The Tribune, Chandigarh, India

	India to grow by 9.5% in 2010: IMF Washington, July 8 The International Monetary Fund today raised India's growth forecast for 2010 to 9.5 per cent, stating that favourable financing conditions and robust corporate profits will accelerate economic expansion. The multilateral lender hiked its growth projection from the earlier estimate of 8.8 per cent it made in April. "In India, growth is expected to accelerate to about 9.5 per cent in 2010, as robust corporate profits and favourable financing conditions fuel investment, and then to settle to 8.5 per cent in 2011," the IMF said in an update of its World Economic Outlook. Recently, Prime Minister Manmohan Singh had said the country's economy is expected to grow by 8.5 per cent for the fiscal year ending March 31, 2011. In the last fiscal, the economy expanded 7.4 per cent. According to the IMF, the world economy expanded at an annualised rate of over 5 per cent during the first quarter of 2010, mostly due to robust growth in Asia. "World growth is projected at about 4.5 per cent in 2010 and 4.25 per cent in 2011," the report said. The lender noted that Asia's strong recovery from the global financial crisis continued in the first half of 2010, despite renewed tension in global financial markets. "GDP growth forecasts for Asia have been revised upward for 2010, from about 7 per cent in the April WEO (World Economic Outlook) to about 7.5 per cent," it added. Meanwhile, the IMF warned that despite the stronger than expected first half recovery, uncertainties surrounding sovereign risks could hamper the economic outlook. IMF chief economist Olivier Blanchard pointed out that downside risks have risen sharply. "While we remain cautiously optimistic about the pace of recovery, there are clearly dangers ahead... outcome will be decided based on how Europe deals with fiscal problems, how advanced countries proceed with fiscal consolidation and how emerging market countries re-balance their economies," Blanchard said. — PTI
	Food inflation eases to 12.63 pc New Delhi, July 8 Annual food inflation eased to 12.63 per cent for the week ended June 26, but fuel inflation shot up to 18.02 per cent after the hike in rates of petroleum products. The rate of price rise of food items was 12.92 per cent in the previous week ended June 19. Vegetable prices fell by over 4 per cent year-on-year, led by a massive decline in rates of potato and onion. Potato became cheaper by over 42 per cent, while onion by 8.75 per cent on an annual basis. Fuel inflation for the week under review, however, rose sharply to 18.02 per cent after the impact of fuel price hike by the government on June 25. Fuel inflation for the week ending June 19 stood at 12.90 per cent. Overall inflation for May was 10.16 per cent, led by high food prices. Food inflation had remained above the 16 per cent level for most part of the year. However, it had fallen sharply for the week ended June 19 to 12.92 per cent, from 16.90 per cent in the week ago. — PTI
	Jubilant Organosys to demerge polymer, agri business Tribune News Service Gurgaon, July 8 Jubilant Organosys, an integrated pharmaceutical industry player and the country’s largest custom research and manufacturing services company, today announced that its board had approved the schemes of amalgamation and demerger. The amalgamation is in the nature of merger of Speciality Molecules Limited (SML), a wholly owned subsidiary of Jubilant Organosys, and Pace Marketing Specialities Limited (PMSL), an exclusive contract manufacturer for adhesives of the consumer products division of Jubilant Organosys. The demerger is of its agri and performance polymer (APP) business. The move is aimed at enabling focused growth and value realisation across the operating entities. The demerged entity will now be referred to as Jubilant Industries, whereas the name of Jubilant Organosys will be changed to Jubilant Life Sciences. The scheme of arrangement will be filed with the court for its approval, which will be followed by listing of Jubilant Industries on the BSE and the NSE. One additional share (of Rs 10 each) of Jubilant Industries will be issued for every 20 shares held in Jubilant Organosys (of Re 1 each). Commenting on the development, Shyam S Bhartia, CMD, and Hari S Bhartia, co-chairman and MD of Jubilant Organosys, said: “The merger of SML and PMSL will be a synergistic integration of business and will improve the managerial and operational efficiencies. This strategic move will enable us to pursue growth opportunities for both businesses independently through two separately listed entities and create greater value for our stakeholders.”
	Ordnance Factory Board scam Ludhiana firm under CBI lens Manav Mander Tribune News Service Ludhiana , July 8 Ludhiana-based RK Machine Tools, one of the country's biggest defence article manufacturing firms, has come under the CBI scanner for alleged involvement in a multi-crore Ordnance Factory Board corruption scam. The CBI has asked the Defence Ministry to blacklist RK Machine Tools. Apart from this, one national and four international firms have also come in the soup. According to sources, contracts worth Rs 61 crore were on hold, while project material worth Rs 5.57 crore was lying in the godowns of the company ready for delivery and goods worth Rs 1.53 crore were under production at the RK Machine Tools. The company supplies spares for vehicles and machinery produced by Bharat Earth Movers Ltd, while TS Kisan and Company apparently supplied spares and accessories for Army's T-72 and T-90S tanks, whereas Pune-based HYT Engineering provides some components of missiles produced within the country. Vicky Soni, director of the company, said it was a news to them. "We have received no such intimation from the Defence Ministry. It is just a advisory letter sent to the CBI. The work at our unit is going on normally. We are sending the orders regularly and getting the payments. Even we fail to understand why our name is being dragged into this," he added. According to the reports, the four international companies include Singapore Technologies Kinetics, Israel Military Industries, Rheinmetall Air Defence, Zurich, and Cooperation Defence Russia. It was alleged that the then chairman of the Ordnance Factory Board, Sudipto Ghosh, had entered into a criminal conspiracy with other accused and had got huge gratification for various supply orders placed by the Ordnance Factory Board (OFB) and also in the matters relating to transfer or posting of the officers of Ordnance Factories. A case was registered by the CBI in May 2009 under various Sections of the IPC and the Prevention of Corruption Act against former Director-General of Ordnance factory Board, Sudipta Ghosh, and 11 others.
	Capital equity of NMDFC hiked to Rs 1,500 crore Tribune News Service/PTI New Delhi, July 8 The Union Cabinet today accorded approval for increasing the authorised share capital of National Minorities Development Finance Corporation (NMDFC) from Rs 1,000 crore to Rs 1,500 crore. The Cabinet also approved the change in funding pattern of the North-Eastern states and amendment to Section 2 of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971. The decisions were taken at the meeting of the Union Cabinet chaired by Prime Minister Manmohan Singh here today. While increasing the share capital of NMDFC, the Cabinet said that the share of the Central government, state governments and individuals/institutions will now be Rs 975 crore, Rs 390 crore and Rs 135 crore, respectively. Giving details after the Cabinet meeting, Information and Broadcasting Minister Ambika Soni said the equity contribution from the Central government, together with contribution from state governments and individuals/institutions and also the recovery of loans from beneficiaries will be spent for providing term loans and micro finance through State Channelising Agencies (SCAs) and for providing micro finance through NGOs. NMDFC also provides educational loans and has promotional schemes like vocational training etc. As per the MoU, 87,984 beneficiaries are to be covered during 2010-11. During this period, the budgetary provision of Rs 115 crore will be released to NMDFC by way of equity contribution of the Central government. NMDFC's schemes are targeted for economic upliftment of people from minority communities living below the poverty line through self-employment. CCEA okays 3-year drilling moratorium Meanwhile, the government on Thursday announced a three-year moratorium on deepwater drilling, a move that will help ONGC and Reliance save exploration acreage that they otherwise may have lost for not meeting their commitments to drill wells. "The Cabinet Committee on Economic Affairs today approved the grant of a drilling moratorium (or holiday) of three years to all deepwater block... where drilling commitments are pending as on January 1, 2009," Home Minister P Chidambaram said. State-owned ONGC and Reliance Industries could not complete the commitments they made to win exploration blocks under the New Exploration Licensing Policy (NELP) due to a global shortage of deepsea drilling rigs in 2008. Chidambaram said the moratorium would apply to 30 blocks (16 of ONGC, 13 of RIL and one of Italy's Eni) from January 1, 2008, to December 31, 2010. The three firms can now meet their drilling commitments during the extended period. Welcoming the decision, ONGC chief RS Sharma said had it not been for the moratorium, the state-owned firm would have to surrender the blocks.
	Car sales zoom 30 pc in June New Delhi, July 8 Automobile sales in India grew by 31.42 per cent during June, benefiting from favourable macro economic conditions and new models launches across categories, including cars, two-wheelers and commercial vehicles. According to the Society of Indian Automobile Manufacturers (SIAM), total sales for all categories stood at 12,05,990 units against 9,17,645 units in the year-ago month, up 31.42 per cent. SIAM said the domestic car sales stood at 1,41,184 units against 1,07,948 units in the same month last year, up 30.79 per cent. Maruti Suzuki's domestic sales grew by 12.61 per cent to 61,589 units in June, while rival Hyundai Motor India also registered 18.92 per cent rise at 27,366 units. Tata Motors' sales jumped 76.30 per cent to 24,209 units during the month. Total two-wheeler sales in June stood at 9,33,101 units, up 31.99 per cent over 7,06,934 units in June 2009. Hero Honda registered a growth of 14.63 per cent in its sales at 3,91,716 units in June. Bajaj Auto saw sales soaring by 69.38 per cent to 1,86,401 units, while TVS Motor Company posted a 39.77 per cent growth at 50,887 units in June. Honda Motorcycle & Scooter India saw its bike sales soaring 56.86 per cent to 58,895 units. The commercial vehicle segment carried forward the upward trend that began in July 2009, with sales in June going up by 44.14 per cent to 52,211 units from 36,222 units in the year-ago period, according to the SIAM data. — PTI