New Delhi, August 30
Economic growth in the April-June quarter of the current fiscal slipped to 4.4 per cent, the slowest pace in four years. Analysts say chances of sharp recovery are dim this year as the economy is facing multiple challenges with the rupee volatility making the situation more complicated.

The country's gross domestic product (GDP) had expanded by 5.4 per cent in the April-June quarter of the last fiscal. On a sequential basis, the growth rate declined from 4.8 per cent in the January-March period of 2012-13.

Manufacturing and mining posted a poor performance with mining and quarrying contracting by 2.8 per cent in the April-June quarter against a 0.4 per cent growth in the same period last fiscal, according to data released today by the Central Statistical Organisation (CSO). The manufacturing sector posted a contraction of 1.2 per cent as against a decline of 1 per cent in output a year earlier.

Industry said the GDP figures for first quarter clearly show that the economy continues to be in the throes of a slowdown. "The concern becomes more acute when we see that at the present moment, there are no clear indications that the economy has bottomed out. We do not wish to sound alarmist, as there are enough panic reactions visible around us, particularly on the rupee front, but the concern on the economy can hardly be overstated. The economy needs undivided attention of policy makers" said Chandrajit Banerjee, Director-General, CII.

CII added that there were no visible signs of investment pick-up as investor sentiments continued to be low. A weak rupee, tight liquidity, high cost of funds, procedural delays are all coming in the way of investment revival.

Crisil research said unlike the sharp recovery from the Lehman crisis (V-shaped) in 2009, this time the growth is following a L-shaped trajectory and is likely to oscillate around the 5 per cent trough in 2013-14.

It added that government spending was a significant driver of growth as private consumption growth weakened further to 1.6 per cent and investments fell by 1.2 per cent compared to a year ago amid lack of policy reforms, procedural delays and persistent supply-side bottlenecks.

Industry has also expressed concerns over the Land Acquisition Bill which will increase costs and delays for industrial activity.

Mumbai, August 30
The rupee today soared 85 paise to 65.70 against dollar and the Sensex jumped nearly 219 points to over two-week high levels after Prime Minister Manmohan Singh promised not to resort to capital controls or reverse economic reforms to tackle turbulence in markets.

The financial markets lapped up his detailed statement in Parliament where he appealed for a political consensus to put the economy back on high-growth trajectory. Singh also said government would make every effort to maintain a macro economic framework friendly to foreign capital inflows to enable orderly financing of the current account deficit.

The rupee settled at day's high of 65.70, showing a rise of 85 paise or 1.28 per cent on dollar selling.

Yesterday, it spurted by 225 paise - the most in at least 15 years - after the RBI opened a forex swap facility for PSU oil firms.

After plunging to a record low of 68.85 on August 28, the rupee has rebounded 310 paise, providing much-needed relief to the economy which grew at 4.4 per cent in the June quarter, the slowest pace in at least four years. The GDP data came after the markets closed today.

Stocks rose for the third day with the S&P BSE benchmark Sensex firming up by 218.68 points to settle at 18,619.72 - the highest level since August 14. Receding fears of an attack on Syria after British lawmakers voted against military action, which had kept global oil prices under pressure, also aided domestic sentiments. — PTI

New Delhi, August 30
The government today raised the import tariff value of gold to $461 per 10 gram and of silver to $803 per kg as prices of the precious metals touched all-time high this week.

Tariff value - the base price on which the customs duty is determined to prevent under-invoicing - of gold and silver stood at $432 per 10 gram and $697 per kg, respectively earlier.

The notification, issued by the Central Board of Excise and Customs, has come two days after when gold prices has touched the new peak of Rs 34,500 per 10 grams in the national capital. The prices of yellow metal has increased by 9 per cent so far in the month of August.

Prices of gold today fell and closed at Rs 31,700 per 10 gram and silver at Rs 54,000 per kg in the national capital today.

New Delhi, August 30
The government has decided to extend the scheme for paying LPG subsidy to customers directly in their bank accounts to 269 more districts of the country by January 1 next year, covering roughly half of the country following the successful run of the pilot programme launched earlier in the year.

The decision was taken at the CCEA meeting chaired by Prime Minister Manmohan Singh yesterday.

Seven districts in Himachal Pradesh and five in Punjab would be covered under the second round of the scheme to be extended to 34 more districts from September 1.

Briefing newsmen after the CCEA meeting, Finance Minister P. Chidambaram said with the rollout of the scheme in another 269 districts across India, “roughly half of the country would be covered under the DBTL”.

New Delhi, August 30
In signs of fiscal stress, the government crossed nearly two-thirds of the deficit target for the current financial year in the first four months.

The fiscal deficit, which is the difference between government receipts and spending, touched Rs 3.4 lakh crore in April-July, or 62.8 per cent of the budget estimate.

The fiscal deficit had reached 51.51 per cent of the budget estimate in the April-July period of 2012-13, government data showed today.

The deficit so far is without accounting for a substantial portion of food and oil subsidies, which are likely to exceed budget estimates following the enactment of the Food Security Law and an oil import bill that's rising because of an over 20 per cent rupee depreciation. While the government has provided for Rs 90,000 crore as food subsidy in the Budget, the actual outgo may be close to Rs 1.13 lakh crore. — PTI

New Delhi, August 30
Dinesh K Sarraf will be the new chairman and managing director of ONGC, the nation’s most profitable company.

Sarraf, who is currently managing director of ONGC’s overseas arm, ONGC Videsh Ltd, has been selected to replace Sudhir Vasudeva in February-end next year.

Government headhunter Public Enterprise Selection Board (PESB) selected Sarraf, who turns 56 next week, from among four candidates who appeared before it for interview today.

Originally, PESB had shortlisted seven candidates. MThe PESB recommendation will now go the Oil Ministry and once Oil Minister M Veerappa Moily concurs, CVC and CBI clearances will be sought. Upon being cleared, Sarraf's candidature will then be forwarded to the Cabinet Committee on Appointments (ACC). — PTI

New Delhi, August 30
Jindal Steel and Power (JSPL) today said it will buy back 8.7 per cent of its paid-up capital, amounting to not more than Rs 1,000 crore and the offer will be launched within next 14 days.

The company Board in its meeting today fixed a price of Rs 261 per share for the buyback offer from the open market through stock exchanges, JSPL said in a filing to the BSE.

Company's CFO K Rajagopal said through the buyback offer, JSPL wants to give a signal to its investors that company's fundamentals are strong and it is on track to achieve its growth plans.

"We wanted to give signal to the investor community that management believes on the growth plans and fundamentals (of the company). Then there is financial objective, any investment which we make on our shares at such a low value, we ourselves will gain. We believe our shares will grow in next one or two years, when we realise all our growth plans," he said.

He added that buyback offer is likely to be launched on September 12 but a final decision on the date is yet to be taken.

Reacting to the buy back offer price of Rs 261 per share, JSPL's shares tumbled on the bourses by upto 12.3 per cent as market participants termed the price lower than expected. The company's shares closed 8.85 per cent down at Rs 221.9 apiece on the BSE.

Rajagopal, however, defended the offer price of Rs 261 per share, saying it is 10 per cent premium to last two weeks average trading price. — PTI

Chandigarh, August 30
HDFC Bank yesterday announced the launch of 18 rural branches in Haryana, taking its total network to 200 branches in the state.

The 18 new branches, of which 14 are in unbanked locations, will bring formal banking solutions to around 90,000 people in the state. With increased branch density, the bank now has a branch at an average distance of every 10 km in the state.

The branches were inaugurated by Haryana Chief Secretary P K Choudhery in the presence of Navin Puri, country head, branch banking, HDFC Bank, and Smita Bhagat, branch banking head.

Choudhery said: “In the past seven years, Haryana's economy has grown at an average annual rate of 9.3%. An efficient banking system that includes the rural economy is a necessity to achieve this level of holistic economic growth”.

Speaking at the launch, Puri said “Our expanded 200-branch network enables us to bring our full range of banking solutions to a significantly larger number of people in deeper parts of the state. This brings us closer to the people of Haryana and allows us to be a part of their everyday life”. 

Chandigarh, August 30
Haryana Chief Minister Bhupinder Singh Hooda has offered full support of the state government to Swedish furniture retailer Ikea to set up their venture in the state.

Hooda gave this assurance to Ikea Services India Private Limited CEO Juvenicio Maeztu at a meeting held here today.

Juvenicio said Ikea designs and sells ready to assemble furniture such as beds, chairs, and desks and was keen to set up stores of big volume products of home furnishing in Haryana.

He said the company wanted to concentrate on fewer states in India and Haryana was among one of them. At present, the company is dealing with home furnishing appliances but in the near future it would also explore the possibilities in textile retail business also, he said.

The CEO urged the Chief Minister to provide adequate land preferably in the National Capital Region (NCR) to set up their venture which included retail, factory and warehouse as NCR being close to the national capital has better connectivity to highways and easy access to metro service. On this, Hooda said out of the five national highways connected to Delhi, four pass through Haryana. 

New Delhi, August 30
The All-India Consumer Price Index for Industrial Workers (CPI-IW) for July, 2013 rose by 4 points and is now pegged at 235.

“The year-on-year inflation measured by monthly CPI-IW stood at 10.85 per cent for July, 2013 as compared to 11.63 per cent for the previous month and 9.84 per cent during the corresponding month of the previous year. Similarly, the food inflation stood at 14.10 per cent against 14.86 per cent of the previous month and 11.27 per cent during the corresponding month of the previous year,” a Labour Ministry statement said. — PTI