New Delhi, January 23
RBI Governor Raghuram Rajan today advocated better business regulation and improving the quality of infrastructure to create jobs which would be the measure of economic success.

“In the years to come, our measure of economic success should be the jobs that are created. Created not by giving government subsidies or protections to labour- intensive industries or sectors but by developing facilitating, competitive environment that will encourage efficiency and creativity,” Rajan said while delivering the 8th RN Kao Memorial Lecture organised by Research and Analysis Wing (RAW) here.

Rajan said better business regulation is required which “does not always mean less regulation but it means regulation that is appropriate to the objective and that is enforced.”

“The lack of change may be sheer inertia but it may be more sinister rent-seeking. All too often, we have too much regulation on the books and too little regulation in practice,” he added.

Calling for improving the quality of infrastructure, Rajan said grand plans like the Delhi Mumbai Industrial Corridor need to be completed on time and within budget.

Terming inflation as a 'destructive disease', Rajan said there can be no tradeoff with growth and prices have to be brought down. "Inflation is a destructive disease. Industrialists complain about high interest rate but we don't have a choice but to keep interest at high rate because inflation is high at 8%,” he said.

Rajan said while industrialists want an interest rate of about 5%, a citizen would like the saving interest rate to be 10%. The mismatch between industrialists demand and account holders is because of inflation.

Indicating moderation in inflation going ahead, the RBI Governor said the weak state of the economy and the good kharif and rabi harvest this year will generate disinflationary forces that will help.

New Delhi, January 23
The government is likely to allow spectrum trading to telecom operators and a proposal in this regard may be put up before the Telecom Commission at its meeting later this week.

The operators would be given six weeks to inform the authorities about such deals. The companies will also be required to pay the government a transfer fee based on sale value or market price.

Telecom sector regulator, Telecom Regulatory Authority of India (TRAI), earlier this week, held discussions with chief executives of mobile phone companies on the issue and has given its recommendations on spectrum trading.

The Telecom Commission at its meeting on January 25 would also take a call on several issues, including spectrum usage charge, a key factor that must be resolved before the auctions begin on February 3.

Khullar had also said TRAI would be able to give recommendations on spectrum trading before the Telecom Commission's meeting.

Reports suggested that as per the proposals, the seller and the buyer shall be required to inform the licenser regarding the spectrum trade six weeks prior to the effective date of trade. However, no permission will be required from the licenser/government for spectrum trading.

TRAI is of the view that radio waves assigned through an auction on or after 2010 will be allowed to be traded. The same would also be applicable in cases where telecom operators have paid the market price of the spectrum to the government.

According to the TRAI recommendations, the spectrum would be allowed to be traded on payment of the prescribed market value to the government for the remaining validity of the radio waves.

The buyers would have to comply with a cap of 25% of its total spectrum holding and 50% ceiling within a given band in each service area.

The companies will not be permitted to sell the spectrum acquired through trading for a period of two years.

TRAI has prescribed levying of 1% of the transactional amount or 1% of the prescribed market price, whichever is higher, as the transfer fee on on all transactions.

TRAI’s suggestions The operators would be given six weeks to inform the authorities about such deals The companies would be required to pay a transfer fee based on sale value or market price Radio waves assigned through an auction on or after 2010 will be allowed to be traded The companies will not be permitted to sell the spectrum acquired through trading for a period of two years

Mumbai, January 23
The BSE benchmark index Sensex today closed at fresh record high of 21,373.66 points by gaining 35.99 points on funds buying driven by strong corporate earnings by Larsen & Toubro and housing finance major HDFC.

The barometer rose further by 35.99 points, or 0.17%, to settle at new all-time high of 21,373.66, just a day after it scaled the peak of 21,337.67 points. In the previous three sessions, the 30-share index has gained 274 points.

The gauge still remained a little away from an intra-day high of 21,483.74 touched on December 9 when the results of Assembly elections were announced. It touched an intra-day high of 21,409.66 today.

The broad-based National Stock Exchange index Nifty rose by 6.70 points, or 0.11% to 6,345.65, after touching a high of 6,355.60.

Brokers said trading sentiment remained bullish on steady inflow of corporate earnings by bluechips, latest by Larsen and Toubro.

Attractive third quarter earnings were announced by HDFC, Amara Raja Batteries and Torrent Pharma this week.

Larsen and Toubro surged 2.81% to Rs 1,033 after the company posted better than expected profits for the third quarter ending December 31.

However, fall in Reliance Industries and Mahindra & Mahindra (2.82%) restricted the gains, they added. — PTI

New Delhi, January 23
The Finance Ministry has approved a proposal for providing a minimum monthly pension of Rs 1,000 to workers in the organised sector, a move which would benefit 27 lakh pensioners immediately.

The ministry has also approved a proposal for raising the basic wage ceiling under the EPFS to Rs 15,000 from existing Rs 6,500 per month. At present, there are about 44 lakh pensioners. Of this 27 lakh, including 5 lakh widows, get less than Rs 1,000 a month.

"The Finance Ministry has approved the proposal for providing a minimum monthly pension of Rs 1,000 under the Employees Pension Scheme 1995 run by EPFO. The ministry also cleared enhancing the wage ceiling to 15,000 under social security schemes run by the EPFO,” the source said. — PTI

27 lakh to get benefit At present, there are about 44 lakh pensioners. Of this, 27 lakh get less than Rs 1,000 a month The ministry has also approved a proposal for raising the basic wage ceiling under the EPF Scheme to Rs 15,000 from the existing Rs 6,500 The govt will provide additional subsidy of Rs 1,217 crore to ensure the minimum monthly pension of Rs 1,000 from April 1

Davos, January 23
Hopeful of launching flights in India in next 2-3 months, Air Asia chief Tony Fernandes says that the airline would introduce 'dramatically' low fares in the country, which would be cheapest in the market and take air travel to masses.

Fernandes, who is here for World Economic Forum (WEF) Annual Meeting, said AirAsia India is fully prepared from its side for the launch and is waiting for final government approvals that should come soon and help it begin flights by March-April this year.

"I think we are coming very close and March-April should be time when we should begin the India operations," the Malaysia-based airline major AirAsia's CEO said.

AirAsia has partnered with Tata group and Arun Bhatia-led Telstra Tradeplace for AirAsia India, which is looking to run low-cost passenger airline service in the country.

Fernandes said all preparatory work has been completed by the company for the launch of its flights and it is just waiting to "open the sale" of tickets.

Known to have revolutionised the airline market in Malaysia and some other Asian countries through low-cost airfares, AirAsia chief said the strategy for India would be to offer "cheapest" possible tickets.

"We have to be the cheapest and stimulate the market. We have to allow the common man to fly. That is my message to the Indian government and the state governments that flying is not only for the rich," he said.

"What I want to say is that flying is a great economic driver and to get more people flying, we have to reduce the costs. This may be hard for the state governments, because aviation fuel tax is a good cash cow, but if you see in medium to long term, the benefits of flying are huge. You can see the success in Malaysia, Thailand, Indonesia and many other places and we can do the same in India as well," Fernandes said. — PTI