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Differential tariffs not on says TDSAT
New Delhi:
Rejecting an appeal by the Cellular Operators Association of India (COAI), the GSM operators body, the Telecom Regulatory Authority of India (Trai) ruled the additional tariff charged by private operators for calls ending in BSNL and MTNL networks was unacceptable.

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has asked private GSM mobile operators not to charge differential tariffs for calls ending in the networks of state-run firms BSNL and MTNL. The judgment will benefit cellphone users of Maharashtra, Tamil Nadu, West Bengal and Uttar Pradesh.

TDSAT said, "We do not agree with the arguments put by COAI for charging higher tariff," a tribunal Bench, headed by Justice Arun Kumar said. COAI had challenged Trai's February 26 directive to private cell operators to stop charging differential tariffs for calls terminating on BSNL CellOne network in the four states. The association had contended that their cost was much higher due to absence of direct connectivity in intra-circle calls.

The dispute between Trai and private GSM operators arose following the government's decision in 2005 to merge the metro circles with the respective state circles and directing all calls between them to be routed as local calls. However, GSM operators in these four states kept charging higher prices on calls terminating on BSNL and MTNL networks, prompting Trai to issue regulations in February this year to abolish the differential tariffs.
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Power tariffs to fall after tribunal order
New Delhi:
The latest judgement of the Appellate Tribunal for Electricity is likely to result in lowering of electricity bills for residents of deficit states. The tribunal has ruled that if a trader buys power at Re 1 per unit, it cannot be sold for more than Re 1.04 a unit. Currently traders are selling power at four times the original price.

As per the order of the tribunal, "Traders cannot sell power to distribution companies at a price which is more than 4 per cent of the base price, that is, the cost fixed by power generating companies, as per the order," sources said.

The order came in response to a petition filed by Gajendra Haldea, an adviser in the Planning Commission.

The tribunal also directed various state electricity regulatory commissions (SERC) to fix intra-state trading margins within four weeks. Trading margins on inter-state sales are already capped at 4 paisa per unit by the Central Electricity Regulatory Commission.
Traders have been intermediating between two government entities to raise the price of electricity multifold.

However, with this order while the power rates are likely to go down in deficit states, consumers may have to pay higher prices in power surplus states.
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Centre to make massive investment in shipping sector
Kochi:
The Union Government is planning to make a landmark investment of Rs 1 lakh crore in the port and shipping sector in the country in another 15 years.

Two-thirds of the investment will be from the private sector and one third from the public sector, Union Minister of Shipping, Road Transport and Highways T.R.Baalu told the press.

The investment will be for 276 projects in the port sector and 11 projects in the shipping sector identified by the government. Of the total investment, Rs 60,000 crore has been earmarked till 2011-12 and the rest till 2020.

Baalu said the government hopes to increase port capacity, upgrade cargo handling system and deepen channels to receive third generation vessels. He said the government expects the port capacity to touch 1300 million tones by 2011-12 and 2000 million tones by 2016-17.

One of the recommendations of the meeting was to train the fishermen in fisheries training institutes for recruitment in coastal vessels of Merchant Navy. The Centre will give Rs10 crore for this and would issue an order for this by January 31, 2007.

The Minister said the government has decided to conduct a feasibility study for the development of a deep sea port off the coast of West Bengal. Expressions of interest have already been received and the total investment is expected to be Rs7000 crore.
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Inflation higher as food prices rise
New Delhi:
The annual wholesale price index(WPI)-based inflation rose by 5.32 per cent during the week ended December 9, higher than the previous week's annual rise of 5.16 per cent. The data said that the increase in the year-on year inflation rate was mainly due to a rise in prices of food items, including some vegetable products.

During the latest reported week, the WPI for all commodities ended at 207.7 points against 197.2 points a year ago. The annual inflation rate was 4.39 per cent during the corresponding week of the previous year. On a disaggregated basis, the primary articles' group index was up 0.1 per cent to 212.1 points as prices rose for food and non-food items, from 195.8 points a year ago. The fuel, power, light and lubricants' group index remained unchanged at the previous week's level of 322.6 points. The index was at 310.7 points during the corresponding previous period.

The manufacturing products' group index declined by 0.2 per cent to 180.5 points (172.4 points) as prices eased for food products, textiles and base metals.

Within the primary articles' group, the food articles' group index increased marginally by 0.05 per cent to 214.1 points due to higher prices of jowar (four per cent), vegetables (1.7 per cent) and fruits (0.5 per cent).
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domain-B : Indian business : News Review : 23 December 2006 : general