 70 percent, and on Sunday, after allotting beds to all patients, there were still 7,000 COVID beds plus 250 ICU beds lying vacant, said Chahal.

For this achievement, Chahal gave the credit to the entire 'Team BMC' where - despite losing a little over 100 officials to the virus - civic officials and other Corona warriors are engaged 24x7 in controlling the pandemic for over four months.

Since the first case was detected in Mumbai on March 11 (after the state's first infectees in Pune on March 9) and the state's first death notched in Mumbai on March 17, the current Maharashtra Covid-19 tally stands at 2,54,427 cases and fatalities at 10,289, while Mumbai has recorded 92,988 cases with a death toll of 5,288.

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News Network
May 13,2020

Lucknow , May 13: Samajwadi Party chief Akhilesh Yadav on Wednesday took a jibe at Prime Minister Narendra Modi over announcing Rs 20 lakh crore special economic package to boost the economy saying that the Centre is again making "false promises to 133 crore Indians".

"Earlier, you promised Rs 15 lakh and now Rs 20 lakh crore. You have made false promises 133 times with 133 crore Indians. How can someone trust you this time? People now are not asking how many zeroes there are but how many false promises have been made," he tweeted (translated from Hindi).

Yesterday, Prime Minister Narendra Modi had announced a Rs 20 lakh crore economic stimulus package for the country fighting COVID-19, stating that it will give a new impetus and a new direction to the self-reliant India campaign.

The Prime Minister had also announced that the fourth phase of lockdown will be completely redesigned with new rules and will commence from May 18.

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