The Tribune, Chandigarh, India

	Economy set to grow at 8.6 pc in FY11 Sanjeev Sharma Tribune News Service New Delhi, February 7 Powered by a strong revival in agriculture, the economy is estimated to grow at 8.6 per cent for the year 2010-11 ending March as against 8 per cent last year, according to advance estimates released by the government. However, high inflation, widening trade imbalance and fiscal deficit remain worries for the economy. The agriculture sector is likely to post a growth of 5.4 per cent in its GDP during 2010-11, as against the previous year’s very low growth rate of 0.4 per cent, according to advance estimates of National Income for 2010-11 released by the Central Statistical Organisation (CSO) here today. The growth rate of 8.6 per cent in GDP during 2010-11 has been due to the growth rates of over 8 per cent in the sectors of manufacturing, construction, trade, hotels, transport and communication, financing, insurance, real estate and business services. Reacting to the estimates, Finance Minister Pranab Mukherjee said that there is buoyancy in tax collections and performance on fiscal and revenue deficit targets for the year would be better than the projections in the Budget 2010-11. Figures released today by the Finance Ministry showed that direct tax collections increased by 20 per cent during April-January. Gross Domestic Product (GDP) at factor cost is estimated to increase by 8.6 per cent in 2010-11 as per CSO advance estimates. The Finance Minister said that on the supply side, strong agriculture performance aided by growth in manufacturing and services has helped in restoring high overall growth in GDP for the fiscal year 2010-11. On the demand side, he said while private consumption is estimated to grow at 8.2 per cent in 2010-11 over the last year, the growth in investment is anticipated at close to 9 per cent. He said the growth in government spending is estimated to moderate significantly to 2.6 per cent in 2010-11. The export growth is projected at 12 per cent and import growth at 6.3 per cent in 2010-11, he added. He said the strong revival in private spending and improvement in investment growth is a welcome sign. Assocham president Dilip Modi said with these numbers the hope is that prices of basic commodities will come down in the near term. Manufacturing costs of industrial sector would also come down.
	US trade mission in India to discuss nuke, defence cooperation Ashok Tuteja/TNS New Delhi, February 7 Ahead of Foreign Secretary Nirupama Rao’s visit to Washington in mid-February, US Commerce Secretary Gary Locke kicked off a high-technology trade mission in New Delhi today to promote exports of leading US technologies and services related to civil nuclear energy, civil aviation, defence and homeland security, and information and communications technology. The trade mission, comprising 24 companies from 13 states, is the first visit by an American Cabinet Secretary to India since US President Barack Obama came in November last year. In addition to government and corporate officials, Locke will also meet senior personnel of the Department of Atomic Energy and Nuclear Power Corporation of India during his week-long visit, US Embassy sources said. Furthermore, he will hold talks with the top bosses of ISRO, which was recently removed by the US from a list of entities to be denied access to sensitive technologies. The delegation, which also includes senior officials from the Export-Import Bank and US Trade Development Agency, will make stops in New Delhi, Bangalore and Mumbai. Locke is expected to highlight export opportunities and efforts to break down tariff and non-tariff barriers for the US businesses in the advanced industrial sector, including areas like civil-nuclear trade, defence and security, civil aviation and information and communication technologies. Locke accompanied Obama on his India visit in November, during which more than $10 billion worth of business deals were inked between the US companies and Indian private sector and government entities, supporting 50,000 American jobs. Recently, the US Department of Commerce took the first step toward implementation of the export control policy initiatives announced by Obama and Prime Minister Manmohan Singh in November. Washington also removed the Indian Space Research Organisation (ISRO), Defence Research and Development Organisation (DRDO) and their subsidiaries as well as state-owned defence firm Bharat Dynamics from the 'entity list', paving the way for enhanced India-US cooperation in a host of high-technology areas such as satellite development and missile defence. During her visit, Indian Foreign Secretary Rao is expected to discuss a range of bilateral issues, including nuclear cooperation and India’s membership of various multilateral nuclear groupings. Rao is expected to press Washington to expedite the process of changing membership criteria to accommodate India in the Nuclear Suppliers’ Group (NSG), the global nuclear cartel which controls international trade in nuclear materials, including dual-use technologies.
	Asian Paints restarts Egypt operations New Delhi, February 7 India's leading paint company, Asian Paints, today announced it has commenced operations partially, at its two manufacturing units in Egypt. The company had shut down operations at the two manufacturing units last week, in the wake of the ongoing political crisis in Eygpt. "The two plants of the company's subsidiary, SCIB Chemicals SAE, Egypt, which were shut due to prolonged curfew, have restarted the operations partially with effect from February 6, 2011," Asian Paints said in a filing to the BSE. According to sources, the company's decision to restart the operations, however, did not suggest any improvement in the situation in the country. Asian Paints' two manufacturing units are located at an industrial area about 50 km from Cairo.— PTI
	Cairn-Vedanta Deal OilMin favours ONGC’s concerns New Delhi, February 7 The Oil Ministry today said it is for expediting clearance to Vedanta Resources' $9.6 billion acquisition of Cairn India, but wants state-owned ONGC's concerns addressed before that. "We are for expediting the process (of approval) after addressing all the concerns particularly relating to ONGC's liability to pay royalty and cess on behalf of Cairn India," a highly placed source said. Oil Secretary S Sundareshan had yesterday met chief executives of Vedanta and Cairn Energy, which is selling most of its stake in its Indian unit, but the meeting was inconclusive. Another meeting was said to happen today but it has not yet been scheduled. Sources said the two sides went through each of the 11 preconditions that Oil Ministry had set for approving the deal. Cairn/Vedanta explained their point of view. The Oil Ministry, however, held its ground on the precondition that state-run ONGC's royalty liability in Cairn India's mainstay Rajasthan block will have to be addressed before such approval. The Rajasthan block, which gives Cairn India 90 per cent of its valuation, is a losing proposition for ONGC, as it has to pay 20 per cent royalty to the state government on the entire output from the field, even though its share of production is only 30 per cent. Cairn India does not pay royalty on the crude and has even contested the payment of Rs 2,500 per tonne cess on its 70 per cent share. The source said the ministry "doesn't want to stand in the way of the deal, but the two issues need to be addressed." — PTI
	New consumer price series on Feb 18 New Delhi, February 7 The government today said the new consumer price series for rural, urban and combined (rural + urban) for January, reflecting the impact of price rise on common man, will be released on February 18. These consumer indices will be available for five major groups - food, beverages and tobacco; fuel and light; housing; clothing, bedding and footwear; and miscellaneous. The indices will be released for states/Union Territories and all India. The government also releases four CPI (Consumer Price Index) inflation series - CPI for industrial workers, CPI for agricultural labourers, CPI for rural labourers and CPI for urban non-manual employees - which it will continue to do. Besides, wholesale prices are measured by the WPI index. The base for the new series will be January-December 2010. — PTI
	SEBI defers decision on Takeover Code Mumbai, February 7 Market regulator SEBI today said new norms for takeover of companies, as also for ownership and governance issues of stock exchanges, would take some time as they need more deliberations, including by the government. After a board meeting, Chairman CB Bhave told reporters that decision on the new Takeover Code has been deferred. The Takeover Code relates to changes in a host of regulations governing the merger and acquisitions of listed companies. Asked about the Jalan Committee report, which has recommended sweeping changes in the way stock exchanges and other market infrastructure institutions are owned and run, Bhave said the matter was not discussed at all. While the SEBI is awaiting some more clarity from the government on the Takeover Code, the regulator is still collating the feedback received on Jalan panel recommendations, he said. The Takeover Code has been awaiting a clearance for many months now and has been discussed in at least three meetings of the SEBI board, which has representations from the government also, so far without any final decision. Whenever the government completed its consultations, SEBI will take decision on Takeover Code, Bhave added. While Bhave did not specify any reasons for delay in decisions on these two major issues, sources close to the development said the government is of the view that these matters could be best taken up by the next SEBI chief. — PTI
	Wipro rejigs organisational structure Bangalore, February 7 A fortnight after announcing a change of gaurd at the helm of affairs, Wipro today said it has realigned its organisational structure in line with the changed business environment. "With the change in environment, there is a need for a bolder, simpler and more agile organisational structure," the new CEO of the IT business of Wipro, T K Kurien, said. In the realigned set-up, Metals & Minerals will be a new vertical. Pharmaceutical, Healthcare and Life Sciences and Services, which are related industry verticals are getting organised as an SBU for better synergies under Sangita Singh's leadership, it said. Manufacturing and Hi-Tech is a new consolidated SBU getting formed, to leverage the enormous synergies between the two industries. This SBU would be led by NS Bala. GK Prasanna, who was leading the Technology SBU for Wipro, would take over as head of Wipro’s Eco-energy business division. Anand Sankaran will continue to lead Wipro Infotech business division. Rajiv Shah, who successfully built Healthcare and Services business to a critical mass for the company to grow and expand to the next level, has decided to pursue a career outside Wipro, the company said. — PTI