Trade snapshot

Motown snapshot : February 2011

The fear of an excise hike in Budget and the economic growth kept car sales healthy in February despite a slew of negatives like rising interest rates and petrol price hike. Demand is expected to be headed for moderation in the coming months from its high levels earlier, fear industry players. Maruti, the country’s top carmaker, led the charge as it reported a 20% growth in domestic volumes at 1.01 lakh units against 84,765 units in the same month last year. The company, that last month launched a diesel version of its SX4 sedan, said sales of its bread-and-butter small car portfolio was up 19% at 72,090 units. Company officials, however, fear that the bumper demand may not hold up for long with interest rates on the rise and negative sentiments building up due to high inflation and petrol price hikes. Hyundai had another month of subdued performance as its domestic volumes grew 5% at 32,629 units against 31,001 units in February last year. The company's sales were up by a small 2% in January. But while being cautionary on the sales prospects in the coming months, most of the companies heaved a sigh of relief as the finance minister kept the excise duty unchanged at 10% in the Budget. Companies had said that they would not be able to hold on to prices in case the excise duty would go up in the Budget. Companies say they may be forced to up prices in the coming months as rising cost of inputs was hurting margins.

MTHL update

The tug-of-war between Maharashtra’s two infrastructure agencies over the ambitious Mumbai Trans Harbour Link (MTHL), a 21 km Nhava-Sewri sea link, may benefit commuters. The Mumbai Metropolitan Region Development Authority (MMRDA) and the Maharashtra State Road Development Corporation (MSRDC) will present their respective plans to state honchos and the agency that offers the lower toll and metro tariff may eventually bag the project. While the MMRDA presented its plan to chief minister Prithviraj Chavan on Tuesday, the MSRDC will submit their unique model to both the CM and deputy CM Ajit Pawar on Wednesday. The MSRDC is headed by NCP minister Jaidutta Kshirsagar and the MMRDA by Chavan, thus adding a political twist to the competition. After the MSRDC’s presentation, the Congress and NCP leaders are likely to take the final call. The MSRDC’s has proposed a toll of Rs 205 for a one-way journey. The plan outlines a unique double-decker structure which will have the road above and the Metro running below. It has pegged the cost of the project at Rs 8000 crore and a toll recovery period of 45-50 years. It has also proposed a 15% increase in toll tax every year. The MMRDA, on the other hand, has said it will build the bridge—with six lanes for vehicles and two for the Metro—at the cost of Rs 8,311 crore and will take 45 years to recover the money through toll collections. The MMRDA has priced the toll between Rs 105 –Rs 210. However, it wants to commercially develop the land on both sides of the link and use the earnings for the MTHL project.

Bhopal may be renamed ‘Bhojpal’

If the ruling BJP in Madhya Pradesh has its way, then state capital Bhopal will soon be rechristened Bhojpal after 11th century king Raja Bhoj. The Paramar king who ruled in the Malwa region and fought the aggression of Mahmood of Ghazni in 1024 is BJP’s mascot in MP. Addressing a large gathering in Bhopal at a cultural function on the occasion of millennium celebrations of Raja Bhoj’s coronation, chief minister Shivraj Singh Chouhan announced that his government will soon send a proposal to the Centre to rename Bhopal. He also said Bhopal’s Upper Lake, Bada Talao, would now be called Bhoj Taal and the VIP Road that runs along the banks of the lake was renamed Raja Bhoj Marg. BJP national president Nitin Gadkari and senior leader Venkaiah Naidu were present at the celebrations held on Monday. The state police fired 21-gun salutes as BJP leaders unveiled a 12-feet statue of Raja Bhoj on the banks of the Upper Lake. In 2002, the BJP-led NDA named Bhopal’s airport after Raja Bhoj.

Progress....

BBDO INDIA

Summing up 20 years of liberalisation in one picture postcard was challenging. Then lightning struck! We realised that the man who kick-started it all was himself the best brand ambassador. In the past 20 years, he had grown from being an FM who hid in his own shadow to a PM who was not afraid to speak his mind. Manmohan Singh represents our growth story

20 years of liberalisation

OGILVY

The battery ran out of the socialist clock in 1991. Two decades on, it surely is an exciting time for India and its hard-driving and globally expanding entrepreneurs. Gone are the hammer and sickle and even the last vestiges of a system of governance that dulled the Indian spirit and dimmed the hopes of millions. Now, in 2011, the Rupee rules, a strong symbol of a new and muscular India .

SC notice to Dow, Union Carbide

More than 26 years after poisonous gas leak killed 10,000 people and maimed over a lakh in Bhopal, the SC on Monday agreed to review its judgments in the criminal and civil cases, which allegedly helped the accused get away with light punishment and Union Carbide pay meagre compensation. The court issued notices to Dow Chemicals, Union Carbide, Eveready Industries and McLeod Russel on the Centre’s plea seeking upto Rs 7,844 crore from them to pay additional compensation to the victims and their families. UCC and Dow Chemicals Company said they will oppose in the SC the curative petition filed by the Indian Government seeking enhancement of compensation from Rs 750 crore to Rs 7,700 crore for the victims of 1984 Bhopal gas tragedy.