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Economic Editors’ Conference
Pawar in favour of FDI in retail
Food grain procurement responsibility of the Centre would increase after the passing of the National Food Security Bill by Parliament
New Delhi, October 27
Agriculture Minister Sharad Pawar said today that was in favour of allowing foreign direct investment in the multi-brand retail sector, saying that it would help both farmers and consumers. He however also added that interests of lakhs of small kirana shops should not be ‘bypassed’ and the state governments should also be taken on board.

Railways to come out with smart card
New Delhi, October 27
Railways will come out with a 'smart card' for rail users shortly. "We are negotiating with SBI for issuing smart card for rail passengers," said Railway Minister Mamata Banerjee today at the economic editors' conference here.

Nath seeks Rs 3,400 cr for road-repair
New Delhi, October 27
The road transport and highways minister Kamal Nath today said that his ministry has sought Rs 3,400 crore from the finance ministry for repair of roads, which have been damaged in the wake of unprecedented rains and landslides in different parts of the country.

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	Economic Editors’ Conference Pawar in favour of FDI in retail Food grain procurement responsibility of the Centre would increase after the passing of the National Food Security Bill by Parliament Tribune News Service New Delhi, October 27 Agriculture Minister Sharad Pawar said today that was in favour of allowing foreign direct investment in the multi-brand retail sector, saying that it would help both farmers and consumers. He however also added that interests of lakhs of small kirana shops should not be ‘bypassed’ and the state governments should also be taken on board. “FDI in the retail sector is definitely a good opportunity for the farming community to get a better price. Simultaneously, consumers will get some advantage. But there is another side also. In a country like India, where there are lakhs and lakhs of small shopkeepers, we just can’t bypass them,” Pawar said at the Economic Editors’ Conference here. Pawar said he would like to discuss the matter with the state governments and the industry chambers so that all the stakeholders benefit from the move. “I prefer to discuss the matter with state governments, merchant organisations. I prefer to find some amicable solutions which will possibly be in the interest of most people,” he said. He also added that food grain procurement responsibility of the Centre would increase after the passing of the National Food Security Bill by Parliament. Around 62.1 million tonnes (MT) of foodgrain would be required every year once legal entitlement of food for 75 per cent of the country’s population becomes a reality. He said he had only read about the National Advisory Council (NAC) recommendations in media and was yet to receive a formal communication. He said it would be ‘presumptive’ to say what shape the Act would finally take, according to some rough estimate prepared by his ministry after reading reports on NAC recommendations, around ‘62.1 million tonnes food grain’ would be required, he added. “What is our requirement, we will discuss it. We are awaiting a formal communication from them (the NAC). However, irrespective of the fine print, it is certain that our outgo from the Public Distribution System (PDS) will increase substantially from its current level once the Act is implemented,” the food, agriculture and consumer affairs minister said. Pawar said with a record plantation of sugarcane he was confident of 250 lakh tonnes of production this sugar year that runs from October to September. This would be first time when India will have surplus production of sugar when there is a shortage the world-over, he added.
	Railways to come out with smart card New Delhi, October 27 Railways will come out with a 'smart card' for rail users shortly. "We are negotiating with SBI for issuing smart card for rail passengers," said Railway Minister Mamata Banerjee today at the economic editors' conference here. It will be a composite card which can be utilised in metro, suburban and passenger trains. The card can be utilised for e-ticketing also. However, a railway official said, "The modalities are being worked out for the smart card which will be the first of its kind by the railways. We are in discussion with other stakeholders to make it a composite all-purpose card." Mamata also announced that all passenger trains including suburban trains will have toilet facilities. Currently, suburban trains do not have toilets. "Every suburban train will have toilet for which test has been carried out already. There will also be facilities for handicapped passengers," she said. — PTI
	Nath seeks Rs 3,400 cr for road-repair New Delhi, October 27 The road transport and highways minister Kamal Nath today said that his ministry has sought Rs 3,400 crore from the finance ministry for repair of roads, which have been damaged in the wake of unprecedented rains and landslides in different parts of the country. “This year we had unprecedented rains and landslides in different parts of the country. We have approached for additional funding from the finance ministry for maintenance of roads. We are hoping this will come in the supplementary demand in Parliament during the winter session,” the minister said at the Economic Editors’ Conference. The minister also said that his ministry was geared up to meet the target of building 20 km of highways a day and that government will soon make it mandatory for all vehicles to have radio frequency identification (RFID) cards that will be used to make road toll payments. The Roads Secretary, Mr RS Gujral, said that out of Rs 3,400 crore, Rs 1,000 crore has been sought for the overall maintenance and Rs 1,650 for roads other than those covered under the National Highways Development Project. Besides, Rs 700 crore has be en sought from central roads fund and Rs 50 crore for repair of bridges. Addressing the conference Nath said that in the last 10 months, the department has tied up funds worth Rs 36,000 crore. It is currently building 12 km of roads a day, and the target of 20 km a day will be achieved soon. — TNS
	MFI bill not to come up in winter session New Delhi, October 27 The government will not table a bill on microfinance institutions in the winter session of Parliament, as was planned earlier, since it will wait for a RBI-sub committee report on the subject which will take about three months to get ready. "We will revisit the whole issue of MFIs in the context of RBI committee report. Report will be factored into the proposed bill. It will not be tabled in the winter session," official sources said. The bill assumes importance as MFIs are drawing criticism for their strong-arm tactics of recovering payment from borrowers and exorbitant interest rates charged by them. The Finance Ministry is preparing a bill on regulating MFIs and had finished consultations with stakeholders to table the bill in the winter session. But this has been delayed now, since the whole issue came under a lot of controversy after a number of suicide cases were reported in Andhra Pradesh, allegedly due to coercive methods adopted by these lenders to recover their money from poor borrowers. This prompted the state to promulgate an ordinance to rein in MFIs and RBI to constitute a sub-committee to look into the functioning of these lenders. The RBI sub-committee is headed by Y H Malegam, a senior member on the central board of the central bank. The committee has been asked to study the issues and concerns of the MFI sector, including ways and means of making interest rates, charged by them, reasonable. — PTI
	Forex intervention involves costs: RBI Mumbai, October 27 Intervention in the foreign exchange market to stem sharp appreciation in currencies has costs, Reserve Bank of India Governor Duvvuri Subbarao said on Wednesday. Buying dollars adds liquidity to the banking system, which aggravates inflation. Sterilising resultant liquidity can push up interest rates, which in turn attracts further inflows, the Reserve Bank of India governor said. "Managing currency tensions will require a shared understanding on keeping exchange rates aligned to economic fundamentals, and an agreement that currency interventions should be resorted to not as an instrument of trade policy but only to manage disruptions to macroeconomic stability," Subbarao said. The Group of 20 advanced and emerging economies agreed on Saturday to move towards market-determined exchange rates and to pursue the full range of policies needed to reduce excessive external imbalances. Ultra-low interest rates in developed markets have sent a flood of funds to higher-yielding emerging markets in search of higher returns, putting upward pressure on currencies and prompting several countries to impose capital controls. The rupee, which hasn't gained as much as its Asian peers this year, has risen by 4.6 percent in 2010, helped by a record $24.7 billion foreign fund inflows into equities. In 2009, net equity portfolio inflows were $17.5 billion. Subbarao said managing capital flows is not a problem that should be managed only by emerging market economies. “In as much as lumpy and volatile flows are a spillover from policy choices of advanced economies, the burden of adjustment has to be shared,” Subbarao said. — Reuters
	Corporate Results Dabur net up 15% to Rs 160 cr Tribune News Service New Delhi, October 27 Riding on strong volume-driven growth in its key categories of oral care, hair oils, health supplements, digestives, home care & foods, and stringent cost control measures, Dabur India mitigated the impact of rising input costs to end the second quarter of this fiscal with 15.4% surge in consolidated net profit to Rs 160.35 crore, up from Rs 139 crore, a year earlier. Consolidated gross sales for the quarter stood at Rs 980.46 crore, up 14.7% from Rs 854.83 crore a year ago. Net Profit for the first half of this fiscal marked 16.9% growth to Rs 267.15 crore, while gross sales for the six-month period were up 17% to Rs 1904.84 crore. “Despite a significant rise in input costs, Dabur contained its material inflation through higher buying efficiencies and stringent cost savings programmes, and expanded its EBIDTA 16.2%. The company registered sales growth ahead of the market in several key categories andgeographies. Going forward too, we will continue to strengthen our core business to deliver competitive and profitable growth,” Dabur CEO Sunil Duggal said. JSPL net up 57% Jindal Steel and Power Ltd (JSPL) has announced 57% increase in net profit to Rs. 478.17 crore for the quarter ended September 30, from Rs 305.01 cr in the corresponding period last fiscal. Net sales for the year ended September 30 were at Rs. 2295.47 crore resulting in an increase of 43% compared with Rs 1608.54 cr in the corresponding period last fiscal. Earnings per share went up to Rs. 5.13 compared with Rs 3.28 in the previous year. For the half-year ended September 30, net sales rose to Rs 4414.33 cr from Rs 3196.18 cr. Bata India net up 58% Bata India today announced that its net profit for the third quarter ended September 30, rose 58%. Net sales grew 12% to Rs. 291.78 crore as against Rs. 260.42 crore in the same period last year. Marcelo Villagran, MD, Bata India said, “The higher sales and profitability have been due to our continued expansion plan, an excellent shoe line, improved distribution and our customer centric approach. There has been consistent growth in our retail and non retail businesses which has made this quarter so successful.” Asian Paints net dips Asian Paints today posted 25% decline in its net profit to Rs 196.16 crore in the quarter ended September 30, 2010 over the same period last fiscal. Besides, the company said its board of directors have approved an interim dividend of Rs 8.50 per equity share for the financial year ending March 31.