The Tribune, Chandigarh, India

	RIL to invest Rs 1 lakh crore Mukesh Ambani targets to double operating profit Sanjeev Sharma Tribune News Service New Delhi, June 7 At a time when there are huge concerns over fresh investments and flight of capital abroad, Reliance Industries (RIL) chairman Mukesh Ambani today announced that the company would invest Rs 1 lakh crore in India in the next 5 years across its businesses of oil and gas, petrochemicals, retail and telecom. Addressing the annual general meeting (AGM) of shareholders, Ambani said RIL would double its operating profit in the same period. "Even after this investment of Rs 100,000 crore, our balance sheet will be the strongest not only in India but in the world," he said. There had been concerns over new investments not taking place in the economy as most plans were on hold due to uncertainty in the economy and policy environment. The other issue had been that there has many business houses that had been making investments abroad but not investing as much in India and foreign direct investment (FDI) had also not been coming in, which had slowed down the growth of the economy. For RIL shareholders, Ambani mentioned that Rs 1,000 invested at the time of IPO in Reliance in 1977-78 had grown to Rs 7.78 lakh at a compounded annual growth rate (CAGR) of 21.6 per cent and RIL revenues had grown 27 per cent year on year on a compounded basis. However, the stock had been underperforming in the last few months due to concerns over gas output in the KG-D6 basin and the regulatory tussle. Reliance Retail which had been one of RIL’s new businesses with revenues of Rs 7,600 crore had a target of growth of 5-6 times in revenues and touch Rs 40,000-50,000 crore over the next three to four years. Reliance Retail would be a significant and profitable business for Reliance within 3 years and in different retail formats, it had 1300 stores across 18 states, he said. Reliance Market was partnering with kirana and other small shopkeepers and this partnership leveraged Reliance Retail’s supply chain, large assortment of products, sourcing capabilities and ability to supply at competitive price. Ambani said unprecedented global economic shocks in the last 5 years and domestic issues such as high rates of domestic inflation, adverse foreign exchange rate movements, continuing state subsidies for petroleum products and slowdown in the rate of economic growth had had an impact on doing business. RIL was ramping up the petrochemicals capacity from the current 15 million tonnes to 25 million tonnes enabling the company to be among the five largest and most profitable petrochemicals producers globally. On the gas business, Ambani said the output in the KG basin had been disappointing. He mentioned that “government and regulatory approvals are key to achieving this and we hope these will be granted soon”, he said. The government and RIL had been locked in a tussle over output and revenues issues on the gas exploration. richer by lakhs For RIL shareholders, Rs 1,000 invested at the time of IPO in Reliance in 1977-78 has grown to Rs 7.78 lakh at a compounded annual growth rate of 21.6 per cent and RIL revenues have grown 27 per cent year on year on a compounded basis.
	Growth scenario was similar in 2003: Report Sanjeev Sharma Tribune News Service New Delhi, June 7 The recent GDP figures of a low 5.3 per cent are comparable in recent years only to 2003 when the economy faced some similar problems. According to a Morgan Stanley report, in 2003, India seemed to suffer from a similar tepid growth environment. That period was characterised as “job-loss growth”, because whatever little growth India was generating was accompanied by job losses. In 2002-03, the economy had almost stalled. The investment cycle was dead and stocks had done nothing but go down for more than three years. The report says that it is a similar scenario in 2012. However, Morgan Stanley points out that there are three major differences between 2012 and 2003. First, the policy momentum was probably better in 2003. India was privatising government assets and actually selling government-owned companies with management control. India had just embarked on a new highway construction (the golden quadrilateral). Arguably, we are not seeing such policy force right now”, the report adds. Second, the growth mix is a bit different. The report adds that there was just one driver of growth in 2003 -- the government. The fiscal deficit was higher than today. Both private consumption and investment were muted and, hence, India was running a current account surplus. Wind forward to 2012, India’s growth mix includes strong consumption and, thus, a current account deficit. In 2003, the problem for corporate earnings was that the rupee was appreciating against the US dollar. The third difference is the starting point of interest rates. In 2003, the long bond yield was already at multi-year lows - inflation seemed within the comfort zone of the RBI. Today, rates are high - whether that is good news or not, only time will tell but, for sure, they have more room to fall than in 2003, the report says. One thing changed in the subsequent 12 months in 2003 - a surge of liquidity from the developed markets finally led to better growth and stock prices. The prognosis for growth in March 2003 proved too conservative. 3 plus points in 2003 The policy momentum was better in 2003 There was just one driver of growth — the government The long bond yield was already at multi-year lows
	PM's push to infra sector to boost confidence: CII Tribune News Service New Delhi, June 7 The CII today described the review meeting taken by Prime Minister Manmohan Singh on infrastructure development yesterday as extremely positive and encouraging. Commenting on the meeting, CII Director General Chandrajit Banerjee said at a time when the economy was going through a tumultuous phase, the review, re-emphasis and collective goal setting on infrastructure development for 2012-13 by the Prime Minister, was extremely positive and encouraging. The CII had been voicing concerns over the dwindling growth rate and shaky investors’ confidence for some time now and had strongly recommended a push to infrastructure development as a tool to create demand and sustain growth momentum. In this respect, the CII had particularly recommended the need for better coordination among different departments and ministries to speed up clearances and implementation. The meeting was a clear indication of the government’s commitment to improve coordination among different ministries to make infrastructure happen. This would certainly boost the confidence of the investors, the CII said. The announcement of flagship projects such as two new major ports, speedy progress on greenfield airport projects in Navi Mumbai, Goa and Kannur, development of 10-12 new PPP airport projects, target of awarding road projects of 9500 kms, bullet train between Mumbai-Ahmedabad and the target of capacity addition of 18000 MW in the power sector would enhance the flow of projects, bringing new life to the infrastructure sector, it said.
	Banks to open financial literacy centres Ruchika M. Khanna Tribune News Service Chandigarh, June 7 In order to impact financial literacy in the country, the RBI has asked scheduled commercial banks to open financial literacy centres (FLCs) in all districts across the country. The bank has asked the lead banks in each of the 630 districts across the country to open the centres in the offices of lead district managers in a time-bound manner. In a directive issued to all scheduled commercial banks, the RBI has said the financial literacy centres will be an improvisation on the financial literacy and credit counselling centres (FLCC) that have been set up since 2009. The need to improvise the FLCC by setting up FLCs in their place was felt after a nationwide survey on 30 FLCCs was conducted and the apex bank found limitations in their functioning. The RBI study of the FLCC has revealed that almost all FLCCs are located in the urban or semi urban areas, and there are none in the rural areas, which has the largest population of financially excluded people. FLCCs are found to be mostly serving walk-in clients, literacy material supplied by each centre is the publicity material of products offered by sponsor banks and 53 per cent of FLCCs though run by trusts/societies, are found to be working as institutions of sponsor banks. By modifying the scheme, the RBI has issued guidelines that the new FLCs will impart financial literacy in form of simple messages on importance of saving, importance of being financially included and attached to the banking sector. The officer in charge of the FLC will be liable to see that there is no misselling of products of a particular bank. The RBI has also said they will themselves prepare standard financial literacy material to FLCs. In Haryana, banks have set up more than 21 FLCCs and thousands of people have made enquiries and availed banking services here. These centres also organise symposium and create awareness about financial literacy. Banks in the state are now moving towards creating FLCCs at the block level, with one block per district being covered initially. In case of Punjab, data available from the State Level Bankers Committee shows that 20 FLCCs have been set up in Punjab and most of these have been receiving a good response from public.
	SBI cuts FD rates by 0.25 pc New Delhi, June 7 The State Bank of India today slashed interest rates on fixed deposits in select maturities by 0.25 per cent, a development that is likely to be followed by other banks. The bank has decided to revise its retail term deposit interest rates with a reduction of 0.25 per cent for tenors up to 240 days, the SBI said in a statement. After the revision, the interest rate on 7-179 days fixed deposit will come down to 7 per cent from 7.25 per cent. The interest rate will be 7 per cent for 180-day term deposit, down 0.25 per cent. The bank has made no change in the lending rates. The base rate or minimum lending rate of the SBI stands at 10 per cent. Base rate is the benchmark rate below which a bank cannot lend. The decision to cut deposit rates by the country's largest bank assumes significance as it comes a few days ahead of the Reserve Bank's mid-quarter review of the monetary policy on June 18. The central bank is expected to cut policy rates by 0.25 per cent to spur economic growth. — PTI
	Re back at 54-level Mumbai, June 7 Strengthening for the third day in a row, the rupee today shot up by 42 paise against the dollar to end at 54-level for the first time in nearly three weeks, amid sustained FII inflows and a surprise rate cut by China. The rupee commenced higher at 55.14 a dollar from the overnight close of 55.36 at the Forex market and immediately touched a low of 55.30 on some dollar demand from oil importers as crude oil hovered around the $ 85 per barrel. However, the currency bounced back to breach 55-mark to a high of 54.92 before concluding at 54.94, its highest closing since May 18. This was rise of 0.76 per cent or 42 paise. In the last three sessions, the rupee has gained 71 paise at a time local stocks, represented by Sensex, rose over 600 points with the 30-share index rising by 195 points today. Apart from FIIs buying shares worth over Rs 675 crore today, forex dealers said the rate cut in China in late trade further boosted a revival in global risk-taking sentiment. — PTI
	Mega Mart to be annual feature Shimla, June 7 Encouraged by the overwhelming response of the public to the Mega Mart and Tourism Conclave, the PHD Chamber of Commerce has decided to make it an annual feature. Over 1 lakh people visited the five-day event from different states of India as well as countries abroad, stated Dalip Sharma, Regional Director, PHD Chamber. The fair showcased a wide array of products like garments, footwear, handicrafts, onyx products, dry fruits, kitchenware, gemstones and other items. The initiative was highly appreciated by all stakeholders. — TNS
	Corporate Briefs Tata plans steel plant in K’taka Bangalore, June 7 Tata Steel today announced plans to set up a Rs 30,000 crore steel plant in Karnataka as the government-sponsored Global Investors' Meet (GIM) 2012 commenced here. The six million tonne per annum capacity plant will come up at Haveri district, Tata Steel vice-chairman B Muthuraman said at the inaugural GIM function. Aditya Birla Group CMD Kumar Mangalam Birla said the group proposed to invest Rs 7,000 crore in the state. This includes setting up a four million tonne per annum capacity cement plant at a cost of Rs 2,750 crore. At the inauguration, Chief Minister D V Sadananda Gowda said during the GIM 2010, the state signed 389 MoUs with (envisaged) investments amounting to Rs 3.92 lakh crore. L&T wins Rs 2,410 cr deals New Delhi: Larsen & Toubro today said its construction arm has won Rs 2,410 crore new orders across various businesses during April-June 2012. "L&T Construction has bagged new orders valued at Rs 2,410 crore ... The Buildings and Factories IC (independent company) has secured new orders worth Rs 1,921 crore," it said in a statement. The orders were bagged from leading developers for the construction of major residential towers across various cities in the northern part of the country, it added. Dr Reddy's Parkinson's tablets in US New Delhi: Dr Reddy's Laboratories today said it has launched its generic Ropinirole Hydrochloride XR tablets used for treating Parkinson’s disease in the American market after receiving the approval from the US health regulator. The company has launched Ropinirole Hydrochloride XR (extended-release) tablets in the strengths of 2 mg, 4 mg, 6 mg, 8mg, and 12 mg in the US market, Dr Reddy's said in a statement. The launch follows approval by the United States Food & Drug Administration for its abbreviated new drug application. — PTI