The Tribune, Chandigarh, India

	Plan panel pitches for aggressive divestment New Delhi, November 4 The Planning Commission today pitched for "aggressive" disinvestment, and said the proceeds from sale of government shares in public sector undertakings should be utilised for new investment projects. "First of all we should be aggressive and secondly it (proceeds from disinvestment) should be used for new investment," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters at the Economic Editors' Conference here. The modalities for expediting disinvestment and utilising the proceeds in new projects should be developed by the Finance Ministry, he said when asked whether the receipts should be used for bridging fiscal deficit which is expected to soar to 6.8 per cent of the GDP during 2009-10. Under the current dispensation, the proceeds of disinvestment are parked in National Investment Fund (NIF) and the funds are used for financing social sector schemes and capital requirement of the PSUs. The NIF has a corpus of Rs 1,815 crore, mainly raised by offloading shares of the Power Grid Corporation in the last fiscal. The government had already offloaded the shares of the Oil India Limited (OIL) and NHPC in the current fiscal, and has unveiled plans to reduce its shareholding in NTPC, Sutluj Jal Vidyut Nigam and Rural Electrification Corporation. During the current fiscal, the government raised Rs 2,013 crore by offloading its shares in the hydro-power major NHPC and Rs 2,247 crore from stake sale in OIL. As per the disinvestment policy of the UPA, the government is committed to offloading equity in public sector undertakings while retaining 51 per cent stake. "The public sector undertakings are the wealth of the nation, and part of this wealth should rest in the hands of people. While retaining at least 51 per cent government equity in our enterprises, I propose to encourage people's participation in our disinvestment programme", Finance Minister Pranab Mukherjee had said in his Budget speech in July. — PTI
	Inflation to moderate by year-end: Montek Tribune News Service New Delhi, November 4 The inflation, led by high food prices, is an area of concern, but it should moderate by the end of this year, said Deputy Chairman of Planning Commission Montek Singh Ahluwalia today. According to latest data, wholesale price index rose 1.51 per cent in the 12 months to October 17, but food price index was up 12.85 per cent. However, agriculture continues to be a grim picture for an agrarian country. “India’s farm sector growth will be less than 4 per cent this fiscal on account of floods and deficient monsoon in some parts of the country,” Ahluwalia said. “It is extremely unlikely that the farm sector will grow more than 4 per cent this year. The sector is not growing as it should have been,” he said at the Economic Editors' Conference here. However, this would not pose a problem to food supplies in the country, he added. “We don’t need more than 2 per cent growth of agriculture production,” Ahluwalia said, adding that the country would not face any food shortage if the sector expanded by this amount. Increase in procurement prices and supportive government policies would help the farming sector to perform better in the 11th Plan period that ends 2012, he said. India’s agricultural sector grew 1.6 per cent last fiscal, down from 4.9 per cent in 2007-08. The Planning Commission has projected that India’s economic growth in the ongoing fiscal could fall to 5.5 per cent in the ‘worst-case scenario’ of a sharp decline in agriculture sector performance. This is much lower than the 6.3 per cent growth in the national income estimated by the Plan panel on the worst case assumption that agriculture growth will fall by 2.5 per cent. According to a note on the economy’s performance prepared by the Planning Commission, if the extent of crop losses is more than projected on the basis of available trends, the fall in farm production could be as steep as 6 per cent, which would in turn pull down GDP growth. In the worst-case scenario, foodgrain production could fall by 29 million tonnes to 205 million tonnes, posting a decline of 12 per cent and pulling down agricultural sector GDP by up to 6 per cent. This would in turn lower overall GDP growth to 5.5%, the note added. Both industrial and services sectors could see a significant recovery in the current fiscal, especially in the second half of the year. While industry is estimated to grow at 7.8 per cent, services sector could notch 8.2 per cent growth.
	Sensex surges 507 points Mumbai, November 4 Markets today notched up over 500-point gain, the biggest in more than five months, to snap six days of straight losses, helped by the government's assertion that stimulus packages would continue and there would not be any curbs on capital inflow. The benchmark Sensex shot up by more than 200 points in the opening trade and avoided any major fall during the day before ending the day at 15,912.13, an impressive gain of 507.19 points or 3.29 per cent over its previous close. The 50-share Nifty of the National Stock Exchange also recovered 146.90 points or 3.22 per cent to 4,710.80. The last time Sensex had gained over 500 points was on May 27 this year when it closed higher 520.41 points. The market had fallen by steep 1,406 points or 8.36 per cent in the past six days. — PTI
	Gold at record high of 16,800 New Delhi, November 4 Gold touched a record high of Rs 16,800 per 10 gram in the bullion market here today amidst reports of massive gold buying by the Reserve Bank from the International Monetary Fund. Marketmen said the rising trend was boosted after reports that the precious metal in overseas markets reached an all-time high of $1,092.40 an ounce after the RBI bought 200 metric tons of gold from the International Monetary Fund, raising speculation more countries will follow suit. The precious metal, which is on a rising spree for the past few days backed by seasonal demand and a firming global trend, added another Rs 330 to Rs 16,800 per 10 gram. Trading sentiment also boosted after a London-based bullion group said the metal might climb to $1,181 an ounce by September next year. The London Bullion Market Association survey conducted at the association's annual conference in Edinburgh said silver might also rise to $18.10 an ounce. Marketmen said the domestic bullion market is more co-related to international trend than any positive factor at home. — PTI
	‘Worst over for automobile sector’ Ruchika M. Khanna Tribune News Service Chandigarh, November 4 Subodh Bhargava, chairman, Tata Communications and Wartsila India, was in the city to participate in an interactive session with local industrialists, organised by CII this evening. In a free-wheeling interview with The Tribune, Bhargava spoke about the challenges telecom sector and auto industry are facing in India. Excerpts: Do you think that growth in the telecom sector has hit a plateau? The telecom sector in India has been a phenomenal success story of infrastructural growth. The government created an environment for fierce competition, which led to growth and teledensity is now one of the highest in the world. But, there is still a lot of scope in increasing teledensity at the rural level. Also, the real potential now lies in expansion of broadband network. What is the biggest challenge before the telecom sector now? The biggest challenge is the issue of spectrum allocation. Once all players are allotted additional spectrum, the quality of service will improve and technical problems like call drops will be sorted out. We are hoping that the spectrum allocation is done in January, or the government itself will lose on valuation if this auction is postponed. What do you think should be the role of the government in ensuring growth in the telecom sector? For one, the government and regulatory bodies should stop interfering in the competition that exists in the industry, and instead promote competition. This will inhibit the growth of smaller players. For example, TRAI should not interfere and advise all telecom players to charge per second on calls, after Tata Communications announced its DoCoMo. Its time that the government let the market forces take charge, rather than give direction. You have been associated with automobile sector for almost two decades. Tell us if the current jump in auto sales signals that worst is over? Definitely, the worst is over in the automobile sector, and with the economy showing signs of recovery, this sector will continue to grow between 8 and 10 per cent in the next two years. With the government now focusing on creating road infrastructure, this sector will get a good jump.
	CBI seeks nod for full probe on Sibal New Delhi, November 4 The CBI has accused VK Sibal of colluding with private parties during his term as oil regulator and has sought government permission for a thorough investigation. CBI, which was asked by the Central Vigilance Commission (CVC) to do a "discreet" ground verification of allegations of Sibal's nexus with private oil and gas operators, in its preliminary report, alleged "gross abuse and misuse of public office by Sibal," sources in the know said. The preliminary report also talked of his "nexus with private parties" and his "obtaining pecuniary advantage in award of contracts and supply of information of sensitive data of resources." — PTI
	Non-extension of central package Pharma units shun expansion Ambika Sharma Solan, November 4 With the central government failing to enhance excise benefits to the earlier 16 per cent level for pharmaceutical units in the incentive states, there was little enthusiasm in these units to expand their operations here. Since Himachal Pradesh is one of the few states which had been granted the 2003 central incentive package, hundreds of pharmaceutical units had set up their units here. But apart from Dr Reddy’s, no other plant has expressed keenness to expand their operations here in the past one year. Inquiries from various pharmaceutical units revealed that after the income tax benefit was reduced to 30 per cent after the first five years, and the excise benefit was reduced from the earlier 16 to 4 per cent, the net profitability of units suffered adversely, forcing them to shift their products to other states like Sikkim. Earlier, pharmaceutical investors were keenly awaiting an announcement regarding enhancement of the excise benefits to at least 8 per cent and this failure had offset their expansion plans. Investors opined that though they wanted to expand their operations before the expiry of the package in March next year, several changes in the policy had hit them hard. Plant head of a major pharmaceutical unit when quizzed said the profitability had been reduced from 12 to 2 per cent and almost 40 per cent of the products had been shifted to Sikkim, which offered an added 2 per cent modvat benefit. The unit, which is among a chain of 40 others nationwide, is now eyeing exports. Similarly, another plant head of a key unit stated that their turnover had been reduced from Rs 25 crore to Rs 3 crore now and they were bringing about due modifications to get approval from the USFDA so as to cater to exports in the future. Another pharma major, Alkem, too, had shifted 40 to 50 per cent of their products to Sikkim-based plant and they had already sought approval from the USFDA. This tendency of the pharma majors to modify their plants to export-oriented units was the latest buzz in this pharmaceutical hub of Asia.
	Vodafone launches per-second billing plan Tribune News Service New Delhi, November 4 A day after Reliance Communications announced that it was offering per-second billing to its customers, telecom services provider Vodafone Essar today said it has launched a per-second billing plan for its customers in Delhi and adjoining areas. As has been the trend so far, Vodafone also announced the new billing plan for its pre-paid customers. As per the plan, the company will charge 1 paise per second for all local and STD calls for its pre-paid customers in Delhi and NCR, it said in a statement. To avail this offer, the existing customers of Vodafone have to do a one-time recharge of Rs 55. This offer is also available for the new customers with recharge of Rs 54, it added. Meanwhile, Loop Mobile also announced that it would charge its pre-paid customers one paisa per second for all local and STD calls. While this offer is applicable to all new and existing prepaid users of Loop Mobile, the existing subscribers can avail of this offer by buying a recharge card of Rs 48. In addition to the 50 paise plan that RCom had announced in October, they will charge subscribers 1 paise per second for all calls, including STD and roaming, while each SMS will be charged at 50 paise. For calls that last for three minutes or more, customers will be charged Re 1 for every three minutes of talktime.