SUBSIDIES FUEL E-BIKE SALES

The Electric bike(e-bike) segment has seen a rapid growth where the local governments have offered subsidies against the states that are charging a value added tax of 12 per cent.
Disclosing this, Mr Sohinder Gill, the president of Society of Indian Electric Vehicle Manufacturers, said: "For e-bikes, there is a zero per cent VAT in Delhi. The Delhi government also offers a 15 percent subsidy it pays 15 per cent e-bike's cost to the manufacturer. As a result, more than 30 per cent of the e-bikes produced were sold in Delhi itself in 2008-09."
if other state governments also offer subsidies then the Delhi experience can be replacated in other cities across india, he added.
During 2007-08, e-bikes the sales volumes were 85,000 and grew by about 29 per cent to 1,10,000 in 2008-09. The e-bike manufacturers were expecting more growth in the background of the economic slowdown, as e-bikes are not only cheaper but save a lot on fuel cost.
Mr Gill said:"Though it's mandatory for all states to bring down the VAT to four per cent some of the states have not done so."

CENTRE TO REVIVE VACCINE MAKER

After a long tussle with the Union minstry of health and family welfare over safety practices, the 100 years old Pasteur Institute of India (PII) at Nigiris in Tamil Nadu is set to commence the production of vaccines next year.
The institute was near closure after the ministry had suspended its manufacturing license for its failure to comply with good manufacturing practices (GMP).
"The central government has come forward with a revival plan. We will be submitting a roadmap to the government on July 8. Before commencing the production, the institute's building and its infrastructure will be renovated to meet the required standards," Mr B.Sundaran, the assistant director of the institute, said.

MICHELIN'S TN PLAN GETS NOD

The finance Minstry's department of revenue (DoR) is understood to have given its clearance to an investment proposal worth Rs.11,000 crore by French tyre giant Michelin to set up a manufacturing facility in Tamil nadu.
However, it could not be confirmed whether the Foreign Investment Promotion Board(FIPB) has given its final approval to the proposal.
According to informed sources, DoR has given a "no objection" to the proposal under which Compagnie Financiere Michelin (CFM) plans to set up a wholly-owned subsidiary to make radial tyres, tubes and ancillary tyre related products at the facility.

OIL DEMAND LIKELY TO RISE 0.6% A YEAR

World oil demand it likely to grow by an average of 0.6 per cent annually over the 2008-2014 period, the international Energy Agency (IEA) forecast on Monday, revising its midterm expectations downward amid the global recession. The Paris-based IEA, which advises oil-consuming countries, said oil demand would reach 89 million barrels a day by 2014 under the IMF's current forecast of a return to five per cent annual economic growth by 2012.

JAPANESE INDUSTRIAL OUTPUT RISES

Japan's industrial output rose for a third straight month, matching the fastest pace in 56 years, as the world's number two economy claws back from its worst recession on record, data has shown.
Japanese manufacturers moved swiftly to idle production lines after the global economic downturn sent their exports plunging. Having succeeded in reducing their bloated stockpiles, they are now ratcheting up their industrial output again.