New Delhi, July 20
Buoyed by rising exports and impact of stimulus packages on Asian economies, the Asian Development Bank today raised the growth prospects for the region to 7.9 per cent, but retained the forecast for India at 8.2 per cent for 2010.

"Better-than-expected results in the first quarter - driven by buoyant exports, strong private demand, and sustained stimulus policy effects - are behind the revision," the Asian Development Bank (ADB) said while raising the growth projections for the region to 7.9 per cent, from 7.5 per cent it forecast in April.

ADB, which came out with a Special Note on economies, however, kept the projections for India and China unchanged at 8.2 per cent and 9.6 per cent, respectively.

Earlier this month, the International Monetary Fund (IMF) had hiked the country's growth forecast for 2010 to 9.5 per cent from its April projection of 8.8 per cent.

Finance Minister Pranab Mukherjee, however, said yesterday that he would stick to his conservative outlook of about 8.5 per cent plus economic expansion for the current fiscal.

Meanwhile, despite upward growth revision for Asia, ADB warned of downside risks in the second half of 2010 on account of uncertain global environment, unpredictable private domestic demand, and the risks of dramatic capital flows and exchange rate fluctuations.

It kept Asia's growth outlook for 2011 unchanged at 7.3 per cent.

For 2010, ADB forecast East Asia - comprising China; Hong Kong; Republic of Korea; and Taipei - to expand 8.4 per cent, slightly higher than the 8.3 per cent predicted earlier.

It said that aggregate growth in Southeast Asia is now expected to be 6.7 per cent this year, sharply higher than the previous projection of 5.1 per cent.

"First-quarter growth in the five bigger economies in this region (Indonesia, Malaysia, Philippines, Singapore and Thailand) exceeded expectations on account of strong exports, robust industrial production, and improved consumer confidence. The subgroup is projected to post 6.8 per cent growth this year," ADB added.

In South Asia, recent economic indicators have been broadly within expectations. ADB forecast aggregate growth of 7.5 per cent, slightly higher than the April projection of 7.4 per cent. India's growth projection is unchanged at 8.2 per cent.

Improving global conditions as well as higher oil prices have helped the economies in Central Asia so far in 2010. ADB now sees the region's economy growing an aggregate 4.8 per cent, up slightly from earlier forecast of 4.7 per cent.

Growth in the Pacific island economies is now forecast at 3.8 per cent, against the earlier forecast of 3.7 per cent. — PTI 

Jammu, July 20
After receiving complaints from individuals, trusts and other entities regarding fraudulent communications relating to fictitious e-mail lottery offers and remittance of cheap funds in foreign currency from abroad, the RBI today cautioned the public against these frauds.

Terming it a violation of the Foreign Exchange Management Act (FEMA), Arnab Roy, Regional Director, RBI, J&K, said, “These fictitious offers are generally made through e-mails, letters, cell phones and SMS and the public should not fall prey to these frauds and they should file their complaints to the Cyber Crime Cell of the police or to the RBI.”

He further said the RBI never accepts deposits of any individual or trust but these fraudulent people are befooling the public by giving false information.

He further said, “Apart from these typical modalities adopted in the past, the fraudsters are now issuing certificates, letters, circulars etc, which are sent through e-mails on the letterheads that look like that of the RBI and purportedly signed by its top executives to make them appear as genuine.”

He further added that it has come to light that some fraudsters are seeking money from the gullible people as processing fee, transaction and clearance fee, conversion charges, and are persuading them to deposit the amount in accounts with banks, which they withdraw immediately.

He stated that the banks have also been advised to exercise due caution and remain extra vigilant while opening or allowing transactions in such accounts.

Chennai, July 20
India's largest automaker Maruti Suzuki will limit exports to the last year's level due to capacity constraints, a top official of the carmaker has said. "We are not competing in exports (with other carmakers) ... we are short of capacity. This year exports will not go beyond last year", Maruti Suzuki chairman RC Bhargava said.

Maruti Suzuki exported 1.47 lakh units in 2008-09, the highest-ever export figures, with the compact car A-star alone clocking over 1.27 lakh units.

'A-star' was exported to European countries, including the UK, France, Germany, Italy and the Netherlands. Major non-European export markets for the car include Algeria, Chile, Indonesia and neighbouring countries.

South Africa, Hong Kong, Australia and Norway were new markets where the company's cars were exported during the year. — PTI 

Chandigarh, July 20
Punjab and Haryana may continue to boast of being the granaries of India but, when it comes to showing enterprise in developing storage space for millions of tonnes of foodgrains produced, Tamil Nadu takes the cake.

Even as the two states, which account for almost 80 per cent of the foodgrain output in the country, are yet to receive bids for creating additional storage space for foodgrains, Tamil Nadu has already accepted bids for creating one lakh tonne of storage space. Punjab and Haryana have reportedly invited bids repeatedly, but failed to get any response. Punjab has invited bids for creating 71 lakh tonnes of storage space, while Haryana has invited bids for creating 43 lakh tonnes of storage space.

Talking to TNS here today, Siraj Hussain, chairman and managing director, Food Corporation of India (FCI), said there was a shortfall of 150 lakh tonnes of storage space in the country. The total storage space in the country is around 420 lakh tonnes. “FCI has asked all states to ramp up their storage capacities under public- private partnership. FCI gives guarantee for providing rent and charges for preservation and maintenance of foodgrains. Tamil Nadu has been successful in roping in four private players who will provide storage capacity at the rate of Rs 4.14 per quintal per month. In order to popularise this scheme, we are also taking up some amendments before our Board of Directors, which include changing specifications for construction as per CWC norms, offering a higher rate to private players on the discretion of the high-powered committee of FCI,” he said.

The chairman said they would also try to rope in corporates into warehousing by allowing them to participate in the bidding process, even if they were not in ownership of the land where the warehouse is to be set up. These corporates will only have to furnish a bank guarantee. “Besides, we have also suggested to the Government of India that silos of 25 lakh tonnes capacity be set up. The two silos in Punjab and Haryana have been quite useful,” he added.

On reducing the base price of wheat under the Open Market Scheme from the present Rs 1,239 per tonne, he said it was not being considered. 

New Delhi, July 20
Upping its ante against the Oil Ministry, Reliance Industries has said it cannot give natural gas to new customers by cutting supplies to power and fertiliser plants.

Stating that the ministry's order was in violation of the gas utilisation policy, RIL has suggested that a panel of ministers should discuss the matter.

The Oil Ministry had on July 12 written to RIL asking it to make a "pro-rata" cut in gas supplies to all existing customers if the production from its eastern offshore KG-D6 fields cannot support new customers.

Users awaiting signing of GSPAs include state-run NTPC (1.14 mmcmd), Essar Oil's Vadinary refinery in Gujarat (0.6 mmcmd), ONGC’s LPG units (0.406 mmcmd), Rithala power plant in Delhi (0.4 mmcmd) and Bawana power plant (0.93 mmscmd).

RIL, however, says it can sign contracts to supply another 2.2 mmscmd on firm basis as it does not want to sign pacts for commodity it does not have. RIL on July 15 wrote to Petroleum Minister Murli Deora saying it had not signed contracts to supply KG-D6 gas with new customers, as they were not ready to receive gas when available and so allocation made to them has lapsed.

The Gas Utilisation Policy, as framed by an Empowered Group of Ministers, provides for no reservation of gas and users, who said will be able to take gas before end of 2009-10 fiscal, were allocated gas. However, not all those who were allocated gas were in a position to take gas by the appointed date.

RIL’s KG-D6 fields can sustain a production of only 60 million standard cubic meters per day and the company has already signed or committed to sign Gas Sales and Purchase Agreements (GSPAs) for 57.8 mmscmd.

Against the availability of 60 mmscmd gas, the Oil Ministry has allocated about 64 mmscmd and wants RIL to sign GSPAs with all those who have been allocated gas. — PTI