New Delhi, June 6
After receiving verbal volleys from the BJP, including a demand for resignation, finance minister P Chidambaram has hit back stating that the opposition party was spreading disinformation on price rise.

“We admit that inflation is a problem. It was a problem under the BJP/NDA government, too. In 2000-01, in 48 out of 52 weeks, inflation was over 6 per cent, these are facts that cannot be wished away,” the minister said.

“One of the most important aspects of the UPA government has been its commitment to strengthening the economic fundamentals. Within days of assuming office, the UPA government notified the Fiscal Responsibility Budgetary Management Act that the NDA government was reluctant to do. We inherited a fiscal deficit of 4.5 per cent from the NDA government, which has been brought down to 2.8 per cent in 2007-08. Likewise, we inherited a revenue deficit of 3.6 per cent, which has been brought down to 1.2 per cent in 2007-08,” Chidambaram said.

He added, “The sound management of the economy is also reflected in better collection of taxes and curtailment of wasteful expenditure. In the six-year period of the BJP/NDA government, the tax to GDP ratio crawled from 9.1 to 9.2 per cent. Starting with 9.2 per cent at the end of 2003-04, the UPA government has raised it to 12.5 per cent in 2007-08, and the ratio is expected to reach 13 per cent this financial year.”

The finance minister stated that current inflation is almost entirely due to the relentless rise in crude oil prices.

This rise has also triggered an increase in commodity prices and, because bio-diesel is produced from food items such as maize, sugarcane and palm oil, food prices have also come under pressure.

“The UPA government, like the governments all over the world, is fighting inflation. We have taken fiscal, monetary and administrative measures, and we are willing to take more measures. But, to criticise the government on the ground of inflation without going into the causes of the current inflationary trends and without offering any concrete solutions would amount to merely politicising the issue. The BJP/NDA is, of course, in the Opposition, but that does not mean its duty to the people is only to oppose the Government. I may point out that we have not heard of any concrete suggestion made by the BJP/NDA that, if implemented, would help in moderating inflation,” the minister stated.

In response the BJP’s asked the finance minister to visit markets and see for himself at what rate people are buying essential commodities,saying that it was stating the facts and voicing the concern of the common man.

“We don’t need a certificate from the finance minister. We are only stating the facts which are stark and blunt,” said party spokesman Ravi Shankar Prasad reacting to the FM’s remarks.

New Delhi, June 6
As if to given an option to people reeling under the pressure of fuel price hike, country’s largest car maker Maruti Suzuki India Ltd (MSIL) today launched a new LPG variant of its flagship model M800.

Priced between Rs 2.05 lakh and Rs 2.26 lakh (ex-showroom price — Delhi) the new model, named M800 Duo, will have dual fuel option of petrol as well as LPG, the company said.

"Dual fuel vehicles have always formed a prominent part of our overall product strategy. Besides, the car is economical to drive and being factory-fitted, it is completely safe," Maruti Suzuki India executive officer (marketing and sales), Mayank Pareek said.

The new M800 will be available in two options - M800 Standard with LPG priced at Rs 2.05 lakh (ex-showroom Delhi) and M800 AC LPG tagged at Rs 2.26 lakh.

Pareek said the success of Maruti Suzuki’s dual fuel models like the WagonR and Omni Cargo was a clear reflection of customer’s preference towards products that are safe and light on pocket as well as environment friendly.

Designed in-house by a team of 24 engineers, the M800 Duo works on gas mixer system based on integrated gas technology that results in optimum performance and superior emissions.

The LPG variant emits 10 per cent less carbon dioxide than the petrol variant, hence is environment friendly, the company informed.

The new model is manufactured at the company’s Gurgaon plant and is available in a range of five colours.

The components of the M800 Duo are fitted on-line along side the petrol variant of the car, it added.

New Delhi, June 6
Promoters and investors in Spicejet, the most cost efficient domestic airline, could be inclined to sell stake in case of an offer at a higher valuation of over Rs 1,000 crore from prospective buyers, possibly the Anil Ambani-led Reliance ADA group or Jet Airways.

While officials concerned remained tight-lipped, sources in the know of the deal gave enough indication that talks were on with Reliance ADAG and Naresh Goyal-led Jet Airways.

The reports about a possible deal pushed up Spicejet shares by over 14 per cent during the day to close at Rs 35.95 raising the company’s value at current stock price to Rs 865.14 crore.

The appreciation in the company’s share prices comes on a day when industry leaders like Jet and Deccan (now owned by Vijay Mallaya promoted Kingfisher Airlines) lost up to 3 per cent in a weak market.

Sources said as the airline was doing well and was on an expansion mode, different people have been approaching it with various proposals to buy out some promoters and investors.

While Rs 755 crore may not be the right price, but if the valuation goes up to Rs 1,000 crore and beyond, the investors or even promoters could be interested in exiting the airline, the sources added.

When contacted Ajay Singh, director, Spicejet, did not take any query on the issue, including whether he has also been approached by any prospective buyers.

In the meantime, Spicejet in a communication to stock exchanges said: “The company has till date not received any formal communication from any party” on reports that “Anil Ambani is in race to buy out Spicejet”. — PTI

New York, June 6
Indian IT major Infosys is finding it difficult to expand the presence in neighbouring China and the time taken to receive payments there is up to nine times of the global average, its CEO Kris Gopalakrishnan has said.

“We are finding it difficult to expand in the Chinese market. The business environment and the standards and processes are different,” Gopalakrishnan said in an interview with the online edition of US business magazine Forbes.

He said another challenge in doing business in China is “getting accustomed to how Chinese companies do business with each other and what are the usual expectations. For instance, typically when you work globally, you receive payments in 30 or 60 days. In China, the norm in 270 days.”

Infosys Technologies, which is listed in India as well as the US, has a fully owned Chinese subsidiary, Infosys China, which is headquartered in Shanghai.

Infosys China has development centres in Shanghai, Hangzhou and a representative office in Beijing. Shanghai centres focus on IT services while the centre located in Hangzhou specialises in BPO services.

When asked if the business has grown a lot in China, he said: “Growth has been slower in and outside China. Both have taken longer than we liked.”

Responding to a query on whether the US is losing it edge in training enough engineers and scientists, the Infosys CEO told Forbes.com that the “The US has to continue to attract the best and brightest to remain competitive. The US is still number one by far in terms of the number of innovations... it’s a place that has attracted people from all over the world,” he said.

“... Now, let’s say fewer and fewer students come here (US) because of the growth of opportunities in India and China and also West Asia,” he noted, adding that “We are seeing research and development labs set up in India and China.” — PTI

Chandigarh, June 6
Banks across the country have been directed to finalise and display lists of farmers eligible for the farm loan waiver by June 20.

This will ensure that the scheme is completely rolled out by the end of the month, following which the list of farmers will be audited by the Reserve Bank of India.

Finance minister P. Chidambaram stated this while talking to The Tribune during a brief stopover at the city here today. He said the cost of the scheme is estimated at about Rs 71,680 crore.

He said an estimated number of small and marginal farmers who would be eligible for a complete debt waiver was 36.90 million, while the number of other farmers (owning over two hectares) eligible for the one time settlement was estimated to be about 5.97 million.

The finance minister said he was here to check the preparedness of the banks at field-level for the implementation of the scheme.

Accompanied by officials of Punjab National Bank, State Bank of Patiala, Punjab and Sind Bank and Malwa Grameen Bank, he visited bank branches in Chor Mastpur, Shahabad Markanda, Shambhu and Rajpura villages. He visited the branches to see if they had prepared a list of farmers and insisted that no eligible farmers should be left out.

“The grievance redressal officer will be appointed in each bank branch, so that the eligible farmers who have been left out can take up the matter with the banks,” he said. He also distributed kisan gold cards to four farmers at Rajpura.

He refused to comment on any political issue, including rising inflation and duty cuts of petroleum products affecting the economy.

Bus operators and transport agencies said they would support the decisions taken by the association at the meeting.

New Delhi, June 6
State-run Bharat Sanchar Nigam Ltd’s (BSNL) demand for being compensated for the losses it would have due to the withdrawal of access deficit charge (ADC) it levied on private telecom players on the connections in rural India may finally be met with the Department of Telecom (DoT) considering various options for the purpose.

BSNL has sought a compensation of Rs 13,800 crore per annum for offering lower tariffs for its fixed line telephone subscribers in rural areas.

The move came after regulatory body Telecom Regulatory Authority of India (TRAI) gave orders for the withdrawal of the ADC and the subsequent passing of the benefit to the consumers by the telecom operators.

After abolishing the ADC, BSNL has been threatened to either raise tariffs for the rural subscribers or cut off all the loss-making telephone lines.

ADC was levied by Telecom Regulatory Authority of India (TRAI) in 2003 to provide support for BSNL’s rural telephone obligation.

According to reports, DoT is considering to help BSNL make up for losses through a three-pronged formula, including exempting it from paying towards Universal Services Obligation fund (USO) and paying licence fee for rural fixed line telephones.

TRAI has recommended an exemption of 2 per cent of the annual revenue for operators who have covered 75 per cent of development blocks.

The DoT is looking at providing Rs 2,000 crore to BSNL from the USO fund for the next three years, a suggestion which was also given by TRAI while withdrawing ADC.

The DoT is also looking at providing for the difference between the cost-based rentals prescribed by TRAI and the rentals actually being charged by BSNL from its rural subscribers.

New Delhi, June 6
After completing the acquisition of Jaguar and Land Rover from Ford for $2.3 billion, Tata Motors today said it is exploring the possibility of bringing the two British marquees to India.

“Like Russia and China, JLR would be exploring the Indian market also. A team will be coming to India to study the market,” Tata Motors managing director Ravi Kant told analysts in a conference call.

He, however, said the company was not expecting big numbers from the two brands in India.

“As these are high priced products, we should not be putting big numbers. The market is developing and other high priced products like Mercedes and BMW are also doing well in India,” Kant said.

Asked if JLR would be adding additional capacity in view of new models XK, XF from Jaguar and other products from Land Rover being in the pipeline, and whether it plans to enter new markets, Jaguar Land Rover CEO David Smith replied in negative.

“Our capacity has been realigned but we do not expect additional capacity requirement,” he said.

Smith also said during the transition period, Ford Credit would continue to support vehicle and dealership financing. “We are also working on the replacement plans.”

On the imminent launch of Nano and the possibility of Tata looking to synergise JLR’s distribution network in overseas market, Kant said: “Jaguar and Land Rover are premium products and Nano is at the other end of the spectrum. We have no plans to use JLR network.” — PTI

BRIEFLY

Elected worker’s nominee
Chandigarh: A.D. Nagpal, Secretary, Hind Mazdoor Sabha, has been taken in the Central Board of Trustees, Employees Provident Fund Organisation, as the worker’s nominee for a period of five years. This is the third consecutive term for him. — TNS

SBI, Societe Generale Group JV
MUMBAI: State Bank of India, in association with the Societe Generale Group, would launch its custody and related services in India soon, a top official of SBI said. The proposal is subject to necessary approval from the Reserve Bank of India and some other regulators and would take a couple of months to be given final shape. The bank is planning to launch the service by the end of September, SBI deputy general manager (corporate strategy & new business) Deepak Chawla said. — UNI

Oman Air service
KOZHIKODE: Oman Air, national carrier of the Sultanate of Oman, on Friday launched its services from here as part of the airline’s route expansion plans. “With a current capacity of 61 flights a week, spread across Mumbai, New Delhi, Kochi, Hyderabad, Thiruvananthapuram, Chennai, Lucknow and Jaipur, the addition of Kozhikode will be the ninth destination in India,” Mohammad Salim, Oman Air’s country manager, said here. — PTI

Fortis Financial renamed
MUMBAI: Ranbaxy group firm Fortis Financial on Friday said it would exit its non-banking finance business and also change its name to Religare Technova. The board has approved the change of name of the company to Religare Technova with an objective to carry on its IT and IT-related activities, Fortis said. — PTI

PNB Himachal head
SHIMLA: S.S. Arora, deputy general manager, today took over as head of the Himachal circle of Punjab National Bank. He was earlier deputy zonal manager of the bank that has 57 branches. — TNS