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Moody’s pricks India’s economy bubble London, April 6 Warning that over 8 per cent growth may not be sustainable in the future, Moody’s said today that Indian economy is expected to slow down to 6.5 per cent.
Infosys stock split, bonus issue on
OPEC decision may affect oil prices
Govt may support wheat export
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BIS to outsource, involve NGOs New Delhi, April 6 The Bureau of Indian Standards (BIS) — the apex body to formulate and monitor the standards of products in the manufacturing sector — has decided to outsource its core activities like standard formulation and inspection activities. Comment, TRAI asks BSNL COAI complaint on lowering rates New Delhi, April 6 Telecom Regulatory Authority of India has asked Bharat Sanchar Nigam Ltd for “comments” on COAI’s letter which had alleged that the state-owned operator managed to lower the long distance tariffs due to payments made by private operators to BSNL. Jet, Sahara bound for Nepal, Dhaka New Delhi, April 6 After allowing private carriers to fly to Colombo, the government has now permitted Jet Airways and Air Sahara to fly to Nepal and Bangladesh with the Director General of Civil Aviation (DGCA) approving them to operate to Kathmandu and Dhaka. Big B agrees to say ‘Give me Red’ Kolkata, April 6 With mega-star Amitabh Bachchan agreeing to mouth its catchline, ‘Give me Red’, the city-based battery and torch major Eveready Industries Limited hopes to put its flagship Eveready brand as undisputed leader. 
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Moody’s pricks India’s economy bubble H.S. Rao London, April 6 Though it noted that India’s external liquidity position was “strong”, as reflected from current foreign currency ceiling for debt and stable outlook, Moody’s latest report, however, said high oil prices and import growth may lead to current account deficit in 2004-05, but can be fully financed. “While economic growth is not expected to continue at the pace that was achieved in 2003-04, we anticipate that annual growth will average a still respectable 6.5 per cent in the years ahead,” the report said. However, the report said even at 6.5 per cent, India is likely to attract much more capital in the future. Moody’s attributed the recent buoyant growth to the surge in farm productivity, after the country last year received good rains and reported increased output in the industrial and services sector. However, Moody’s said the growth will be difficult to maintain unless the country increases investment in human resources and infrastructure and addresses the growing fiscal imbalances. Expressing concern over the fiscal deficit of the Central and state governments - their combined debt amounted to 85 per cent of GDP - Moody’s said the new government will incline to additional economic adjustments. “While the debate between the ruling BJP-led NDA and the Opposition has not revealed any specifics about what economic policies either group will pursue, Moody’s expects that the next administration will be favourably disposed to additional economic adjustments, including aggressive fiscal tightening,” the report said. It said the willingness of politicians to correct the worsening fiscal situation has traditionally been lacking. On the external front, it said, “with the high oil prices and import growth, the current account surplus might revert to modest deficit of 1 per cent of GDP in 2004-05, but this can be more than fully finance able.” It, however, said workers’ remittances and software and other services exports are expected to offset robust import demand and keep the current account in “rough balance” during the next two years. India’s balance of payments also enjoys protection from controls on capital movements, which is re-inforced by improving investment prospects, it said. The report added that the
government’s large (foreign exchange) reserve cushion is “providing
increasing room for a gradual easing of foreign borrowing restrictions
and other capital market controls.” — PTI |
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Infosys stock split, bonus issue on April 13 likely
New Delhi, April
6 The Board of Directors of Infosys will meet on
April 13, when the company will announces its result for 2003-04, to
consider the recommendation of the issue of bonus share and stock
split. If the board gives go-ahead for the stock split, it will be the
second in the history of the company. In January, 2000, Infosys had
split its share of face value of Rs 10 each to two shares of Rs 5
each. The report of bonus and split fired up the price of Infosys scrip
on the stock exchange. On the Bombay Stock Exchange (BSE) Infosys’ share
price jumped 2.8 per cent to close at Rs 5,322 after touching a high of
Rs 5,580. As many as 259.23 crore shares of the company changed hands
on the exchange. — UNI |
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Datamatics share between Rs 101-110
Mumbai, April 6 The company is offering 10.30 million equity shares of
Rs 5 each for cash at a price to be decided through the book-building
route. The issue will be open for subscription between April 12 and
April 19. Datamatics will list the equity shares on the stock exchange,
Mumbai and the National Stock Exchange. At present the paid-up equity
capital of the company stands at Rs160.36-million. This will increase to
Rs 202.86 million after the IPO. The issue will represent 25.39 per cent
of the fully diluted post issue paid-up equity capital of the
company. The proceeds of the IPO will be used for the company’s
existing business requirements, strategic initiatives and acquisitions
as well as for investment in the company and its subsidiaries and
associates, the company officials told reporters here. According to
officials, Datamatics has earmarked Rs 146 million for investments in
its subsidiaries and associates. Over Rs 121 million is earmarked for
repayment of existing debt, capital expenditure and the balance is being
raised for corporate purpose, including strategic initiatives and
acquisitions. The company has three subsidaries in the US, Germany and
the UK and the investments in these subsidiaries will be in the form of
working capital in the US and German subsidiaries, while the investment
in the UK subsidiary will be as initial capital. — UNI |
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OPEC decision may affect oil prices
New Delhi, April 6 The industry experts claim that despite marginal fall in
international crude oil prices as against prices last fortnight, the oil
prices will soon increase due to OPEC’s decision. The oil companies are
hedging against the expected rise in prices. Sources in the Ministry of
Petroleum and Natural Gas disclosed that the OPEC, which has a major
share in the international oil market, declared on March 31 in Vienna to
cut down production quota. Further, drought-like situation in some parts
of the countries has already led to increase in demand for diesel and
kerosene in rural India, and the companies are feeling the heat of
rising deficit. They said the oil companies are claiming that due to
delay in revision of oil prices, their losses have crossed over Rs 3,000
crore. Last time, the state-owned oil marketing companies had announced
fortnightly review of oil prices was on December 31, 2003. A senior
official in the ministry, said: “The government has prevailed upon the
oil companies not to touch the politically sensitive oil prices.
Otherwise, the price of petrol and diesel would have increased by at
least Rs 2 per litre.” Despite demand of the oil companies, officials
said: “There will be no major impact on their bottom line as their
profits have already soared to over Rs 23,000 crore in 2003-04”. The
oil companies are also pressing upon the government either to foot the
total subsidy bill of kerosene and LPG or to allow them to increase the
prices. The oil companies are reportedly asking to increase the 14 kg
LPG cylinder price by Rs 50 and of kerosene by around Rs 3 per litre.
The official said “after the Lok Sabha elections, the government is
likely to allow the oil companies to increase price of petrol, diesel,
LPG and kerosene to reduce the subsidy. — PTI |
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Govt may support wheat export
New Delhi, April 6 The
government expects that Indian grains will be cheaper by about $ 24-28 a
tonne against the contracted FoB (Free on Board) price, once the scheme
is operationalised. “The reimbursement scheme for wheat-rice exports is
almost ready, though the specific date to begin operationalisation is
yet to be decided,” official sources said. They said a sum of
approximately Rs 1,200 per tonne is not very large, but at a time when
the international prices are firming up, it will definitely give a boost
to exports. — PTI |
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E-filing for all taxable services
Chandigarh, April 6 According to a senior officer in the
department, the simple condition for e-filing of taxes is that service
provider should have 15 digit “STP” code — either PAN- based or
temporary number — appearing on the “SAPS” site used by the department
for giving registration to service tax assessees. They are also required
to indicate their 15 digit “STP” code in the challans. The procedure
is simple. They are required to file applications to the excise
“formation” concerned at least one month in advance. The officer said
user identity and password for the assessees will be communicated to
them within 10 days after filing the application, along with technical
details required for accessing the website. The service provider can
also download the form for entering details of “ST-3 returns” and “TR-6
challans” from the central server using the Internet and by entering the
necessary details for filing the “ST-3 return”. He asserted that the
computer generated a key number which will depend on the “STP” code, the
date of filing, value of services declared and tax paid. It also
generated an acknowledgement giving details which can be printed by the
assessees and kept in his records as evidence of having filed the
return. The department has also relaxed the provision of penalty for
non-filing of “ST-3” returns for assessees opting for e-filing of
returns. The department has also issued a list of e-mail addresses,
along with the telephone numbers of divisional deputy and assistant
commissioners for receiving queries. The Deputy Commissioner in
Chandigarh can be contacted at Cexd1902@excis.nic.in.
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BIS to outsource, involve NGOs
New Delhi, April 6 As a part of its restructuring programme, it has also
decided to involve non-government voluntary organisations and related
government departments in the surveillance inspections and for taking
market samples for food products under mandatory certification. It has
claimed that the decision would help BIS to speed up the process of its
functions in a transparent and cost effective manner. The decision
seems to have been taken after strong criticism of the BIS “bureaucratic
approach and obsolete standards” last year. The government had
reportedly asked its management to restructure its activities after
strong criticism about its role in the “presence of pesticides in the
soft drinks” case. The standards about the soft drinks were later
revised. |
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Comment, TRAI asks BSNL
New Delhi, April 6 “We have
asked BSNL and MTNL to give their comments on COAI’s letter,” TRAI
chairman Pradip Baijal said. He, however, declined to divulge any
details on the issue. In a letter to TRAI yesterday, Cellular
Operators’ Association of India (COAI) had alleged that BSNL has been
able to lower the tariffs mainly due to payments made by private
operators to the incumbent as Access Deficit Charge (ADC) to allow the
state-owned corporation to offer subsidised local tariffs for fixed line
services. Seeking TRAI’s intervention in the issue, the COAI letter
said the regulator should review the need for imposition of ADC levy on
private operators or if the ADC is to be imposed, to consider steps to
divert such payments directly to Universal Service Obligation (USO) Fund
so that they can be transparently deployed for rural roll-out
requirements. It has also asked TRAI to direct BSNL and other ILD
operators to offer the same settlement rate to other standalone access
providers. — PTI |
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Jet, Sahara bound for Nepal, Dhaka
New Delhi, April 6 The move in effect opens the door for private domestic
carriers to fly abroad, after the Union Cabinet gave its nod a couple of
months ago to allow them to operate to SAARC countries. Official
sources said the DGCA has allowed them to operate daily flights on the
Delhi-Kathmandu and Kolkata-Dhaka sectors, but sought their flight
schedules. — PTI
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Big B agrees to say ‘Give me Red’
Kolkata, April 6 “Amitabh is the
best possible brand ambassador one can think of. And when we decided to
rebuild the Eveready brand there was no second thought,” EIL
vice-chairman and managing director Deepak Khaitan said. Mr Khaitan,
who announced the company’s decision to rope in Big-B as the brand
ambassador at a conference of the sales and marketing people of EIL in
Bangkok last Sunday, said the move was aimed at charging up the entire
team. — PTI |
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Singh says economy will grow more than 8 per cent this year.
