New Delhi, July 16
Indian economy is unlikely to grow at 6.5 per cent in the current fiscal as there is a slowdown in emerging economies as well as the developed world, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said.

"It has been quite clear that the slowing down in the global economy, of all emerging markets, made it very unlikely that we would get to 6.5 per cent," Ahluwalia told a news channel in an interview.

The government has projected economic growth of about 6.5 per cent for 2013-14 in the Budget.

Ahluwalia said the objective of the government should be to expect a turnaround in the economic growth from last year.

India's economic growth had plunged to a decade low of 5 per cent in the 2012-13 fiscal amid global economic slowdown  and domestic factors.

"Last year, we ended up with 5 per cent but the last quarter was below 5 per cent. We want to see  the growth rate get back  to something above 5  per cent.

"I know that many international observers have pitched the likely growth rate at somewhere around 5.7 per cent.

Personally, I think if we do 5.7 per cent, it is less than what we hoped, but it will clearly indicate that the economy is now on  the rebound," he said.

The Planning Commission had set an average annual economic growth rate of 8 per cent in the 12th Five-Year Plan  (2012-17).

The Commission has already started the process of reviewing the 5-year policy document and it is likely to scale down the annual average growth rate target to 7 per cent in view of persistent sluggishness in the economy. — PTI

New Delhi, July 16
CPI MP Gurudas Dasgupta today asked the government to keep in abeyance its decision to raise natural gas prices till concerns regarding pricing and shortfall in production were discussed by all stakeholders.

In a letter to Prime Minister Manmohan Singh, Dasgupta urged him to "reconsider the decision to raise prices of natural gas and keep it in abeyance" until the issues were openly debated with all stakeholders.

Accusing Petroleum Minister Veerappa Moily of making "contradictory statements" after the Cabinet decided on hiking the gas prices to $8.4 per unit from $4.2 from April next year, he alleged that the Minister's statement was "at variance with his own calculations presented to the Cabinet Committee on Economic Affairs. "This is clearly an attempt to mislead the people by trying to underplay the quantum of increase in prices."

Dasgupta also attacked the Finance Ministry of remaining "completely silent" on the "huge shortfall in production and its disastrous consequences for the economy."

"Issues are now being sought to be obfuscated. The Finance Minister is trying to cover up his complicity and the quantum of price increase is being underplayed by the Petroleum Minister," the CPI leader claimed. 

New Delhi, July 16
Despite the red flag being raised by the Home Ministry, the Telecom Ministry has informed the Prime Minister’s Office (PMO) that raising the limit of foreign direct investment (FDI) to 100 per cent in the telecom sector would not pose as a security threat to the nation.

The Telecom Ministry has informed the officials at the PMO that the possible threat to the national security posed by the import of the telecom gear could be countered with the imposition of clauses like setting up of manufacturing plants in the country, which would not only bring in more employment but would assure the country of the huge investment needed in the sector to keep it viable for the subscribers.

Talking to reporters here, Telecom Minister Kapil Sibal said raising the bar to 100 per cent in the telecom sector would in no way pose a threat to the national security.

He said raising the FDI would not only bring in around Rs 5-6 lakh crore worth of investment needed in the sector but would lead to some mergers and acquisitions which would be good for the industry on the whole.

The matter will be discussed with the Prime Minister and then it would go to the Union Cabinet for approval, he added.

The minister said the move would re-energise the telecom sector and help it getting out of the debt-trap.

"Hundred per cent FDI has nothing to do with security. Telecom Ministry fully supports 100 per cent FDI in telecom. Real security issue is on the manufacturing side," Sibal said while stating that a number of existing operators were willing to increase their stake in the joint ventures if the FDI bar is removed.

He also stated that some other foreign operators were willing to enter the Indian telecom sector, which remains one of the fastest growing in the world, if new norms fall in place.

The Ministry of Home Affairs has been raising concerns on increasing FDI in telecom sector.

Sibal said concerns being raised were due to imported equipment used in the network. But these can be addressed by setting up the component industry in 
the country.

The Prime Minister's Office has put on hold further implementation of PMA policy that provided for sourcing of sensitive telecom and electronic equipments and technology from domestic manufacturers over security concerns.

Meanwhile, reports emerging from the Telecom Ministry said the guidelines for the merger and acquisition (M&A) policy in the telecom sector could be out by September 15. 

Bhubaneswar, July 16
Steel major Posco today announced it has decided to scrap the proposed 6 million tonne steel plant in Karnataka, following long delay in land acquisition and adverse market conditions.

"With the given market conditions and significant delay in acquiring the required land in Gadag, we have decided to close our proposed 6 million tonnes per annum (MTPA) steel plant in Karnataka," Posco India chairman and managing director Yong Won Yoon said.

"We highly appreciate the Industries Department (Government of Karnataka) and KIADB (Karnataka Industrial Area Development Board (KIADB) for their co-operation and cordial support in this regard," Yoon said.

"In future, if we get an attractive business proposal from the state, we may consider it and return to Karnataka,” the Posco India CMD said.

Posco had signed an MoU with the Karnataka Government at a Global Investors Meet in Bengaluru in June 2010 to set up a steel plant with annual production capacity of 6 million tonnes in the state, the company statement said.

Subsequently in January 2011, Posco finally zeroed in on Gadag to set up the proposed steel plant and notified KIADB accordingly, it said. — PTI