The Tribune, Chandigarh, India

	SBI sees hike in interest rates from July New Delhi, February 9 The State Bank of India today hinted that the lending rates might rise from the second quarter of fiscal 2010-11, even though there was no immediate pressure on interest rates. "So far as the bank lending rates are concerned, I do not expect lending rates going up before May-June," SBI chairman O P Bhatt told reporters here. He said money supply was under pressure, but the interest rates would remain stable in immediate future. "(There is) pressure on liquidity, but no immediate pressure on interest rates," Bhatt said. In its monetary review recently, the RBI asked banks to keep more cash with it, which would shrink money supply by Rs 36,000 crore from the system. The apex bank's move to hike Cash Reserve Ratio (CRR), portion of deposits banks kept in cash with the central bank, by 75 basis points to 5.75 per cent will come into effect from February 13 in two tranches. Earlier, ICICI Bank CEO and MD Chanda Kochhar had also said there would be upward pressure on the interest rates from the second quarter of this fiscal, because demand for investment would increase. Meanwhile, the SBI launched a new product called Defence Salary Package-Navy which offers free and concessional services to the officers and other naval personnel. — PTI
	Start sops withdrawal from Budget: Rangarajan New Delhi, February 9 Ahead of the Budget, Prime Minister's economic adviser C Rangarajan today made a strong case for withdrawal of stimulus given to the industry to combat the impact of the global economic meltdown, saying the growth impulses were strong. "The 7.2 per cent growth rate (projected by the CSO) for current fiscal indicates that growth impulses are strong. Process of fiscal consolidation must start and some steps can be taken in the Budget," Prime Minister's Economic Advisory Council (PMEAC) Chairman Rangarajan told PTI. The forecast could have been higher this fiscal had there been a normal monsoon and no decline in farm sector output, which is estimated to contract by 0.2 per cent, he added. Driven by high growth of 8.9 per cent of the manufacturing sector, the economic growth in the current fiscal is likely to be 7.2 per cent, the CSO said in its advance estimates for the national income released yesterday. Buoyed by the growth projections, Planning Commission Deputy Chairman Montek Singh Ahluwalia too had pitched for withdrawal of concessions saying that, "We should say the stimulus has succeeded and we should begin to phase it down." In order to help the industry tide over the impact of the global financial crisis, the government came up with three stimulus packages sacrificing Rs 1.86 lakh crore in revenue. The stimulus packages, which included tax cuts and raising public expenditure, are estimated to push the fiscal deficit to 6.8 per cent of the GDP from 6.2 per cent a year ago. Rangarajan added that the council would review the current economic situation and come out with Economic Outlook for 2009-10 before the Budget. "We would review the economic situation soon. It is likely to be taken before the Budget," he added. In October last year, the PMEAC came out with its economic outlook and said the country's economic growth could touch 6.75 per cent in the current fiscal. The PMEAC had also said inflation might firm up to 6 per cent by the end of the current fiscal. It was likely that the council would revised upwards its growth and inflation projections for the current fiscal.— PTI
	Wishlist J&K Budget Chamber demands SEZ Afsana Rashid Srinagar, February 9 Prior to the budget session scheduled for February 22, trade and business groups here have submitted their budgetary suggestions to Finance Minister Abdul Rahim Rather. In its recommendations, Kashmir Chamber of Commerce and Industry (KCC&I) has demanded setting up of Special Economic Zones (SEZ) for industrial and urban development. The chamber suggests that SEZ will provide required stimulus to state’s economy apart from creating jobs and raising standard of living. It added that SEZ model for industrial and urban development had been used to great effect, across the world. “The KCC&I has in line with Rangarajan report recommendations been urging for reversion of all power projects back to the state,” stated the recommendations put forth by it, adding that, “Government needs to effectively take up the issue with the Centre so that our economy could benefit from proper utilisation of natural resources.” It added that despite being potentially rich in water resources, the state suffered huge losses on account of restrictions imposed because of the Indus Water Treaty. The introduction of the Model Electricity Act 2003 in the state, removal of toll tax on fuel, consumables and packaging material was recommended by a delegation of the CII - Jammu and Kashmir chapter. The KCC&I recommended that Lakhanpur check post needs to be kept exclusively for Jammu bound goods and Lower Munda check post for Kashmir. “Dual checking of goods being imported into state has been a source of harassment for trading community of Kashmir.” It demanded allocation of Rs 10 crore for upgradation and development of Lower Munda Toll Plaza in this financial year. Introduction of cold storage facility that is said to curtail losses due to rotting away of large quantities of fruits was also recommended. Lapsing of funds due to non-utilisation within financial year has also been taken up by the Chamber saying that the same has been taxing not only business community but general public as well. It pleaded for extending financial year by three months, that is, up to June end so that the funds are properly utilised. “Keeping into view climatic conditions prevalent in valley during winters, it would be financially prudent to notionally extend financial year.” Sanjay Puri, Chairman CII Jammu and Kashmir State Council, who called upon the minister in Jammu, last month demanded to increase period for input tax credit from 90 days to one year. He recommended limit of audited account to be enhanced to one crore from 40 lakh and round the clock functioning of Lakhanpur Toll post.
	Auto sales rev up in January Tribune News Service New Delhi, February 9 It has never been so good for the Indian auto industry as have been the past few months. And this was visible in the sales figures of January where the Indian auto industry reported the highest-ever sales in a single month at over 11 lakh units. Boosted by easy availability of retail finance and soft interest rates, the total sales in the domestic market stood at 11,14,157 units, against 7,68,698 units in the year-ago period, a jump of 44.94 per cent. The earlier highest sales by the industry was in October, 2006, at 10,17,198 units. According to the Society of Indian Automobile Manufacturers (SIAM) director general Dilip Chenoy, "This is the highest-ever sales by the auto industry ... economic growth, reduced interest rates and better money supply have helped the industry in posting such growth". He said the high growth in terms of percentage in January was also contributed by last year's low base. "Reduced commodity prices compared to last year also helped." The domestic passenger car segment too posted the highest-ever sales at 1,45,905 units, against 1,10,300 units, up 32.28 per cent, in the corresponding month last year. It was the 10th straight month of growth by the segment. The car manufacturers had earlier touched the peak at 1,29,358 units in March, 2009, Chenoy said. During the month major manufacturers, including Maruti Suzuki, Hyundai Motor, General Motors and Mahindra & Mahindra reported their individual record breaking sales. Asked about prospects in February, he said: "It will depend on multiple factors like pent-up demand, price rise. Still we will have good growth in the month.”
	Maruti to double exports Tribune News Service New Delhi, February 9 Maruti Suzuki India Ltd (MSIL) yesterday said it was hoping to double its exports this fiscal to about 1.6 lakh units. The company, which is also a higher contributor to the earnings of Suzuki Corp even more than the parent company this fiscal, is also aiming for over 20 per cent growth in its overall sales. “Last fiscal we exported 80,000 units. We are expecting 100 per cent growth in export this fiscal,” executive officer (marketing and sales) Mayank Pareekh told reporters here on the sidelines of an event here. The company’s overseas sales growth was driven mainly by the export of its flagship model A-Star, which clocked sales of over one lakh units, within 11 months of launch, till December 2009. MSIL aims to cross the two lakh units of exports by 2010-11. The A-star, which is produced only in the company’s Manesar facility, is exported primarily to Europe and other countries such Chile, Angola, Saudi Arabia, Morocco, Algeria and the UAE, where it is sold as Suzuki Celerio. It also contract manufactures the model for Japanese car major Nissan, which sells it in the European market as Pixo. Pareekh said: “So far, on an average we have been growing at about 20-22 per cent this fiscal, and we expect this to continue for the entire year.” MSIL had sold over 8 lakh units, of which domestic market contributed 7.22 lakh units, Pareekh said. “We will produce a million units this fiscal and of course we will try to sell this within the year... So far we have sold about 8.4 lakh units this fiscal,” he said. The company has rationalised and reactivated its capacities and “currently we are producing at peak of our level”, he said.
	Ban likely on use of sugar by industry Tribune News Service New Delhi, February 9 In a bold and ‘drastic’ move to bring down sugar prices, the Centre appears to be contemplating a ban on the use of domestic sugar by industry. Facing the heat over sky-rocketing sugar prices, the government’s proposal to ban the use of sugar for industry in order to control the cost, is understood to have been referred to the Law Ministry. However, terming the move as a knee-jerk reaction, experts say the ban will be a major deterrent to confectionery and soft drinks industries and will only end up complicating things for consumers. Confectionery and soft drinks industries are the largest bulk sugar consumers, and as per the new plan, sweets and soft drink makers, ice cream manufacturers, chocolate companies and biscuit makers will have to import sugar for their products. Soft drink and confectionery industry apparently uses around 65 per cent sugar in the country. The industrial sector consumes about 15 million tonnes of sugar in a year. Coming into effect from February 20, the order is likely to be valid for six months.
	PET bottle business booms Ruchika M. Khanna Tribune News Service Chandigarh, February 9 PET (Polyethylene Terephthalate) bottles are fast replacing glass bottles as the packaging material. With most beverages and other products like cooking oils, milk products, jams and jellies, spices and pickles, besides medicines, now being packed in these bottles, PET bottle manufacturing has become a big business. Pramit Sanghvi, spokesperson of the PET Packaging Manufacturers Association, said PET packaging in India had grown by leaps and bounds in the past decade. “The growth is almost 30 per cent CAGR during the past decade. At present, 3.50 lakh tonnes of PET packaging is consumed per annum, which is expected to grow to 20 lakh tonnes per annum by year 2020,” he said. Dispelling views about the safety of foods packed in PET bottles, Sanghvi said the PET packaging for food items and beverages had been adopted on the lines of the US FDA. “The Bureau of Indian Standards (BIS) has now laid down specifications for use of PET bottles for packaging food items and beverages. BIS specifications have even been laid down for packaging of alcoholic beverages and even leading research institutions like ITRC - Lucknow have confirmed the suitability of PET bottles for contact with all foods, including high alcoholic beverages, at temperature of 120 degrees centigrade and below). Answering queries about the environmental threat from plastic, the spokesperson said they were now also promoting the downstream plastic recycling industry.
	L&T Info revives IPO plan Mumbai, February 9 L&T Infotech today said it had started thinking about reviving plans for its initial public offer, but gave no time-frame for it. "We have started thinking about it (IPO) once again, but I cannot give you a date (for the IPO)," L&T Infotech's CEO Sudip Banerjee told reporters on the sidelines of the Nasscom India Leadership Forum 2010, here. The company had earlier planned to hit the capital market in 2008, however, it shelved the plan indefinitely due to volatile market conditions. The global financial crisis deepened after the fall of Lehman Brothers in September, 2008. Banerjee also said the firm would focus on strengthening its business in India more than in foreign markets. The company is bidding for all kinds of projects in both the public and private sector, he said. — PTI
	HC rejects Bayer’s plea on drug rights New Delhi, February 9 In a setback to German pharma major Bayer Corporation claiming exclusive rights over its liver and kidney cancer drug ‘Nexavar’, the Delhi High Court today dismissed its petition to restrain drug regulator from giving licence to domestic producer Cipla for production and sale of its generic version ‘Soranib’. A division bench comprising Chief Justice A P Shah and Justice S Muralidhar rejected the allegations of Bayer terming Cipla’s generic version drug as ‘spurious’. The court said as Cipla was yet to start Soranib production as the Drug Controller General of India (DGCI) was processing its licence application, so it cannot termed ‘spurious’ before it is either marketed or manufactured. The court said the Drug Control Act says “drug being spurious cannot possibly occur even before such drug is marketed or manufactured”. — PTI
	Merger with Indore bank by March New Delhi: The SBI said the merger of State Bank of Indore with itself will be completed by the end of this fiscal. “Merger will be complete before this financial year...by March,” said OP Bhatt here. This will be second such merger of its associate banks. In August 2008, the bank had merged State Bank of Saurashtra with itself. Post merger, the SBI will be left with five associate banks namely State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad. Last year, the central board of the bank gave approval for the merger. — PTI