The Tribune, Chandigarh, India

	Don’t buy gold, it just glitters: FM No further hike in import duty; steps to speed up investment in the offing KV Prasad/TNS New Delhi, June 13 Seeking to assuage the sentiments of investors in the wake of sharp fall of the rupee, Finance Minister P Chidamabaram today said the Centre would be announcing decisions to speed up investment and boost growth in the country. Asserting there was no need to panic over the fall in the rupee, the Finance Minister expressed optimism that domestic currency would regain and stabilise. “There is no reason for panic... Countries with large current account deficit have taken a hit on currencies. The rupee will find its level. We are concerned about volatility. The rupee will regain losses suffered in the last few days," Chidamabaram said at a press conference today. The Minister's observation came a day after he met top officials in the backdrop of a steep decline in the rupee mostly on account of pullout by foreign investors. The rupee which on Tuesday touched a life-time low of 58.96 intra-day against the US dollar, reached 58.22 in early trade but lost ground during the day. Likening the continuous commentary by experts on the economy and rupee to a one-day international in cricket, the FM said steps taken would need time unlike the game where every ball can not produce a wicket or be hit for a six. Stating that the measures initiated such as reducing subsidies to reduce fiscal deficit by the government since September has helped growth prospects — a sentiment backed by Fitch Ratings upgrading India’s credit rating to stable from negative, the FM said he was looking forward to more reforms and a number of decisions, including those on pricing of coal and gas, coal allocation to power plants, raising of FDI limits in various sectors and skill development. On gold, he once again appealed to the people to resist the temptation of buying the yellow metal, a position that would dramatically alter the Current Account Deficit. He, however, ruled out any further hike in import duty. The FM said steps taken since last year had produced results with inflation coming to a moderate level and fiscal deficit down to 4.9 per cent. The economic condition, he emphasised, is stronger today than what it was in the same period last year. Asserting that the government will work to achieve revenue targets, the Minister said unlike last year their expenditure would not be slashed and the Ministries would be encouraged to implement plans. The SEBI board, he said, meets on June 25 to decide on the report by KM Chandrasekhar Committee on rationalisation of foreign investment norms, including Know Your Customer. Special cell for stuck projects An official release said Prime Minister Manmohan Singh directed creation of a special cell in the Cabinet Secretariat to monitor all large projects in both public and private sectors to pro-actively pursue these so that investment projects are commissioned on time. The Administrative Ministries, in consultation with the Finance Ministry, and the Finance Ministry on its own were tasked with the identification of such priority projects. The Cabinet Secretariat was directed to hold a meeting with Chief Secretaries of states to have state governments on the board with this new mechanism. At this meeting, Chidambaram said his Ministry has compiled a list of about 215 such projects, where the banks have already funded more than Rs 7 lakh crore.
	Wipro gets fresh tax demand of Rs 816 crore New Delhi, June 13 India's third largest software firm Wipro has been slapped with an over Rs 816 crore claim by the tax department, becoming the latest IT company to have got such a notice after Infosys, WNS and iGate. The company said the 'draft assessment order' from tax authorities for 2008-09 fiscal had arised primarily due to denial of deduction under Section 10A of the Income Tax Act, 1961, in respect of profit earned by its undertaking at the Software Technology Park (STP) in Bangalore. “In March 2013, the company received the draft assessment order, on similar grounds as that of earlier years, with a demand of Rs 816.4 crore (including interest of Rs 84.8 crore) for the financial year ended March 31, 2009." “The company will file its objections against the said demand before the Dispute Resolution Panel, within the time limit prescribed under the statute,” Wipro said in a filing on the US Securities and Exchange Commission. Wipro in a statement said: “No demand has been received and the assessment process is in progress.” The Azim Premji-led company, whose American Depositary Receipts are listed on the New York stock exchange, expressed hope that the final outcome of the dispute will be in its favour. Besides the fresh assessment order, Wipro said it is also facing tax demands of around Rs 3,936 crore (including interest) for the period March 31, 2001 to March 31, 2008 due to denial of deduction under Section 10A of the Income Tax Act, 1961, on profits it earned in STP in Bangalore. “Considering the nature of disallowance and the order of the appellate upholding the claims of the company for earlier years, Wipro believes that the final outcome of the above disputes should be in favour of the company," the Wipro filing added. Wipro stated that the resolution of these legal proceedings is not likely to have an adverse effect on of its operations. The filing added: "The appeals filed against the said demand before the Appellate authorities have been allowed in favour of the firm by the second appellate authority for the years up to March 31, 2007." The Tax Department has filed appeals before the High Court, it said."For the year ended March 31, 2008, based on DRP directions confirming the position of the assessing officer, the final assessment order was passed by the assessing officer. The company has filed an appeal against the said order before the Tribunal," it added. — PTI
	HSBC lowers India’s FY14 growth forecast to 5.5% New Delhi, June 13 Global financial giant HSBC today lowered India's growth forecast for this fiscal year to 5.5 per cent from 6 per cent citing slow reform process. HSBC said growth has been in line with its expectations in 2013, but slower reform progress will delay the recovery. "While we expect further progress on reforms, it will only materialise slowly. Moreover, the global recovery is likely to come later. The recovery in India will, therefore, prove even more protracted," HSBC said in a research note. HSBC has, consequently, cut growth forecast for FY2014 to 5.5 per cent (vs 6 per cent) and FY2015 to 6.6 per cent (vs 7.1 per cent), the note said. India's economic growth rate slipped to a decade low of five per cent in 2012-13 on account of poor performance of farm, manufacturing and mining sectors. "This monsoon parliamentary session will prove to be an important test for the government's ability to sustain the reform push," HSBC said. On the inflation front, HSBC said the decline in global commodity prices is likely to continue in the near term, but in the second half of the fiscal year, inflation is likely to gradually pick up, as growth recovers and global commodity prices firm. The report further said the fiscal deficit has came in below 5 per cent of GDP last fiscal year and the trade balance has improved. — PTI WB predicts 6.7% growth in 2 yrs Washington: The World Bank on Thursday forecast a growth rate of 6.7% for India within the next two fiscals with exports and private investment projected to strengthen and provide a boost to growth. The country's GDP in factor cost terms is projected to grow 5.7% in the current fiscal (ending March 2014), and then accelerate to 6.5% and 6.7%, respectively, in the subsequent two financial years, it said. — PTI
	Infosys, Wipro hike employee salaries up to 8% Tribune News Service Bangalore, June 13 Ahead of its annual general meeting on Saturday, Infosys today announced salary increments for its employees across the board. The company will increase pay by an average of 8 per cent for staff in India and 3 per cent for overseas staff, who have not been covered by salary increases in February this year. The increments will become effective from July 1, 2013. The global sales force of the firm will get the increase in their pays effective from May 1, 2013. Infosys, the Bangalore-headquartered IT services major, was in news recently for recalling its co-founder and former chairman Narayana Murthy from retirement and appointing him as executive chairman to perk up the company's performance. Over 1.5 lakh employees of Infosys were irked when the company decided to freeze salaries last April even as the rest of the industry was giving out pay hikes. A large number of Infosys employees were quitting the company at a time when attrition is on a declining trend for most of its large rivals. The pay hike announced today will endear Narayana Murthy to the employees besides reassuring the company's shareholders. Infosys's rival Wipro also announced an average wage hike of 6-8 per cent to its offshore employees and 2-3 per cent to onsite employees from this month. "Commensurate with industry standards, Wipro has announced an average wage hike of 6 to 8 per cent for offshore employees and 2- 3 per cent for onsite employees, effective June 2013. In line with the practice of rewarding high performers, Wipro has awarded double-digit hikes for these employees," Wipro said in a statement here today. Wipro's global IT services and products entity has 145,812 employees worldwide, with majority of them based in India. SEBI seeks info from Infy on June 1 meeting Market regulator SEBI has sought clarifications from Infosys regarding its June 1 board meeting in which the company re-appointed NR Narayana Murthy as its executive chairman. Infosys today said it has provided the information sought by SEBI. "SEBI has sought certain clarifications from us relating to the board meeting held on June 1 and we have provided the same. We will fully co-operate with Sebi and provide all necessary information in this matter," an Infosys spokesperson said. — PTI
	MMTC stake sale over-subscribed New Delhi, June 13 The government garnered over Rs 567 crore with the MMTC stake sale getting over-subscribed by 1.33 times of the shares on offer today, marking a successful start to its disinvestment programme for this fiscal. The issue attracted bids for over 12.37 crore shares, or 1.33 times, against 9.33 crore shares on offer even before the close of market hours, according to data from stock exchanges. The indicative price was Rs 60.88 apiece, higher than the base or minimum offer price of Rs 60 a share. At the indicative price, the stake sale would fetch the exchequer over Rs 568 crore. Meanwhile, MMTC shares on the stock exchanges hit the lower circuit limit in opening trade leading to a halt in trading for full day. The scrip plunged 10 per cent to Rs 190.35 apiece. There is a huge difference between the floor price and the market price of MMTC as the scrip is illiquid, an official in the Disinvestment Department (DoD) said. The Empowered Group of Ministers (EGoM) on disinvestment, headed by Finance Minister P Chidambaram, yesterday cleared the 9.33 crore shares, or 9.33 per cent, stake sale of the trading giant through the Offer For Sale (OFS) route. The stake sale would help the company to meet the 10 per cent minimum public shareholding norm of market regulator SEBI. The government held 99.3 per cent stake in the trading major. This is the first disinvestment in the current fiscal. The government aims to raise Rs 40,000 crore from PSU stake sale in 2013-14. Confident of achieving the target, Finance Minister P Chidambaram said: “While kicking off the disinvestment today with MMTC's 9.33 per cent stake sale, I have enough time to achieve the target.” The DoD had shortlisted three investment bankers — Avendus, IDBI Capital Market Services and IDFC — to manage the stake sale of MMTC. — PTI Disinvestment Drive This is the first disinvestment in the current fiscal. The government aims to raise ` 40,000 crore from PSU stake sale in 2013-14. The DoD had shortlisted three investment bankers — Avendus, IDBI Capital Market Services and IDFC — to manage the stake sale of MMTC.
	Punjab govt to organise global investors’ conference Tribune News Service Chandigarh, June 13 To attract investment in all sectors of the Punjab economy, the Punjab government has chalked out a comprehensive plan and will organise a global investors’ conference in October. An official spokesman of the Industries and Commerce Department said this decision had been taken in pursuant to the approval of the fiscal incentives for industrial promotion 2013 by the Punjab government. The department has decided to engage a knowledge partner for the investment campaign and conference. A high-level committee has been constituted to supervise the process of selection of the knowledge partner, comprising MD Punjab Infrastructure Development Board, MD Punjab Energy Development Authority, MD Punjab State Industrial Development Corporation, Chief Administrator Greater Mohali Area Development Authority and MD Punjab Agro Industries Corporation Ltd. This committee will finalise the terms and conditions of the knowledge partner. It will also oversee the bid process, including pre bid conference and pre qualification of bidders. The committee will recommend the selector bidder to the government.
	DATA Gaffe IIP growth rate revised twice in a day New Delhi, June 13 Correcting the industrial output figures twice within a span of a few hours, the government today said IIP grew at 2.3% in April instead of 2 % reported yesterday. The first correction this morning put the Index of Industrial Production (IIP) at 2.2%, only to revise it yet again later in the day to 2.3%. The Ministry of Statistics and Programme Implementation cited wrong recording of production data for the electricity sector as the reason for revision. An official statement earlier in the day said: “The General Index (of industrial production) for April. 2013 is revised upward to 167.8 from 167.3 shown in the press release (issued yesterday). The revised index is 2.2%, higher as compared to the level in April, 2012.” The ministry later in the afternoon again corrected IIP growth rate figure to 2.3 %. The second corrigendum also revised the power sector output growth rate upward to 4.2 per cent. — PTI