The Tribune, Chandigarh, India

	Not committed to support Lagarde for IMF chief: India Finance minister Pranab Mukherjee reiterates India’s position that the IMF chief should be chosen on merit New Delhi, June 7 India has not committed to support French Finance Minister Christine Lagarde’s candidacy for the International Monetary Fund’s (IMF’s) top job, Finance Minister Pranab Mukherjee said on Tuesday, a sign that India may still be hopeful of nominating an alternative candidate. However, to drum up support for her candidacy Lagarde, said that Indian officials had given positive views on her credentials in a television interview barely two hours after Mukherjee’s comments. The French minister added that she hoped to get a view on China's position during her visit to the country that begins on Wednesday. The IMF top job fell vacant after its former boss Dominique Strauss-Kahn was arrested on charges of sexually assaulting a hotel maid. Kahn has pleaded not guilty to the charge. “No assurance,” Mukherjee replied tersely, on being asked whether he had given any assurance to Lagarde for the top job at the IMF. The Indian finance minister reiterated India’s position saying the candidate chosen for the top job at the IMF should be on merit. Lagarde later described her meetings with Indian officials as 'excellent'. “I don't think I will betray their confidence in saying that they (Indian leaders) expressed positive views about my skills and credentials,” she told a TV channel. Lagarde is seen as the leading candidate in the IMF race, which also includes Mexico's central bank chief Agustin Carstens. “Many African countries have expressed, publicly for some and privately for others, their support for my candidacy,” Lagarde said. “My suspicion frankly, is that a lot of countries are going to wait until June 10, because that is the closing of candidacy filing,” she added. — Reuters Lagarde pitches for 40% hike in India’s IMF quota Pitching for an increased role for India in world economic affairs, French Finance Minister Christine Lagarde -- the top contender for IMF chief post -- today said the country's quota at the multilateral agency should be raised by 40 per cent. Lagarde's stance comes even as India is non-committal on supporting her candidature for IMF’s Managing Director post. "For India to be properly represented, we have to increase its quota by 40 per cent and its voice by the same amount. I think that process is an ongoing process...," she said. — PTI
	PO savings bank deposits may earn 4% Committee on Small Savings suggests measures to make these schemes more attractive New Delhi, June 7 A government committee has suggested raising interest rates on Post Office savings bank deposits to 4 per cent, a suggestion that could benefit lakhs of small depositors. The Committee on Small Savings also recommended linking returns on other small savings schemes with interest rates on government securities. It has also suggested that Kisan Vikas Patra (KVP) be withdrawn and annual investment limit for the popular Public Provident Fund (PPF) be raised to Rs 1 lakh from Rs 70,000 at present. The committee recommended that interest rates for Post Office savings deposits be raised to 4 per cent from 3.5 per cent at present, in line with the Reserve Bank’s decision to hike rates on savings bank deposits. Under the new formula, suggested by the committee headed by RBI Deputy Governor Shyamala Gopinath, small savings schemes would provide better returns to investors. Interest rate for one-year deposit scheme would go up to 6.8 per cent from 6.25 per cent, while returns for the PPF would improve to 8.2 per cent from 8 per cent. With regard to taxing returns on the small savings schemes, the committee said the issue should be considered by the government while firming up the Direct Taxes Code (DTC), which seeks to replace the Income Tax Act, 1961. Noting that the small savings schemes are agent-driven, the committee suggested that the commission on them should be gradually reduced from 4 per cent to 1 per cent. The Committee said the government should introduce the system of calculation of interest rate on a daily basis on post office schemes as is being done by banks. Taking a cue from Reddy and Rakesh Mohan committees, it said the administered interest rates on the schemes should neither be raised nor reduced by more than 100 basis points above or below the benchmark rate. To improve the liquidity of the 5-year recurring deposit scheme, it said that the government may reduce the lock-in period to one year from three years with a penalty for pre-mature withdrawal. — PTI WHAT THE RBI COMMITTEE PROPOSES Kisan Vikas Patra (KVP) be withdrawn Annual investment limit for the popular Public Provident Fund (PPF) be raised to Rs 1 lakh from Rs 70,000 at present Noting that the small savings schemes are agent-driven, the committee suggested that the commission on them should be gradually reduced from 4 per cent to 1 per cent On investment ceilings for different small savings schemes, it said that the govt should retain them
	Maruti estimates Rs 100 cr loss as Manesar strike continues Tribune News Service New Delhi, June 7 Workers’ strike at the Maruti Suzuki plant in Manesar in Haryana entered the fourth day Tuesday as talks with the management failed to achieve a breakthrough. “Talks are still on. But this strike is illegal as no intimation was given. We had literally no idea on why they went on the strike in the first place as they did not inform us,” RC Bhargava, chairman of Maruti Suzuki India, said. Bhargava added the company had suffered a production volume loss of around 3,000 cars till Tuesday, including the 600 units on the first day of the strike on Saturday. The production loss has been pegged at around Rs 100 crore. Meanwhile, workers while denying any support. “We haven’t spoken to any trade union. It is an incorrect rumour being spread to take the attention away from the main cause of our struggle,” a striking worker said. As of now, the company is not very worried about daily production losses. At the dealer end it has an inventory of 28 days, while the factory itself has stock for five days. Haryana says strike unwarranted Chandigarh: The Haryana Labour Commissioner today termed the strike by worker's at Maruti Suzuki India's Manesar plant as "unwarranted", while supporting the management's decision to sack 11 employees. The state labour department, while admitting that the demand of workers to form new union was not illegal as law provided for it, said the matter is an "internal matter" of the company but local authorities were keeping a tab on the whole issue. — PTI
	Star News, L&T get nod for FDI proposals; 14 others cleared New Delhi, June 7 The government today said it has cleared 16 Foreign Direct Investment (FDI) proposals amounting to Rs 923.55 crore, including those of Star News Broadcasting Ltd and L&T Finance Holdings. A total of 38 FDI proposals were taken up by the Foreign Investment Promotion Board (FIPB), but the board deferred a decision on 14 applications, rejected seven and recommended one for the CCEA, the Finance Ministry said in a statement. The board gave its approval to Soma Tollways Pvt Ltd (Andhra Pradesh) for induction of foreign equity in an investing company. The proposal is likely to bring in FDI worth Rs 500 crore. L&T Finance Holdings Ltd's application for permission for pre-IPO placement of equity shares with eligible non-resident investors was also approved by the FIPB. The firm aims at FDI worth Rs 400 crore. The board also approved the Star News Broadcasting Ltd's (Touch Tele Content (I) Ltd) proposal for induction of foreign capital. It would, however, not include any fresh inflow of funds. The other major proposals that were cleared by the FIPB include those of Global Gourmet (Gujarat), Park Controls & Communications Ltd (Bangalore) and Centum Electronics Ltd (Bangalore). The ministry further said the board deferred a decision on applications by Indian Rotorcraft (Mumbai) for induction of foreign equity and Precision Electronics to undertake the additional activity in the defence sector. Decisions on the proposals of BNP Paribas S.A. (Paris), Sightlife USA, Southern CNG Automobiles and Natixis Global Asset Management (France), among others, were also deferred. The proposals which were rejected include those of Reynders Label Printing India (Delhi and Haryana), Anuradha Holdings (Bangalore) and AOS Holding India SAS (France). Two proposals — PTC India Financial Services (Delhi, Haryana) and Tata Steel Ltd — were withdrawn from the FIPB Agenda on the request of the applicants. The proposal, which was recommended to the Cabinet Committee of Economic Affair (CCEA) was of Cals Refineries Ltd (Delhi and Haryana) to issue equity shares in the form of GDRs against supply of refinery equipments. Foreign Direct Investments into the country had fallen to $19.43 billion (Rs 88,520 crore) in 2010-11 as against $25.83 billion (Rs 12.31 lakh crore) in the previous fiscal, a decline of 25 per cent. — PTI
	FM meets FIIs to soothe nerves on sell-off plans New Delhi, Jun 7 With slowdown in FII investment in equities looming over government's Rs 40,000 crore sell-off plan, Finance Minister Pranab Mukherjee today met institutional investors and asked them to stay optimistic on India. At a meeting with a group of 30 Indian and foreign institutional investors (FIIs), Mukherjee said the economy is expected to clock 8.5 per cent growth this fiscal and the revenue collections would be on course. "There need not be any undue fear on the issue of fiscal deficit," he said. There have been concerns that government will find it difficult to meet Budget targets of fiscal deficit and revenue collections because of inflationary pressures and global economic uncertainties. Asking them to take a long term view of the economy without being disturbed with the short term data, the Finance Minister said the investors should "remain optimistic." On concerns over Rs 40,000 crore disinvestment plan for this fiscal, he said, "It would be too pre-mature to reach a judgement as only the first two months of the current financial year have gone by." The follow-on-public offer (FPO) of steel major SAIL has been delayed due to uncertain stock market conditions. The government has been able to raise only Rs 1,145 crore from the PFC issue. Sensex has lost by over 2,000 points or 10 per cent so far in 2011 on worries over inflation impacting domestic growth which could also be affected by global uncertainties. Slower FII flows into equities and cautious view taken by domestic institutional and retail investors have pulled down the Sensex to 18,495.62 points. Mukherjee said next generation financial sector reforms have been initiated, which include widening of the Indian securities market and liberalising foreign capital flows. This year, FIIs have pumped in Rs 14,260 crore or over USD 3.2 billion in the Indian markets. However, a majority of the investment has gone into debt instruments. — PTI
	Gaddafi fund gains $10 mn in ICICI Bank investment New Delhi, Jun 7 ICICI Bank has emerged as the single Indian entity considered worth investing by Libyan dictator Muammar Gaddafi and the investment has given an impressive return of over 25 per cent in past one year alone. As per the investment portfolio of Libyan Investment Authority, a sovereign fund controlled by Gaddafi, it had invested $29.6 million in the ICICI Bank ADRs (American Depository Receipts), the US-listed securities of India's largest private sector bank. The portfolio has been made public by an independent campaign group Global Witness along with the financial details of Gaddafi-controlled fund as on June 2010. — PTI
	Commerce Minister makes last bid for DEPB New Delhi, June 7 Commerce Minister Anand Sharma today made a last-ditch effort to get the popular tax refund scheme for exporters, DEPB, extended beyond June 30 in his meeting with Finance Minister Pranab Mukherjee. "He is well appraised with all the issues and sensitive to our concerns," Sharma told reporters after the meeting. Under the Duty Entitlement Pass Book (DEPB) scheme, the incidence of customs duty on import content of export products is neutralised and reimbursed to the exporters. Exporters claim about Rs 8,000 crore annually from the government, under the scheme, which had been extended several times. — PTI