New Delhi, December 6
India and France have decided to achieve the trade target of euro 12 billion by 2012, Prime Minister Manmohan Singh said today.“We value the role being played by the India-France CEOs Forum. We will examine their recommendations on increasing investments in the energy, water and infrastructure sectors, establishment of joint ventures in third countries, and enhancing collaboration in areas of R & D and higher education,’’ he said at a joint press interaction with French President Nicholas Sarkozy after their talks here.

Singh said India would cooperate closely with France, which has assumed the chairmanship of G-20, to push forward the process of global economic recovery, better regulation and financial sector reform.

The joint statement issued by the two sides said the two countries welcomed the significant development of cross-border investments between them and large-scale investment by India-based French companies in the car industry, building materials, electrical equipment, public water utilities and rail transport. They also welcomed prospects of Indian investments in France.

Meanwhile, France said it proposed to invest over euro 10 billion in India in next two years if multi-brand retail and insurance sectors were liberalised even as New Delhi said they were ‘very much’ on government’s agenda.

“FDI cap on insurance and multi-brand retail is very much on the agenda,” Planning Commission Deputy Chairman Montek Singh Ahluwalia said in the presence of French Minister of Economy and Finance Christine Lagarde who is part of the delegation accompanying President Sarkozy.

Addressing the India French Business Forum, organised by Ficci, Ahluwalia said, “As far as insurance is concerned, the government has initiated the Parliamentary process to create a legislation to go for 49 per cent FDI in the sector.”

“There could be a lot more than that for sure, if it was possible to develop activities in insurance and retail,” she said adding “If the Indian authorities consider it sensible to open up the sectors, I know French companies will significantly expand their activities.”

New Delhi, December 6
France today pushed for opening up of insurance and multi- brand retail sectors for foreign investment in India and and added a sweetener that these steps can enhance the French investment beyond its target of 10 billion euros by 2012.

The French Minister of Economy & Finance, Christine Lagarde made a case for opening up the Indian insurance and multi-brand retail and Montek Singh Ahluwalia, deputy chairman , Planning Commission responded that the debate on opening of the insurance sector had been initiated through a Parliamentary process and many arms of the government, including the Planning Commission, were supportive of opening multi-brand retail to FDI.

Replying to questions at the Indo-France Business Forum organized by FICCI here today, Lagarde who is accompanying the French delegation with President Nicolas Sarkozy on his India visit said, “The Euro 10 billion commitment by French business to invest in India between 2008 and 2012, could be a lot more if opportunities come up by the opening of insurance and multi brand retail. French companies would respond in a rigorous manner. Everything is about “give and take”, it’s a “two-way street”.

Lagarde also called on Finance Minister, Pranab Mukherjee who invited French companies to invest in the Indian infrastructure sector . She also met Commerce and Industry Minister, Anand Sharma where she raised the issue of liberalizing the retail sector.

Lagarde suggested that based on the French experience, India could try out procurement of goods locally by multi-brand retailers, thereby integrating the local producers with larger retail. She even suggested that in order to ensure that the margins of the big retailers were not “excessive”, a process of consultation and dialogue could be initiated by the government with retailers.

Ahluwalia said, “Multi-brand retail was an area of great sensitivity for the small retailer. He is seeing this for the first time. The feeling that the small retailer would be adversely affected in a scenario when the economy is growing at a fast clip was misplaced.”

Allaying fears on the stability of Eurozone, Lagarde said that the European Union would defend the European financial alliance and would certainly not give up the Euro. As part of the Sarkozy visit, a letter of intent for bilateral cooperation was also signed between India and France today.

Subodh Kant Sahai, Minister of Food Processing Industries said that France is ranked 5th in the list of India’s trading partner among EU countries and India is the 13th largest investor in France. There are about 90 Indian companies in France and have invested in IT, pharmaceuticals, plastic industry, auto parts.

The government has set an investment target of around Rs 1 lakh crore by 2015 in the food processing sector. The sector is expected to grow by 20% and value-addition to increase by 35% by 2015, the Minister said. . In a meeting with Bruno Le Maire, French Minister of Agriculture and Food, Sahai said that research in food processing technology can be an important area of cooperation between the two countries as the levels of food processing are far higher in France as compared to India.

New Delhi, December 6
Construction giant Hindustan Construction Company (HCC) today signed a cooperation agreement with VINCI Construction Grands Projects (VCGP) to work on identified power, water, transport and infrastructure projects in the country and abroad.

The proposed European Power Reactors (EPRs) of Areva, France, at Jaitapur in Ratnagiri district of Maharashtra are targeted joint projects under the cooperation agreement where the two firms will work on project construction on a value added approach.

Under the agreement signed today at the third Indo-French CEO’s Forum which met on the sidelines of Prime Minister Manmohan Singh and visiting French President Nicolas Sarkozy’s talks here, the partners will also focus on similar opportunities in water and power sectors in SAARC nations.

Speaking to The Tribune, Chairman and MD, HCC Ajit Gulabchand, said: “Our association with VINCi was a red letter day for HCC as VINCI is a leader in infrastructure. The Indian infrastructure sector will benefit from this partnership,” Gulabchand said.

The pacts come at a time when the Indian government and Nuclear Power Corporation of India (NPCIL) have embarked on an ambitious growth plan to enhance the country’s current installed nuclear power capacity of 4120 MW to 63,000 MW by 2032. Of the planned capacity, 40,000 MW or more capacity of light water reactor is planned in technical collaboration with the other countries.

Franck Thevenin, VCGP India Director, said, “With GDP growth of 9 per cent and continuing reforms, India;s nuclear power programme including the planned EPRs at Jaitapur is a key market of interest to us.”

The CEO forum came into being after the 2008 state visit of Sarkozy to India. Presided over by NR Narayan Murthy, founder, Infosys Technologies on the Indian side and Bertrand Collomb, Honorary Chairman, Lafarge for the French, the forum is working to see how India and France can meet their stated commitments.

New Delhi, December 6
The country's largest lender State Bank of India (SBI) today raised deposit rates up to 150 basis points or 1.5 per cent across various maturities, a move that will provide better returns to people with fixed deposits in the bank.

The new rates will become effective from tomorrow. The decision comes close on the heels of various private and public sector lenders including ICICI Bank, Punjab National Bank, Syndicate Bank and Bank of India raising their deposit rates, in response to RBI Governor D Subbarao's suggestion of giving better returns to depositors.

SBI, according to a official release, will offer a maximum interest rate of 8.75 per cent for deposits with maturity period of 8-10 years, marking an increase of 100 basis points.

The highest increase of 150 basis points will be in case of term deposits with maturity of 46-90 days. The depositors will earn an interest of 5.5 per cent as against existing 4 per cent.

The decision of SBI to raise fixed deposit rates will prompt other lender to hike their rates to compete for savers money. In an effort to tide over tight liquidity situation and increase its credit, ICICI Bank raised interest rates on fixed deposits of various tenors by 0.25-0.50 per cent. — PTI

Abohar, December 6
The ginning and pressing operation in more than 250 mills in Punjab have been adversely affected as raw cotton is in short supply and its arrival has come down to 12,000 bales in the market against the demand of 40,000 bales a day.

The large gap in demand and supply of raw cotton has forced owners of almost all the mills to run their units for less than eight hours a day. Some owners are running their units twice a week.

“If the availability of raw material and its prices are not stabilised by the end of January 31, 2011, about 60 per cent of total ginning and pressing mills of Punjab will be closed despite the fact that closing date is March 31, 2011,” claimed Bhagwan Dass Bansal, President, Punjab Cotton Factories and Ginners Association, adding that hike in domestic consumption, cut in crop size and panic buying by exporters had led to unprecedent rise in raw cotton prices.

The arrival of raw cotton in Punjab markets had also come down due to fact that a significant section of farmers had held back their produce, anticipating that prices of raw cotton would go up.

Chandigarh, December 6
Tension in the Kashmir Valley notwithstanding, Kashmir is turning into an ‘apple’ of the corporates’ eye. Lured by the Kashmiri apple, all top agriculture companies have forayed in the strife torn state to procure the fruit.

From Adani to Bharti Retail, and from Mother Dairy to Godrej Agrovet - all big agri business companies have forayed into J&K for procuring apples, which have a huge demand. The bumper apple crop in the Valley this year has ensured that the procurement by these companies too goes up. The fruit production in the Valley has already crossed 20 lakh tonnes, and is expected to go higher.

Talking to TNS here today, Ghulam Hassan Mir, agriculture minister of Jammu and Kashmir, said that though the high production has led to a crash in prices, it has also ensured that companies participate more in the procurement of the fruit. It may be mentioned that the prices of apple from Kashmir has seen a fall of over 30 per cent (from last year), with prices varying between Rs 200 and Rs 800 per box (each box has 25 kg of fruit).

The bumper apple crop this year, is allowing the government to encourage apple growers and the traders to eye the international market. The minister said that though the corporates were participating in the procurement of the fruit, they were so far not investing in creating the supply chain infrastructure.

“We are inviting them to do so. In the meantime, local businessmen in the Valley have started realising the potential of the supply chain, and have set up two controlled atmosphere cold storages, where the excess produce can be stored and thus minimise post-harvest losses,” he added.

The J& K Agriculture minister also said that they were coming out with a new agriculture policy during the winter session of the Assembly, which will lay emphasis on creating infrastructure in agriculture. He also said that their government was now promoting contract farming of onions, chillies and potatoes. J & K is all set to implement the National Saffron Mission, under which Rs 376 crore have been allotted by the Indian government to increase the acreage and yield, and provide backward and forward linkage for the saffron produced by the cultivators, he added.

New Delhi, December 6
India could consider raising diesel prices before planned share sales of state-run companies Indian Oil Corp and Oil and Natural Gas Corp (ONGC), Oil Secretary S Sundareshan said on Monday.

“It is extremely difficult for the government to pass on the entire burden to the consumers. We will have to go before the Empowered Group of Ministers (EGoM),” he said.

Sundareshan added he hoped the EGoM would meet before the sale of stakes in IOC and ONGC, which should be in the last quarter of the current fiscal year ending in March. — PTI