New Delhi, March 6
The finance minister today once again reiterated that the growth story of the Indian economy will continue in 2008-09, notwithstanding the weak global trends.

Finance minister P Chidambaram, in his post-Budget interaction with industry chamber Assocham, drew parallels with neighbouring China and referred to its Prime Minister Wen Jibao's speech to drive home the point that the growth story must be intact. "Wen told Parliament of China...growth story must be intact but it should not lead to overheating.... in our case growth story must be intact, there is no danger of overheating in India," he said.

Both the countries make similar progress and must learn from each other, Chidambaram said. The only difference that he pointed out is that while Chinese were proud of their achievements, we seem to be too modest about what we have achieved in the past 15 years. We should take pride in what we have done, but there is still a long road ahead, he added.

He said the top priority of the UPA government was to restrict the inflation rate close to 4 per cent and reduce interest rates for home loans up to Rs 20 lakh.

Making a strong case for a cut in interest rates on home loans, finance minister P Chidambaram said he would continue to talk to bankers as these accounts, which form a lion's share of total borrowing for housing, carry less risk weightage.

The finance minister, however, in the same breath added that the ball is in the court of banks and Reserve Bank.

He, meanwhile, justified loan waiver granted to small and marginal farmers in the Budget, strongly arguing that India Inc. enjoyed much more exemptions than the amount of Rs 60,000 crore that would be compensated to banking system from government exchequer.

There are also indications that if the capital inflows slow down then there could be an ease in restrictions on overseas borrowing by companies.

Finance secretary D Subbarao said there were many factors that would determine the change in policy, like the level of overall capital inflows, behaviour of the rupee against the dollar, the situation in global financial markets and events unfolding as a result of the US subprime crisis. “We are anxious to withdraw them as soon as possible. The necessary conditions for rollback are not there yet”, the finance secretary said.

New York, March 6
In changing sweepstakes in world's billionaire club, India's Anil Ambani has emerged as the biggest wealth creator, while famed American investor Warren Buffett has overtaken software czar Bill Gates and Mexican tycoon Carlos Slim to lead the list of world's richest people released by Forbes today.

Four Indians among world’s top 10

As many as four Indians — steel tycoon Lakshmi Mittal, Mukesh Ambani, his estranged younger brother Anil and realty baron K P Singh — have made it to top 10 positions, as against just one, Mittal, a year ago.

India has retained its position as the top source of billionaires in Asia with total 53 persons, who have a cumulative networth of $340.9 billion on Forbes' 2008 World's billionaires list consisting of 1,125 perons with a combined wealth of $4.4 trillion. A year ago, there were just 179 billionaires, Forbes said.

With a networth of $62 billion, Buffett has topped the list, followed by Carlos Slim Helu ($60 billion) and Bill Gates ($58 billion) on second and third positions.

These three are followed by three Indians — Lakshmi Mittal ($45 billion), Mukesh Ambani ($43 billion) and Anil Ambani ($42 billion) on fourth, fifth and sixth ranks.

Besides, DLF's K P Singh ($30 billion) has been ranked, after Sweden's Ingvar Kamprad ($31 billion).

Other two in the top 10 are Russia's Oleg Deripaska ($28 billion) and Germany's Karl Albrecht ($27 billion).

Forbes said Anil Ambani is the biggest gainer with wealth soaring by $23.8 billion since the last list. He is only $1 billion behind his brother Mukesh, who is the second biggest gainer with a rise of $22.9 billion in his networth.

Lakshmi Mittal has gained $13 billion from last year, pushing him one place higher to fourth rank this year.

Among Indians, Mittal, Ambanis and Singh are followed by Essar group's Shashi and Ravi Ruia at 43rd rank globally with a combined networth of $15 billion, Wipro's Azim Premji (60th with $12.7 billion) Sunil Mittal and family (64th with $11.8 billion) and Kumar Birla (76th with $10.2 billion).

These are followed by Unitech's Ramesh Chandra (86th with $9.6 billion), Guatam Adani (91st with $9.3 billion), Savitri Jindal (110th with $8.2 billion), Anil Agarwal (164th with $6 billion), Adi Godrej (178th with $5.5 billion) and GMR's G M Rao (198th with $5.2 billion).

The total number of Asian billionaires jumped by a third to 211 with a total wealth of $804 billion, up from $552 billion last year. The latest list is based on networth valued as on February 11.

India is followed by China (42), Hong Kong (26) and Japan (24) as the top source of billionaires in Asia.— PTI 

New Delhi, March 6
Rift over special economic zones (SEZs) is getting wider between the commerce ministry and finance ministry over the issue of taxation and on India’s status as a trading partner in the WTO negotiations.

The wrangling between the two ministries has been there right from the start of the concept of SEZs. Commerce minister Kamal Nath, who executed the idea of SEZs, rolled out a welcome mat for promoting exports and attracting investment in the country. However, the finance minister, right from the conceptual stage of SEZ, has been lukewarm to the idea and expressed reservations stating revenue loss and diversion of industry from non-SEZ areas to the SEZ areas.

In a recent proposal, the finance ministry is understood to have stated that SEZs cannot afford to have a tax free regime as it weaken India’s hand in the WTO negotiations. In addition to this, the finance ministry has also raised doubts about how the international community would perceive these subsidies stating that it could be viewed as export subsidies.

It could be difficult for India to justify these exemptions and many countries could impose additional duties on goods imported from India.

According to industry associations, it is not advisable for the country to backtrack on SEZ policy at this stage as it will give a wrong signal to investors. As regards hampering the WTO negotiations and subsidy backlash from the trading partners, the industry experts say it is fear, which is unfounded at this stage, and it is better to cross the bridge when it comes.

According to finance ministry estimates, the potential revenue loss due to exemptions and concessions for SEZs from 2006-07 to 2009-10 would be Rs 1,02,621 crore, of which around Rs 53,740 crore would be on direct taxes and the remaining Rs 48,881 crore on indirect taxes.

The commerce ministry has stated that these losses on account of direct and indirect taxes are notional and that the benefits from the exports are enormous. Besides, there would be enormous gains from the economic activity that would be generated from the SEZs

The SEZ Act came into operation only in February 10, 2006, duly underpinned by SEZ rules and it has completed two years of its advent. The policy has the express remit to generate additional economic activity, promote exports of goods and services and investment from domestic and foreign sources, create employment opportunities, and develop dedicated infrastructure within the zone.

Mumbai, March 6
Jet Airways promoter Naresh Goyal would offload 5 per cent of his equity in the airlines before the end of this month to a private equity player, a top company official said.

"Goyal is targeting to dilute 5 per cent before the end of this month," Jet Airways senior general manager K G Vishwanath told PTI.

"We are talking to 5-6 private equity players. They include both national and international players," he said.

Jet has not finalised on the pricing for the private equity placement, he added. Naresh Goyal holds 80 per cent in Jet through Tail Winds.

According to SEBI guidelines, his stake needs to be brought down to 75 per cent.

Once the dilution of 5 per cent stake takes place, Jet would go ahead with its $400 million rights issue.

Jet is raising $400 million to part finance its $2 billion aircraft acquisition. "The remaining funds for aircraft acquisition would come through debt," he said.

Besides the rights issue, Jet's board has given approval to raise $400 million, which it would use to bring down its debt.— PTI

New Delhi, March 6
The government has slashed allocations to its key export promotions and overseas market development programmes for 2008-09 by Rs 600 crore at a time when exporters are facing a rough weather on account of global slowdown and margin erosion due to rupee appreciation.

The Union Budget for 2008-09 has cut export subsidy by Rs 300 crore while abolishing interest subsidy under the programme ‘Assistance for export promotion and market development’.

As against the revised estimates of Rs 1,594 crore for 2007-08, export subsidy has been reduced to Rs 1,294 crore for 2008-09. As regards interest subsidy to banks, no provision has been made for the next fiscal. The government had provided Rs 300 crore as interest subsidy to banks for the current year. — PTI