The Tribune, Chandigarh, India

	India, Japan keen to ink CEPA New Delhi, December 29 Realising that their two-way trade does not match the potential, India and Japan today decided to give a push to negotiations on the proposed Comprehensive Economic Partnership Agreement (CEPA) with an aim of concluding it by next year. Prime Minister Manmohan Singh and his Japanese counterpart Yukio Hatoyama instructed officials to sort out the “remaining issues” in the way of the market-opening pact, negotiations for which began in 2007. “We have decided to expedite our negotiations on the CEPA in order to conclude a high quality and balanced agreement. We are hopeful that this can be completed in time for the next Annual Summit meeting,” Singh said, while addressing a joint press conference with Hatoyama after their talks here. Agreeing with Singh on the need to firm up CEPA as soon as possible, Hatoyama said “main concerns” in the way of the pact need to be addressed to facilitate this. He, however, did not elaborate but the sides are believed to have differences on opening up of sectors like services and pharma, particularly because of Japan’s apprehensions. A joint statement said the two leaders had instructed their officials to accelerate the negotiations by “energetically working towards resolving the remaining issues with a view to concluding a mutually beneficial agreement at the earliest”. “The two Prime Ministers shared the view that economic relations between India and Japan would develop even further as a result of the conclusion of the CEPA,” the statement said. Singh said he had conveyed to Hatoyama that India welcomes Japanese investments into the country, and the growth of India’s economy offers huge opportunities to substantially increase bilateral trade and economic cooperation. In particular, there is great scope for expansion of cooperation in the areas of urban infrastructure, high technology, and renewable and energy efficient technologies, he noted. While favouring enhanced business exchanges, Hatoyama raised the issue of liberal visa norms. “I asked for cooperation in the procedure of visa issuance,” he said, adding this is important considering that several major projects were being undertaken in India for the benefit of both countries. Both countries have decided to work out all logistical and funding issues related to the western Dedicated Rail Freight Corridor with an aim of implementing its first phase next year. A joint statement issued after talks between Prime Minister Manmohan Singh and his Japanese counterpart Yukio Hatoyama, said the two leaders will work together for conclusion of the agreement for the main loan for the first phase by March 2010. The western corridor covers a distance of 1,483 km from Jawaharlal Nehru Terminal in Mumbai to Tughlakabad in Delhi via Maharashtra, Haryana, Rajasthan and Gujarat. “We also endorsed the plan to take the Delhi-Mumbai Industrial Corridor project forward,” Singh said. The main loan amount for the 900-km long first phase of the project from Rewari in Haryana and Vadodara in Gujarat is Rs 17,700 crore, mainly from Japan. The second phase would involve an investment of about Rs 8,424 crore. Japan has already signed an agreement with India for providing an engineering loan of Rs 130 crore in October for the first phase construction between Rewari and Vadodara. — PTI
	Rangarajan predicts 7.75 pc GDP Hyderabad, December 29 Indian economy will grow between 7 and 7.75 per cent during the current financial year despite poor performance of the agriculture sector on account of drought and floods, Prime Minister’s Economic Advisory Council (PMEAC) chairman C Rangarajan has said. “The economy will grow between 7 and 7.75 per cent overall but agricultural growth may fall by 1 to 2 per cent,” the PMEAC chief said, while speaking at the College of Defence Management here on the challenges before the Indian economy. Flagging food inflation as a major concern, he said, “Agricultural growth rate should not fall below 4 per cent for food security as 60 per cent of the population are in rural areas.” Although the economy did well during the second quarter (July-September) recording a growth of 7.9 per cent, the output of agriculture and allied sector slipped to below 1 per cent. Food inflation in the first week of December soared to a decade’s high of 20 per cent, mainly driven by rising prices of pulses, potato and other vegetables. Referring to the impact of the widespread drought and devastating floods on the farm sector, Rangarajan said, rice output might decline by 13 million tonnes. However, he hoped, the rabi would to some extent make up for the shortfall in kharif. Rangarajan, who is a former Reserve Bank Governor, also underlined the need for raising Cash Reserve Ratio (CRR), the amount that banks keep with the RBI, to contain money supply. The PMEAC had earlier projected a growth rate of 6.5 per cent for the current fiscal, but is likely to revise its forecast. — PTI
	PM apprised on BSNL, spectrum auction Girja Shankar Kaura Tribune News Service New Delhi, December 29 The objection raised over the expansion plan of state-run telecom BSNL and the uncertainty over the auction of 3G spectrum has forced Telecommunications Minister A. Raja to meet Prime Minister Manmohan Singh and seek his intervention. Officials said Raja met the Prime Minister last week and specifically broached the issue of BSNL’s Rs 35,000-crore expansion programme. He also apprised the Prime Minister of the progress in the auction process. The meeting gains importance in wake of the controversy following propriety issues raised by two government nominees on the BSNL’s board. There has been inordinate delay in the execution of BSNL’s tender, which has also forced the PSU to lose out on its market share and also its position of being the number one telecom operator in the country. Two government nominees, Department of Telecom (DoT) joint secretary JS Deepak and another DoT official PK Mittal, on BSNL’s board have asked the PSU to reconsider the tender in view of its market share and falling revenues. They questioned the single bid brought out by BSNL and the lack of comparative analysis on the basis of total cost to the company, claiming that it was against CVC guidelines. The minister also discussed the 3G-spectrum auction plan with the Prime Minister. There has again been a delay in the auction. It is now likely to begin by February-end or March. It was slated to have started on January 14. But the delay on the part of the Ministry of Defence to release the specified spectrum has led to the delay.
	Exclusive band for Defence soon Tribune News Service New Delhi, December 29 The Department of Telecom (DoT) is likely to fulfill the demand of the Defence Ministry for an exclusive band of spectrum that will not be put to civilian use like mobile telephony and broadcasting. According to reports, the provision for an exclusive defence band is under consideration of the wireless planning coordination wing of the DoT. A committee consisting of members of both ministries may examine the issue. The reports said the quantum of spectrum and its contours were being looked into, besides the issue of it being not in conflict with other users. The department, which is currently discussing the draft of the National Frequency Allocation Plan (NFAP), is also looking at another proposal from the armed forces on creating a Defence Interest Zone, which will be a 100-km strip along the country’s international borders. The Defence Ministry has sought the zone as it needs more spectrum near international borders compared to other areas.
	Govt to offload 8.4 pc this fiscal: NMDC Mumbai, December 29 The government will sell 8.38 per cent of its stake in the mining major NMDC in the current fiscal itself, generating around Rs 14,100 crore from the process. As part of its divestment programme to have a minimum 10 per cent public holding in profitable PSUs, the Government is proposing to offload 8.38 per cent of its stake in NMDC through a follow-on public offer before the end of the fiscal. Based on the current market valuation of NMDC, the stake sell would fetch the government a hefty Rs 14,100 crore. NMDC shares closed at Rs 425.75, up 2.80 per cent on the BSE today. The government currently holds about 98.38 per cent in the largest miner, and the rest are with the public. The amount raised would be used for funding social sector schemes, since the government is running a high fiscal deficit, pegged at 6.8 per cent of GDP for the current fiscal, as it pumped more money into the economy through a number of stimulus packages following the global downturn. The NMDC public issue would be among the four FPOs planned by the government for this fiscal. Public issues of power sector PSUs - NTPC, REC and SJVNL - are also likely this fiscal. It has already made divestment in two PSUs -NHPC and Oil India. Earlier, the government had set up an inter-ministerial group under the Finance Ministry for advising it on the sale process of NMDC. Six leading investment bankers, out of the 17, including ICICI Securities and Kotak Mahindra, are understood to have been shortlisted by the inter-ministerial group for managing the selloff programme of the country’s largest miner. The Cabinet Committee on Economic Affairs had earlier this month given its approval for the additional 8.38 per cent stake sale in company. Meanwhile, seven leading law firms, including Amarchand Mangaldas and Luthra & Luthra, are in the race to provide legal advice to the government on the divestment process. — PTI
	Finance panel reports today New Delhi, December 29 At a time when reforms both in the direct and indirect taxes areas are likely to be in place in the next couple of years, the 13th Finance Commission will submit its recommendations on sharing of the Central tax receipts between the Union and the states tomorrow. Commission chairman Vijay Kelkar would submit the report, making recommendations on the devolution of the taxes between the Centre and the states to President Pratibha Patil tomorrow, official sources said today. The report assumes importance as the new indirect tax regime -- Goods and Services Tax (GST) --is scheduled to be implemented from next fiscal, and the new Direct Tax Code is likely to come into effect from 2011. The Commission was appointed in November 2007, with the mandate to review the finances of the Union and the states, and sharing of the net proceeds of the taxes between the two. The recommendations will cover the next five-year period commencing April 1, 2010. The President will give the report to the government and the Finance Ministry would then take it up with the Cabinet, which will adopt it, and later the report is likely to be tabled in the Budget session of Parliament, the officials said. In September, the Government had extended the term of the Commission by three months up to January 2010. It was earlier required to submit its report by October 31, 2009. A fortnight ago, a 13th Finance Commission task force on the proposed GST recommended a single, 12 per cent rate on all items and suggested deferring implementation of the new tax regime by six months from April to October next year. Of the 12 per cent GST, the states should receive 7 per cent while the rest 5 per cent should go to the Central kitty, the task force has said. The 2 per cent difference is for the states to transfer the fund to local bodies like panchayats. The Centre’s tax revenue, including both direct and indirect taxes, is budgeted at Rs 6,71,293 crore for the current fiscal. — PTI
	Rates of pulses likely to spiral further New Delhi, December 29 Prices of pulses, which have shot up by over 40 per cent in the last one year, is likely to spiral further in 2010 due to a demand and supply mismatch, industry body Assocham has said. “Virtual stagnation in domestic pulses production, consistent rise in population, besides higher prices of pulses in international markets are likely to exert further pressure on pulses prices even in 2010,” the chamber said. Prices of pulses have been rising in the retail market due to demand-supply gap. ‘Tur’ has gone up to Rs 91 a kg in the Capital from Rs 50 in the last one year, while ‘urad’ has shot up to Rs 77 from Rs 46. ‘Moong dal’ is being sold at Rs 83, compared to Rs 45 a kg a year earlier. The domestic pulses production is about 14-15 million tonne, but demand is higher at 18-19 million tonne. The country imports significant quantity of pulses from Canada, Myanmar and Australia. The import was 20 per cent more during the April-October period this year at 1.59 million tonnes to bridge the demand-supply gap. Assocham also said as the area under pulses remained almost stagnant over the years, the growing demand with rising population was managed by meagre increase in yield to some extent and through imports. “Yield of most of the pulses have, however, shown a minuscule growth over the last five decades,” it said adding the main reason for this lethargic growth in yield has been absence of development of improved and high-yielding variety of seeds in the country. — PTI
	Aviation sector to soar in 2010: Patel Tribune News Service New Delhi, December 29 After the downturn witnessed by the aviation industry last year, Civil Aviation Minister Praful Patel today said the “rebound” in air traffic in past few months could lead to restoration of stability in 2010. “Especially since October, there has been a rebound in air traffic figures. I hope things will stabilise next year,” Patel said. Observing that 2009 was “a tumultuous and eventful year for civil aviation worldwide”, Patel said the worst was over and “once again flying will be a preferred choice for travellers”. Domestic air traffic figures showed some signs of improvement at the fag end of 2009, even as the combined losses of all domestic airlines was recorded around Rs 8,000 crore. Once a symbol of India’s vibrant economic progress, the aviation sector has been through some of the worst times following the global slowdown. The domestic aviation sector witnessed falling traffic and revenues this year besides high fuel costs, steep cost of credit and unrest among workers.