The RSS distanced itself from the BJP on Friday. In the midst of an ongoing crisis in the BJP, the chief of the RSS Mohan Bhagwat told the media the BJP had to decide its own future and that his organization could only give it advice. But Bhagwat also said the infighting within the BJP was unhealthy and hinted that the party needed younger leaders.
The Supreme Court has agreed to skip preliminary hearings in the gas supply dispute between the Ambani brothers and set a date for final arguments in the case. Both sides will now have to file all their written submissions by the 20 October. Anil Ambani wants his brother Mukesh’s company Reliance Industries to comply with a 2005 agreement they signed when the family business was split. The agreement requires Reliance Industries to supply Anil Ambani’s RNRL gas from one of its fields at $2.34 a unit. But Reliance Industries says it can’t sell gas at less than the government price of $4.20 for every unit.
The regulator for insurance companies in India, IRDA wants private life insurance companies to move away from unit-linked insurance products or Ulips back to more traditional products. IRDA officials say they’re concerned about the absence of long term capital from the insurance industry. Ulips are both investment and insurance products that let policyholders invest their entire premiums or part of their premiums in equity.
Defence officials say India’s Light Combat Aircraft or LCA will gradually start replacing ageing MiG fighters. Five LCA’s have already been made and another eight will be ready next year. The Indian Air Force is currently holding trials for 126 multi-role attack aircraft in a deal worth over $10 billion.
Maruti Suzuki, which makes half the cars sold in India, says it plans to increase investment this year to meet after signs of a revival. Analysts are now forecasting car sales will grow by at least 10% in the year ending next March. Other carmakers including Honda and Toyota are also increasing their bets on India.
The Archean group plans to complete building it Rs1,200 crore plant by 2012. The factory will make sulfate of potash, which is used to make fertilizers. The company also plans to make its newer shipping business Goodearth Maritime public.
Archean is based in Chennai and has interests in minerals, chemicals, and shipping.
The cost cutting measures that big IT companies took have finally paid off. The profit of India’s three largest IT companies has improved between 5% and 21% in the four quarters between July last year and June this year. Most of the cost reduction came from cutting hiring and traveling, moving work offshore and increasing productivity.
Markets made gains on Friday. The Sensex rose 141 points to close at 15,922 and the Nifty went up 44 points to end trade at 4,732.