The Tribune, Chandigarh, India

	Economy to grow at 7.2 per cent New Delhi, February 8 Amid the debate over continuation of the stimulus package, the government today forecast economic growth at 7.2 per cent for the current financial year, a shade lower than 7.5-8 per cent projected by Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee. Lower than anticipated growth projection for 2009-10 comes at a time when the RBI has started tweaking key monetary policy instruments to contain inflation. The projections for 2009-10, put out by the Central Statistical Organisation in its advance estimates for the national income is, however, higher than 6.7 per cent recorded by the economy a year ago. Farm sector output is expected to contract 0.2 per cent, while the services sector will record moderate growth, it said. Manufacturing is estimated to grow by a robust 8.9 per cent this fiscal, which may prompt the government to withdraw stimulus in a phased manner. "We should say stimulus has succeeded and we should begin to phase it now," Planning Commission Deputy Chairman Montek Singh Ahluwalia said even as industry vehemently pitched for continuation of the tax concessions. Ficci secretary-general said if monetary tightening is combined with withdrawal of stimulus measures, it would be dangerous for the economy and employment. Evading a direct reply on the issue, Finance Secretary Ashok Chawla said, "In terms of what the future policy framework is going to be, I think you will have to wait for the Budget," he said. Bolstered by a stunning 7.9 per cent growth in the second quarter of this fiscal, the Prime Minister said the economy is likely to grow by 7.5 per cent during 2009-10. "In the current financial year, the growth rate of economy is likely to be 7.5 per cent," he said last week. The Finance Ministry in its mid-term review had projected the economy to grow by 7.75 per cent this fiscal and the Reserve Bank had pegged it at 7.5 per cent. Finance Minister Pranab Mukherjee had said mid-year review has projected the economy to grow by 7.75 per cent this fiscal, which can be rounded off to 8 per cent. According to CSO, farm and allied activities are pegged to shrink by 0.2 per cent this fiscal against 1.6 per cent growth a year ago. The output is likely to decline due to fall in Kharif production on account of drought and floods that hit several parts of the country. The estimated growth this fiscal will be driven by robust manufacturing sector expansion against 3.2 per cent in FY'09. The sector had got various stimulus doses from the government in the wake of global financial crisis. Trade, hotel, transport and communication are estimated to rise by 8.3 per cent against 7.6 per cent last year and construction by 6.5 per cent in FY'10 from 5.9 per cent in FY'09. However, other services like financing, insurance, real estate and business services are likely to witness fall in expansion and grow by 9.9 per cent this fiscal against 10.1 per cent last fiscal and community social and personal services by 8.2 per cent compared with 13.9 per cent. — PTI Forecast paints ‘robust’ picture: India Inc New Delhi, February 8 India Inc today said the 7.2 per cent GDP growth forecast for the current fiscal shows remarkable turnaround in the country’s economy and private investments must be encouraged to accelerate the momentum. “The 7.2 per cent growth (estimates) during 2009-10 against 6.7 per cent last year shows a remarkable turnaround in the face of difficult global environment,” Ficci said. CII said it was imperative that the rate of growth accelerates further in the coming year so that India moves towards achieving the long-term growth target of 9 per cent. “Private investment must be encouraged by keeping interest rates reasonable while stepping up public investment especially in infrastructure,” it said. Assocham said manufacturing, electricity and mining had so far been major pushers behind growth rates. “Agriculture will remain under pressure not only in the current fiscal, but in next also as not much is happening on application of technologies to improve the farm growth,” it said. — PTI
	Dubai World gets $6.2 bn state aid Dubai, February 8 The Dubai government has pumped $6.2 billion into Dubai World and is prepared to put even more money into the conglomerate whose debt woes caused global market jitters late last year. The Dubai Financial Support Fund (DFSF), set up in February last year to aid indebted state-run corporations, has put over $6.2 billion into the Dubai World Group over the past 12 months. “The DFSF stands ready to put considerably more money into the company in line with the announcement it made” in December, when the government forked out $4.1 billion to cover maturing bonds owed by Nakheel, the property arm of Dubai World, the spokesperson said. Dubai was able to rescue Nakheel from an imminent default thanks to a last-minute lifeline from Abu Dhabi, which brought Abu Dhabi’s total financial aid to Dubai since the global financial crisis hit the emirate to $10 billion. — PTI
	Sharma against abrupt withdrawal of stimulus New Delhi, February 8 The Finance Ministry could consider withdrawal of stimulus to some exporting sectors which have shown robust growth, but an across-the-board "abrupt" pullout is not desirable, Commerce and Industry Minister Anand Sharma said here today. "Those sectors which have moved into a very robust growth level, there we can consider (withdrawal of stimulus)," Sharma said when asked whether there is a case for stimulus withdrawal in the Budget. After exports started contracting from October 2008, the government had given certain sops like interest subsidy and higher duty refunds to help exporters. With exports turning positive after 13 months from November 2009 and manufacturing becoming robust with estimated growth of 8.9 per cent for the fiscal, possibility of stimulus withdrawal is being debated. The Federation of Indian Export Organisations (FIEO) is also not opposed either to withdrawal of the benefits to those sectors which are now doing well. These include gems and jewellery and pharmaceuticals. "The sectors which have done exceedingly well can be taken out of the stimulus benefit so that those still showing decline or moderate growth can be given focused assistance," FIEO president A Sakthivel said. Sharma said while exports have recovered, the revival is not uniform. There are still sectors like engineering, leather and textile which are facing tough terrain in the western markets. "..we are not for an abrupt withdrawal (of stimulus packages)," Sharma told reporters at a Ficci function here. He said Finance Minister Pranab Mukherjee was appreciative of the problems of exporters. — PTI
	Per capita income to reach Rs 43,749 New Delhi, February 8 An Indian on an average is expected to earn Rs 43,749 in 2009-10, 9 per cent more than what he would have received last fiscal, if the national income were evenly distributed among the citizens. The per capita income, an indicator of collective prosperity, was Rs 40,141 in 2008-09, higher by 13.3 per cent recorded in the year ago period, according to the Central Statistical Organisation’s (CSO) advance estimates. Contribution of exports to the economic expansion during 2009-10 is estimated to fall to 18.6 per cent from 23.5 per cent a year ago. As regards the population, the CSO estimates that it would go up from 1.15 billion to 1.17 billion during 2009-10, registering an annual increase of 1.38 per cent. After taking inflation into account, per capita income is estimated to grow by 5.4 per cent at Rs 33,540 this fiscal against Rs 31,821 during 2008-09. Last fiscal, it grew by 5 per cent. — PTI
	IIFCL nets profit of Rs 152 cr New Delhi, February 8 State-owned India Infrastructure Finance Company Ltd (IIFCL) today posted nearly two-fold jump in its net profit at Rs 152 crore for the nine-month period ended December 2009. The company had earned a net profit of Rs 82 crore in the same period previous fiscal. Total income of the company during the period increased over three-fold to Rs 1,187 crore against Rs 366 crore in the same period previous fiscal, IIFCL chairman and managing director SS Kohli said. However, for the third quarter (Q3) ended December 2009, the net profit of infrastructure financing company declined marginally to Rs 43 crore against 45 crore in the same quarter last year. The decline is mainly due to fall in the interest income as rates softened during the quarter, he said.— PTI
	TRAI starts process for 4G telephony Tribune News Service New Delhi, February 8 Even as the government debates as to when the auction of spectrum for the third generation (3G) telephony will take place, telecom regulator TRAI today started consultation for the next level of telecom services. As the Ministry of Defence (MoD) and the Communications Ministry squabble over the available spectrum for the 3G, some of the private telecom firms had expressed desire to wait for the 4G technology, rather than go for the controversy-stricken 3G. The Tribune had reported earlier that with the process for 3G spectrum auction being put off repeatedly, some of the private telecom players would want to wait for 4G technology rather than participate in the 3G auction. The government recently put off the auction process for the 3G spectrum to the next fiscal, and it might now happen only in September 2010, after the MoD releases the entire spectrum due towards it. The 4G technology offers download at faster speed known as ultra-broadband and high definition video on demand among other such services. “Yes. We are starting the process and would come out with a consultation paper to look into various issues relating to 4G telecom services,” TRAI chairman JS Sarma said. He, however, categorically said this did not imply the 3G process would be skipped, as the government has taken definitive steps and might auction the spectrum soon. A number of foreign players like the US-based Motorola and Ercisson have already started testing 4G technology in various parts of the world. Asked whether the government has sought recommendations from TRAI for 4G telephony, Sarma said, “TRAI required to examine various issues concerning 4G and we do not want it to be delayed like 3G and that is why we have started the process. In fact, when I had taken the charge as TRAI chairman, I had said that we should be technologically ready. When we start is a different process.”
	Toyota Prius by March-end New Delhi, February 8 Japanese auto major Toyota will not change plans to bring hybrid car Prius to India, an official of its subsidiary said here today, amid reports of the firm planning a global recall of the model. “Our plans remain absolutely unchanged. Bookings had started by January and the vehicles will be delivered by March-end or April beginning,” said an official of Toyota Kirloskar Motors (TKM) - the Indian joint venture between Toyota Motor Corporation and the Kirloskar Group. So far, the company has got orders for 54 units of Prius from customers in India, the official added. According to reports, Toyota plans to recall around three lakh units of Prius in the US and Japan due to faulty brake system, close on the heels of its recent recall of 8 million cars around the world because of sticky accelerator pedals. In a public statement, Toyota Motor Corporation president Akio Toyoda had said on Friday that the new Prius now in showrooms ‘included an improvement’ without specifying the problems. “For Prius in the hands of customers, I have instructed that consideration be made as soon as possible regarding the way to address such units. Once a decision is made we will inform the public,” he had said. TKM had announced the launch of Prius at the Auto Expo in January. It is priced between Rs 26.55 lakh and Rs 27.86 lakh (ex-showroom New Delhi). — PTI
	SEBI panel to review bourses’ structure Mumbai, February 8 Market regulator SEBI has constituted a committee headed by former RBI Governor Bimal Jalan to review the structure of the stock exchanges as their role as self-regulatory bodies and functions as profit entities are sometimes conflicting in nature. "The role of market infrastructure institutions has been continuously evolving to meet the challenges of the emerging securities market. Accordingly, a committee has now been constituted under the chairmanship of Bimal Jalan," SEBI said in a release here today. The committee may also look into the listing-related matters of the stock exchanges. Commenting on the move, Prime Database managing director Prithvi Haldea said, "the committee has been set up to look into the ways to avoid conflict of interest between profit functions and regulatory functions of the stock exchanges. It could also look at the listing related matters of these exchanges." The SEBI said these institutions are increasingly called upon to undertake regulatory functions, including supervision of the markets, while simultaneously pursuing commercial objectives. — PTI
	Jubilant gains 58 pc on debut Mumbai, February 8 Jubilant Foodworks that runs the Domino's Pizza chain made a stellar debut on the bourses today and surged a spectacular 58 per cent over the issue price at close on the BSE, giving investors the best first-day return in two years. After listing with a decent 11 per cent premium over its issue price of Rs 145, Jubilant galloped 67 per cent to a high of Rs 241.95. It later settled with a full 58 per cent gains at Rs 229 on the BSE, on a day when main index closed flat. On the National Stock Exchange, the scrip fared even better, closing with a premium of a stupendous 66 per cent over its issue price at Rs 240.60. On the volume front over 8.87 crore shares changed hands on both bourses, and was the chart-buster in overall volume today with Rs 655.17 crore on the BSE. — PTI