MUMBAI: TVS Motor Co Ltd , India's No. 3 two-wheeler maker, said on Saturday total sales for December rose 42 percent to 171,790 units.
Total two-wheeler sales alone for the month stood at 168,359 units from 119,701 units a year ago, it said
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Saturday, January 1, 2011
HMSI sales up 20 pc in December
NEW DELHI: Two-wheeler manufacturer Honda Motorcycle & Scooter India (HMSI) today reported 20 per cent growth in sales at 1,40,642 units in December 2010 over the same month previous year.
In a statement, HMSI said the overall growth during the month stood at 20 per cent in December 2010 and the motorcycle segment contributed the most.
In the domestic market, the company sold 53,821 units of motorcycles, 76,263 units scooters.
The exports contributed 10,558 units in December 2010, it added
In a statement, HMSI said the overall growth during the month stood at 20 per cent in December 2010 and the motorcycle segment contributed the most.
In the domestic market, the company sold 53,821 units of motorcycles, 76,263 units scooters.
The exports contributed 10,558 units in December 2010, it added
SEBI officials to question Puri in Citibank fraud
GURGAON: A two-member team of capital market regulator Securities and Exchange Board of India (SEBI) has arrived here to question Shivraj Puri , the mastermind behind the Rs 300 crore Citibank fraud .
Officials from investigation department of SEBI will question the accused as the fund raised from High Networth Individual (HNIs) were diverted into the stock market, said Gurgaon Police Commissioner S S Deswal.
Puri, Relationship Manager employed with Citibank's Gurgaon branch allegedly collected fund from HNIs and corporates by showing a forged notification of SEBI to lure them into investments on promise of unusually high returns.
Among other things the SEBI team may try to figure whether the fund was invested in share price rigging or manipulation, sources said.
Meanwhile, Gurgaon Police yesterday questioned senior officials of brokerage firms Religare and Bonanza through which diverted money was invested into the stock market.
Religare Securities said that Puri has been a client since December 2009.
As on October 15, 2010, there is balance of Rs. 0.30 in his account, Religare said, adding, there has been no trading transaction in his account since October 1 2010.
Since the investigating agencies are already seized of the matter Religare is in the process of providing the details as are required by investigating agencies, it said.
According to Police, Rs 200 crore belonged to corporates including Hero Group and Rs 100 crore to individuals.
Brijmohan Lal Munjal-led Hero Group meanwhile admitted that its exposure to the fraud is to the tune of Rs 28.75 crore and it was done through its entities.
The fraud was detected when there was default in payments in later part of this year. The number of investors could be 18 to 20 including corporates and HNIs who are both local.
Officials from investigation department of SEBI will question the accused as the fund raised from High Networth Individual (HNIs) were diverted into the stock market, said Gurgaon Police Commissioner S S Deswal.
Puri, Relationship Manager employed with Citibank's Gurgaon branch allegedly collected fund from HNIs and corporates by showing a forged notification of SEBI to lure them into investments on promise of unusually high returns.
Among other things the SEBI team may try to figure whether the fund was invested in share price rigging or manipulation, sources said.
Meanwhile, Gurgaon Police yesterday questioned senior officials of brokerage firms Religare and Bonanza through which diverted money was invested into the stock market.
Religare Securities said that Puri has been a client since December 2009.
As on October 15, 2010, there is balance of Rs. 0.30 in his account, Religare said, adding, there has been no trading transaction in his account since October 1 2010.
Since the investigating agencies are already seized of the matter Religare is in the process of providing the details as are required by investigating agencies, it said.
According to Police, Rs 200 crore belonged to corporates including Hero Group and Rs 100 crore to individuals.
Brijmohan Lal Munjal-led Hero Group meanwhile admitted that its exposure to the fraud is to the tune of Rs 28.75 crore and it was done through its entities.
The fraud was detected when there was default in payments in later part of this year. The number of investors could be 18 to 20 including corporates and HNIs who are both local.
Monday, December 27, 2010
Lanco Infratech to acquire Australian coal mine; deal seen at $750 million
New Delhi: Lanco Infratech will acquire Australiabased Griffin Coal Mining and Carpenter Mine Management (Griffin Coal), continuing the trend of Indian power producers acquiring mines abroad to fuel their plants.
Lanco Infrastructure will acquire the coal mining asset through its subsidiary Lanco Resources Australia. The company did not disclose the deal size but a source directly involved in the matter said the deal was worth around $750 million. Hyderabad-based GVK group, the only rival bidder in the final round, had quoted between $600 and $700 million.
There will be at least five such transactions for overseas coal assets worth $500 to $1 billion by Indian companies next year, said a banker, who is working closely with at least two potential buyers. Power utilities , such as Tata Power and Reliance Power , which have already acquired coal assets abroad, and Lanco, which announced the deal on Wednesday, hope to secure fuel supplies with such acquisitions.
“This is an operating asset. It will help support our coal requirement, but even after this acquisition, a chunk of our coal requirement would be from domestic sources,” chief financial officer Suresh Kumar told ET.
The mine produces over 4 million tonnes a year. The output can be scaled up to over 15 million tones per year after the development of infrastructure.
The acquisition is a part of Lanco Infratech’s strategy to acquire coal assets and linkages for its power projects. The company plans to raise its power generation capacity to 15,000 megawatts (mw) by 2015 from 2,100 mw now, Mr Kumar said.
HSBC, which was Lanco’s financial advisor to this deal, has also promised funding support. An overseas unit of ICICI Bank has also committed funds to Lanco Resources Australia. Griffin was advised on the deal by UBS. The advisor to the GVK group was RBS.
Two other Indian companies from the power and infrastructure space had earlier approached Griffin, which owns the largest coal mines in western Australia. Those two companies backed out before the final round of bidding on valuation mismatch.
“There are only so many coal assets left in the world, mostly in Africa, US, Indonesia and Australia. At some point the buyers will have to step up and match the seller’s price. The price of these assets are unlikely to decline , “ said an investment banker, who represented one of the company’s that earlier backed out.
Lanco Infrastructure will acquire the coal mining asset through its subsidiary Lanco Resources Australia. The company did not disclose the deal size but a source directly involved in the matter said the deal was worth around $750 million. Hyderabad-based GVK group, the only rival bidder in the final round, had quoted between $600 and $700 million.
There will be at least five such transactions for overseas coal assets worth $500 to $1 billion by Indian companies next year, said a banker, who is working closely with at least two potential buyers. Power utilities , such as Tata Power and Reliance Power , which have already acquired coal assets abroad, and Lanco, which announced the deal on Wednesday, hope to secure fuel supplies with such acquisitions.
“This is an operating asset. It will help support our coal requirement, but even after this acquisition, a chunk of our coal requirement would be from domestic sources,” chief financial officer Suresh Kumar told ET.
The mine produces over 4 million tonnes a year. The output can be scaled up to over 15 million tones per year after the development of infrastructure.
The acquisition is a part of Lanco Infratech’s strategy to acquire coal assets and linkages for its power projects. The company plans to raise its power generation capacity to 15,000 megawatts (mw) by 2015 from 2,100 mw now, Mr Kumar said.
HSBC, which was Lanco’s financial advisor to this deal, has also promised funding support. An overseas unit of ICICI Bank has also committed funds to Lanco Resources Australia. Griffin was advised on the deal by UBS. The advisor to the GVK group was RBS.
Two other Indian companies from the power and infrastructure space had earlier approached Griffin, which owns the largest coal mines in western Australia. Those two companies backed out before the final round of bidding on valuation mismatch.
“There are only so many coal assets left in the world, mostly in Africa, US, Indonesia and Australia. At some point the buyers will have to step up and match the seller’s price. The price of these assets are unlikely to decline , “ said an investment banker, who represented one of the company’s that earlier backed out.
Tata Chemicals' UK subsidiary to take over British Salt
New Delhi: Tata Chemicals Ltd’s UK subsidiary Brunner Mond group has signed a definite agreement to acquire 100% of British Salt Ltd, a leading salt manufacturer in the UK, for £93 million (roughly Rs.655 crore) in a deal that will ensure a steady source of raw material and also give it a toehold in the UK food and industrial salt market.
Brunner Mond makes soda ash, widely used in several chemical industries, consumer products and food ingredients. British Salt has a 50% share in the UK’s pure dried vacuum salt products market, and it owns several brine (salt) wells in that country with a residual life of at least 50 years.
R. Mukundan, managing director, Tata Chemicals, said: “The acquisition is in line with the strategy of Tata Chemicals to deepen its presence in the ‘food and farm sectors’ and will result in securitising raw material for Brunner Mond’s operations. This will help Brunner Mond maintain its low-cost manufacturing position in Europe and provides a great opportunity to optimise the costs further.” An analyst who tracks the sector said the deal was an advantageous one for Tata Chemicals.
“British Salt is an unlisted firm with salt manufacturing capacity of more than 400,000 tonnes, comparable to Tata Chemicals’ domestic capacity of 600,000 tonnes. According to back-of-the-envelope calculations, the company can add Rs.400 crore to the consolidated revenues (3.5% of fiscal 2012 sales) and 5.6% to the consolidated profit for the fiscal 2012,” said Dikshit Mittal, a research analyst at Alchemy Share and Stock Brokers Pvt. Ltd.
Tata Chemicals’ chief financial officer P.K. Ghose said the transaction is entirely financed by debt on a non-recourse basis to itself. This means that the debt raised to fund the acquisition, which was made through Tata Chemicals Europe Holdings Ltd, a holding company, will not directly create a liability for it.
Mittal added that the deal is valued at around six times the operational profit of British Salt and that the transaction seems “fairly valued”.
The Tata group, of which Tata Chemicals Ltd is a part, has had a successful track record of acquisitions in the UK. In the late 1990s, Tata Tea acquired Tetley. More recently, Tata Steel acquired Corus and Tata Motors, Jaguar Land Rover.
Tata Chemicals is currently the world’s second largest producer of soda ash with manufacturing plants in India, the UK, Kenya and the US.
On Monday, its shares rose 0.12% to close at Rs.371.60 on the Bombay Stock Exchange on a day when the exchange’s benchmark index, the Sensex, went up 0.12% to close at 19,888.88.
Brunner Mond makes soda ash, widely used in several chemical industries, consumer products and food ingredients. British Salt has a 50% share in the UK’s pure dried vacuum salt products market, and it owns several brine (salt) wells in that country with a residual life of at least 50 years.
R. Mukundan, managing director, Tata Chemicals, said: “The acquisition is in line with the strategy of Tata Chemicals to deepen its presence in the ‘food and farm sectors’ and will result in securitising raw material for Brunner Mond’s operations. This will help Brunner Mond maintain its low-cost manufacturing position in Europe and provides a great opportunity to optimise the costs further.” An analyst who tracks the sector said the deal was an advantageous one for Tata Chemicals.
“British Salt is an unlisted firm with salt manufacturing capacity of more than 400,000 tonnes, comparable to Tata Chemicals’ domestic capacity of 600,000 tonnes. According to back-of-the-envelope calculations, the company can add Rs.400 crore to the consolidated revenues (3.5% of fiscal 2012 sales) and 5.6% to the consolidated profit for the fiscal 2012,” said Dikshit Mittal, a research analyst at Alchemy Share and Stock Brokers Pvt. Ltd.
Tata Chemicals’ chief financial officer P.K. Ghose said the transaction is entirely financed by debt on a non-recourse basis to itself. This means that the debt raised to fund the acquisition, which was made through Tata Chemicals Europe Holdings Ltd, a holding company, will not directly create a liability for it.
Mittal added that the deal is valued at around six times the operational profit of British Salt and that the transaction seems “fairly valued”.
The Tata group, of which Tata Chemicals Ltd is a part, has had a successful track record of acquisitions in the UK. In the late 1990s, Tata Tea acquired Tetley. More recently, Tata Steel acquired Corus and Tata Motors, Jaguar Land Rover.
Tata Chemicals is currently the world’s second largest producer of soda ash with manufacturing plants in India, the UK, Kenya and the US.
On Monday, its shares rose 0.12% to close at Rs.371.60 on the Bombay Stock Exchange on a day when the exchange’s benchmark index, the Sensex, went up 0.12% to close at 19,888.88.
Lincoln Pharma ties up with US based Human Biosciences Inc
Mumbai/ Ahmedabad: Ahmedabad based Lincoln Pharmaceuticals Ltd. (LPL), has tied up with US based Human Biosciences Inc (HBI) for exclusive marketing and distribution of two of HBI's wound care management products in India, Medifil and Skin Temp that enjoy a 22 per cent market share in its category in India. The company can set up a manufacturing unit in the future to increase production of these products.
Speaking on the development, Mahendra G Patel, managing director, Lincoln Pharmaceutical Ltd. said, “Our mission at Lincoln Pharmaceuticals is to provide customers with healthcare products of high quality at an affordable price. We are planning to set up a manufacturing unit in India to increase production and expand our reach so that more people can avail the benefits of these products.”
Collagen products have reconstructive properties and are meant for wound care management.
Medifil and Skin Temp, considered a helps to stop the bleeding immediately by providing faster and better wound healing.
In addition, it has better aesthetic value as it heals without leaving any scar formation. Medifil and Skin Temp are specifically useful in repairing wounds during plastic and burns surgery, general surgery, orthopedic surgery and gynecological surgery and is particularly beneficial for diabetic amputations due to its faster healing properties. Medifil is available in an absorbable Collagen based granule and Skin Temp in an absorbable Collagen based patch.
Lincoln Pharmaceuticals is into manufacturing and marketing therapeutic products under WHO-GMP guidelines.
Speaking on the development, Mahendra G Patel, managing director, Lincoln Pharmaceutical Ltd. said, “Our mission at Lincoln Pharmaceuticals is to provide customers with healthcare products of high quality at an affordable price. We are planning to set up a manufacturing unit in India to increase production and expand our reach so that more people can avail the benefits of these products.”
Collagen products have reconstructive properties and are meant for wound care management.
Medifil and Skin Temp, considered a helps to stop the bleeding immediately by providing faster and better wound healing.
In addition, it has better aesthetic value as it heals without leaving any scar formation. Medifil and Skin Temp are specifically useful in repairing wounds during plastic and burns surgery, general surgery, orthopedic surgery and gynecological surgery and is particularly beneficial for diabetic amputations due to its faster healing properties. Medifil is available in an absorbable Collagen based granule and Skin Temp in an absorbable Collagen based patch.
Lincoln Pharmaceuticals is into manufacturing and marketing therapeutic products under WHO-GMP guidelines.
ONGC gets Brazil's approval to farm out block in Santos basin
New Delhi: ANP, the petroleum regulatory authority of Brazil, has approved farming out a block to ONGC Videsh Ltd. ONGC Campos Limitada (OCL), Brazil, a wholly-owned subsidiary of OVL, had acquired the 100 per cent stake in the block, BM-S-73 (formerly S-M-1413) during ninth bidding round in 2007.
The offshore concession is located in the Santos basin and covers an area of 160.04 square kilometres. The concession is a part of Brazil’s ninth licensing round and is currently in exploration phase, OVL said in a press statement.
ONGC Campos Limitada, Petroleo Brasileiro SA, Petrobras and Ecopetrol Oleo Gas do Brasil LTDA, had entered into an agreement under the terms of which Petrobras will get 43.5 per cent share, Ecopetrol will get 13 per cent in the block BM-S-73 and 43.5 per cent will remain with ONGC Campos Limitada, the operator of the block.
ONGC Campos Limitada will get 43.5 per cent share from Petrobras and Ecopetrol in their block BM-S-74, who will have 43.5 per cent and 13 per cent share, respectively. The approval for this block is still awaited.
The offshore concession is located in the Santos basin and covers an area of 160.04 square kilometres. The concession is a part of Brazil’s ninth licensing round and is currently in exploration phase, OVL said in a press statement.
ONGC Campos Limitada, Petroleo Brasileiro SA, Petrobras and Ecopetrol Oleo Gas do Brasil LTDA, had entered into an agreement under the terms of which Petrobras will get 43.5 per cent share, Ecopetrol will get 13 per cent in the block BM-S-73 and 43.5 per cent will remain with ONGC Campos Limitada, the operator of the block.
ONGC Campos Limitada will get 43.5 per cent share from Petrobras and Ecopetrol in their block BM-S-74, who will have 43.5 per cent and 13 per cent share, respectively. The approval for this block is still awaited.
Indian firms grab 34% of SA govt's AIDS drug order
New Delhi: Indian companies have bagged 34.3 per cent of the AIDS drugs supply contracts announced by the South African government last week. The anti-retroviral drug tender floated by South Africa is the largest of its kind in the world.
Of the Rs 2,831 crore worth order for anti-retroviral drugs, about Rs 970 crore have come to four Indian companies primarily through the joint venture (JV) entities set up by Ranbaxy and Cipla, the South African Health Ministry has stated.
While Ranbaxy’s South African JV Sonke Pharmaceuticals bagged a supply contract that comes to 21.9 per cent (over Rs 600 crore) of the total tender value, Cipla-Medpro cornered 5.1 per cent (about Rs 145 crore) share. The other two firms are Strides Acrolab (4.2 per cent or approximately Rs 118 crore) and Aurobindo Pharma (3.1 per cent or approximately Rs 90 crore).
On the whole, 10 firms won the tenders, the supplies for which will begin from January 1, 2011 and go on till December 31, 2012.
With 40 per cent share, South African firm Aspen Pharmacare claimed the highest pie. Ranbaxy’s JV is the second in the list. Ranbaxy will manufacture the medicines from its South African and Indian facilities, a company statement said.
The institutional supplies in overseas countries are increasingly becoming a major business model for Indian medicine exporters as more countries, including UK and Europe, are looking at reducing their healthcare costs. South Africa had succeeded in bringing down the cost of its ARV drug procurement by 53.1 per cent by making the tenders more competitive.
Of the Rs 2,831 crore worth order for anti-retroviral drugs, about Rs 970 crore have come to four Indian companies primarily through the joint venture (JV) entities set up by Ranbaxy and Cipla, the South African Health Ministry has stated.
While Ranbaxy’s South African JV Sonke Pharmaceuticals bagged a supply contract that comes to 21.9 per cent (over Rs 600 crore) of the total tender value, Cipla-Medpro cornered 5.1 per cent (about Rs 145 crore) share. The other two firms are Strides Acrolab (4.2 per cent or approximately Rs 118 crore) and Aurobindo Pharma (3.1 per cent or approximately Rs 90 crore).
On the whole, 10 firms won the tenders, the supplies for which will begin from January 1, 2011 and go on till December 31, 2012.
With 40 per cent share, South African firm Aspen Pharmacare claimed the highest pie. Ranbaxy’s JV is the second in the list. Ranbaxy will manufacture the medicines from its South African and Indian facilities, a company statement said.
The institutional supplies in overseas countries are increasingly becoming a major business model for Indian medicine exporters as more countries, including UK and Europe, are looking at reducing their healthcare costs. South Africa had succeeded in bringing down the cost of its ARV drug procurement by 53.1 per cent by making the tenders more competitive.
India, Singapore bilateral trade to touch US$ 22.89 billion in 2010
New Delhi: The bilateral trade between India and Singapore is expected to touch US$ 22.89 billion in 2010, according to Dr T C A Raghavan, Indian High Commissioner to Singapore.
"Singapore is a very important partner of India," said Raghavan, while addressing Singapore press conference for 'The India Show 2011' to be held January 14-16, 2011 in the Singapore. He further added that "We have seen a very good recovery from 2008 and a good financial investment climate."
Furthermore, Mr Anand Sharma, Commerce and Industry Minister would lead India’s high level ministerial and CEOs delegation to Singapore for ‘The India Show.’ The show is largest ever of its kind in Southeast Asia.
About 80 Indian corporations will be exhibiting at the show, which would also have a symposium aimed at further nurturing the good relationship between the two countries.
The January 14 'India Symposium' - themed 'Indovations: Ideas for the World', would highlight the innovation in the Indian manufacturing, services and infrastructure sectors. The show is part of the Indian government's 'Look East Policy,' and would familiarise business visitors with the latest in Indian products and technology, help them understand the trends and offer opportunities in various sectors of the Indian economy as well as have the corporate worlds of the two countries discuss business co-operations.
The Indian businesses participating in the show would be seeking to establish partnership and strategic links with Singapore's small and medium enterprises (SME) as well as major corporations in the infrastructure sector, especially seeking out water-technology and urban development expertise, Raghavan added.
Among others, ANTRIX, the Indian space research organisation (ISRO), would be participating in the show. It would launch Singapore's first commercial satellite in about a month, said Dr Raghavan.
"Singapore is a very important partner of India," said Raghavan, while addressing Singapore press conference for 'The India Show 2011' to be held January 14-16, 2011 in the Singapore. He further added that "We have seen a very good recovery from 2008 and a good financial investment climate."
Furthermore, Mr Anand Sharma, Commerce and Industry Minister would lead India’s high level ministerial and CEOs delegation to Singapore for ‘The India Show.’ The show is largest ever of its kind in Southeast Asia.
About 80 Indian corporations will be exhibiting at the show, which would also have a symposium aimed at further nurturing the good relationship between the two countries.
The January 14 'India Symposium' - themed 'Indovations: Ideas for the World', would highlight the innovation in the Indian manufacturing, services and infrastructure sectors. The show is part of the Indian government's 'Look East Policy,' and would familiarise business visitors with the latest in Indian products and technology, help them understand the trends and offer opportunities in various sectors of the Indian economy as well as have the corporate worlds of the two countries discuss business co-operations.
The Indian businesses participating in the show would be seeking to establish partnership and strategic links with Singapore's small and medium enterprises (SME) as well as major corporations in the infrastructure sector, especially seeking out water-technology and urban development expertise, Raghavan added.
Among others, ANTRIX, the Indian space research organisation (ISRO), would be participating in the show. It would launch Singapore's first commercial satellite in about a month, said Dr Raghavan.
Indices to measure price changes in services to roll out by March
New Delhi: India will soon have indices measuring price changes in services that account for above 60% of the national income, helping in more accurate measures of inflation.
The government has shortlisted 10 sectors for which indices will be created, an official with the industries ministry told ET. At least two of them could be rolled out by the end of March 2011 while another four will be ready by the end of the next fiscal, he said.
“These (the indices) would give a more comprehensive picture of the price trends in the economy,” said C Rangarajan , Chairman of the Prime Minister’s Economic Advisory Council (PMEAC).
The services that would have price indices include transport, banking, insurance, communication, ports and storage. Defence services, health and education are three other sectors that will have a price index. All the indices will add up to a single index for services.
Over the years, services have become the most dynamic sector of the economy. They contributed above 60% of the country’s gross domestic product (GDP) in 2009-10, up from 29% in 1950.
“We are currently able to track the services production to some extent by the GDP estimates, but the trend in prices is not very clear,” said Indranil Pan, chief economist at private sector lender Kotak Mahindra Bank .
The only reliable price measure India has at present is the wholesale price index (WPI) for goods. The consumer price index for industrial workers has some implicit elements of services, but otherwise there is no measure available to measure the price changes in the largest sector of the economy.
The most comprehensive measure of inflation, the GDP deflator , is also based on inputs from the wholesale price index and retail indices.
It has to be recognised that creating an index for services is far more difficult than creating an index for goods, said CP Chandrasekhar, professor of economics at Jawaharlal Nehru University, who chairs the committee that is developing the index.
United Kingdom, a financial nerve centre of the world, is still developing a price index for banking, legal and accountancy services.
Before an index is created, it goes through a stage where various methodologies are assessed and one is selected. The users of the index are then given a chance to comment on the methodologies.
Some of the indices are at the second stage where comments have been invited.
The department of industrial policy and promotion, which is coordinating the indices, is also looking into the issue of the periodicity of the release, as data would not be available at the same frequency in every service. Data has to be collected from private and public enterprises and that would also create difficulties.
The government has shortlisted 10 sectors for which indices will be created, an official with the industries ministry told ET. At least two of them could be rolled out by the end of March 2011 while another four will be ready by the end of the next fiscal, he said.
“These (the indices) would give a more comprehensive picture of the price trends in the economy,” said C Rangarajan , Chairman of the Prime Minister’s Economic Advisory Council (PMEAC).
The services that would have price indices include transport, banking, insurance, communication, ports and storage. Defence services, health and education are three other sectors that will have a price index. All the indices will add up to a single index for services.
Over the years, services have become the most dynamic sector of the economy. They contributed above 60% of the country’s gross domestic product (GDP) in 2009-10, up from 29% in 1950.
“We are currently able to track the services production to some extent by the GDP estimates, but the trend in prices is not very clear,” said Indranil Pan, chief economist at private sector lender Kotak Mahindra Bank .
The only reliable price measure India has at present is the wholesale price index (WPI) for goods. The consumer price index for industrial workers has some implicit elements of services, but otherwise there is no measure available to measure the price changes in the largest sector of the economy.
The most comprehensive measure of inflation, the GDP deflator , is also based on inputs from the wholesale price index and retail indices.
It has to be recognised that creating an index for services is far more difficult than creating an index for goods, said CP Chandrasekhar, professor of economics at Jawaharlal Nehru University, who chairs the committee that is developing the index.
United Kingdom, a financial nerve centre of the world, is still developing a price index for banking, legal and accountancy services.
Before an index is created, it goes through a stage where various methodologies are assessed and one is selected. The users of the index are then given a chance to comment on the methodologies.
Some of the indices are at the second stage where comments have been invited.
The department of industrial policy and promotion, which is coordinating the indices, is also looking into the issue of the periodicity of the release, as data would not be available at the same frequency in every service. Data has to be collected from private and public enterprises and that would also create difficulties.
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