B U S I N E S S

Govt invites ideas on black money recovery
New Delhi, June 9
The high-level committee constituted by Finance Minister Pranab Mukherjee, in its first meeting held on Thursday, decided to seek public comments on ways to unearth black money.

The govt-appointed panel has sought public comments

FDs retain edge over small savings
New Delhi, June 9
Bank fixed deposits (FDs) would continue to remain more attractive for savers than long-term deposits in small savings schemes of post offices despite the interest rate hike proposed by the government panel.

Audi starts production of A6 series cars in India New Delhi, Jun 9 German luxury car maker Audi today said it has started production of its all new Audi A6 sedan in India at the Aurangabad plant in Gujarat. "The commencement of production of this next generation Audi A6 is in line with our long term strategy for India and is a precursor to its much-awaited launch later this year," Audi India Head Michael Perschke said in a statement. More than 2,000 units of Audi A6 will run off the production line every year, in the initial years, at the Group's Aurangabad facility.

Maruti production loss at 4,200 units; strike may spread
New Delhi, June 9
A strike at car maker Maruti Suzuki's Manesar plant entered its fifth day on Thursday, causing a production loss of 4,200 vehicles, a company spokesman said. Around 800 workers began the strike on Saturday demanding the recognition of a new union — Maruti Suzuki Employees Union.

PM to decide vote on next IMF chief: FM
New Delhi, June 9
A day ahead of Mexican Central Bank Governor Agustin Carstens' visit here to seek support for his candidature for the top IMF post, the Finance Ministry today said the decision on India's vote will be taken by Prime Minister Manmohan Singh.

Govt invites ideas on black money recovery

New Delhi, June 9
The high-level committee constituted by Finance Minister Pranab Mukherjee, in its first meeting held on Thursday, decided to seek public comments on ways to unearth black money.

“Everybody should get a chance to give his or her views on this (black money) issue," a senior finance ministry official privy to the development said after the first meeting of the panel, headed by CBDT Chairman Prakash Chandra.

"The Committee held its first meeting on Thursday and decided to seek public comments. It discussed which laws need to be amended to bring back black money," sources said.

The meeting was held in the backdrop of the government facing flak from civil society and opposition for not doing enough to deal with the menace of black money.

The committee comprising senior officials from the CBDT, Enforcement Directorate, Directorate of Revenue Intelligence, Currency unit and financial intelligence department will submit its report in six months.

To deal with black money, the government had on Wednesday announced the setting up of another panel to suggest ways to trace tax defaulters, reveal their identity to the public and recover taxes.Sources said the Committee is likely to meet again next week. — PTI

FDs retain edge over small savings

New Delhi, June 9
Bank fixed deposits (FDs) would continue to remain more attractive for savers than long-term deposits in small savings schemes of post offices despite the interest rate hike proposed by the government panel.

At the current market condition, the term deposit rates are as much as 50 basis points higher than the returns offered by small savings scheme as recommended by the Committee headed by RBI Deputy Governor Shyamala Gopinath.

For instance, five-year fixed deposit rate under small savings scheme will fetch 8 per cent if the government accepts the suggestion of the panel. However, interest rates offered by the banks for same maturity period is about 8.5 per cent, 50 basis points higher than what has been recommended by the panel recently.

Currently, five-year term deposits in the post offices earn 7.5 per cent.

At the same time, 10-year National Savings Certificate (NSC), a new category proposed by the panel, will provide a return of 8.4 per cent to the depositors, compared to 8.75 per cent offered by the country's largest lender State Bank of India (SBI) for the same maturity.

Interestingly, the difference of rates is wider when it comes to less than five-year fixed deposits.

The SBI fixed deposit between three years and five years offers a card rate of 8.25 per cent as against 7.5 per cent to be offered by the product under the small savings scheme.

For two-year term deposits, banks are offering as much as 8.75 per cent as compared to 7.2 per cent proposed under the small savings scheme.

Lower returns provided by small savings scheme has resulted in the shift towards the bank fixed deposit schemes. This is evident from the fact that rate of growth of bank deposits are higher than the small savings scheme. — PTI

Audi starts production of A6 series cars in India

New Delhi, Jun 9
German luxury car maker Audi today said it has started production of its all new Audi A6 sedan in India at the Aurangabad plant in Gujarat. "The commencement of production of this next generation Audi A6 is in line with our long term strategy for India and is a precursor to its much-awaited launch later this year," Audi India Head Michael Perschke said in a statement.

More than 2,000 units of Audi A6 will run off the production line every year, in the initial years, at the Group's Aurangabad facility. The company already produces Audi A4 and Audi Q5 at the plant and has rolled out around 5,000 cars since the commencement of local production in September, 2007.

"Audi India aims to manufacture more than 4,600 units in 2011, compared to 2,466 units last year. By 2015, Audi India targets to roll out up to 6,000 units each year," the statement said.

Manufacturing of the new Audi A6 will take place in 16 work cycles on one production line at the plant, securing local employment for 126 individuals.

"The new Audi A6 will be offered with a choice of diesel and petrol engines,"it said.

The Audi range in India includes Audi A4, Audi A6, Audi A7 Sportback, Audi A8, Audi Q5, Audi Q7, Audi RS 5 Coupe, Audi R8 and the Audi R8 Spyder. — PTI

Maruti production loss at 4,200 units; strike may spread

New Delhi, June 9
A strike at car maker Maruti Suzuki's Manesar plant entered its fifth day on Thursday, causing a production loss of 4,200 vehicles, a company spokesman said. Around 800 workers began the strike on Saturday demanding the recognition of a new union — Maruti Suzuki Employees Union.

At present, Maruti has one workers' union that is recognized by the management.

The production loss was estimated at 1.6 billion rupees ($35.79 million) as of Wednesday, with loss of 600 to 650 units each shift affected, the spokesman said.

Maruti, 54.2 percent-owned by Japan's Suzuki Motor Corp, operates two manufacturing facilities in India, housing several plants, both in the northern part of the country.

It has been looking to advance its capacity expansion plans to meet demand in the fast-growing south Asian country, where vehicle sales grew a record 30 percent in 2010.

The company plans to invest $1.3 billion over the next three years on manufacturing plants to boost capacity and is considering locations in northern and western India.

The strike at the plant is threatening to spread to Gurgaon-Manesar belt, with a panel of workers of various firms in the region warning of a similar stir if demands of their agitating colleagues are not met.

Industry data showed car sales in India grew 7 per cent in May, the slowest annual pace of expansion in two years. Shares in Maruti, valued by the market at $7.9 billion, fell as much as 1.1 per cent on Thursday, extending a slide into a third day. — TNS

PM to decide vote on next IMF chief: FM

New Delhi, June 9
A day ahead of Mexican Central Bank Governor Agustin Carstens' visit here to seek support for his candidature for the top IMF post, the Finance Ministry today said the decision on India's vote will be taken by Prime Minister Manmohan Singh.

“It (India's support) has to be decided at the Prime Minister's level. In between, we would like to see who are the candidates,” Finance Minister Pranab Mukherjee told reporters here when asked about India's stand. — PTI