New Delhi, January 13
Attributing slowdown to global factors, Chief Economic Adviser Kaushik Basu today said economic growth in the current fiscal could be around 7-7.5 per cent, down from 8.5 per cent a year ago.

"What looked like a 9 per cent growth year, now we are projecting somewhere between 7 to 7.5 per cent," Basu said while addressing an event of Global Development Network.

Indian economy registered a growth of 7.3 per cent in the first half of the current fiscal. The economy grew by 8.5 per cent in 2010-11.

As per the Reserve Bank projection, the growth rate in the current fiscal would slow down to 7.6 per cent from earlier projection of 8 per cent.

"When we began our Budget exercise in January 2010, we thought we will grow by 9 per cent (2011-12). But oil prices went up from $90 to $110 and not really coming down the way we were expecting," he said.

"A bit of this to my mind is to do with major change in global scenario...what is happening in the world you get one crisis after another. 2008 and now we are standing on the brink of another one 2012," he said.

"Europe began to be tottering on the brink of crisis. Over the last two months our exports have begun doing badly and over the year we are seeing directly it is the international demand which is tanking and beginning to affect us," he said.

With Germany's growth figure being downgraded, he said, "we are really worried about Europe. Whether Europe is going to go into negative growth".

Two quarters of negative growth will be officially described as recession, he added. — PTI

Beijing, January 13
Apple’s iPhone 4S smartphone made a rough debut in the Chinese capital today as mobs of customers and organised scalpers threw eggs at one of its two stores in downtown Beijing halting the sales.

A salesperson at the company's store in the Sanlitun shopping district announced today through a megaphone that the store would not open its doors, according to customer Wang Qiannan, who remained waiting outside of the store.

Wang said the store's staff did not explain why they were not opening, but suspects it was out of safety concerns.

At least 1,000 persons who were hired by scalpers to stand in line and wait for the phone to go on sale were displeased with the decision to keep the store closed.

A bag of broken eggs was found on the ground in front of the store and egg residue was seen on the store's glass walls.

A second Apple store located in the Xidan shopping district opened its doors shortly before 7:00 a.m. and sold its iPhone 4S stock within one hour, state-run news agency Xinhua reported.

Apple previously announced that the iPhone 4S, the latest version of the device, would be released in China and 21 other countries on January 13.

The announcement generated such a craze that people began hiring scalpers for 150 yuan ($ 24) to avoid long lines gathered from early morning.

Before 7pm yesterday, at least 200 people had gathered in a line in front of the Apple Store in Lujiazui of the Pudong New Area in Shanghai.

They had registered their identity card numbers and were allowed to buy two of the new iPhones.

Many of those in line came well-prepared, with warm coats, winter hats and gloves, hot coffee, food and chairs. — PTI

New Delhi, January 13
In a major boost for the startup telecom firms, also fighting against cancellation of their licences for not meeting the rollout obligations, the telecom sector tribunal TDSAT today set aside all penalties imposed by the Department of Telecom (DoT) on these telecom firms.

In a major setback to the government, which has been seeking to even cancel the licences of these telecom firms for not meeting the startup obligations, the tribunal has asked the DoT to refund all the penalties charged so far from these new telecom firms.

The decision was announced by the TDSAT Bench headed by Justice SB Sinha which said DoT did not follow "principles of natural justice" and did not give any opportunity to the telecom operators before imposing penalty.

It directed the government to refund the amount collected from the operators with 12 per cent interest within four weeks.

The DoT has so far collected over Rs 300 crore against claims of about Rs 400 crore from the new telecom operators as liquidated damages during the last one year.

The penalties had been imposed on new telecom operators like Etisalat DB, Videocon, Loop, Aircel and Uninor among others.

They had been alloted spectrum in 2008 during the tenure of former telecom minister A Raja and the penalties were imposed on them for delay in raising necessary infrastructure to commence their service obligations.

The ruling came after over 70 petitions were filed by various operators challenging liquidated damages imposed on them by DoT for various circles. The tribunal also directed DoT to give a fresh hearing to the telecom operators on this issue in accordance with its judgement.

The tribunal further said if there was any ambiguity in the terms of licence, the benefit has to be given in favour of licensee, that is the operator, and it is against the licensor (DoT).

Mumbai, January 13
The Reserve Bank today allowed foreign individual investors, pension funds and trusts as QFIs to directly invest in equities of up to five per cent of paid-up capital of the listed company.

On January 1, the government had announced that soon Qualified Foreign Investors (QFIs) will be allowed to directly invest in the Indian equity market to widen the non-resident investor base in stock markets as well as to expand the set of non-resident portfolio investors.

A QFI is an individual, group or association resident in a foreign country that is compliant with Financial Action Task Force (FATF) standards. QFIs do not include FIIs/sub accounts.

"QFIs shall be permitted to invest through SEBI registered Depository Participants (DPs) only in equity shares of listed Indian companies...as well as in equity shares of Indian companies which are offered to public...," the RBI said in guidelines enabling QFIs investments in Indian companies.

They would also be permitted to acquire equity shares by way of rights shares, bonus shares or equity shares.

The RBI said the DP will purchase equity at the instruction of the respective QFIs within five working days failing which the funds would be immediately repatriated back to the QFI’s designated overseas bank account.

However, "only QFIs from jurisdictions which are FATF compliant and with which SEBI has signed MoUs under the IOSCO framework will be eligible to invest in equity shares under this scheme," the RBI added. — PTI

Chandigarh, January 13
Electronics major Panasonic will invest $220 million at Jhajjar (Haryana) in what has been billed as its first mega project in the country. The plant would be 100 per cent owned by the Panasonic Corporation.

This was disclosed by Daizo Ito, president of Panasonic India Private Limited, at a meeting with Haryana Chief Minister Bhupinder Singh Hooda here yesterday.

He said the plant would be set up over 76 acres in the Model Economic Township at Jhajjar. It will also function as headquarter of Panasonic in India.

While in the first phase the company would set up plant for the manufacture of air-conditioners, washing machines and welding systems, R&D Centre and facilities for making refrigerators, automotive systems, flat panel TVs, microwave ovens and other electronic components, would be set up in the second phase.

The company intends to invest about $120 million in the first phase and more than $100 million in the second phase. The units would provide employment to 1,500 persons in the first phase and more than 2,000 persons in the second phase.

The Chief Minister urged Daizo to give priority to local people in providing employment. He asked the company to set up a skill development centre in the area so that the youth could be equipped to become employable with requisite skills.

Washington, January 13
Jet Airways has ordered 17 mid-range 737 aircraft from Boeing. "Jet Airways of India has placed order for 17 Boeing 737 aircraft," a Boeing spokesperson said today.

The orders were placed this month, the official said.

The spokesperson, however, did not give any further detail, saying that it is up to the airline to make the announcement. — PTI