The Tribune, Chandigarh, India

	Industrial growth up 9.1 pc in Sept New Delhi, November 12 Hopes of economic recovery were reinforced by a smart growth in industrial production, which accelerated 9.1 per cent in September against six per cent a year ago. All major sectors — manufacturing, mining and electricity generation — showed higher growth. Even consumer durables output rose, indicating robust demand for these products. Industrial output during the first half of this fiscal has grown 6.5 per cent against five per cent a year ago despite continued fall in demand overseas. If the trend continues and is not powered just by temporary surge in demand during the festive season, economic recovery will be firm and could make up for decline in farm production and exports. "Very good set of numbers, reflecting to some extent the ramp up in production to meet festive demand. We clearly see recovery underway and peg the IIP for the year to 8 per cent from 6.3 per cent," Yes Bank chief economist Shubhada Rao said. Among the areas that were a laggard were food processing and consumer non-durables. Manufacturing output was up 9.3 per cent in September against 6.2 per cent in the same month last year and that of mining was up by 8.6 per cent compared to 5.8 per cent. Electricity generation rose by 7.9 per cent over 4.4 per cent in the comparable period. Consumer durables, which bore the brunt of the meltdown from October 2008 onwards, grew 22.2 per cent in September even on a high base of 14.7 per cent a year ago. Intermediate goods production also grew by 10.8 per cent against a decline of 2.5 per cent in September last year and basic goods was up 5.7 per cent against five per cent. Capital goods also rose by 12.8 per cent on high base of 20.8 per cent. However, consumer non-durables grew by just 2.6 per cent against 4.8 per cent a year ago. Twelve out of 17 industries showed a positive growth. However, processed food products declined by 10.2 per cent, beverages by 3.8 per cent jute textiles by 15.3 per cent paper and paper products by 2.2 per cent and metal products by 7.6 per cent. September is crucial because, it was in this month last year that collapse of US financial services icon Lehman Brothers crippled economies worldwide. Industrial production in India contracted for the first time in 16 years in October last year, though figures were later revised up. On a monthly basis, however, industrial growth in September is down from revised figures of 10.95 per cent in August. — PTI
	Equity infusion in AI if it saves Rs 2,000 cr Tribune News Service New Delhi, November 12 The government will infuse additional equity into cash-strapped national carrier Air India if it saves at least Rs 2,000 crore this financial year by implementing cost-cutting measures, Civil Aviation Minister Praful Patel said today. “We are broadly looking at equity infusion linked to its monthly performance parameters and we are only looking at till March (2010). This is not the total equity infusion being looked at for Air India,” Patel said after an almost two-hour meeting of a Group of Ministers. The GoM on Aviation, headed by Finance Minister Pranab Mukherjee, met to discuss Air India's financial affairs, restructuring and the turnaround plan. Patel said based on the national carrier’s performance till the end of the financial year, the government would be able to finally take a call at the end of March as to what will be the final support which the government will provide. Air India will have to provide a revenue enhancement and a cost-cutting programme to the extent of at least Rs 2,000 crore by March, which will be giving a direction on the way forward, the Civil Aviation Minister said. The airline, which has shown a net loss of Rs 5,548.26 crore in 2008-09, is seeking a total equity infusion of Rs5,000 crore. The GoM was given a presentation on the beleaguered carrier's plans to reduce costs and enhance savings by CMD Arvind Jadhav and civil aviation secretary M Madhavan Nambiar. The meeting was also attended by Home Minister P Chidambaram, Petroleum Minister Murli Deora and deputy chairman of Planning Commission Montek Singh Ahluwalia. Meanwhile, as per a statement issued by Air India, its domestic market share which was 16.6 per cent in August, rose to 17.5 per cent in September and climbed to 18.6 per cent in October.
	Gas Row RNRL counsel seeks to cross-examine RIL directors R Sedhuraman Legal Correspondent New Delhi, November 12 Ram Jethmalani, senior counsel appearing for Anil Ambani-led Reliance Natural Resources Ltd (RNRL), today sought to cross-examine Reliance Industries (RIL) directors in the gas dispute case in the event of their averments being admitted as evidence in the Supreme Court. Towards the end of the day-long arguments by senior counsel Harish Salve for RIL, Jethmalani said RIL's seven directors had filed affidavits in the court, stating that they had no knowledge of the family agreement between the two feuding brothers. However, RIL had so far not pleaded with the court for taking these affidavits on record so that these could be treated as evidence, Jethmalani said. At this, Salve told the three-member Bench headed by Chief Justice KG Balakrishnan that he would file an application in this regard. If this was done, he should be allowed to cross-examine the directors, Jethmalani said. He also took exception to Salve continuing his arguments for several days. He said he was under the impression that Salve would conclude his pleadings today and the Centre would get its chance tomorrow. Salve argued for the 10th day today - six days before an earlier Bench and four days of fresh arguments before the reconstituted Bench which has Justice B Sudershan Reddy in place of Justice RV Raveendran, who opted out of the case citing conflict of interest. Justice P Sathasivam is the third member of the Bench. The affidavits assume significance as RIL has maintained that the family MoU had legal value as its Board of Directors and shareholders had not approved it. Promoters could not have an understanding at the back of directors and shareholders.
	MoD releases 10Mhz of 3G spectrum New Delhi, November 12 The Defence Ministry has released 10 Mhz of 3G spectrum prior to the auction for the same in January but is irked by the telecom department's non-inclusion of this fact in the information to the prospective bidders in official document. This has complicated the matter as it may also necessitate telcos to re-work their auction strategies. So, with this spectrum release, two additional slots can be auctioned in each circle, but the DoT first has to acknowledge this, said a mobile operator. While the Defence Ministry is peeved at DoT, saying the release of 3G spectrum (1069-1979 Mhz) band by it has not been reflected in the revised Information Memorandum, it has also expressed unhappiness over inclusion of certain bands of spectrum release for BSNL and MTNL which has not been vacated by the forces and has in fact not even been discussed between them. — PTI
	Food inflation rises to 13.68 pc New Delhi, November 12 Higher prices of staple vegetables such as onion and potato pushed food inflation higher to 13.68 per cent in the last week of October. On an annual basis, prices of potato have doubled during the one-year period ending October 31, 2009, while onions were expensive by 42.58 per cent. High food prices also pushed up inflation of primary articles (items that are not processed) by 9.16 per cent. Pulses were also dearer by 22.73 per cent. The government will release the monthly data on wholesale prices-based inflation, which would reflect price movement in manufacturing, on November 14. — PTI
	HP to buy 3Com Corp for $2.7 b New York, November 12 Hewlett-Packard has agreed to acquire networking solutions provider 3Com Corporation for $2.7 billion, a deal that would significantly strengthen its position in China. HP, the world's largest technology company, would purchase the Massachusetts-based 3Com at a price of $7.90 per share in cash or an enterprise value of around $2.7 billion, the company said in a statement today. The deal would be closed in the first half of 2010, subject to approval of the 3Com shareholders. Both boards have already cleared the acquisition. The $1.3-billion 3Com is a leading provider of networking, switching, routing and security solutions across the world and has three brands — H3C, 3Com, and TippingPoint — all offering high-performance networking and security solutions to both small and large enterprises. While H3C offers enterprise networking solutions and is the market leader in China, TippingPoint offers intrusion prevention systems and network access control solutions. "Companies are looking for ways to break free from the business limitations imposed by a networking paradigm that has been dominated by a single vendor," HP executive vice-president and Enterprise Servers and Networking general manager Dave Donatelli said in a statement announcing the deal here today. HP executive vice-president and chief information officer Randy Mott said, "Based on our experience of extensive testing of 3Com products, we are planning to undertake a global rollout within HP as soon as possible after the completion of the acquisition." — PTI
	Siemens bags Rs 608-cr order Mumbai, November 12 Diversified conglomerate Siemens has said its energy unit has bagged an order worth Rs 608 crore from Qatar's General Electricity & Water Corporation (Kahramaa) for constructing high voltage cables. The company's energy division has received an order worth Rs 608 crore, for complete supply, design, erection, testing and commissioning of high voltage cables, Siemens said in a filing to the BSE. — PTI
	Hosiery industry expects Rs 6,000-cr turnover Shivani Bhakoo Tribune News Service Ludhiana, November 12 The hosiery manufacturers here see a better winter season this time. If everything goes well, then city manufacturers hope to do a whopping business worth Rs 6,000 to 7,000 crore in the domestic market this winter. Though many factors hampered the production in hosiery units initially, still manufacturers have been able to come-up reasonably well as compared to last year. Sudershan Jain, owner of Sarjeevan Knitwear and a member of the Knitwear Club, told The Tribune that the recent two years were a testing time for people dealing in hosiery industry. The winters were week last year, with the result 20 per cent of the stock could not be sold in market last year. The manufacturers had to bear losses. Even this time, their production was hit severely due to recessionary trends, erratic power supply and insufficient migrant labour. "This time, manufacturing was started late. But, we have come out well. The production of winter products will be continued for another month. But, products are already in markets in entire North, north-eastern parts and some parts of the West. If all goes well, it will be a good season,” said Jain. The manufacturers added that woollen kurtis to be worn with tights were much in demand. Besides, jackets, sweat-shirts, pullovers, designer ladies sweaters also remain all-time favourites. Vinod Jain, president of Knitwear Club, said for a manufacturer, the business was good if all stocks were cleared.
	Decision to raise basmati MEP put off Tribune News Service Chandigarh, November 12 The decision to raise the Minimum Export Price (MEP) of basmati by $100 per tonne has been deferred for the time being as the meeting of Empowered Group of Ministers (EGoM) on food was postponed this evening. Sources said the EGoM was to take up the issue of raising the MEP on basmati from $900 per tonne to $1,000 per tonne. The sources further said though the Ministry of Commerce was opposed to the move in the wake of fall in rice exports, the government is keen to raise the MEP to ease the supply in domestic market and cool down the retail prices. This is the second time in three months that the MEP of basmati is proposed to be raised in order to calibrate exports. In September alone, the MEP was raised from $800 per tonne to $900 per tonne. The issue will now be taken up in the EGoM meeting scheduled for next week.