NEW DELHI, DEC 30: CMA CGM  returned to profitability on its operations between Asia and North Europe in October and expects overall operations to show operating profits in November and December. The ocean carrier, the third-largest container  line in the world, said in its internal company magazine released this month it is seeing “significant improvement in operating results.

       CMA CGM is looking for the improvement as it seeks approval from bondholders for a plan to raise more debt as the company tries to restructure its way out of a deep financial hole.

       The carrier this month overhauled its leadership structure as founder Jacques Saade, in a deal with lenders holding some $5.6 billion in debt, said he would cede day to-day management of the business and create a corporate board to run the company.

        The Marseilles-based liner company needs bondholders to agree to change terms of senior bonds to attract fresh capital and give CMA CGM   time to negotiate cancellations or deferrals of ship orders.

       But the carrier also says its operating business has improved as a mild uptick inpeak season shipping cutbacks in capacity across maritime markets and hither rates since pricing reached historic lows early in 2009. “The Asia-North Europe lines, which account for nearly a quarter of the group’s shipping volume, returned to profitability beginning in October 2009,” said Nicolas Sartinin, senior vice president for Asia Europe Lines, quoted in the CMA CGM Group publicaion. “Overall, CMA CGM’s other lines should be close to break even by the end of 2009.”

               CHENNAI, DEC 29: Tata Realty and Infrastructure Ltd (TRIL) is expanding into infrastructure projects, including dedicated and ware housing, water supply and urban transportation projects. Mr Sanjay G. Ubale MD and CEO, TRIL said that the company has identitied a location on the east coast where it will participate in dedicated container terminal project. Talks are on with the State  Government concerned, he said, while declining to elaborate further as the discussions were at a preliminary stage. It is in talks with a number of international players in logistics for technological support. It also hopes to bid for the Navi mumbai airport project for which it plans to tie up with an international player, In  chennai, where it is setting up a Rs 3,700-crore IT SEZ, commercial and residential project on the IT corridor, it has mooted a proposal for a monorail project with the State Government Mr Ubales said.

         NEW DELHI, DEC 29: THE National Institute of Public Finance and policy (NIPFP) has suggested that the combined goods and services tax (GST) rate for the Central GST and the state GST should be about 17-18 per cent.

        The Task Force, set up by the 13th Finance Commission, has proposed 12 per cent (centre 4 per cent) and states 7 per cent.

          The government is planning a dual GST system, one at the Central level and the other at the state level.

         The Central GST will extend up to the retail stage, an improvement over the current practice of levying Cenvat (excise) only up to the manufacturing stage.

         Also, states are expected to be allowed to levy state GST on services.

        The necessary constitutional amendments are likely to be undertaken during the Budget session of Parliament.

            NEW DELHI, DEC.29: TO  successfully combat the threat from the US, china and other countries in the overseas markets, the Union, government is planning to set up plastic parks or clusters across the country.

             These parks will be provided fiscal incentives, including tax holidays, exemption in sales tax, octroi, excise, as well as subsidy, so that they can produce products at prices which can effectively compete in overseas markets, this was announced by the Minister of State for chemicals and Fertilisers, Mr Srikant Jena.

            Each park (comprising 200 units) will need an investment of Rs 200 crore, it is estimated

           The parks will be developed on the lines of existing automobile, textile and food processing parks and will come up first in Maharashtra and Gujarat.

          The Chemicals and Fertilisers Ministry may soon approach the Planning  Commission and the Finance Ministry with a proposal to provide the fiscal in centives necessary.

           Mr Jena said the development of plastic clusters or parks may increase exports from the present $3 billion (over Rs 14,00 crore). China exports plastics worth over $22 billion (Rs1 lakh crore).

          The plastic industry should strive to increase exports to $6 billion in 2010-11. It should go in for more value-added products instead of being restricted to raw materials, Mr Jena told the plastics Exports Promotion Council (PEPC).

          Each park would be developed on 100-150 acres and is expected to house over 100 plastic units with a monthly production capacity of 200 tonnes.

           In a feasibility study, PEPC has called for a customised package for units to be set up in the proposed plastic parks.

          Such customised packages are offered by Malaysia in the plastic park at kertih, which covers 2,000 hectares, PEPC said.

         These parks are likely to be developed in upcoming or existing special economic zones or at new sites. They will have common facilities for research and development, effluent treatment and waste management, the MInister elaborated.

     APICK-UP in sales and extensive cost-cutting has shored up India Inc’s profits in the cureent fiscal, leading to a 20 per cent increase in the advance tax payout up to the December 15 installment, compared to the 12.6 per cent increase recorded in the same period last year.

     For fiscal 2009-10, the Centre has budgeted a 13 per cent increase in corporate tax collections, Till December 19 this fiscal, net corporate tax collections stood at Rs 1,67,000 crore, reflecting a 12per cent increase over Rs 1,48,800 crore collected in the same period last year.

     UP to December 15, 2009, corporate India’s advance tax payout stood at Rs 1,12.000 crore (Rs 94,000 crore last year), Corporate advance tax payout for the December 15 installment rose by as much as 24 per cent on a year-on -year basis.

       The strong show on the corporate advance tax payout could be a signal that economic recovery has gathered pace, But the worrisome aspect is the sluggishness on the corporate TDS collections front. Up to December 15 this fiscal, corporate TDS collections have declined by 6.1 per cent on a year-on-year basis.

                                INDIA 2ND WORST IN RELIGIOUS BIAS

             A study by an American think-tank, Pew Research Centre, has placed India second only to Iraq in social hostility and religious bias perpetrated by individuals and groups. The study involved 198 nations and claimed to have covered 99.5 per cent of the global population.

          Pakistan follows India in the index. But nations like even Saudi  Arabia and Afghanistan are placed much better when it comes to social hostility.

                             FOOD INFLATION AT 18.65 PC

             Food inflation softened marginally to 18.65 per cent for the week ended December 12,2009, though inflation raes for cereals and pulses, which constitute the essential consumption basket, continued to be in double digits. The food inflation, based on wholesale price index, stood at 19.95 per cent in the previous week ended December 5,2009.

           Potato prices continued to rise with an inflation rate of 115 per cent on an annual basis, followed by pulses, whose prices soared by 42 per cent. Vegetables, as a whole, turned expensive by 38 per cent, while the inflation rate for cereals stood at 11 per cent during the week under review.

           Cost push was the key reason behind the soaring food inflation, and ample liquidity was not responsible for it.

          The food inflation might spiral into a broader inflation, As growth accelerates, supply-sade drivers could translate into wider pressures.

   NEW DELHI, DEC 29: In a move aimed at curbing iron ore exports, which the industry said would adversely affect the mining sector, the government has raised export duty on iron ore lumps to 10pc from 5pc and on iron ore fines to 5 per cent from nil, said a finance ministry notification. “This decistion has come at a wrong time when the exports were picking up and showing signs of recovery,” Federation of Indian Minerals Industries (FIMI) Secretary General R K Sharma said. “This will have cascading effect on the steel industry. Finance ministry should have waited for some time and should have allowed the steel industry to recover from the global economic meltdown,” he said.

      NEW DELHI, DEC 29: UAL Corporation, which owns United Airlines, has posted a net loss of US$63 million for the third quarter ended September 30, narrowing its net loss by $202 million compared to the third quarter of 2008.

      It reported a year-on year decline in consoli dated passenger revenue per available seat mile (PRASM) OF 14.7 per cent, while mainline unit cost per available seat mile (CASM) for the quarter was down 1.6 per cent year on year, excluding fuel and certain accounting charges. A company statement said that it closed the quarter with total cash of US$2.8 billion, comprising unrestricted cash of more than $2.5 billion and restricted cash of $309 million. It also said it: “Completed financings totalling more than $1.5 billion including $270  million in the third quarter and nearly $1.3 billion early in the fourth quarter, raising roughly $1 billion in new liquidity Through these financings, the company also reduced its debt and net capital lease obligation for 2010 by $215 million and for 2011 by $100 million .” As a part of the $1.3 billion in early fourth quarter financings, the company completed a $129 million financing with Sky West Inc. one of its regional flying partners. The agreement is said to include a contract extension on 40 existing aircraft as well as commitments for a small number of additional aircraft.

     “Against a challenging environment, our people are delivering improvements across the business. With the work we have done and the strength of our network. we are poised to see better year-over-year unit revenue performance as economies begin to recover and business travel returns,” said Glenn Tiltion, UAL Corporation chairman, president and CEO.

      NEW DELHI, DEC.29: Despite the global  economic downturn, india’s aviation sector in particular continues to grow, a top Obama Administration official said as the US-India Aviation partnership Summit.

     Top officials from the two countries along with leaders from the private sector in the aviation sector-about 200 in all–are participating in the twoday summit being held in Washington to promote advanced technical approached and collaborations in India’s rapidly growing aviation market.

    The event encourages a high-level dialogue on key issues related to air traffic management and control, aviation security and airspace utilisation through out India. Impressed by the growth of India’s aviation sector the US Trade and Development Agency Director Leocadia I Zak said annual passenger and commercial flights grew eight to 12 percent over the past several years; new international airports were inaugurated and there are plans for new domestic and regional airports, air cargo volumes increase and helicopter operations grew.

    “Perhaps one of the best examples of economic cooperation and people to people cooperation is the US-India Aviation Cooperation Program that was launched at the First summit in 2007,” Zak said.

     Consisting of Indian and US Government officials, including USTDA and Federal Aviation Administration (FAA) as well as 29 private sector representatives, the ACP provides a forum for dialogue and a mechanism by which the members can highlight specific areas of bilateral technical cooperation, including training programs Zak said. India’s Aviation Secretary, Madhavan Namber, and Director of the Federal Aviation Administration, Randy Babbit, also spoke on the the occasion.

   NEW DELHI, DEC 29: JAWAHARLAL NEHRU Port (JN Port) is mulling inviting global bids for appointment of a contractor to undertake the huge pending dredging work, as the selection of the consultant for preparing the tender document and sorting out other issues related to the work awaits Govt approval Mr S.S. Hussain, Chairman of JN port, could not give the cost estimate of the proposed dredging work. But he said the earlier estimate was around Rs 900 crore, It is only natural that there will be cost escalation, The scope of the work, it is learnt, could undergo some changes as Mumbai Port Trust too might share a portion of the work. The meetings held in this regard, however, have remained inconclusive, Mr Hussain said there had been a delay in undertaking the dredging work. But the work should gain momentum now that the geotechnical survey was in hand and the appointment of the consultant would take place soon, he said. Meanwhile, as he pointed out, the port authorities were going ahead with new projects such as construction of a new berth (330-m long) and a fourth container terminal.

   NEW DELHI, DEC.29: The world’s top 22 ocean container carriers lost some $11 billion in the first nine months of the year and face further losses in 2010 as the industry digs out from the worst downturn in its 50 plus history. Sixteen of the carriers that have published third-quarter results reported cumulative operating losses of  $9 billion in the first nine months of 2009. according to a survey. This compares with a combined operating porfit of $5.3 billion in the corresponding period of 2008.

  The remaining six carriers MSC, Orient Overseas International Ltd. Hamburg sud. United Arab Shipping and pacific International Line-are estimated to have incurred another $2 billion in operating losses from their liner units. The total shipping revenue of the 16 carriers publishing results-including Maersk Line, Hapag-Lloyd, china shipping, “K” Line and NYK Line-plunged 40 percent in the first nine months, to $56 billion from $94 million a year earlier, The Transpacific Stabilization agreement, a discussion agreement of carriers that control 90 percent of U.S. containerized imports from Asia, last week predicted losses in that trade would hit $20 billion this year, and recommended an “emergency revenue program” involving a rate hike of $400 per 40-foot container on jan.15.

       The Westbound Transpacific Stabilization Agreement, representing carriers in the U.S.-to-Asia trade, on Monday followed with its own recommendation for similar hikes. Most ocean carriers surveyed by Alphaliner expect cargo volume and rates to recover in 2010. but most also expect to lose money next year.