The annual rate of inflation slid further to 7.01 per cent for the week ended December 12 as prices of food articles continued to return to normalcy from their recent highs. Inflation, based on the wholesale price index, fell by 0.63 percentage points to 7.01 per cent (provisional) during the week, from 7.64 per cent (P) recorded in the previous week. However, it was still much higher compared with 4.31 per cent recorded in the same week last year. Inflation has fallen by about 1.85 percentage points in the last six weeks, after it touched a three-year high of 8.85 per cent.

Karsan to file appeal against `urea award': Karsan Ltd will challenge the award of the International Court of Arbitration in the urea supply deal asking the Turkish firm to pay $46 million to National Fertilisers Ltd for non-supply of urea despite advance payment. The award of $46 million and 75 per cent of the arbitration cost to the NFL for breach of contractual obligation wasannounced in parliament on December 23.

Sterlite to reschedule input purchase deal: Sterlite Industries is attempting to reschedule its long-term contracts for purchase of copper concentrate, the raw material for its smelter plant at Tuticorin. The company has about 50,000 tonnes of concentrate, costing about $25 million, sufficient for the next two-and-a-half months production. The 36-day closure of the plant under the order of the Chennai high court from November 23 saw piling up of the raw-material inventory.

Parachute Lite corners 10% market share: Parachute Lite of Marico Industries' flagship brand and the latest entrant in the value-added coconut oils market has garnered a 10 per cent market share a year after its launch. The Rs 110-crore value-added coconut oils category has two large players, Dabur Vatika and Hindustan Lever's Clinic Plus, commanding a share of 40 per cent each.

Swadeshi Polytex lies closed: Swadeshi Polytex is lying closed from September this year with itstwo major shareholders sitting tight. The Kanpur-based firm, burdened with huge liabilities, closed down its mill in September after an acute shortage of working capital, and there are no signs of a reopening. An industry source said that none of its major shareholders was interested in the company. "NTC is already burdened with its own problems, and with a dull market, the Swarups are not too eager either to take control of it," he said.

Top drug firms see market share erosion: There has been a significant erosion in the market shares of most of top notch pharma firms who chose the M&A path to growth. While reasons for the decline may vary from company to company, experts indicate that bachelor boys like Pfizer, Merck, Johnson and Johnson and Schering Plough are possibly better off than their wedded competitors.

SWIL smelter cost swells to Rs 639 cr: SWIL faces a massive cost increase of Rs 44.5 crore on its copper smelter project coming up in Bharuch district of Gujarat, caused by higherpre-operative interest charges and foreign-exchange fluctuations. According to the latest report by ICICI Ltd, the revised cost of the 50,000-tonne-per annum project is now Rs 639.50 crore, against the Rs 595 crore estimated in May 1997, when the company decided to add some facilities.

`Banks await RBI nod for gold loans': Commercial banks are eagerly waiting for guidelines from the RBI to commence gold loans. Ramesh Ganeshan, chief of the trade and commodity finance division of ABN Amro Bank NV, said that if gold loans were allowed, they would act as an important price-hedging tool for jewellers, as they protect exporters from price-risk during the manufacturing process. In a scenario where the international gold price has dropped, jewellers, more particularly the exporters, need to hedge price-risks, or else the profit would be lost in just price fluctuation.

Maharashtra seeks IBRD loan: The Maharashtra public works department has sought a long-term loan of Rs 1,800 crore from the WorldBank to beef up 1,400km of highways all over the state. The department has already submitted a proposal to the Housing and Area Development Corporation for a loan of about Rs 600 crore to carry out various road projects.

Revamping of telecom administrative system: The centre will soon change the administrative pattern at DoT to bring in dynamism and improve quality of work, communications minister Jagmohan said on Sunday. The ministry was studying the administrative cadre in the department, he said, inaugurating the 8000 lines C-DOT MAX-XL exchange at Yelahanka.