Oil sinks as Doha talks fail

Oil prices tumbled on Monday after a meeting by major exporters in Qatar collapsed without an agreement to freeze output, leaving the credibility of the OPEC producer cartel in tatters and the world awash with unwanted fuel.

Tensions between Saudi Arabia and Iran were blamed for the failure, which revived industry fears that major government-controlled producers will increase their battle for market share by offering ever-steeper discounts.

"OPEC's credibility to coordinate output is now very low," said Peter Lee of BMI Research, a unit of rating agency Fitch. "This isn't just about oil for the Saudis. It's as much about regional politics."

Morgan Stanley said that the failed deal "underscores the poor state of OPEC relations," adding that "we now see a growing risk of higher OPEC supply," especially as Saudi Arabia threatened it could hike output following the failed deal.

Oil prices have fallen by as much as 70 percent since mid-2014 as producers have pumped 1 to 2 million barrels of crude every day in excess of demand, leaving storage tanks around the world filled to the rims with unsold fuel.

Sunday's meeting in Qatar's capital Doha had been expected to finalise a deal to freeze output at January levels until October 2016 in an attempt to slow that ballooning oversupply.

But the agreement fell apart after top exporter Saudi Arabia demanded that Iran, which was not represented, should also sign up.

The Sunni Muslim kingdom of Saudi Arabia and Shia Islamic republic of Iran compete for influence in the Middle East, where they are currently fighting proxy wars in Syria and Yemen.

Brent crude futures fell almost 7 percent in early trading on Monday before recovering to $40.97 per barrel at 0647 GMT, still down 2.15 percent since their last settlement.

Traders said only an oil worker strike in Kuwait had prevented Brent from tumbling below $40 per barrel, while a cut in U.S. drilling down to 2009 levels had prevented steeper falls there.

Benchmark U.S. crude futures were down more than 5 percent at $38.31 a barrel.

Goldman Sachs said the Doha no-deal could a "bearish catalyst" for U.S. crude prices, which it forecast would average $35 a barrel in the current quarter.

FINANCIAL VOLATILITY

Analysts said that the failed agreement would also impact the broader economy.

"In the near-term, lower oil prices are bound to weigh on investor confidence and could exacerbate financial volatility," said Frederic Neumann, co-head of Asian economics research at HSBC.

"Concerns over financial stability in the energy sector and a further fall in drilling capex are headwinds to growth against an already fragile global economic backdrop."

With producers such as Saudi Arabia and Russia pumping near record levels and Iran also increasing output following the lifting of international sanctions against it last January, there is no end in sight for the global oil glut.

Iran was the only OPEC member not to attend the Doha talks.

Despite calls on Saudi Arabia to save the agreement, Riyadh, OPEC's de facto leader, insisted that all 13 members must take part in any freeze.

"It seems that for the Saudis politics and national pride are still more important than the price of oil," said Ralph Leszczynski of shipbroker Banchero Costa.

Iran has refused to stabilise production, seeking to regain market share post-sanctions.

"Iran has no reason to auto-sanction themselves when they are just trying to get back some of the market share they lost in recent years due the western-imposed sanctions," Leszczynski added.

While tumbling oil prices hurt producers, straining the budgets of energy exporters from Russia to Malaysia, they can also benefit consumers.

Asked whether the failed talks could result in further crude supply discounts for his company, Daniel Purba of Indonesia's Pertamina, a major importer of refined products, said: "We hope so."

As a result of the failure at Doha, Barclays said that Brent would likely average $36 per barrel during the second quarter of this year as a global glut continued unabated.

"This meeting and its outcome should have built... trust among producers for possible future cooperation and coordinated action. In this regard, the meeting was a complete failure," Barclays said, adding that "the failure of the talks gives the market another clear indication that OPEC's relevance in this market environment has faded."

(Additional reporting by Keith Wallis in SINGAPORE and Wilda Asmarini in JAKARTA; Editing by Alex Richardson)

India's ITC says to resume cigarette production amid health warning row

India's biggest cigarette maker ITC Ltd said it would resume production at its factories "consequent upon" a favorable court order, two weeks after it decided to shutter its plants over the government's stringent new packaging rules.

India ordered that from April 1, 85 percent of a cigarette pack's surface had to be covered in health warnings, up from 20 percent, but cigarette firms halted production saying the policy was not clear.

India's $11 billion tobacco industry is up in arms against the new rules and has taken the government to court. Industry estimates show the production halt has already cost $850 million and risks the livelihood of millions of farmers.

In a statement to the Indian stock exchange late on Friday, ITC, part-owned by British American Tobacco, said: "Consequent upon a high court order passed in favor of the company, the company will soon resume manufacture of cigarettes in its factories".

An ITC spokesman declined on Saturday to elaborate on ITC's statement to the stock exchange. Its statement gave no details of its court appeal or any subsequent orders.

The company also did not address whether it would print bigger health warnings on its packs. ITC said earlier this month it was not ready to print bigger, "excessive" health warnings. It also said the government was implementing new rules despite a parliamentary panel report that called for the size of the warnings to be reduced.

But the panel's report is not binding on the government, and health ministry officials have maintained that manufacturers must comply with the new rules.

Smoking kills more than 1 million people a year in India, according to BMJ Global Health. The World Health Organization says tobacco-related diseases cost the country $16 billion annually.

(This version of the story was refiled to drop extraneous word "it" from the headline)

(Reporting by Aditya Kalra; Editing by Douglas Busvine and Eric Meijer)

India and Japan signs agreement to collaborate research on AMR

The Union Minister for Health & Family Welfare, Shri J.P. Nadda at a bilateral meeting with the Health Minister of Malaysia, Dr Subramaniam Sathasivam, on the sidelines of the Health Ministers from WHO South East Asia region and Western Pacific region countries, in Tokyo, Japan on April 16, 2016.

Tokyo : Indian Council of Medical Research (ICMR) and Department of Bacteriology, National Institute of Infectious Diseases (NIID) of Japan signed a Letter of Intent on the sidelines of the meeting of the Health Ministers from WHO South East Asia Region and Western Pacific Region countries at Tokyo today, in the presence of Shri J P Nadda, Union Minister for Health & Family Welfare. 

Terming the collaboration as another significant milestone in the strong ties between the two countries, the Union Health Minister stated that this will further help in deepening the relations between the two in research and development in scientific areas, particularly public health. 

The letter of Intent noted that “Recognizing the global burden of antimicrobial resistance (AMR) and its impact on global health security; Recalling ‘the Memorandum of Cooperation between the Ministry of Health, Labour and Welfare of Japan and the Ministry of Health and Family Welfare of Republic of India in the field of healthcare’ signed on 1 September, 2014; and Desiring to start collaboration between NIID of Japan and ICMR of the Republic of India in antimicrobial resistance research to include but not limited to the following areas: 

- Development of integrated surveillance program covering epidemiology data and genomic data of antimicrobial resistance in each country

- Mutual exchange of information of molecular and epidemiological data of antimicrobial resistance by developing of comparable surveillance program in each country 

Shri J P Nadda is participating in the meeting of the Health Ministers from WHO South East Asia Region and Western Pacific Region countries, in Tokyo. At the Health Ministers’ meeting, Shri Nadda emphasized on the importance of collaborative effort and mobilizing the necessary resources for the implementation of AMR national action plans in all countries. The Indian Health Minister also underscored the need to encourage research and development and discovery of new drugs and ensure equitable and affordable access. 

US jury slaps $940mn fine on Tata in trade secret case

Washington, Apr 16 (PTI) A US grand jury has slapped two companies of India's Tata group - Tata Consultancy Services and Tata America International Corp - with a USD 940 million fine in a trade secret lawsuit filed against them.

After days of hearing, the federal grand jury in the US State of Wisconsin ruled that Tata Consultancy Services Ltd.

and Tata America International Corp. must pay USD 240 million to Epic Systems for ripping off its software.

Tatas have also been asked to pay another USD 700 million in punitive damages.

Epic Systems had accused TCS and Tata America International Corp, in a lawsuit filed in October, 2014 in US District Court in Madison which was amended in January and December 2015, of "brazenly stealing the trade secrets, confidential information, documents and data" belonging to Epic.

In its lawsuit, Epic had said that TCS took that data while consulting for its customer.

Epic said that it "recently learned from an informant" that TCS employees have been "fraudulently accessing" Epic's software beyond what the consulting contract required - and using Epic's software to improve their own competing product.

One TCS employee's account, which was used in India and several US locations, downloaded 6,477 documents, according to Epic.

"Rather than compete lawfully with Epic, TCS has engaged in an apparently elaborate campaign of deception to steal documents, confidential information, trade secrets, and other information and data from Epic, for the purpose of realising technical expertise developed by Epic over years of hard work and investment," the lawsuit said.

India says talks on Rafale jet deal in final stage

A French Air Force Rafale fighter jet takes off during the close air support (CAS) exercise Serpentex 2016 hosted by France in the Mediterranean island of Corsica, at Solenzara air base, March 16, 2016.

Negotiations for India to buy 36 French Rafale fighter jets are nearing the finish line, the Indian defense ministry said, with sources saying the price will be set at around $9 billion.

Both sides had hoped to wrap up the strategic order during President Francois Hollande's visit for India's Republic Day celebration in January, but hard bargaining on price stalled a final result.

A ministry source said the price agreed for the Dassault Aviation jets was around 600 billion rupees ($9 billion), although a spokesman declined to confirm this on the record.

"Negotiations are in the final stage. Nothing has been concluded so far," the spokesman said late on Friday.

Dassault also declined comment. The price named is significantly below that originally sought by the French plane maker. There have been several leaks to the Indian press over recent months that a deal had been reached that proved to be premature.

Hollande and Prime Minister Narendra Modi intervened in the troubled Rafale procurement last year, ordering government-to-government talks after commercial negotiations with Dassault had collapsed.

The leaders agreed to scale back an original plan to buy 126 Rafale planes to just 36 in fly-away condition to meet the Indian Air Force's urgent needs as it faces an assertive China and long-time foe Pakistan.

The 90 planes not supplied via the original multi-role combat aircraft tender have meanwhile become the target of intense interest from other plane makers.

Lockheed Martin Corp pitched its F-16 Fighting Falcon and Boeing Co its F-18 Super Hornet to Indian officials before U.S. Defense Secretary Ashton Carter's recent trip to New Delhi.

Both are offering to transfer production to support Modi's 'Make in India' drive to boost India's industrial base and reduce its import needs. India is the world's largest buyer of foreign arms.

The Carter visit made progress towards 'foundational' agreements to strengthen the partnership with India and allow for technology transfer while protecting the intellectual property of U.S. defense contractors.
($1 = 66.6505 Indian rupees).

(Reporting by Nigam Prusty; Additional reporting by Cyril Altmeyer in Paris; Writing by Douglas Busvine; Editing by Eric Meijer)

Maritime India Summit 2016 : Sees Several New Projects Taking Off On Day 1

The Prime Minister, Shri Narendra Modi at the Maritime India Summit, in Mumbai on April 14, 2016. The Governor of Maharashtra, Shri C. Vidyasagar Rao, the Union Minister for Road Transport & Highways and Shipping, Shri Nitin Gadkari, the Chief Minister of Maharashtra, Shri Devendra Fadnavis, the Chief Minister of Gujarat, Smt. Anandiben Patel, the Minister of State for Road Transport & Highways and Shipping, Shri P. Radhakrishnan, the Secretary, Ministry of Shipping, Shri Rajive Kumar and other dignitaries are also seen.

The Union Home Minister, Shri Rajnath Singh visited to “MARITIME INDIA SUMMIT - 2016” expo, in Mumbai on April 15, 2016.

Mumbai : During the Day 1 at Maritime India Summit in Mumbai yesterday, 22 agreements entailing investments of around Rs 31000 crs were signed in the presence of Shri Nitin Gadkari, Minister of Shipping, Road Transport and Highways. In addition, several other projects were signed between contracting parties. 

In all, nearly 140 MoUs/ Business Agreements will be signed over two days by various players in maritime sector including Ports, Maritime States and PSUs like Shipping Corporation of India, Cochin Shipyard Limited, Inland Waterways Authority of India etc. Collectively, these projects entail investments of more than US $ 12 bn or Rs 83000 crores. Projects cover vast spectrum of activities including port development and modernisation, development of inland waterways, ship building, setting up of LNG terminals and power plants. 

One significant MOU signed relates to establishment of a Greenfield port at Vadhavan, Maharashtra. Phase I of the project will cost around Rs 9167 crores. Shareholders’ agreement for the project was signed between JNPT and Maharashtra Maritime Board. Once completed the new port will allow large size ships to enter Indian waters and will also help decongest JNPT and Mumbai Port. 

In another landmark development, Government of Andhra Pradesh entered into a MoU in the presence of Sh. N Chandrababu Naidu, Chief Minister of Andhra Pradesh. The MoU was signed with Inland Waterways Authority of India for development of National Waterway 4 at an estimated cost of around Rs 3000 crs. National Waterway 4 passes through Andhra Pradesh, Tamil Nadu and Puducherry. Once developed, this waterway will help take off roads significant portion of cargo traffic. 

Petronet LNG has signed a MoU with Inland Waterways Authority of India to facilitate greater use of LNG in inland water transport thereby reducing carbon footprint. Cochin Shipyard Limited has entered into an agreement with Samsung Heavy Industries to formalise technical cooperation for building LNG ships in India. This will also be first of kind in the country. 

Gujarat Maritime Board has collaborated with IL&FS to develop a Maritime Services Cluster at GIFT City, Gandhinagar. The proposed cluster will provide all services related to maritime sector and will be the first such initiative in the country. 

Adani group has announced plans to invest around Rs 28000 crs over next five years in various projects. Representative of Adani Ports & SEZ said that the Group would invest in new ports in Odisha and Gujarat. JSW Group owned by Jindals has also proposed to invest around Rs 10000 crs over a span of 5 years. 

Infosys forecasts stronger growth as it chases $20 billion sales target

Mumbai : India's second-largest IT services firm Infosys (INFY.NS) forecast strong revenue growth and reported its third successive estimate-beating earnings on new client wins, solidifying a recovery that began a year ago under its new chief executive.

Infosys said it expects revenue to grow between 11.5 percent and 13.5 percent in constant currency terms in the current year - indicating a faster growth rate than the industry average as the company shifts to high-margin digital services business.

In dollar terms, the company expects revenue to grow between 11.8 percent and 13.8 percent, Infosys said. The Bengaluru-headquartered company is the first among major Indian IT services firms to report results.

Industry body Nasscom had forecast in February a 10-12 percent growth for IT and software services exports in the current financial year.

Infosys' strong growth outlook comes less than two years after chief executive Vishal Sikka took the reins to turn around a company that at the time was losing share to rivals, including India's biggest IT services company Tata Consultancy Services (TCS.NS) and Cognizant Technology Solutions Corp (CTSH.O).

Under Sikka, Infosys has made bets on automation and other high-margin digital services. In February, the company's board extended his term by another two years to 2021, crediting him with putting the firm back on the growth path.

The company added 89 clients in the last quarter, including 5 large clients who pay more than $50 million annually, Infosys said.

Sikka has set a goal to raise the company's revenue to $20 billion by 2020, which he reiterated on Friday. It posted sales of $9.5 billion for 2015/16.

"If we execute on that set of opportunities we would have not only achieved our 2020 goals we would have ended up creating a completely new kind of IT services company," he said in a post-earnings conference call.

"Steve Jobs always said you always connect the dots looking back ... every day that goes by I feel very comfortable that we will get there," Sikka said, referring to the late founder of Apple Inc (AAPL.O), a client of Infosys.

Infosys shares are up around 6 percent in 2016, compared to a 1.2 percent gain for the IT services industry index .NIFTYIT. Mumbai stock markets were closed on Friday for a holiday.

PRICING POWER

For the fourth quarter, Infosys reported a 16 percent rise in net profit and a 60 basis point sequential improvement in operating margin to 25.5 percent.

Infosys expects its operating margin to be between 24 and 26 percent, finance chief M.D. Ranganath said, without giving a timeframe.

"A lot of the growth is coming from new areas where they have pricing power and it's not a commoditized business and that's good for the margins," said Ravi Menon, analyst at Elara Capital in Mumbai.

Consolidated net profit rose to 35.97 billion rupees ($540.07 million) in its fiscal fourth quarter to March 31, from 30.97 billion rupees a year earlier.

Analysts on average had expected a net profit of 35.56 billion rupees, according to data compiled by Thomson Reuters.

Infosys, which also counts Volkswagen AG and Wal-mart Stores Inc (WMT.N) among its clients, said revenue rose 23.4 percent from a year ago to 165.5 billion rupees.

On a sequential basis, revenue in the fourth quarter, typically seen as seasonally week for software services companies, rose for the first time in three years, Infosys said.
($1 = 66.6027 rupees)

(Reporting by Himank Sharma in MUMBAI, Anya George Tharakan and Narottam Medhora in BENGALURU; Editing by Muralikumar Anantharaman)

Growth can surpass 7.5 pc if monsoon forecast comes true: FM

Washington, Apr 14 (PTI) India may grow faster than 7.5 per cent GDP growth rate it recorded last year if predictions of above-average monsoon rainfall come true, Finance Minister Arun Jaitley has said.

Indian economy, he said, registered 7.5 per cent growth in 2015-16 notwithstanding contraction of global exports and two consecutive years of monsoon deficit.

If the predictions of good monsoon were to come true, "we are capable of... improving upon our growth rate", he said speaking on the theme of 'Steering India towards Growth' at an event organised by Carnegie Endowment for International Peace here yesterday.

Jaitley, on the first day of his 7-day visit to the US, said amid a weaker outlook across the globe, India's experience of strong economic growth, comfortable price situation, low current account deficit, and adherence to a fiscal recovery path have projected it as an outpost of opportunity for global investors.

He said the current growth rate of 7.5 per cent was not enough as per its own requirement standard and the country has the "potential" to do "better".

Expressing concern over the decline in India's exports, Jaitley said the country's growth parameters are on track and the government is moving ahead on its reform agenda with inclusiveness and successfully meeting all its fiscal parameters.

"... in the current situation, are we doing well? The answer is yes. But by our own requirement standards, are we doing well enough? I think, we can do better," he asserted, adding that in an adverse global situation, probably one does settle for that rate.

In a globally adverse environment, India has managed to sustain growth "by putting some domestic policies in place, by using investments and surpluses cleverly".

"One of the biggest areas of worry has been the declining exports," the finance minister added.

Noting that the global situation has impacted exports, both in value and volume terms, Jaitley felt that things could improve if some of the variables change.

"If hopefully with any of these variable factors growth returning to the rest of the world, better Indian monsoon and continued favourable environment of oil prices and the impetus of policy direction in India and if the reforms go on... our ability to do much better would be there," Jaitley said. 

UN marks Ambedkar's birth anniversary for the first time

United Nations, Apr 14 (PTI) For the first time, the UN celebrated the birth anniversary of B R Ambedkar with a top official describing the noted Indian social reformer as a "global icon" for marginalised people and voiced the world body's commitment to work with India to fulfil his vision.

"On behalf of the UN Development Programme (UNDP), I commend India on celebrating this important anniversary at the UN," UNDP Administrator Helen Clark said in her keynote address at a special event organised by the Permanent Mission of India to the UN to commemorate Ambedkar's 125th birth anniversary for the first time at the global body.

"We are committed to continuing our very close partnership with India to help realise the vision of the 2030 Agenda and ensure that Ambedkar's vision becomes reality for the poor and marginalised around the world," said Clark who is among the candidates for the post of the next UN Secretary General.

The 125th birth anniversary of the principal architect of India's Constitution was observed yesterday at the world body.

The event was organised in association with civil society advocacy groups Kalpana Saroj Foundation and Foundation of Human Horizon.

Clark who is Chair of the UN Development Group, addressed a packed audience of diplomats, scholars and Ambedkar's followers and said the occasion commemorates the "legacy of a very great man" who understood that "rising and persistent inequalities" pose fundamental challenges to the economic and social well-being of nations and people.

Emphasising that Ambedkar's ideals are as relevant today as they were 60 years ago, former New Zealand prime minister Clark said his work on the empowerment and inclusion of excluded groups, reform of labour laws and promotion of education for all "made him an icon for marginalised people in India and in other countries".

On the occasion, a panel discussion on 'Combating inequalities for the achievement of Sustainable Development Goals' was also organised featuring Professor Stan Kachnowski and Associate Professor Anupama Rao from Ambedkar's alma mater Columbia University and Harvard University lecturer Christopher Queen.

Clark said reducing inequalities and discrimination in all their forms, the cornerstone of Ambedkar's vision and work, is also at the "heart" of the new development agenda the world has committed to achieving by 2030, adding that Ambedkar had a "deep understanding" of the far-reaching measures that are needed to address inequalities.

Indo German Agreement on Namami Gange Signed

New Delhi : An Implementation Agreement for Ganga Rejuvenation under the Namami Gange Programme was signed in New Delhi today between the Ministry of Water Resources, River Development and Ganga Rejuvenation and German International Cooperation (GIZ) of Germany.

The objective of the agreement is to enable responsible stakeholders at National and State level to apply integrated river basin management approach for the rejuvenation of the river Ganga. This will be based on Indo-German Knowledge exchange and practical experience on strategic river basin management issues, effective data management system and public engagement. The project will closely cooperate with other National and international initiatives including Indo-German bilateral projects like Support to National Urban Sanitation Policy (SNUSP) and ‘Sustainable Environment-friendly Industrial Production’ (SEIP).  The project duration is three years i.e. from 2016 to 2018 and the German contribution in the project will be to the tune of Rs. 22.5 crore. Initial actions will focus on the State of Uttarakhand, with scope of expansion to other upstream Ganga States.  The ultimate goal is to adopt the successful river basin management strategies used for Rhine and Danube and replicate the same, wherever possible for attaining the pristine status of river Ganga.

The agreement was signed in the presence of the German Ambassador to India, Dr. Martin Ney and Secretary, Ministry of Water Resources, River Development and Ganga Rejuvenation Shri Shashi Shekhar. Speaking on the occasion German Ambassador said that his country understands the devotion and cultural importance of river Ganga and will do its best to bring back mother Ganga to its pristine glory. Thanking the Government of Germany Shri Shekhar said the technical no how support from Germany will be immensely fruitful in pollution abatement of river Ganga. He said, “Now onwards we will move at a much faster pace for cleaning of river Ganga”.

‘Namami Gange’ Programme, is a flagship programme of Government of India with a renewed impetus to decrease river pollution and conserve the revered river ‘Ganga’. In this connection, the Indian Government solicited support from various countries to rejuvenate the Ganga. Government of Germany, with its vast experiences in cleaning and rejuvenating European rivers such as Rhine, Elbe and Danube, was keen to join hands for collaboration with Government of India.