The union government can lift the administrative control over petrol and diesel. The final decision would depend on the crude oil prices in the international market for at least two months. The crude oil prices are fluctuating at $40-$45 as of now. If the present trend continues till February, there are maximum chances of lifting the administrative control over petrol and diesel.    

It is recalled that the government had freed petrol and diesel prices from administrative control in April 2002, paving a way for retailers to adjust prices according to the fluctuation in crude prices in the market. But the decision was rolled back in 2004 when crude oil rose to $37 a barrel.

Indian aviation sector is passing through very tough times due to the low turn out of air passengers and global slow down. The domestic air traffic witnessed sharp decline of 21.3 percent in November. A total of 30.48 lakh people used the air services, as compared to 38.72 lakh in the November last year. It is the largest ever single month decline in air traffic in the past few years. A total of 31.8 lakh air passengers traveled in the festival season of October but the number continues to decline till now.  

The department of telecommunications (DoT) has said that foreign telecom firms can participate in the bidding process of third generation (3G) phone services without a local partner. The foreign telecom firms should follow the laws which permit a maximum of 74% ownership in the country's phone service firms by a foreign telecom firm. The firms must acquire a universal access service (UAS) license to start services in the Indian region.  

Government can lift ban on the futures trading in wheat, rice, urad and tur in a couple of days. The ban was imposed in 2007 to control the ever increasing prices. Inflation rate is slightly declining, paving the way for lifting the ban. The Forward Markets Commission (FMC) has sent a detailed report on futures trading to the government and the decision is likely to come very soon.

The corporate credit rating of automaker Tata Motors has been lowered by Standard & Poor’s (S&P’s), from ‘BB’ to ‘BB-’. S&P’s credit analyst Mehul Sukkawala said, “We've downgraded Tata Motors and placed the rating on credit watch due to the faster-than-expected deterioration in the automobile market conditions.”  

Tata's sales in India decreased 30 percent last month from November 2007, a much higher decline than expected. The decline followed a 20 percent October decrease from 2007. Also, Jaguar and Land Rover, the marquee British brands that Tata Motors bought out early this year, have seen shrinking demand in the key markets of the US and Europe. This is likely to have an adverse impact on Tata Motors’ financial profile.

Elecon Engi