The Tribune, Chandigarh, India

	IMF pegs India’s growth at 8.75 pc Washington, April 21 India is expected to grow by 8.75 per cent in 2010 and 8.5 per cent in 2011, driven by a strong domestic demand, International Monetary Fund (IMF) said in its 2010 World Economic Outlook released here today. It said India's projected growth will be supported by a resurgence in demand from the working class on the back of an improvement in business confidence that will result in more investments. "Domestic demand will strengthen as the labour market improves, and investment is expected to be boosted by strong profitability, rising business confidence and favourable financing conditions," it said. However, in terms of growth, China will still be ahead of India, it said. "In China, GDP growth exceeded the government's 8 per cent target in 2009 and is expected to be close to 10 per cent in both 2010 and 2011," the report released on the sidelines of the Spring meeting of the IMF said. The World Economic Outlook said the strength in final domestic demand in India, and especially China, is expected to have positive spillovers for other Asian economies, particularly exporters of commodities and capital goods. Asia's GDP is projected to grow by 7 per cent in both 2010 and 2011. In Korea, economic activity is expected to expand by 4.5 per cent in 2010 and 5 per cent in 2011, strongly accelerating from 0.25 per cent in 2009. "This reflects not just strong export growth - with capital exports to China an important element - but also a continued boost from the inventory cycle and a boost in business investment in response to high capacity utilisation and strong business confidence," it said. The ASEAN-5 economies are projected to grow by 5.5 per cent in 2010. Private domestic demand is expected to be the main driver of growth, with net exports playing a lesser role than in the past, reflecting stronger imports relative to historical standards, the report said. Among the ASEAN-5, the Indonesian economy has proved to be remarkably resilient, with output growing at 4.5 per cent in 2009 compared with 1.75 per cent for the ASEAN-5 as a whole. Indonesia's growth is expected to accelerate to 6 per cent in 2010 and to 6.25 per cent in 2011, reflecting a pick up in private investment, the report said. — PTI
	Videocon may sell 26% stake in telecom arm New Delhi, April 21 Diversified group Videocon Industries today said it might sell up to 26 per cent stake in its telecom venture to foreign players. "Many foreign companies are eyeing a stake in us (the telecom venture).... We may dilute a stake of up to 26 per cent," Videocon Industries chief Venugopal Dhoot told reporters here. When asked if a stake dilution can take place, he said, "As soon as we get a good valuation we will do that." He said the company's valuation, which was currently at Rs 12,000 crore, may go up further considering the rapid expansion it has undertaken. The Videocon group company, which offers GSM-based mobile services, has recently started its operations in Tamil Nadu, Gujarat and Mumbai circles. The telecom arm had also set a mammoth target of achieving 10 crore customers in three years and would invest Rs 15,000 crore in the sector. Besides expanding its services, Videocon has also applied for 3G spectrum and has aggressive plans for the same. — PTI
	Telecom Commission to consider BSNL divestment Tribune News Service New Delhi, April 21 A day after BSNL employees called off their indefinite strike following assurance from the government that the disinvestment in the telecom company would be decided by a Group of Ministers (GoM), Telecom Minister A. Raja said the issue would be first deliberated by the Telecom Commission (TC). He said the Telecom Commission, the policy-making wing of the DoT, will soon take up the issue of disinvestment in BSNL. Talking to reporters on the sidelines of a telecom sector event , the minister said, "In a few days, the decision of BSNL board on the Sam Pitroda committee report and IPO is going to be discussed in the Telecom Commission". The outcome of the deliberations of the commission would then be placed before the GoM, which is yet to be constituted, for the final decision. The next meeting of the TC is scheduled on May 7. Reports suggest that the TC will consider some key recommendations of the Sam Pitroda Committee regarding the restructuring of BSNL and also look into proposals related to disinvestment and an initial public offering. Raja clarified that the issue of disinvestment would be referred to a GoM and all stakeholders, including the unions, would be consulted before taking other decisions with regard to BSNL. A high-level panel headed by Sam Pitroda and banker Deepak Parekh and Telecom Secretary PJ Thomas as members had recommended 30 per cent disinvestment in BSNL and voluntary retirement of over one lakh staff as part of steps to improve the financial health of the PSU. BSNL saw profits plummet to Rs 178 crore in 2009-2010 (up to December, 2009) from over Rs 575 crore in 2008-09, as the PSU is rapidly losing market share to new entrants.
	OIL gets ‘Navratna’ status New Delhi, April 21 State-owned explorer Oil India Ltd has been granted the coveted ‘Navratna’ status by the government, a move that will empower the company board. “OIL has been awarded with Navratna status by the Ministry of Petroleum and Natural Gas,” the company said in a statement. Navratna or crown jewel, status would allow the company to invest up to Rs 1,000 crore in capital expenditure and acquisitions without having to go to government for approval. — PTI
	RBI ups CRR for rural banks too Mumbai, April 21 The Reserve Bank today hiked the cash reserve ratio or the portion of funds that banks must maintain with the central bank, by 25 basis points for the regional rural banks to 6 per cent. The CRR hike for regional rural banks (RRBs) comes a day after the central bank announced its annual monetary policy that hiked CRR as well as short-term borrowing and lending rates by 25 bps for scheduled banks to tame inflation that is hovering close of 10 per cent. “It has been decided to increase the CRR for RRBs by 25 basis points from 5.75 per cent to 6 per cent of their net demand and time liabilities with effect from the fortnight beginning April 24,” RBI said today. Lenders said Tuesday’s hike - the second policy action in a month - will lead to gradual rise in interest rates as banks will see Rs 12,500 crore squeezed out from their system following the 25 basis points hike in CRR. The apex bank hiked repo and reverse repo by 25 basis points each to 5.25 and 3.75 per cent, respectively. — PTI
	SEBI seeks more info on FIIs’ investment structure Mumbai, April 21 Market regulator Securities and Exchange Board of India (SEBI) has directed foreign institutional investors (FIIs) to disclose more information about their investment structure in India. “It is not about FIIs investment, it is about what structures FIIs have for their investments in India,” SEBI chairman CB Bhave told reporters on the sidelines of a Ficci-organised capital markets conference here yesterday. SEBI had earlier asked FIIs which are registered on or before April 7 to declare whether they are a multi-class share vehicle (MCV), or structured as protected cell companies (PCCs) or segregated portfolio companies (SPCs). “We are currently looking at an expansionary phase of the markets. However, it is for us to be facilitators in this process and in our hands to ensure that such growth is in an orderly and efficient manner,” Bhave said. The country needs to cut several transaction costs to grow its capital markets, he said, adding that while volumes are large, the ticket-size of transactions remains small, which puts increased pressure on costs. “There are three types of transaction costs - brokerage, taxes and impact costs. While we are most efficient in terms of impact costs, there is still a lot more that needs to be done in terms of brokerage costs,” Bhave said. Commenting on the challenges ahead, Bhave said Indian companies need to start reporting as per uniform accounting standards soon. The language of accounting needs to be the same across the world if investors are to make comparisons between companies across the world, he said. “One of the most difficult challenges that corporates are expected to face is the transfer to International Financial Reporting Standards (IFRS) beginning April 1, 2011,” Bhave said. The market watchdog plans to introduce more currency derivatives products, beginning with options, to give a wider choice to investors. “There is a lot of scope for expansion through diversification of products, but at the same time, the sensibilities of the consumer/investor must be kept in mind. We can not simply exist in a world of caveat emptor or buyer beware; there is a need for increased responsibility,” Bhave said. — PTI
	Airlines lose $1.7 bn due to ash chaos Berlin, April 21 Airlines have lost around $1.7 billion after a “week without revenue” because of the chaos caused by volcanic ash, the head of the International Air Transport Association (IATA) said today. At the height of the upheaval on Saturday and Sunday, carriers were losing $400 million per day, Giovanni Bisignani told reporters in Berlin, calling an earlier estimate of $200 million per day “conservative.” The sector has also been left to pick up additional costs like providing accommodation to stranded customers, food and alternative modes of transport to get them home, Bisignani said. “We’ve seen a week without revenue but that has not stopped the costs,” he said. — AFP
	Industry demands round-the-week trade across LoC Afsana Rashid Srinagar, April 21 Demanding that the trade across the Line of Control (LoC) be round-the-week activity, Nazir Ahmad Dar, president, Kashmir Chamber of Commerce and Industry (KCC&I), believes that Srinagar-Muzaffarabad Road can become a transit road. “This road should be a transit road and it would benefit handicraft sector the most in addition to other sectors. Indian ports are saturated and we have to wait for months together to send the goods to final destinations,” said the KCC&I president. Dar observed that the trade, here, had much more potential. He added, “Let it not be confined to pulses and garlic only, we foresee this road as a transit road. Apart from developing infrastructure, locals should be involved in the trade.” The KCC&I president said they were not satisfied with the trade taking place for two days in a week. “We want it to be a round the week activity. Besides, there should be no restrictions on the items to be sent across the LoC and the trade ought to be demand-driven.” Currently, only 21 items have been given the green signal to be sent to the other side of the LoC. Dar pointed out that trade was not going on, the way they had visualised it to be. “Mostly people who have relatives on both sides of LoC or who want to save tax are engaged in it,” he added. “The governments, both India and Pakistan, don’t seem to be serious towards trade.”
	Corporate Results TVS Motor profit up 39 pc Mumbai, April 21 TVS Motor Company today said its net profit rose by 38.78 per cent to Rs 20.29 crore for the quarter ended March 31, 2010, over the same period last year. Total income of the company rose to Rs 1,215.99 crore for the quarter ended March 31, from Rs 909.33 crore in the same period last fiscal, TVS Motor said in a filing to the Bombay Stock Exchange. The company in a separate filing to the BSE said the board has also re-appointed Venu Srinivasan as CMD of the company effective from April 24, for a period of five years. RIIL net dips 15 pc Mukesh Ambani Group firm Reliance Industrial Infrastructure (RIIL) today said its net profit declined by 15.78 per cent at Rs 5.44 crore for the fourth quarter ended March 31, over the same period last year. Income from operations declined to Rs 10.60 crore for the quarter ended March 31, from Rs 18.28 crore in the same quarter previous fiscal, Reliance Industrial Infrastructure Ltd (RIIL) said in a filing to the Bombay Stock Exchange. The board of directors have proposed a dividend of Rs 3.50 per share on the face value of Rs 10 per share to the shareholders. HCL Technologies Software outsourcing firm HCL Technologies today said its net profit rose 72 per cent at Rs 262.57 crore for the third quarter ended March 31, over the same period last year. The total income of the company rose to Rs 1,287.11 crore for the quarter ended March 31, from Rs 1,048.90 crore in the same quarter previous fiscal as per the Indian accounting standards, HCL Technologies said in a filing to the Bombay Stock Exchange. The board has proposed an interim dividend of Rs 1 per share on the face value of Rs 2 per share to the shareholders. Zee Entertainment Media firm Zee Entertainment Enterprises today said its consolidated net profit stood at Rs 128.80 crore for the fourth quarter ended March 31, 2010. It had a consolidated net profit of Rs 96.78 crore during the same period last fiscal. Consolidated total income stood at Rs 678.37 crore for the quarter under review where as the same was at Rs 577.61 crore in the same period previous year. A consolidated total income stood at Rs 2,319.65 crore in the year whereas it was Rs 2,334.53 crore in the last year. The board declared a special interim dividend of Rs 2 per equity share on Re 1 each share on the increased paid up capital of the company, it said. Hindustan Zinc Vedanta Resources group company Hindustan Zinc today said its net profit surged over two-fold to Rs 1,238.99 crore for the fourth quarter ended March 31, 2010. Income from operations rose to Rs 2,498.47 crore for the fourth quarter ended March 31, compared to Rs 1,262.68 crore for the same period last fiscal, the company said. The company recommended a dividend of 60 per cent or Rs 6 per share. — PTI

BRIEFLY

Ericsson to buy Nortel’s stake in JV
NEW DELHI: Swedish telecom equipment maker Ericsson on Wednesday said it would acquire Nortel Networks Corp’s majority stake in its venture with LG Electronics for $242 million in an effort to expand its footprint in the Korean market. Ericsson has entered into a share purchase agreement to acquire Nortel’s majority shareholding in LG-Nortel, it said in a statement. — PTI

Models pose with Nikon cameras at a press conference in New Delhi on Wednesday. Nikon India launched eight new Coolpix cameras, priced between Rs 4,900 and Rs 24,950. Tribune photo: Mukesh Aggarwal

Reliance Utilities’ plan
MUMBAI: Reliance Utilities and Power, which runs captive power plants for Mukesh Ambani-led Reliance Industries, on Wednesday said it planned to raise Rs 1,000 crore by way of debt. The board of directors of Reliance Utilities and Power Pvt Ltd will meet on Thursday to “consider the issue of unsecured, redeemable non-convertible debentures” for raising up to Rs 1,000 crore, the company said in a regulatory filing. — PTI

TCS inks pact with Rolls-Royce
NEW DELHI: Tata Consultancy Services on Wednesday announced a global engineering services partnership with power systems company Rolls-Royce. Under the agreement, TCS will provide Rolls-Royce with a range of engineering services and support across the entire product life-cycle, which will enable the UK-based company to expand its engineering services footprint in India, TCS said in a statement. — PTI

Yahoo! Q1 profit surges
NEW YORK: Internet major Yahoo! has registered nearly three-fold growth in its net income to $310 million during the three-month period ending March 31, 2010, helped by an uptick in the online advertising business and its search deal with Microsoft. The company had a net income of $118 million in the corresponding quarter of the previous year, Yahoo! said in a statement. — PTI

Apple profit jumps 90 pc
NEW YORK: Technology giant Apple has registered a 90 per cent jump in net profit at $3.07 billion in the first three months of 2010, helped by sales of iPhone and Mac computers. The company’s revenue stood at $13.5 billion for the second quarter ended March 27, 2010, an increase of 49 per cent from the year-ago period, Apple said in a statement. — PTI

Cycle show
CHANDIGARH: Punjab Chief Minister Parkash Singh Badal on Wednesday flagged off a 70-member delegation of the United Cycle and Parts Manufacturers Association Ludhiana for China to take part in ‘China Cycle Show’ being held at Shanghai (China) on April 27. As many as 106 countries are participating in the show. The delegation, including its chairman Manjit Singh Khalsa and president DS Chawla, would visit 15 factories of cycle manufacturing in China to know quality and techniques of production. — TNS

IBM profit up 13 pc
New York: Computer services provider IBM has reported 13 per cent growth in net income at $2.6 billion in the first three months of 2010 on account of increased technology spending by corporates. Total revenues stood at $22.9 billion in the first quarter of 2010, an increase of 5 per cent over the same period last fiscal, IBM said. — PTI