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PM’s panel lowers growth projection to 8.9 pc
US slowdown to hit economy
Decision on raising FDI cap in civil aviation put off
Nagpur airport transfer to JVC okayed
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Govt to put in place industry corridor management soon
Indians to get highest salary hike
US for import duty cut on Harley bikes
RIL to invest $2 b in next two quarters
Reliance Power IPO hits record
Reliance IPO generates demand worth Rs 2.05 trillion
Housing Policy
Auto Expo
JP Associates bags Expressway Project
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PM’s panel lowers growth projection to 8.9 pc
New Delhi, January 17 "A better than expected growth rate in the farm sector has partially offset the lower expansion rate in manufacturing and energy sector" said the review released by EAC chairman C Rangarajan. The rising oil, fertiliser and food prices, which might be higher in next year and may affect the practice of taking subsidy expenditures below the line in the form of issuance of securities in lieu of outright subsidies is not desirable, the report said. The farm sector, according to the report, will present a possible upside in 2008-09, provided the South West monsoon are good in 2008. It has been seen that in the current year, the strong growth in agricultural GDP has come mostly from activity other than foodgrain production, namely commercial crops, horticulture and animal husbandry. The report also states that there are downside risks that stem from not being able to take the much needed decisions like appropriate revision in the selling prices of automotive fuels and a longer term policy on fertilisers that can encourage fresh investment into the sector. The impact of the Sixth Pay Commission may also have to be taken into consideration in 2008-09. At an international level, there is possibility that the slowdown may turn into recessionary conditions in the US, especially if there are adverse geo-political developments, which, at times, act as triggers. In such an event, a decline in business confidence at the general level can combine with a prospective compression of export demand, to cause a significant slowing of the domestic economy. The effects are likely to be felt through both trade and capital flows with Indian companies experiencing greater challenges in gaining market share, as also to finance ambitious investment projects or overseas acquisitions. On the domestic front, the report cautions that there may be a downside risk from availability of power. The economy is growing fast, so is the demand for power, and inadequate provision of this key ingredient has the potential of causing significant economic slowdown by reducing the absolute availability and causing factories to depend more on captive power that is often very expensive. PTI adds: The council suggested relief package for labour intensive sectors, whose exports have been hit hard by the rising rupee. Growth rate of exports in 2007-08 is likely to fall to 22 per cent from 26 per cent recorded in the previous year. The EAC expects prices to remain moderate with wholesale prices-based inflation likely to be below 4 per cent "if petro prices are not hiked and slightly above 4 per cent if fuel prices are revised". |
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US slowdown to hit economy
New Delhi, January 17 “Our goal is to make agriculture grow at 4 per cent. The area and productivity of major crops like wheat and rice have stagnated over the last 10 years. The need is to increase area under cultivation and productivity of these crops,” he said while speaking at a CII summit here. He said that inequality was bound to rise in the country with industry and services sector growing at over 10 per cent. “The government will adopt a two-fold approach to deal with this problem. This would involve ensuring maximum possible growth in agriculture besides raising public expenditure in health, education, drinking water and other sectors in rural areas.” Chidambaram said the government would have to move away a large population from rural areas to the industry and services sector. “Only 10-20 per cent population is needed to grow food for the whole population,” he said, adding that India would have to grow sufficient cereals and oil seeds for its consumption. Earlier, he said thanks to high growth over the past four years, which led to buoyancy in revenue collections, the Centre was able to allocate more resources to states that were even higher than funds allocated in previous 10 years. On fiscal deficit targets, he said, “Our fiscal deficit is 3.3 per cent of GDP and our goal is to bring it 3 per cent or below to drive growth. We are trying to wipe out revenue deficit by 2008-09. He also spoke about government concerns over the recession in the US, which is likely to affect India and the growth that is taking place. Though US is a vital trading partner for India any slowdown in the world’s largest economy could mean a hit for the domestic economy as well. One of the ways to stimulate economic activity is to cut interest rates so that more borrowing could trigger investment and also consumption. The US in the recent past has resorted to interest rate cuts so that economic growth can be facilitated, however, India has not resorted to the same and instead has raised interest rates. “There will definitely have some impact on our economy, our exports to the US are significant, but not so significant that we will be gravely affected” Finance Minister P Chidambaram told the industry captains at the CII held Partnership Summit. |
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Decision on raising FDI cap in civil aviation put off
New Delhi, January 17 The matter was to come up for consideration at the meeting of the Union Cabinet chaired by Prime Minister Manmohan Singh today but was put off to another day. "The issue has been deferred," information and broadcasting minister P R Dasmunsi said after the meeting. He was specifically asked whether the cabinet had considered the proposal by the civil aviation ministry. The ministry had proposed to enhance the 49 per cent limit in non-scheduled airlines, chartered and cargo carriers to 74 per cent, without any direct or indirect participation of any foreign airline. The ministry had also proposed to raise the FDI cap for ground handling services to 74 per cent through the automatic route and to 100 per cent via same route for setting up of maintenance, repair and overhaul (MRO) facilities and flying and technical training institutions, besides in helicopter and sea-plane services. Civil aviation minister Praful Patel has been vocal in his support to launch sea-plane operations in the country, which has a vast coastal belt. He has also been supportive of expanding helicopter operations. As regards MRO, the Indian aviation sector has already received firm proposals from aircraft manufacturers like Boeing and Airbus Industrie to establish such facilities. |
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Nagpur airport transfer to JVC okayed
New Delhi, January 17 The Cabinet meeting, which was chaired by Prime Minister Manmohan Singh, also gave its approval for setting up of a Greenfield International Airport through the Public Private Partnership (PPP) at Kannur, Kerala to meet the growing air traffic from the region. The Kannur airport will be built over 2000 acres of land and will have a single runway. The project would be implemented through the Public Private Partnership (PPP) route with the total project cost of Rs 929.5 crore. The Cabinet also gave its clearance for the transfer of Nagpur Airport to the JVC comprising of MADC and AAI with equity participation of 51 per cent and 49 per cent, respectively. JVC will have subscribed capital of Rs 10 crore of which AAI’s subscription will be Rs 4.90 crore. The clearance came following the recommendations of the steering committee, which went into the proposal of the Maharashtra Government. Besides officials from the Ministry of Civil Aviation and AAI, the steering committee had officials from Maharashtra State Road Development Corporation (MSRDC), the nodal agency for the project. As of now five international flights are operated out of Nagpur every week. But this number is expected to increase with the increase in air traffic. Earlier, an MoU had been signed in December 2006 between the ministry and MADC where it was proposed to transfer the Nagpur airport along with all its lands and other assets to the JVC within a period of 180 days. The steering committee had been constituted following this to go into the finer details of the project. Under the MoU, the airport will be transferred to JVC at an annual lease rent of Rs one for a period of 30 years. This period can be extended on mutually agreed terms and conditions. All infrastructure facilities shall remain with AAI, which will continue to provide these services to the airport. |
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Govt to put in place industry corridor management soon
New Delhi, January 17 While the corporation has been incorporated, the government is yet to appoint the management for the project to be developed with financial assistance from Japan. “We plan to put in place the management (for the project) very shortly. The first phase of the project is likely to be implemented by 2012-2013,” minister of state for industry, Ashwini Kumar, said. The project involves building of large industrial enclaves on both sides of the Delhi-Mumbai railway freight corridor to get the maximum benefits of the rail link. Kumar said the project would result in the development of an union territory and six states - Delhi, Haryana, Gujarat, Maharashtra, Madhya Pradesh, Rajasthan and Uttar Pradesh. “This would ensure millions of new jobs in the heartland of India. This (the project) is a major step in promoting employment on a large scale,” he said. Kumar said he has recommended a slew of projects for improving connectivity and skill upgradation in the state. These include a day-train between New Delhi and Pathankot, construction of the Centre for Vocational Education and Skill Upgradation in Gurudaspur and a food-processing centre in Pathankot. — PTI |
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Indians to get highest salary hike
New Delhi, January 17 According to data compiled by global human resources consultancy firm ECA International, Indian employees are expected to get the biggest paycheck increase globally this year, primarily driven by inflationary situations associated with the robust economic growth in the country. "Salary increase in India is expected to be the biggest this year as companies have to keep in mind the inflation for their employees to maintain a good economic stature," ECA International general manager Lee Quane told PTI. Other key reasons for the significant salary increase would be the talent-retention measures being adopted by the MNCs as well as soaring corporate profits that entitle the employees for some handsome increments, Quane said. According to ECA International's Salary Trends Survey 2007-08, Indian employees working with MNCs are forecast to receive an average hike of 14 per cent — the highest across the world, and up from 12.6 per cent in 2007. India is followed by Argentina (12.7 per cent), Indonesia (11.3 per cent) and Russia (11 per cent).
— PTI |
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US for import duty cut on Harley bikes
New Delhi, January 17 US Assistant Secretary for Commerce David Bohigian met senior Indian government officials, including secretary in the Department of Industrial Policy and Promotion Ajay Shankar. “India imposes 10 per cent higher tariff than other countries,” Bohigian said, adding that he was expecting a breakthrough soon on the US demand for reduction in import duty. Besides seeking reduction in tariff, the delegation from the US Commerce Department is believed to have made a strong pitch for the American aircraft manufacturer Boeing. The state-owned Air India is on a huge expansion drive, requiring a new fleet of 110 aircraft in the next three to five years. The US and the European Union had taken India to the World Trade Organisation against high level of duties on wines and spirits. Though India had announced duty reduction on alcohol beverages, the US wants further cut. The negotiations with the Indian officials would also cover the US interest in renewable energy areas like solar and wind power and strict enforcement of the intellectual property rights.
— PTI |
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RIL to invest $2 b in next two quarters
Mumbai, January 17 “We would be investing $ 1 billion in each of the next two quarters on exploration and development activities,” RIL Chief Financial Officer Alok Agarwal told reporters here. Commercial production from the KG basin would begin before the end of this year, he said. On Reliance Retail, Agarwal said the company has been opening more than one store a day. “We have opened 450 stores so far. We are expanding our Reliance Fresh stores,” he said. Reliance Retail has identified nine formats for expansion. These include grocery, home care, apparel and accessories, FMCG, consumer durables and IT, automotive accessories, and lifestyle products. Agarwal confirmed that Reliance Retail would not list on stock exchanges, at least in the near future. “Initial public offer is not an immediate priority for Reliance Retail. We are looking at a much larger footprint in 2008.” A few days ago, RIL sold its shares in Reliance Petroleum in the open market. RIL has sold its investments in RPL to invest in new projects. “We are finding newer and newer investment (opportunities),” Agarwal added. Net up 26 pc in Q3
Reliance Industries today posted a 26 per cent increase in net profit for the third quarter ended December 31 to Rs 3,882 crore from Rs 3,081 crore a year ago. Turnover for the reporting quarter rose 21 per cent to Rs 35,880 crore from Rs 29,753 crore for the same quarter last fiscal.
— PTI |
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Corporate Results
New Delhi, January 17 Global sales registered 24 per cent growth. During the quarter, emerging markets like Romania, CIS, South Africa and Brazil were the key drivers of growth which contributed 54 per cent to global sales. For the year ended December 2007, the company's net profit stood at Rs 790.1 crore, up 53 per cent. However, after excluding foreign exchange gains or losses, net profit of the year was Rs 606.9 crore, up 15 per cent. To demerge R&D operations
Ranbaxy Laboratories will spin off its new drug discovery research operations to set up a new firm, 'Ranbaxy Life Sciences Research', in February. The new entity is expected to get listed in the second half of the year, Ranbaxy CEO Malvinder Mohan Singh said. HCL profit up
IT firm HCL Technologies today posted a marginal increase in net profit at Rs 266.95 crore for the quarter ended December 31 compared to Rs 266.14 crore for the same quarter last year. The total income of the company rose to Rs 1,185.30 crore for the quarter against Rs 1,023.43 in the year-ago period, HCL Technologies said. The board of the company in its meeting held today also declared an interim dividend of Rs 2 per share (of face value of Rs 2). Reliance Energy
Anil Ambani-owned power utility firm, Reliance Energy Ltd (REL) today said its net profit registered an increase of 50 per cent to Rs 301.6 crore for the third quarter ended December 31, 2007 as compared to Rs 201.03 in the corresponding quarter last year. Its total income has increased marginally by 2 per cent to Rs 1,853.41 crore for the third quarter compared to Rs 1,820.43 crore in the same period last year. RNRL net soars
Reliance Natural Resources Ltd (RNRL), a part of the Anil Ambani Group, today reported over two-fold rise in its net profit at Rs 23.79 crore for the quarter ended December 31, 2007 as against Rs 10.45 crore in the year-ago period. However, net sales of the company declined 44.60 per cent to Rs 40.73 crore for the reviewed quarter compared to Rs 73.53 crore for the same period previous year, the company said in a filing on the National Stock Exchange. Godrej net up 13 pc
Leading fast moving consumer goods company Godrej Consumer Products Ltd today said it has registerd 13.21 per cent increase in net profit at Rs 41.47 crore for the quarter ended December 31, 2007 as compared to Rs 36.63 crore for the same period a year ago. The company’s total income also jumped 15.73 per cent to Rs 231.36 crore from Rs 199.91 crore in the said period. IDBI profit up 39 pc
Industrial Development Bank of India Ltd (IDBI) today said its net profit has increased 39 per cent to Rs 175.84 crore for the third quarter ended December 31, 2007 as compared to Rs 126.79 crore in the corresponding quarter last year. Its total income has increased 32 per cent to Rs 2,471.3 crore for the third quarter compared to Rs 1,877.6 crore in the same period last
year. — Agencies |
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Reliance Power IPO hits record Mumbai, January 17 Over 2.2 million applications were received for the issue, which has been subscribed 22.84 times till 1700 hrs today. The issue closes tomorrow. According to the latest data available on the Bombay Stock Exchange, the IPO received bids for 520.73 crore shares as against the 26 crore shares on offer on its third day today. The issue has also received record 22 lakh applications which is more than the previous highest number of 19.5 lakh received for the IPO of Reliance Industries. The portion reserved for retail investors has been subscribed over five times. — PTI
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Reliance IPO generates demand worth Rs 2.05 trillion
Mumbai, January 17 According to the latest data available on the Bombay Stock Exchange, the IPO received bids for 452.43 crore shares as against the 22.8 crore shares on offer till 1400 hrs on its third day today. The demand for the Reliance Power IPO has surpassed that of Mundra Port and
SEZ, which had generated the biggest demand for its initial offer last year receiving bids worth about Rs 2,00,000 crore with an over-subscription of 115 times.
— PTI |
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Housing Policy New Delhi, January 17 Among the suggestions she receieved were of faster environment clearences, single-window clearence and need for reductuion in state levies such as stamp duty and extra development charges. Estimates drawn up by the ministry say that Rs 3.60 lakh crore would be required in the 11th plan to meet targets of housing shortage. The minister said that a task group will be constituted to suggest ways to make cheap finance available to economically weaker and LIG sections. The new policy says that 10-15 per cent of land in every public and private housing project or 20-25 per cent FAR, whichever is greater, should be reserved for EWS/LIG housing through appropriate spatial incentives. Representatives from the CII, Assocham, PHDCCI and Hudco were among those present.
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Auto Expo
New Delhi, January 17 The expo also broke other records such as over 1.8 million foot-falls and the number of enquiries generated. "Preliminary estimates indicated that the auto carnival attracted about 1.8 million visitors and generated business enquiries worth about Rs 20,000 crore at Pragati Maidan," CII deputy director general Gurpal Singh told reporters here.
— PTI |
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JP Associates bags Expressway Project Lucknow, January 17 The Uttar Pradesh state cabinet in its meeting here today approved the name of JP Associates as the developer for the 1,047-km expressway, which would link Noida to Ballia, passing through 19 districts along the bank of river Ganga, state's industrial development commissioner Atul Kumar Gupta said. — PTI
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Kavveri buyout Future IPO Oracle-HP pact Fujitsu Coal India IPO NIIT agreement Tata Steel |
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