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‘India moving towards fiscal stability’
New consumer price index launched
ADAG seeks IB probe in hammering of infra stocks
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India, Malaysia ink free trade pact
Posco satisfied with MoEF conditions: Korea
Government mulling AIPL-HPMC merger
CAIRN-Vedanta deal
Panel to resolve AI employees’ grievances
GSM operators add over 13 m subscribers
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‘India moving towards fiscal stability’
Paris, February 18 Talking to reporters on the sidelines of the G-20 Finance Ministers’ meeting here, Mukherjee said fiscal expansionary policies were required in the past, in the wake of global financial crisis. With growth returning to high trajectory, “We should come back to the path of fiscal consolidation. We are following that,” he said.
Fiscal deficit in India’s Budget had ballooned to 6.8 per cent of the Gross Domestic Product (GDP) in 2009-10 and was pegged quite high at 5.5 per cent for the current fiscal, as the government had to provide a stimulus dose worth billions of dollars to the economy. “When the financial crisis started, most countries resorted to expansion of financial space. As a result, the deficit in Budget increased substantially and it got reflected in the current account balance,” he said. Mukherjee said stimulus package helped India to grow 6.8 per cent in 2008-09 and by 8 per cent in 2009-10. In fact, the process of fiscal consolidation began in the current year itself as the government partially withdrew the sops given to the industry in 2008 and 2009. The expansionary policies to keep growth in tact, had their impact on the country's current account deficit, which represents the difference in inflows and outflows of foreign exchange, barring capital movements. It is is projected to be at 3.5 per cent in the current fiscal, against 2.9 per cent in the previous financial year. The current account deficit above 3 per cent is considered to be a dampener for a national economy, according to experts. Mukherjee had set a target of 4.8 per cent fiscal deficit for 2011-12. It is expected he would try and stick to this target in the coming Budget. He added India was against any global approach to capital controls and that it was up to individual countries to manage inflows. “Our position is that we do not want any arbitrary mechanism to discourage capital inflows. We have stated that this decision should be left to the discretion of individual countries,” Mukherjee told reporters as policymakers gathered for G20 talks on global economic imbalances. Asia’s third-largest economy needs foreign inflows to bridge its widening current account deficit, expected to be around 3 per cent of GDP in the 2010-11 fiscal year to end-March 2011. Policymakers are confident India can easily finance the gap. — Agencies
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New consumer price index launched
New Delhi, February 18 While Consumer Price Index (CPI), according to new series, has increased to 106 in January this year from a base of 100 in 2010, government has chosen not to mention the inflation figure saying the exact level could be arrived only next year. Analysts were also guarded as the new indices have a long way before they evolve into the country's benchmark for inflation. The figure was arrived based on a comparison with the annual all-India CPI index average for the whole of 2010. According to new series, all-India Consumer Price Index stood at 106 (provisional figure) for January 2011 taking the base at an annualised level of 100 for the entire last year. "Since these indices are being introduced for the first time, annual inflation rates have not been compiled," the Ministry of Statistics and Programme Implementation said in a statement. Inflation, as measured by the Wholesale Price Index - which remains the top benchmark - stood at 8.23 per cent in January. Economists said the new series will help both the Government and Reserve Bank to frame their polices as CPI is a better reflection of actual prices than the current practice of following the wholesale price index (WPI). Crisil chief economist DK Joshi said the country desperately needed an index which is comprehensive. — PTI
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ADAG seeks IB probe in hammering of infra stocks
New Delhi, February 18 Besides itself and another group firm Reliance Power, the Anil Ambani group has also listed out companies like public sector giants NTPC, BHEL and NHPC, as also private sector entities like L&T, JSW Energy, Adani Power, Tata Power and Voltas Ltd in its letter to the IB, sources said. Reliance Infra has claimed that the illegal bear cartel run by this stock market operator has caused a loss of over Rs 300,000 crore from the infrastructure sector stocks in a short period of less than 90 days ending February 9. Other infra-sector companies listed out in the letter include Jaiprakash Associates, Neyvelli Lignite, GMR Infra, Lanco Indtatech, Jaiprakash Power Ventures, ABB Ltd, Crompton Greaves, Mundra Port, Torrent Power, Thermax, Cummins India, IRB Infra and GVK Power and Infra. Seeking a probe and immediate action by the intelligence agency against those behind the 'bear hammering operation, the company blamed these operators of distorting Indian capital market in general and infrastructure sector in particular. These operators have been accused of indulging in market manipulations and rumour mongering to destroy the confidence of investors for their own illegal and unjust enrichment. The company is also believed to have identified the name of the market operator leading this cartel, based on the information from its stock market sources, and has said that he has accumulated huge wealth running into hundreds of crores of rupees in a very short span of time. R-Infra is believed to have told IB that infrastructure sector has been identified by the government as a growth catalyst and a key driver to make it an economic super power. Asserting that infrastructure companies need regulatory protection from market manipulative forces, the company has said that it was important for these companies to raise equity and debt resources to implement their projects. — PTI
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India, Malaysia ink free trade pact
Kuala Lumpur, February 18 The Comprehensive Economic Cooperation Agreement (CECA) was signed by Commerce Minister Anand Sharma and his Malaysian counterpart Mustapa Mohamed in the presence of Prime Minister Najib Razak and several leading captains of industry from both sides.
"The CECA will usher in a new era of much deeper economic cooperation," a beaming Premier Najib said, adding that his Indian counterpart, Manmohan Singh, was very supportive of this and a very good friend of Malaysia. The agreement, which was reached after seven rounds of negotiation, will see Indian mangoes, cotton, motorcycles, trucks and basmati rice attract less duty in Malaysia, among other things. As a quid pro quo, the South-East nation will face less barriers on the sale of its fruit, engineering goods and chemicals in India. Sharma, who inked a trade pact with Japan on Wednesday, said the CECA would boost India-Malaysia trade to $15 billion by 2015, "which we can hopefully achieve much earlier". An India-Asean FTA is already in place, but Sharma said the biggest benefit of the CECA was the doors being thrown open for a wide range of services. These include professional services, telecommunications, research and development, transport, retail and environmental services. The pact includes provisions for freer movement of skilled professionals for IT, accounting, architecture and banking. — PTI
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Posco satisfied with MoEF conditions: Korea
Kolkata, February 18 “Posco is satisfied with the conditions of the MoEF. I do not find any big problem for launching the project,” Keun said at an interactive session organised by the Indian Chamber of Commerce here. He said Posco’s proposed investment of $12 billion was the largest Korean FDI in India. The Korean firm planned to set up a 12-tonnes steel plant, a captive power plant and a minor port in Orissa. The envoy said Posco had been waiting for six years for launching the project. He hoped the project would now get off the ground. On Indo-Korean trade, he said the trade volume last year was $17 billion and Korean investments in India have gone up by 40 per cent over the last year. He said Indian companies such as Tata Motors and Mahindra & Mahindra had made substantial investments in Korea. — PTI
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Government mulling AIPL-HPMC merger
Shimla, February 18 A preliminary exercise has been started to look into the possibility of merging the two loss-incurring PSUs, which cater to the need of the fruit growers. However, it will not be an easy proposition as APIL with its accumulated loss of Rs 75 crore and liabilities exceeding Rs 25 crore will further reduce the already negative networth of the HPMC. Moreover, with the plant and machinery of the carton factory at Pragatinagar already sold out and land allotted to Sultlej Jal Vidyut Nigam for setting up an engineering institution, the APIL has no assets left. As such, its merger with the HPMC, which has accumulated a loss of over Rs 60 crore, will end all possibilities of its revival. Despite losses, the HPMC has been playing a vital role in procurement of apple and other fruits under the market intervention scheme, supply of fertilisers, pesticides, and insecticides, farm implements and other required inputs to orchardists. The merger will increase the accumulated loss to a whopping Rs 160 crore unless the government is ready to clean up the balance sheet of APIL before merger. The scheme for the merger of Nahan Foundry and the State Small Industries and Export Corporation into the State Industrial Development Corporation has been submitted to the Union Ministry of Corporate Affairs for approval. The government did not face any problem as both companies were in profit and as such liabilities were not an issue. Since the PSUs have been registered under the Companies Act, the approval of Government of India is mandatory. Once the Centre accords approval, the Board of Directors and share holders of the three companies will approve the schemes and the matter will be placed before the Registrar of Companies for effecting the necessary changes.
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No compromise with national interest: Reddy
New Delhi, Februray 18 With the ministry trying to sort out contentious issues around Cairn’s main asset, UK’s Prime Minister wrote to his Indian counterpart seeking an early favourable decision. “While (such) pressures are natural, we have to address our concerns,” Reddy said acknowledging that David Cameron had written to Prime Minister Manmohan Singh on the deal. UK’s Cairn Energy, which is selling most of its 62.4 per cent stake in the Indian unit to billionaire Anil Agarwal run mining group, is pressing for a decision by this weekend to conclude the transaction by April 15. Cairn Energy CEO Bill Gammell followed up a February 15 letter, that sought a decision by February 20, with a meeting with Reddy today, the second in as many weeks. “I told them (Gammell and Cairn India CEO Rahul Dhir) that we are tying to deal with questions as quickly as possible. The matter (is being) taken to the Cabinet and the Cabinet will be looking at the question very quickly, within 3 weeks,” Reddy said. The issue at hand is Oil and Natural Gas Corp’s (ONGC) liability to pay royalty and cess on behalf of Cairn India in the giant Rajasthan oilfield. The ministry is pushing for an equitable sharing of the liability so that the state-owned firm does not make losses on the fields. Gammell on his part said his firm will not go back to its shareholders seeking an extension of the April 15 deadline by which the transaction is to conclude and expected ‘satisfactory’ movement forward. Following the government nod, Vedanta group is to make an open offer for buying up to 20 per cent shares from minority shareholder of Cairn India. “There are issues relating to royalty and cess. We cannot sacrifice our position completely just to facilitate the deal,” Reddy said. — PTI
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Panel to resolve AI employees’ grievances
New Delhi, February 18 Civil Aviation Minister Vayalar Ravi today said the committee would soon be constituted to resolve grievances of employees of the ailing national carrier. “We have formed a mechanism under which we will have a committee which will look into the various issues of the unions, which includes wage parity,” Ravi said on the sidelines of a function to commemorate the 100th anniversary of the first commercial domestic flight in India between Allahabad and
Naini. According to the minister, his interactions with all 14 employee unions of the airline on February 16 and 17 went off well. |
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GSM operators add over 13 m subscribers
New Delhi, February 18 In January, Bharti Airtel led the field with the addition of over 3.3 million subscribers. The company now has a market share of 27.99 per cent and has 156 million subscribers - the highest in the country. Vodafone added 3.1 million subscribers to and now has 127.36 million subscribers. Idea added 2.51 million subscribers and now has 84.29 million. State-owned BSNL added 2.2 million subscribers to touch 83.6 million subscribers. |
Metro Cash & Carry to open wholesale centre in Punjab Nahar redeems $45 m FCCB issue
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Finance Minister Pranab Mukherjee today indicated that Indian government will return to fiscal discipline in the coming Budget, after following policies of stimulus and expansion in the last two years.
Talking to reporters on the sidelines of the G-20 Finance Ministers’ meeting here, Mukherjee said fiscal expansionary policies were required in the past, in the wake of global financial crisis.
India and Malaysia today signed a comprehensive market opening pact that throws up myriad trade opportunities for both sides and gives a boost to India's Look-East Policy and the prospects for its economic integration with South-East Asia.
