Washington, October 6
The International Monetary Fund (IMF) has projected the Indian economy will grow by 9.7 per cent in 2010 and 8.4 per cent the next fiscal, driven by robust industrial production and macro-economic performance.

However, neighbouring China is expected to grow at an even faster rate of 10.5 per cent in 2010 and and 9.6 per cent in 2011, driven by domestic demand, the IMF said in its latest World Economic Outlook report.

Advanced economies, on the other hand, are projected to grow by just 2.7 per cent in 2010 and 2.2 per cent in 2011, the IMF report said, adding that global trade is forecast to expand by 4.8 per cent in 2010 and 4.2 per cent in 2011, with a temporary slowdown during the second half of 2010 and the first half of 2011.

"India's macroeconomic performance has been vigorous, with industrial production at a two-year high. Leading indicators - the production manufacturing index and measures of business and consumer confidence - continue to point up," the IMF said.

"Growth is projected at 9.7 per cent in 2010 and 8.4 per cent in 2011, led increasingly by domestic demand. Robust corporate profits and favorable external financing will encourage investment," it said.

"Recent activity (10 per cent year-over year growth in real GDP at market prices in the second quarter) was driven largely by investment and the contribution from net exports is projected to turn negative in 2011 as the strength in investment further boosts imports," the IMF said.

According to the World Economic Outlook report, growth in emerging Asia economies stands at about 9.5 per cent, with robust demand from China, India, and Indonesia benefiting other Asian economies.

In China, a major fiscal stimulus, a large expansion of credit and a number of specific measures to boost household income and consumption increased domestic demand growth to almost 13 per cent in 2009, contributing to a large decline in the current account surplus.

The recovery is now well established, and a transition from public stimulus to private-sector-led growth is underway, it said. The World Economic Outlook projects that the output of emerging and developing economies will expand at a rate of 7.1 per cent and 6.4 per cent, respectively, in 2010 and 2011.

"The global recovery remains fragile, because strong policies to foster internal rebalancing of demand from public to private sources and external rebalancing from deficit to surplus economies are not yet in place," it said. — PTI

New Delhi, October 6
Clarity over continuation of BlackBerry smart-phone services in the country remains elusive as conflicting reports emerge from official circles. The question is whether security agencies are satisfied with the solutions put forward by BlackBerry manufacturer Research In Motion (RIM).

Last week, reports suggested the government had got manual access to BlackBerry’s messenger services and was hopeful of getting automated access from January 1

Latest reports suggest that the DoT has rejected the interception solution offered by RIM for its secure corporate email service. India has threatened RIM with a ban if it were denied access to data.

The reports come just days before the UAE prepares to ban the BlackBerry services in the country from October 11. Some of the other West Asian countries including Kuwait and Saudi Arabia have also been fretting over lack of access to the BlackBerry services. Reports said that RIM has told the DoT that it does not have a key to offer to Indian security agencies that would help decode emails.

DoT has also spurned RIM’s technical solution for decoding all chat communication on the popular BlackBerry Messenger service.

This contradicts the home ministry’s recent clean chit to the Canadian smartphone maker’s interception solution for its messaging service.

DoT’s security wing claims that security agencies have been unable to intercept or monitor secure email communication made through the BlackBerry Enterprise Services (BES) in readable format.

New Delhi, October 6
The decision to stop giving interest on deposits in inoperative accounts with the EPFO would improve returns for three crore operational accounts by 0.25 per cent next fiscal, according to a study by a retirement fund manager.

The trustees of the Employees'Provident Fund Organisation (EPFO) on September 15 decided to stop crediting interest in these inoperative accounts with effect from April 1, 2011.

Inoperative accounts are those accounts in which no provident fund contribution is received for a period of the 36 months or more. At present, over Rs 15,000 crore of the unclaimed money is lying in more than 3 crore inoperative accounts.

The latest estimates by EPFO say that about Rs 5,000 crore left in such accounts in 2011-12 would earn over Rs 400 crore.

"The rational expectations indicate that about Rs 5,000 crore would remain with EPFO in inoperative accounts next fiscal which would help us crediting over Rs 400 crore or 0.25 per cent extra return in live accounts," Central Provident Fund Commissioner Samirendra Chatterjee said. — PTI

Mumbai, October 6
Gold buying recoiled on Wednesday afternoon as domestic prices struck a new record high, with a stronger rupee keeping a lid on gains, analysts said.

"Demand is not much today due to a Rs 300 (per 10 grams) spike in prices from yesterday," said a dealer with a state-run bullion dealing bank in Mumbai.

Domestic gold extended gains for a third day in a row to hit a record high of 19,615 rupees per 10 grams. Analysts expect prices to maintain the bullish trend and witness Rs 20,000 levels by November.

"I have advanced orders near Rs 19,000," said another dealer with a private bank in Mumbai. — Reuters

New Delhi, October 6
With Indian sportspersons putting up a good show at the ongoing Commonwealth Games, thereby increasing viewership of Doordarshan, corporates are now looking to book ad slots on the official broadcaster.

Companies, which had earlier decided not to advertise on CWG broadcaster, are now reconsidering their strategy to cash in on the positive response to the Games, which kicked off on Sunday in spectacular style.

"We cannot do anything now in terms of sponsorships and other ground activities during the Games. What we can do is take up adspots and place advertisements since the TRP is increasing," Videocon Industries Director (Sales and Marketing) Anirudh Dhoot said.

He said with good and positive response surrounding the Games now, "We are now planning to buy some adspots, particularly towards the last 2-3 days, when the activities also increase". Similarly, soft drink and snacks major Pepsico said it is also exploring ways to associate with the Games.

"We are currently evaluating opportunities as to what a brand like us which is not a sponsor can do during the Games," Pepsico Executive Vice President Sandeep Arora said, when asked if the company is looking at buying adspots on DD.

FMCG player Dabur also said it is currently in talks to buy adspots for the closing ceremony.

"We had picked up adspots during the opening ceremony. We are in talks now to do the same for the closing ceremony as well," a company spokesperson said. However, LG said it is too late to make changes in their media plans for any advertisements or sponsorships for the Games. "We are happy that Games is a success. But it is too late for changes in our media plans," LG India National Head Sales Amitabh Tiwari said.

Doordarshan, the official broadcaster of the event has been struggling to rope in advertisers.

It has already revised downwards its ad revenue from the event to Rs 100 crore from initially planned Rs 200 crore. In order to give a fillip, the government had asked public sector oil companies to book ad spots worth Rs 10 crore on DD's national and regional channels.

New Delhi, October 6
UK-based Cairn Energy Plc will tomorrow seek shareholder nod for the sale of majority stake in its Indian arm to London-listed Vedanta Resources for up to $8.48 billion, a development that would close options for state-owned ONGC to make a counter offer.

Cairn has called a general meeting of the shareholders in Edinburgh on October 7 at 1400 hours (local time), (IST 7:30 pm), dustry sources said.

Once shareholders approve the deal, Oil and Natural Gas Corp (ONGC) will run out of last opportunity to make a counter offer or exercise its pre-emption right. Sources said ONGC had so far made no approach to Cairn Energy management. ONGC could have made a counter-offer or exercised its pre-emption rights in certain properties of Cairn India only before shareholders of Cairn Energy approve of the sale.

Then, upon acceptance of its offer by the management of Cairn Energy, ONGC would have gone to Sebi for stopping Vedanta's open offer for Cairn India shares that is to begin on October 11. It had previously missed the market regulator Sebi's deadline for making a rival offer.

Sources said the sale is conditional upon shareholders of Cairn Energy Plc and Vedanta Resources passing a resolution to approve the transaction on or before October 30 and Vedanta Group completing an Indian open offer to minority shareholders of Cairn India. The deal is conditional upon required government consents.

The sale agreement will lapse if these conditions are not satisfied or waived on or before April 15, 2011.

Sources said Sebi is yet to approve Vedanta's open offer and any shareholder nod that Cairn Energy may secure tomorrow would be conditional to completion of the open offer.

Vedanta Group is buying 40-51 per cent stake of Cairn India, which owns the nation's largest onland oil field and has also made an open offer to buy another 20 per cent from the company's minority shareholders. According to Sebi regulations, a rival offer had to come within 21 days of the open offer being made, i.e. by September 7, but ONGC choose not to make any offer, they said. — PTI

Chandigarh, October 6
The Punjab government is going all out to sell TechKnow Park, its dream IT Park at Ropar. With land at reasonable rates, exemption from stamp duty and a five-year holiday from electricity duty and high floor area ratio, amongst other incentives, the state government wants the country’s best IT firms to establish presence in the city.

The Expression of Interest for this 300-acre IT park, near IIT Ropar, has already been floated. The government is now writing to players like Infosys and Tech Mahindra. It is also wants one of the new Innovation Universities to come up in this park. The state government is developing this park at Rs 150 crore . Land will be offered at around Rs 1 crore per acre.

“We have identified around 17 companies, including Infosys, Tech Mahindra and Dhirubhai University. The state government will be offering incentives like subsidy on capital investment, exemption from conversion charges and a floor area ratio of 3 - the highest in this region,” said Rakesh Verma, MD, Punjab Infotech.

The state government will also invite biotech, educational, centres of excellence and research institutes in this park. “This IT park is in line with Punjab government’s vision of promoting knowledge industry by developing industry-academia- government linkages,” Verma added.

Ludhiana, October 6
Sony India is betting big on the festival season and targets 45 per cent market share in the Punjab region. The company is aiming for 50% sales growth in revenue collection to Rs 45 crore this Diwali. The company has allocated a budget of over Rs 6 crore for aggressive multi-media communication campaign.

Senior General Manager Sunil Nayyar Sony India launched the company’s festival campaign. The company had earmarked Rs 100 crore for the advertisement campaign throughout the country this year. The company plans to increase its retail presence in Punjab region by opening 30 new Sony outlets this fiscal.

Nayyar added, “Diwali is a festival of joy and we look forward to celebrate it with our valued consumers. This festive season Sony is betting big on 3D and to ensure that the consumer enjoys the perfect 3D experience, we have introduced 3D Bundle promotion offer and 3D Festival Offer. Relying on our attractive promotional offers and strong communication campaign, we hope to increase our sales this festive season substantially from last year”.

The company has introduced attractive bundle promotion offers on 3D Bravia TVs Sony’s entry-level model of 40 inch Bravia 3D TV will be available at a price of Rs 1, 23,900. The payment procedure has also been made convenient and affordable by offering finance at 0 per cent.

BRIEFLY

Godrej to invest Rs 315 cr
Kolkata: The Godrej group on Wednesday said it would invest around Rs 300-315 crore in setting up the fourth soap plant, and a chemical and a cosmetic unit to boost organic growth beside keeping the door open for acquisitions. "We will set up a new soap plant in a coastal area and a new chemical unit costing tentatively Rs 150 crore each and a cosmetic plant that may cost around Rs 15 crore," Godrej Group Chairman Adi Godrej said. — PTI

Shree Renuka receives large order
New Delhi: The country's largest sugar refiner, Shree Renuka Sugars, on Wednesday said it has received orders for the supply of 118 million litres of ethanol to oil marketing companies in five states for a year. “The company has received Letters of Intent for supply of 118 million litres of ethanol to the oil marketing companies (IOC, HPCL and BPCL) for states of Karnataka, Andhra Pradesh, Kerala, Goa and Maharashtra for a period of one year," Shree Renuka said in a communique to the stock exchange. — PTI

Promoters to delist Binani Cement
New Delhi: Binani Cement on Wednesday said its promoters will acquire all shares held by public and delist the company from the stock exchanges. Public shareholding in the company currently stands at 30.1 per cent and at the current price of Rs 95.65 a share is worth around Rs 550 crore. However, the offer price has not been disclosed yet. "The Board of Directors at a Board Meeting, held on October 6, 2010, decided to purchase the entire public equity shareholding of its subsidiary Binani Cement, by giving an exit opportunity to the public shareholders...," promoter Binani Industries said. — PTI

Mushtaq Ahmad J&K Bank Chairman
Srinagar: Mushtaq Ahmad on Wednesday assumed charge as the Chairman and CEO of J&K Bank after his appointment was approved by the Reserve Bank of India (RBI) and communicated to the state government on TUesday. He succeeds Haseeb Drabu. Having joined the Bank in 1972 as Probationary Officer (PO), Mushtaq Ahmad has a distinguished career of 36 years. — TNS

BSNL slashes 3G tariff
Chandigarh: BSNL has slashed tariff for unlimited 3G data plan by 45%. Unlimited 3G data usage will now cost Rs 1,359 per month from Rs 2,499 earlier. Other data plans will be available at 20% reduced tariff. BSNL is currently the only service provider in India, other than MTNL, which offers 3G network services. The new tariff will be valid up to December BSNL has also launched Wimax service in the tri-city. — TNS

Bank of Baroda bags award
New Delhi: Bank of Baroda has bagged the Best Bank of 2010 award instituted by Business India. CMD Director M D Mallya received the award last evening from Union Road and Highways Minister Kamal Nath. Speaking on the occasion, Mallya said the bank aimed to emerge as a new-age bank that met the aspirations of customers. — TNS