The Tribune, Chandigarh, India

Economy to grow by 5-5.5% in FY14: RBI
Pins hopes on good farm output, improved exports

Raipur, October 4
The RBI today said the economy would grow by 5 to 5.5 per cent in the current fiscal, pinning its hopes on good farm output and improved exports. "We have no reason to dispute the growth rate projected by the government at 5 to 5.5 per cent," RBI Governor Raghuram Rajan told reporters after a Board meeting here.

He based his optimism on expectations of a good kharif crop, improvement in exports and core sector performance data.

"...first estimate of kharif crop is significantly above the first estimate of last year. I think if we see some pick-up in exports...core sector is improving in performance. We hope we would reach that range of 5 to 5.5 per cent," he said.

India's economic growth rate slipped to a decade low of 5 per cent in 2012-13 and declined to 4.4 per cent in the first quarter (April-June) of the current financial year.

The ADB on October 2 lowered its growth projection for India in the current fiscal to 4.7 per cent from an earlier estimate of 6 per cent. It said the country's economy has been under pressure with the recent depreciation in the rupee and capital outflows adding to structural constraints.

The Prime Minister's Economic Advisory Council (PMEAC) scaled down its growth forecast for the current fiscal to 5.3 per cent from 6.4 per cent earlier.

Referring to the Finance Ministry's decision to infuse additional funds in PSU banks to enable them to provide cheaper auto and consumer goods loans, Rajan said the scheme is still being worked out.

"I just want to emphasise that discussion is taking place on what can be done. Something will be announced as and when the scheme will be put together," he said.

The decision to infuse additional capital in PSU banks, over and above the Rs 14,000 crore provided in the budget, was announced after a meeting between Rajan, Finance Minister P Chidambaram and Economic Affairs Secretary Arvind Mayaram.

RBI Deputy Governor HR Khan told reporters the central bank would carry out open market operations to infuse funds into the system and ease liquidity. The RBI will inject as much as Rs 10,000 crore on October 7 by purchasing government securities, it said on September 30.

Replying to questions on initiatives taken by the RBI to combat the rupee depreciation, Rajan said, "We have got $5.6 billion through swap arrangements" to date.

Soon after taking over as RBI Governor on September 4, Rajan announced the opening of a swap window facility to encourage banks to lure NRI funds.

Under the facility, banks are permitted to swap fresh FCNR(B) dollar funds, mobilised for a minimum tenor of three years, at a fixed rate of 3.5 per cent per annum for the tenor of the deposit. — PTI

Gloomy picture

India’s economic growth rate slipped to a decade low of 5% in 2012-13 and 4.4% in the first quarter of the current fiscal

The ADB on October 2 lowered its growth projection for India in the current fiscal to 4.7% from 6%.

The PMEAC scaled down the growth forecast for the current fiscal to 5.3% from 6.4%

Retd bankers want say in talks with IBA
Cong MP assures them of taking up matter with Finance Ministry
Sunit Dhawan/TNS

Gurgaon, October 4
Resentment prevails among the retired bank officials across the country over the unjustified denial of a fair opportunity to have due representation in negotiations with the bank managements. As of now, the bank officials are represented by the United Forum of Bank Unions (UFBU) at meetings with the Indian Banks’ Association (IBA), the body of bank managements.

However, as the UFBU comprises only the serving bank officials, several vital concerns of the retired officials remain unaddressed. Though the issues concerning the retirees are also taken up at the meetings between representatives of bank officials and managements, the focus remains on the matters pertaining to the serving officials due to lack of representation of retired members.

Hence, even as the salaries of the serving officials have increased by more than 200 per cent as a result of three wage settlements since 1995, the pension of the officials who retired prior to 2002 is yet to be revised.

The case of the bankers who retired before 1986 is even more critical. They get a paltry amount of Rs 1,987 per month as ex gratia in lieu of pension. The retired officials also demand a uniform policy to take care of their medical/healthcare needs.

The All-India Bank Retirees Federation (AIBRF), an association comprising more than 1 lakh retired bank officials, as well as other organisations of retired bankers have been raising these matters at various platforms, but to no avail.

The longstanding demand was raised yet again at a central committee meeting of the All-India Central Bank Retirees Federation (affiliated to AIBRF), held at Rohtak recently.

During the meeting, federation president SM Deshpande apprised Rajya Sabha MP Shadi Lal Batra of their concerns and urged him to intervene.

Following the meeting, a delegation of retired bankers, led by AICBRF organising secretary and Central Bank of India Retirees Association (CBIRA) Chandigarh zone president SC Dhawan, also met the MP and handed over a representation on behalf of the AIBRF.

Batra assured the delegates that he would take up the issue with the Union Finance Ministry and do the needful to get it resolved in their favour as it was a genuine concern.

NSEL crisis: Lookout notice against Jignesh Shah

Mumbai, October 4
Tightening its noose, the Economic Offences Wing (EOW) of the Mumbai Police, which is probing the Rs 5,600-crore payment crisis at the National Spot Exchange Limited (NSEL), today issued lookout notices against promoter Jignesh Shah and others named in the case. "We have issued lookout notices for Jignesh Shah and others and requested the bureau of immigration to ensure that they do not leave the country," a senior police official said.

The investigators have already served summons to Shah and others directing them to appear before them for questioning.

The spot commodity bourse, promoted by Jignesh Shah-led Financial Technologies (FT), has been facing problems in settling Rs 5,600 crore dues of 148 members/brokers, representing 13,000 investor-clients, after it suspended trade on July 31 on government's direction.

An FIR was filed on Monday by EOW against Shah, Joseph Massey (MD of MCX, another FTIL-promoted firm), other promoters, directors and defaulters charging them with cheating, forgery, breach of trust and criminal conspiracy, among others.

Meanwhile, the EOW has concluded its raids on about 190 locations that included offices, residences and warehouses across the country.

"The raids are underway today at two to three places, located in remote areas," the officer added.

On Tuesday, EOW froze 57 bank accounts, including those of the troubled exchange and the accused, even as CBI started a probe into alleged duping of customers and irregularities at the commodity exchange. — PTI

Investment Scam
Can you give bank guarantee for Rs 17,400 crore, SC asks Sahara
R Sedhuraman
Legal Correspondent

New Delhi, October 4
The Supreme Court today asked the two Sahara group companies — Sahara India Real Estate Corporation Ltd (SIRECL) and Sahara Housing Investment Corporation (SHICL) — as to whether they could provide a bank guarantee for the entire amount (around Rs 17,400 crore) they owed to the investors.

A Bench headed by Justice KS Radhakrishnan told counsel for the two companies to take instructions from their clients in this regard and get back to the court on October 28.

The Bench is hearing a contempt petition filed by the SEBI against the two companies for their failure to refund the amount to the investors through SEBI as directed by the apex court.

According to SEBI, it had received only Rs 5,120 crore from the two companies on December 5, 2012, upon which the SC had directed them to deposit the balance Rs 17,400 crore along with 15 per cent interest in two instalments - Rs 10,000 crore by the first week of January 2013 and the balance in another month.

Saharas “have wilfully and deliberately failed” to deposit even the first instalment so far, SEBI said in its petition.

ONGC to start output of shale gas next year

New Delhi, October 4
ONGC plans to start commercial production of shale gas sometime next year, company chairman Sudhir Vasudeva said today. The Cabinet Committee on Economic Affairs (CCEA) last month allowed ONGC and Oil India Ltd (OIL) to tap shale resources in blocks allotted to them on a nomination basis.

"We are planning to drill 10 wells this year and hope to start commercial production next year," he said at India Oil & Gas Summit organised by Indian Chamber of Commerce (ICC) here.

ONGC plans to start drilling for the unconventional shale hydrocarbon resource in Gujarat sometime this month.

Vasudeva said the company is getting technological support for the venture from ConocoPhillips as it drills first shale gas well in Cambay basin in Gujarat.

Cambay is one of the basins that has been identified as potentially bearing shale resources, which are hydrocarbons trapped in sedimentary rocks. — PTI

Govt okays OVL-OIL’s buyout in Mozambique

New Delhi, October 4
The government has approved ONGC Videsh Ltd (OVL) and its partner Oil India Ltd (OIL) acquiring a total of 20 per cent stake in a giant offshore gas field in Mozambique for over $5 billion.

OVL, the overseas arm of ONGC, and OIL have been permitted to buy Videocon Group's 10 per cent interest in the Rovuma Area-1 for $2.475 billion. Meanwhile, OVL on its own will acquire US energy major Anadarko Petroleum's 10 per cent stake in the same block for $2.64 billion.

"The Cabinet Committee on Economic Affairs (CCEA) yesterday approved the acquisition of 20 per cent stake in Rovuma Area 1 Offshore Block in Mozambique (Area 1)," Oil Minister M Veerappa Moily said here today.

A unit of Bharat Petroleum Corp Ltd (BPCL) already has a 10 per cent stake in the block which is estimated to hold up to 65 trillion cubic feet of gas reserves.

The two transactions are to close by February 2014. — PTI

SC to hear PIL against nod to Jet-Etihad deal

New Delhi, October 4
The Supreme Court today agreed to hear a PIL of BJP leader Subramanian Swamy seeking quashing of the Centre's approval to Jet-Etihad Airways deal. A Bench comprising Chief Justice P Sathasivam and Ranjan Gogoi said it would hear the petition on October 8.

Swamy said it required urgent hearing in view of the approval accorded to the deal by the Central Government.

In the first-ever investment by a foreign airline in an Indian carrier, Jet Airways had on April 24 announced plans to sell 24 per cent equity to Etihad Airways for about Rs 2,058 crore.

Swamy had in his PIL sought "a direction to set aside and revoke any action or decision or grant of any further approvals/permissions/permits, etc. by the respondent (govt) authorities, based upon, relying upon or in furtherance of the impugned bilateral dated April 24." — PTI

BRIEFLY

Rupee at 7-week high of 61.44 vs $
Mumbai: The rupee strengthened for the third day in a row, adding 29 paise to 61.44 against the dollar on Friday on continued expectations the US government shutdown would delay tapering of the Fed's stimulus programme. Dollar sales by exporters amid positive local stocks also supported the rupee, which is up 107 paise, or 1.71 per cent, this past week. — PTI

Forex reserves fall $1.12 bn
Mumbai: Forex reserves fell by $1.12 billion to $276.26 billion in the week to September 27 as foreign currency assets fell sharply by nearly $1.3 billion, the RBI said on Friday. Foreign currency assets declined by $1.29 billion to $247.924 billion for the week under review, the RBI data showed. — PTI

Twitter to raise up to $1 bn
New York: Micro-blogging site Twitter has disclosed plans to raise up to $1 billion from its proposed IPO, which the firm plans to utilise for capital expenditure needs, meeting operating expenses, among others. In a filing with the US Securities and Exchange Commission (SEC), Twitter said: "We intend to use the net proceeds from this offering for general corporate purposes, including working capital, operating expenses and capital expenditures.” — PTI