New Delhi, February 10
A significant hike in allocation to the agriculture sector is likely in this year’s budget (2005-06) with the government drawing out a comprehensive action plan aimed at reforming agriculture markets and post-harvest infrastructure.

Finance Minister P Chidambaram today dropped subtle hints that the level of public investment in the farm economy was likely to be stepped up.

“If India were to be driver of the global economy in the 21st century, we have to promote investment in irrigation, agriculture and infrastructure”, Mr Chidambaram said today.

He was addressing captains of the industry at a meeting organised by the Indian chapter of the International Chamber of Commerce (ICC) here.

The government has identified a series of steps for pitchforking the agriculture sector into a high growth trajectory, including a programme to revamp agriculture research, agriculture extension and agriculture education.

Measures would also be initiated specifically for the revival of plantation crops and genetic upgradation of buffaloes and cattle.

Besides, there would be new initiatives for augmenting fish production.

On institutional reforms the measures would focus around: (i) decentralisation (ii) simplification (iii) transparency (iv) accountability and (v) e-governance.

The Finance Minister, today did send a strong message obliquely aimed at all UPA allies saying that it was time to set aside “sterlie political controversies and focus on economic reforms to bring about high rates of growth”.

At the same time, he clearly underlined the need for maintaining fiscal prudence which was of paramount importance if India were to hit a high growth equilibrium.

“It is important for us to become a fiscally prudent and responsible country”, he said. This is being seen by many that the Finance Minister is according highest priority to rein in the fiscal a and revenue deficits even as he was allowed to loosen the purse strings for the larger growth objective.

It was also imperative to carry on the open economy policies adopted by the country after 1991, he said and urged the private industry be competitive.

“Indian industry needs to increase its competitiveness and identify areas where the country has a competitive advantage”, he said.

Exuding confidence about the macro-economic resilience of the Indian economy, Mr Chidambaram said that inspite of an “erratic monsoon”, the projected growth rate for 2004-05 is 6.9 per cent. “ This was on the back of a high 8.5 per cent growth of 2003-04”, he pointed out.

On the inflation front, which had threatened to breach the 10 per cent mark at one point of time due to high crude oil prices, Mr Chidambaram said that presently the inflation rate is 5.4 per cent “ which is one percentage point lower than the level prevailing last year”.

“I hope I will have many friends after 18 days (Budget day of February 28),” he said in an apparent response to outgoing ICC president Sudhir Jalan’s remark that “Dil Maange More”.

“India has the potential to drive the global economy,” he said but cautioned that there was a wide gap between potential and realization of that potential.

Mumbai, February 10
Vedanta Resources, an international metals and mining major promoted by Sterlite Group of India, is making an investment of Rs 17,000 crore in India, including setting up a greenfield aluminium smelter project in Orissa at a cost of Rs 7,000 crore.

Addressing a press conference, Anil Agarwal, Founder and CEO of Vedanta, said this was a major step towards attracting international investors to the Indian metals and mining industry.

Vedanta has already brought in foreign direct investment (FDI) of $1.5 billion to finance its existing projects which are now being expanded at an investment of Rs 10,000 crore. “The expansion projects are fast approaching completion as scheduled”, Mr Agarwal said.

These steps are aimed at increasing the production capacity to meet the growing demand for metals the world over and reduce the cost of operation. “This is a major step in our vision to create one million tonnes of aluminium production capacity to meet the growing demand and establish India as a major player in the global resource industry”, Mr Agarwal observed.

After taking over the state-owned Hindustan Zinc, the cost of production declined to $ 560 per tonne from $800 per tonne.

Mr Agarwal said the aluminium smelter project in Orissa marked the beginning of the next phase of Vedanta’s strategy in the aluminium sector as the project would be implemented in two phases over the next 3-5 years, creating direct employment for 5000 people.

The first phase will include setting up of a 245,000 TPA smelter with associated power facilities of 1000 mw. Initial project development work, including land acquisition, feasibility studies and government approval process, is underway. The company has already earmarked an investment of $1 billion for the projects.

The expansion projects include Sterlite Copper, BALCO (Rs 4000 crore), Hindustan Zinc (Rs 2000 crore) and Vedanta Alumina Ltd. The plans aim at increasing copper production from 180,000 to 300,000 TPA in Tamil Nadu, zinc production from 220,000 to 400,000 TPA at Chanderiya in Rajasthan, aluminium production from 100,000 to 345,000 TPA at Korba in Chhattisgarh and the greenfield project of 1-1.4 million TPA alumina refinery at Lanjigarh in Orissa. — UNI

New Delhi, February 10
India’s first National Spot Exchange for Agriculture Produce (NSEAP) was set up today, paving the way for linking all agriculture produce marketing cooperatives (APMC) and other physical market players on an electronic platform.

A memorandum of understanding (MOU) to this effect was signed here today among Financial Technologies (India) Ltd (FTIL), Multi-Commodity Exchange (MCX) and National Agricultural Cooperative Marketing Federation (Nafed) with the State Bank of India as the principal clearing and settlement bank of the exchange.

Agriculture Minister Sharad Pawar said the government is planning to introduce a legislation to make warehouse receipts a negotiable instrument in order to attract increased lending by banks for agriculture sector.

The National Spot Exchange for Agriculture Produce will link all APMCs by creating an electronic bridge between the consumers and producers across the country.

The participants from existing spot/physical markets can look at this platform to seek critical information on practically every commodity, integrating the nation into a single commodity market place.

The NSEAP plans to act as an integrated market for all 7325 APMCs of the country dealing in 140 crops with a cumulative annual turnover of Rs 3095 billion.

Mr Pawar says by the end of the current year, a large number of states would amend their APMC Acts, subscribing to the Centre’s Model APMC Act that allows the private sector to develop and set up its marketing yards and go in for direct purchases from the farmers.

At present, the MCX has listed 92 commodities and is operating in 54 of them.

Mr Pawar said that major agro-business enterprises should procure directly from the production centres on very remunerative prices to farmers.

However, electronic linkages have to be created between buyers and sellers for better efficiency in procurement along with necessary infrastructure support to settle transactions.

Mumbai, February 10
President A.P.J. Abdul Kalam today asked the Indian Information Technology (IT) industry to improve on its present growth rate and capture 15 per cent of the global business by 2008.

Addressing a session at the National Association of Software and Service Companies (Nasscom) 2005 business summit here via video conferencing from New Delhi, the President asked the industry leaders to move up the value chain and develop innovative products to stay ahead in the international market.

"Our first aim should be to capture at least 15 per cent of the global business volume in these two sectors, which is expected to be around $1.2 trillion by 2008," Dr Kalam said.

"The market share of the Indian software industry in IT services, ITES and BPO alone should be around $200 billion by 2008," added Dr Kalam.

Complimenting the present growth of the IT industry, the President noted that the industry grew to nearly $ 28 billion — $ 18 billion exports and $10 billion domestic market — contributing to nearly 24 per cent of the nation's exports.

Bangalore, February 10
Rolls Royce engines would be powering the Airbus 320s ordered by Bangalore-based low-cost airline Air Deccan, and its share of the International Aero Engines (IAE) V-2500 engine, for the airline's fleet expansion of 30 A-320s, including a long-term Fleet Hour Agreement is worth $ 200 million.

IAE president Mark King today said at Aero India that the selection of V-2500 underlined its appeal to operators of the Airbus A320 family and low-cost carrier market. "Our average market share for the A320 is 56 per cent, and the share of the low-cost carrier market in particular is 64 per cent."

The total value of the deal to IAE, in which Rolls Royce is the principal shareholder is $ 600 million.

Bell Helicopter notched up a sale today at Aero India, signing a purchase agreement with VSL Mining Company in Karnataka for one Bell Model 407. Since its certification in 1996, Bell has delivered over 625 of these aircraft, which have logged 1.25 million hours.

Meanwhile, Marshal of Air Force Arjun Singh today exhorted youth to join the Indian Air Force. "The Air Force has done well in India, it is a good service. Join it, and 30-35 years later go out a happy man!" he said, speaking after distributing prizes to winners of an aviation quiz organised by Vayu Aerospace magazine.

New Delhi, February 10
The Ministry of Civil Aviation is to soon send its detailed proposal for the setting up of the Civil Aviation Economic Regulatory Authority to the inter-ministerial group for its clearance before putting it forward in Parliament in the form of a Bill for the final clearance by both Houses.

Officials of the ministry here said today that the detailed proposal, that would facilitate the investment in the modernisation plans of some of the airports and the private airports that are on the anvil, would soon be forwarded to the inter-ministerial group for its approval.

Once the clearance has been received the ministry would then prepare a detailed note that would form part of the Bill that would help setting up a regulatory authority for the civil aviation sector. The Bill is expected to be presented in Parliament during the forthcoming Budget Session.

Reports suggested that the economic regulatory authority would be in place by August this year just before first of the consortium is selected for the restructuring of the Delhi airport.

The regulatory body would seek to address the concerns of the airlines, airports and other operators or consumers on various aviation-related issues, including tariff discrepancies besides ensuring a level-playing field for all players.

Bangalore, February 10
Defence aviation major Hindustan Aeronautics Ltd (HAL) is keen on firming up orders from civil aviation majors, Boeing and Airbus, in the light of the Indian Airlines and Air-India contemplating to buy new aircraft for its operations.

Speaking to newspersons at the Aero India venue, HAL Chairman Ashok L Baweja observed that the company expected for offsets following the large deal from the two companies in aeronautical aviation products as it provided a great opportunity. He had already held discussions with the top officials of the two companies in this regard. “We are seriously looking for it,” he remarked.

HAL was already supplying some parts to the Airbus and it should not be a problem to prove its worth, he pointed out.

Replying to queries, Mr Baweja said HAL had also initiated a dialogue with the ATR company to service its ATR 42 and ATR 72 aircraft. A business agreement would be signed for maintenance of the aircraft in India as it would be a cost-effective solution for them, he added. — UNI

San Francisco, February 10
Hewlett-Packard Co. (HP) on Wednesday ousted its chairman and chief executive, Carly Fiorina, the architect of a controversial merger with Compaq Computer that never produced the results she promised.

Chief Financial Officer Robert Wayman, who was named interim chief executive, said HP did not plan to reverse the Compaq deal, but left the door open, saying the board would not be close-minded on strategy changes once it locates a new CEO.

HP has turned in erratic financial results under Fiorina, one of the most powerful women in American business.

The board said its chief concern was to improve "execution" of strategy, although many on Wall Street hope HP will spin off its printing division, which delivers most of its profit.

HP shares, which have lost 63 per cent of their value since Fiorina became CEO in July 1999, rose as much as 10 per cent on Wednesday and were up 6 per cent in afternoon trading.

Corporate recruiters saw Mike Zafirovski, Motorola's former chief operating officer, as a top contender to become CEO, while others pitched Michael Capellas, current CEO of communications company MCI and former Compaq chief.

Fiorina (50), was HP's first outside leader and took over in 1999 with a mandate to revitalise Silicon Valley's original start-up, a company that had become known for an insular and balkanised corporate culture celebrated internally as "The HP Way."

But the record under Fiorina remained spotty, with HP dashing investor hopes in three of the past nine quarters as it lost market share to rivals Dell and IBM.

Fiorina, the only female CEO of a component of the Dow Jones industrial average, resigned after a showdown on Tuesday afternoon, ending a tumultuous five-and-a-half-year reign. She will leave with a $21 million severance package.

Wayman, a 36-year veteran of the company, also was appointed to the HP board of directors. He said a search for a new CEO was underway and that the board had agreed to stick with the strategy combining its printer, corporate computer and personal computer businesses.

"We are looking for a CEO who also embraces that strategy, in all probability," Wayman said in a conference call with Wall Street analysts. — Reuters

Chandigarh, February 10
The Union Ministry of Information and Technology has constituted a high-level working committee to work out modalities for the growth of IT in the domestic sector. The committee, headed by the Chairman and CEO, HCL Infosystems, Mr Ajai Chowdhry, would focus on PC and internet penetrations, besides creating multi-lingual software to make the domestic IT sector happen.

Mr Chowdhry, who was in the city today for the 12th HCL Mindia Conclave, said the committee was devising strategies to create a vibrant IT market in the country. The report is to be submitted to the ministry by March 31.

He said the penetration levels of both PCs and Internet connections were very low as compared to countries like China and the support of the government is needed to improve the same.

The reduction in duty by the government brought down the prices of PCs last year, but they have to be reduced further to make buying PCs for homes easier. He said the company had tied up with the Union Bank of India to provide HCL EzeeBee PC to the common man at an affordable EMI of Rs 499 per month. It recently launched the RP2 system that operates on car battery and gives uninterrupted PC performance, thereby solving power-related problems faced by thousands of users across the country.

Mr Chowdhry said the company had grown its business in computers and hardware segments by over 100 per cent in the past two years from Punjab, Haryana, Himachal Pradesh, Jammu and Kashmir and Chandigarh. “We have generated business worth Rs 600 crore during the past one year and created job opportunities,” he said. In fact, India has the potential to capture the IT and hardware manufacturing industry from across the globe.

HCL, under its newly bagged project of Rs 76 crore from the Department of School Education, Punjab, would focus on providing Information and Communication (ICT) education to the students of the government schools in the state. HCL will supply, instal and maintain IT infrastructure in 1,287 government schools in rural and urban areas. Even other states would have to follow suit so as to make the next generation child IT literate, he added.