Archive for December 10th, 2009

Cabinet is Expected to Allow Trading of Energy Units Saved

On the lines of sale of carbon credits by 9 power-intensive sectors, under the clean development mechanism, the Cabinet is expected to discuss a proposal in order to allow trading of energy units saved.

However, saving of an energy unit is to achieve the targeted production by consuming energy lesser than the prescribed level while the saved units can be sold to those who consume more energy than the norm.

Meanwhile, the proposal by the Power Ministry will require amendments to the Energy Conservation Act of 2001 whereas if the amendment goes through, the companies in power, steel, cement, fertilizer and five other sectors will be able to trade energy units saved.

Further, it is said that this would be a tad different from sales of carbon credits under the CDM, wherein a certificate of efficiency is issued to companies on the basis of overall energy conservation.

On the other hand, the proposal suggests reduction in the threshold limit of minimum load for buildings/offices to 100-kw from the existing 500-kw to bring in more commerce buildings and offices under the purview of the Energy Conservation Act.

Price rise a concern but downward trend noticed: Pranab

Union Finance Minister Pranab Mukherjee admitted that price rise has been a cause of concern for the Government but a downward trend has been noticed during the past fortnight.

However, he did not deny that certain essential commodities are having high prices but fortunately for the last one-and-a-half weeks they have been noticing a downward trend, though it will take some more time.

Meanwhile, noting that prices of cereals, fruits and vegetables have been on the higher side, he said if the shortage in supply was not made up through import or other measures, then the prices would go up.

For example pulses, the rate has been increased substantially while our total requirement is 18 million tonne, the total production is 14 MT, a huge shortfall of 4 MT.

On the other hand, he said that unfortunately, shortfall in sugar has happened at a time when the international production has also gone down while prices too remain high.

Gold suffers biggest fall of 2009, down by Rs 440

Gold declined by Rs 440, stopping the rising trend of several weeks whereas due to heavy selling by stockist in the midst of weakening global trend, gold lost 2.47% at Rs 17,360 per ten grams in the bullion market.

However, the yellow metal lost Rs 510 on Saturday which is the steepest for the year, taking the loss in the past 5 trading sessions to Rs 1,260 after touching a record high of Rs 18,550 on December 3.

Meanwhile, a similar weakness was seen in silver, which has been under selling pressure ever since the metal in international markets fell from over 19 dollar to trade near $17 an ounce.

On the other hand, silver ready declined 420 to Rs 28,080 per kg and weekly-based delivery by Rs 1,220 to Rs 27,680 per kg on reduced off take by speculators.

Trading sentiment dampened on reports that gold declined 0.2% to 1,125.90 dollar an ounce in Asia while the metal in futures trading also extended losses by losing 1.4% to 1,127.40 dollar an ounce in New York.

Further, standard gold and ornaments fell sharply by Rs 440 each to Rs 17,360 and Rs 17,210 per ten gram respectively while sovereign lost Rs 100 at Rs 14,000 per piece of eight gram.

Silver ready dipped by Rs 420 to Rs 28,080 per kg and weekly-based delivery by Rs 1220 to Rs 27,680 per kg while silver coins tumbled by Rs 300 to Rs 33,700 for buying and Rs 33,800 for selling of 100 pieces.