Great Opportunities In Infra Sector

NEW YORK: With infrastructure poised for a major expansion and investment friendly regulations in place, Deputy Chairman of the Planning Commission Montek Singh Ahluwalia told investors that this sector provided attractive opportunities for them.

Addressing the fourth India Investment Forum here, Montek Singh Ahluwalia highlighted the steps the Indian government was taking to attract investments in the infrastructure sector, saying it is open to suggestions which they might have to offer to make the investment process smoother.

"The Indian economy is doing well but the dynamism has put the infrastructure under great strain and if the country has to maintain a high level of growth rate, it is imperative that it develops the infrastructure at a fast pace," he said.

The spending on infrastructure sector last year - the base year for 11th five-year plan - was 5 per cent of the GDP which would be increased to 9 per cent over the next five years, he said.

This, he said, means India would need 492 billion dollars over five years for this sector. If it was business as usual, the total investments would be around 300 billion dollars. Thus the country would need to find extra 192 billion dollars.

Pointing out that substantial part of investments would still be made by the public sector, he said that private sector investments too are poised for a major expansion.

He said the private sector contribution in the 5 per cent of GDP spent on infrastructure sector last year was only 0.9 per cent.

"We hope the private sector investments would grow to 2.2 per cent as spending goes up to 9 per of the GDP. The public sector investments are estimated to go up from 4.1 per cent to 6.8 per cent.

Belt Tightening: 5% Non-Plan Cuts For Ministries In Offing

NEW DELHI: The Finance Ministry has asked all Central ministries and departments to effect a 5% cut in their non-Plan expenditure sanctioned in Budget 2007. The move comes at at time when revenue collections have shown remarkable buoyancy during the initial months of the financial year, with direct taxes growing by over 40%.

The government had pegged non-Plan expenditure during 2007-08 6.5% higher at Rs 4,35,421 crore. Instructions have been issued to all central ministries and departments to curtail the allocation by 5% as the government has to find resources for priority schemes. Mandated FRBM targets also need to be met, a government source said. Finance minister P Chidambaram has already emphasised that revenue deficit needs to be wiped out by 2008-09 as mandated in the Fiscal Responsibility & Budget Management (FRBM) Act.

Therefore, the government is not willing to take any chances despite buoyant revenues. “We are on track to wipe out revenue deficit in 2008-09, God willing. We have brought down fiscal deficit to 3.3% of GDP and we will bring it down to below 3% next year. We are determined to adhere to the obligations under the FRBM Act and this is backed by the PM,” was how Mr Chidambaram explained the government’s stand. The situation could undergo a change only in case the UPA government decides to go in for general elections early next year.

Barring a few, spending of most of ministries is within limits. The current directive is expected to make them tighten purse strings further, the source said.

Expenditure secretary Sanjiv Mishra had held a meeting of all financial advisors attached to various ministries and departments on September 17 where the issue was discussed. The department issues instructions on austerity from time to time. Mr Mishra wanted the financial advisers who control ministerial budgets to submit quarterly reports to ministers incharge to enable finance ministry to take necessary action.

Noting that rush of expenditure towards the end of the financial year continues to be an area of concern, the instructions emphasise that not more than one-third of the Budget estimates be spent in the last quarter of the financial year and the expenditure in March 2008 should not exceed 15% of the estimates.

Payment of interest, debts, salaries, pension and defence capital as also Finance Commission grants have been exempted from the 5% cut in the non-Plan expenditure, which is at the same level as slapped in 2006-07. These instructions mandate the government offices to reduce expenses to the “minimum essential” in areas like building maintenance, office equipment, transport, communication, furniture, furnishings, stationery and hospitality, regulate advertisements and publicity campaigns.

The government has also put a ceiling of 10% of the approved financial outlay as advance payments to the autonomous bodies and the public sector undertakings for any scheme, project or acquisition. Ministries would not be able to purchase new vehicles with the North Block clamping even the replacement of condemned vehicles. Only the Armed Forces and the internal security apparatus have been excluded. The existing ban on creation of Plan and non-Plan posts has been reiterated for strict enforcement, requiring the finance ministry’s express clearance for creating unavoidable posts. Curbs have also been placed on foreign travels and goodwill visits.

Inflation Eases To 3.23%

NEW DELHI: Inflation further eased to 3.23 per cent for the week ended September 15, compared to 3.32 per cent for the previous week, mainly due to fall in prices of fruits and vegetables, pulses, milk and some manufactured items.

The wholesale price-based index stood at 5.27 per cent in the corresponding week a year ago.

In the last few weeks, the inflation has been below the RBI forecast of close to 5 per cent for the current fiscal, fuelling expectations of a softer monetary stance in the upcoming half-yearly review of credit policy by the central bank.

Among manufactured items, coconut oil declined by 4 per cent, while zinc softened by 10 per cent followed by aluminium ingot and other aluminium materials.

However, prices of cement moved up by 0.2 per cent during the week followed by other items like steel furniture and hydraulic pump.

FDI In Retail Not Distant: Chidambaram

Philadelphia, September 27: India will open up its USD 330 billion retail market to foreign investors after convincing mom and pop store owners that their jobs are not at threat from big players, Finance Minister P Chidambaram has said.

"In course of time their fears will be allayed and it is only a matter of time before the policy is tweaked to allow FDI in retail," he said during an interaction with students of Wharton School of the University of Pennsylvania in Philadelphia.

While political opposition to allowing FDI is well known, there has been a growing opposition from tens of thousands of small retailers who employ millions of people to even entry of domestic corporates into the sector.

"Experience tells us (organised) retail does not drive them (small retailers) out. They will reorganise themselves and thrive. But there is genuine fear that has to be allayed," Chidambaram told students at a packed Dhirubhai Ambani auditorium at the school after delivering the Wharton Leadership Lecture.

Earlier this week, Commerce and Industry Minister Kamal Nath had said that the issue was not about allowing FDI in retail but that of large versus small players. His ministry has asked economic think-tank ICRIER to study the situation and the report is expected in a month.

Nath's comments had an unsettling effect on big companies, which have presence in retail, as only last month some of the corporate-run food stores received orders to shut shop in Uttar Pradesh. The state government, which cited law and order problems for the decision, has appointed its own commission to study the problem, but the report is yet to be tabled.

Food products and groceries make up about 55 per cent of the entire retail market, which has been growing at a CAGR of 10 per cent over the last five years, according to India Brand Equity Foundation.

The Finance Minister said: "We will patiently educate them (mom and pop store owners) before they accept retail chains."

India allows 100 per cent FDI in cash-and-carry and wholesale operations, besides 51 per cent FDI in single-brand retail. Some multinational players like Wal-Mart, who had for long waited for the sector to be opened up, have since joined hands with domestic companies as their cash-and-carry partners.

"This (opening retail to FDI) will take a little time," Chidambaram said.

India has been ranked World No 1 in the AT Kearney Global Retail Index 2006 and according to industry estimates, the organised and unorganised retail

Govt Concerned Over Rupee Rise: FM

India is concerned over the rapid appreciation of the rupee against the US dollar.Union Finance Minister P Chidambaram has said that the central bank may have to intervene if there is disorderly movement in the exchange rate.Our exchange rate has a symbiotic relationship with the exchange rate of the US. The rupee is stable against the Euro and many other currencies. It is only against the dollar the rupee has appreciated, he said.The policy is to allow two-way movement of the rate, but the only concern is that the movement should be orderly, he said at an interactive session at the Peterson Institute for International Economics.Neither the government nor the central bank has a view on the exchange rate. This is market-determined and it will be market-determined, Chidambaram said. If there is volatility or any disorderly movement I suppose the central bank will intervene using whatever instrument it has. The Central government does nothing on that behalf, the Minister said.Chidambaram also asserted that the Indian economy was still poised to extend impressive rates of growth.He added that the present government has brought about greater stability and clarity to the policy environment and has remained steadfast on the path of fiscal prudence and discipline.

Forex Turnover Touches $34 b Mark In April 2007

The country''s total foreign exchange turnover went up from $ 2 billion in April 1998 to $ 34 billion in April 2007 owing to strong economic growth and liberalisation of banking and foreign exchange norms. According to data released by the Bank for International Settlement, India''s share in foreign exchange market has increased from 0.1 per cent in 1998 to 0.9 per cent in 2007.

The data includes details of spot trades, outright forwards, forex swaps and cross currency trading. All of these have shown substantial increase in volumes said, Mr Sudhir Joshi, treasurer, HDFC Bank. The bigger share of the forex turnover is with foreign banks, followed by Indian private banks, said bank officials. This is because the foreign banks get flows from their overseas offices. Private Indian banks have better marketing of products, said Mr Joshi. Among the public sector banks, those that have flows from the RBI would benefit more than others.

India''s Share In M&A Deals In Asia Up To 15 Per Cent

India''s share in the total merger and acquisition deals in Asia has risen from 6 per cent in 2005 to 15 per cent in 2006, SBI Capital Markets said on September 26. The leading investment bank, in a presentation made to the media, said Australia has the biggest share of M&A activity in Asia region and accounts for 28 per cent of the total deals. While India is the second largest contributor to the M&A deals with 15 per cent. SBI Capital Markets Managing Director and Chief Executive Officer R Sridharan said, Indian M&A market is poised for buoyant growth on the back of better regulatory environment, robust performance of Indian corporates and overall positive micro-economic indicators.He said the value of M&A deals in the first half of 2007 at $50 billion has already crossed the total value of deals in the whole of 2006. He said SBI Capital now derives about 20 per cent of its revenues from M&A''s against much smaller number a few years ago. Incidentally, the company has become a member of M&A International, the world''s leading M&A alliance for middle sized deals. SBI Capital president A P Verma said the overseas acquisition by Indian companies could get a boost with the Reserve Bank raising the limit for making investment overseas from 300 per cent of net worth to 400 per cent yesterday. A company with $15 million net worth, which was earlier allowed to invest $45 million overseas, now can invest $60 million. He said RBI is still prescribing ceiling on overseas investment to ensure companies do not over leverage while making a foray in foreign countries.

Indian Rupee Climbs To 9-Year Peak On Flow Outlook

The rupee rose to a nine-year high early on Wednesday as dealers bet on massive capital flows into the stock market and as the dollar slid to record low against the euro.At 9:04 a.m., the partially convertible rupee was at 39.66/67 per dollar, its strongest level since April 1998, and climbing from Tuesday''s close of 39.735/745.

Foreign cos likely to get entry into legal services

Opening up of legal services for foreign players could be on the cards. The government is looking the issue with the Indian stake-holders, Law Minister HR Bharadwaj said on September 25. He said efforts would be made to build a consensus and assured the domestic law firms that the government would put in place adequate safeguards to protect their interests. The government has asked stake-holders to come with their views on the kind of safeguards they want and a decision would be taken only after all of them agree.

Mr Bhardwaj said some firms had concerns that they would not be able to meet competition from foreign firms. Opposition is also on the ground that many advanced countries do not recognise Indian law degrees. Claiming that opening up of legal services would bring in investment by foreign firms and provide better job opportunities to Indian lawyers, he said the legal community should not shy away from competition. The Law Minister, however, clarified that foreign lawyers would not be allowed to practise Indian law in the country. Mr Bhardwaj said his ministry was in talks with the International Court of Justice, Hague, and London Court of International Arbitration to set up offices in India. To a query whether foreign law firms would be permitted through a Limited Liability Partnership route, Mr Bhardwaj said these issues were being negotiated.

Rupee gains a tad against dollar

The rupee appreciated a tad against the dollar on September 25, as the dollar supply matched demand. During the day the rupee traded in a 10-paise band and gained only towards the end of trade. The rupee opened on September 25 at 39.80 and closed at 39.74 against the previous close of 39.76/77. During the day, it was range-bound between 39.84 and 39.73/74. The rupee is likely to appreciate because there is not much demand for dollar right now. In the forwards market, the 6-month closed at 1.26 per cent (0.81 per cent) and the 12-month at 1.35 per cent (1.03 per cent).

India Sees 75 Pct Chance Of Doha Trade Deal In 2008

Countries could reach agreement on a world trade deal in 2008, but the focus on agriculture and manufactured goods needs to be expanded to other areas like services and rules for government anti-dumping programs, a top Indian trade official said on Tuesday.

I''m 75 percent optimistic we might have a deal in 2008, Commerce Secretary Gopal Pillai said in a speech at the Carnegie Endowment for International Peace in Washington.

But with many thorny issues left to work out, the earliest that trade ministers could come together to make final decisions is probably March 2008, Pillai added.

Many experts have seen a short window of opportunity to reach a deal in the six-year-old world trade talks in the next few months before the U.S. presidential election campaign picks up momentum next year.

Pillai said his most optimistic scenario assumed basic elements of the trade package coming together in January and February 2008, which would then set the stage for a ministerial meeting to bring together top trade officials to make final decisions on a deal.

While the talks have been focused recently on agriculture and manufactured goods, many countries are increasingly concerned that they cannot see the full outline of a deal unless negotiations are resumed in other areas like services and anti-dumping, Pillai said.

Anti-dumping is a particularly difficult area for U.S. trade negotiators since many members of Congress are opposed to any weakening of the United States'' ability to impose duties on imports it believes are unfairly low priced.

Core Sector Requires $1,400 Bn Push, Planning Commission

New Delhi: Indian planners have estimated that the economy will need over $1.4 trillion to improve infrastructure over the next decade. The figure has been finalised by the Planning Commission recently. As against the earlier estimate of $320 billion, it is now estimated that $498 billion will be needed in 2007-12 (the 11th five-year Plan period) and another $989 billion between 2012 and 2017 (the 12th Plan period).

Massive infrastructure creation has become imperative for the Indian economy, which is facing capacity constraints. This was restricting the economy from growing by another 1-2 percentage points, Finance Minister P Chidambaram had said at the London Business School June this year. A committee constituted by the finance ministry had estimated that $475 billion was needed for capacity addition in the core sector during the 11th Plan period. At this rate, investment in infrastructure is expected to nearly double to 9 per cent of GDP every year during 2007-12. A massive infrastructure capacity upgrade through the public-private partnership (PPP) model has been one of the key initiatives of the UPA government. This is expected to help meet these ambitious targets.

Also, the private sector''s contribution has been targeted to increase to 29 per cent of the total investment, up from 16 per cent during the 10th Plan. In telecom, ports and airports, the government aims to attract around 65 per cent investment from the private sector. The Planning Commission had arrived at a much higher investment figure of $585 billion for the 11th Plan. But it assumed that 15 per cent of the projected investment would spill over into the 12th Plan period and lowered the estimate. The Plan panel also recognises that sustaining these large investments is challenging, especially the $244 billion that is required as debt.

Rupee Appreciates Against Dollar

The Rupee appreciated to 39.83/84 against the US currency in late morning deals on Monday following sharp rally in equity markets amid heavy capital inflows.In active trade at the Interbank Foreign Exchange (Forex) market, the Indian unit opened strong at 39.85/86 a dollar from last Friday''s close of 39.90/91.

It improved further to 39.83/84 in late morning deals and touched a new nine-year peak of 39.81, the level not seen since May 1998.

Heavy capital inflows also boosted the rupee sentiment. Foreign Institutional Investors (FIIs) remained net buyers in last week and they pumped in nearly $2 billion in the current so far and over $10 billion in the year 2007 till last week.

After US interest rate cut, foreign investors preferred to invest in high yielding currencies like rupee. Expectations of the central bank''s intervention weighed on the rupee last Friday.

Direct Tax Mop Up Rise By 40% Till Sep 21

Net direct tax collections went up by 40% to Rs 1,06,095 crore from the beginning of the current fiscal to September 21, up from from Rs 75,510 crore in the same period a year ago. Corporation tax collections rose by 42.37% to Rs 67,207 crore, up from Rs 47,207 crore during the same period in the previous fiscal. Personal income tax (including FBT, STT and BCTT) grew by 37.47% at Rs 38,819 crore, up from Rs 28,238 crore. The growth in Securities Transaction Tax was 45.52% and Banking Cash Transaction Tax was 21.36%. Fringe Benefit Tax collections also jumped 87.41%.

IT Refunds Likely To Come Via SBI

For the purpose of ensuring timely tax refunds, the government has forged alliance with the State Bank of India (SBI) to credit refunds directly to the account of individual tax payers from December, 2007. At the moment, it was tying up with SBI but other banks would offer the same service in future, he added. IT officers would complete the processing of the returns and advise SBI. Subsequently the bank would credit the account of the individual. First this facility would be available to salaried persons only and subsequently we would like to extend it to the other payers as well, Ray said at a meeting at the Merchants'' Chamber of Commerce. Ray said SBI would be charging Rs 5 per entry for normal account clearance and Rs 8 for payment through cheques.

The process was tested as a successful pilot project conducted by SBI and the IT department in Delhi and Patna. Total IT collection in the state till August 31, 2007, was Rs 2,000 crore.

Rural Jobs Scheme Fails To Achieve Targets

One of the flagship projects of the UPA government, National Rural Employment Guarantee Scheme (NREGS), has failed to yield the desired results. Not only could the scheme not provide employment to all the eligibles, in many cases the labourers did not get the stipulated rate of wages.

According to a recent survey, in 2006-07, only 6 per cent of the households registered under the scheme got 100 days of employment as prescribed by law. The lacklustre attitude of the government machinery to implement the scheme properly was evident as the survey showed that 4 out of 14 states - Bihar, Orissa Gujarat and Haryana - did not even constitute the State Employment Guarantee Council (SEGC) though more than a year has passed. The NREG Act, one of the pet projects of Congress President Sonia Gandhi, was applicable in 200 districts of the country since February 2006.

In the current financial year, the government, in a special emphasis, extended the NREGS to 330 districts. Budgetary allocation also increased from Rs 11,300 crore to Rs 12,000 crore. The Society for Participatory Research in Asia did a study on the NREGS in 530 villages in 21 districts across 14 states, including Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Kerala, Madhya Pradesh, Orissa, Rajasthan, Uttarakhand, Uttar Pradesh and West Bengal. During the period April 1, 2006 to March 31, 2007,

UP All Set To Implement VAT

The Trade Tax department of Uttar Pradesh is gearing up to implement value-added tax (VAT) in the state. The VAT draft has been finalised and will be sent to the Centre for approval by early next month. This was stated by Sunil Kumar, commissioner (trade tax), Uttar Pradesh, in a workshop organised by PHDCCI on ''preparation for VAT in UP'' in Lucknow. The department has also put the draft on its website and has invited suggestions from people. Uttar Pradesh is in the process of adopting the new tax regime. Until recently, UP was the only state that had not adopted VAT. But after chief minister Mayawati''s nod for VAT implementation, the state machinery is all geared to implement it. Though UP is the last state to adopt VAT, yet it is not at a loss. It has the benefit of gaining from the experience that the other states have had in its implementation in their respective states. UP can learn from the problems faced by them and can avoid its replication here, explained R Muralidharan, associate director, PriceWaterhouseCoopers (PWC). Speaking on the occasion, Ram Poddar, chairman, indirect tax committee, PHDCCI, highlighted the fears and concerns that is bound to be present with the introduction of the new tax regime amongst the trading community, especially the small traders in regard to either the tax burden going up or possible hassles in the compliance of the law.

State Govt Finances Better On Recommendation

The financial position of most State Governments is much better, on account of the implementation of measures recommended by the 12th Finance Commission. But States have to watch out against a few challenges such as the impact of the recommendations of the Sixth Pay Commission, according to Dr Y.V. Reddy, Governor of the Reserve Bank of India.

Speaking at the Annual Day celebrations of the Madras School of Economics today, Dr Reddy said that State Governments were not spending enough on education and health, which remain low at around 2.5 per cent and 0.7 per cent of GDP respectively.From the RBI''s standpoint, initiatives relating to credit culture, financial literacy, financial inclusion and priority sector lending would continue to remain high on the policy agenda. On the improved management of finances by States, the RBI Governor said that all but eight States had projected revenue surpluses for the current year.

The aggregate revenue surplus of all States has been budgeted at 0.4 per cent of the GDP. Open market borrowings of the State Governments, which used to be at fixed rates on allocation basis a decade ago, are now being conducted entirely through auction route.Further, guarantees given by State Governments are also on the decline. Guarantees were placed at 6.5 per cent of the GDP as of March 31, 2005 compared with eight per cent at the end of March 2001. Also, cash management of State Governments has shown a marked improvement over the years.

States are making less use of RBI''s short-term lending facility - ways and means advances - compared to previous years. The Governor also said that on the other hand, there are a few issues of concern. States should develop a calendar for open market borrowings just as the Government of India does.

Nath Denies Difficult Stand In WTO Talks

Rejecting the suggestion that India is taking a difficult stand in the World Trade Organisation (WTO) talks, Commerce Minister Kamal Nath has said New Delhi only wants a multilateral trading system that corrects the existing structural flaws in the global trade rather than perpetuate them.The rules of the game are very important for India as it engages in the global trading system more and more, he told investors and entrepreneurs on Friday.

Stressing the need for abolition of agricultural subsidies by the rich countries, he told the India-America Chamber of Commerce that these subsidies and non-tariff barriers greatly distort the system and are not justified.

Defending the protection of intellectual property rights, Nath emphasised that it is important as India graduates from user to producer of intellectual property. It is aimed at coming generations of entrepreneurs who through their innovation would create new products.

Besides, he said, it improves the credibility and standing of India in the international community as it fulfills the commitments made and translates into investments with the investors realising that the country not only has laws but implements them too.

It is credibility of India which is bringing in investments in various sectors, he added.

Comparison between India, China

Observing that the comparison between India and China is misplaced, Nath said there is need to see where China was 15 years into the opening up process. He said India, which started economic reforms 15 years ago, is now getting doublethe investments China got at that point of time.

Besides, in case of India, new young entrepreneurs are emerging and this along with huge skilled human base is a great strength of the country, Nath added.

Portfolio Inflows Pick Up Re To Record High

Mumbai: The spot rupee broke the crucial barrier of 40 to close at a nine-year high of 39.88/89. The appreciation has been primarily on the back of vast foreign exchange inflows into the Indian market and also partly due to impact of dollar weakness globally. Pound sterling and euro appreciated to $2.0075 ($1.9991) and $1.4040 ($ 1.3967) globally. The rupee had reached a high of 39.22 to a dollar in first quarter of 1998. Besides portfolio inflows into the Indian equity market, banks and exporters also sold dollars frantically since they were expecting the rupee to depreciate to 40.30 through purchase of dollars by the central bank''s part of intervention.

UP Prepare For Implementing VAT

Lucknow: The Trade Tax department of Uttar Pradesh is geared up to implement value-added tax (VAT) in the state. The VAT draft has been finalised and will be sent to the Centre for clearance by early next month. The department has also put the draft on its website and has invited suggestions from people. They have received about 700-800 suggestions from different sectors of the industry on the material posted on our website.

The department, in its process to resolve all queries regarding the new tax, has formed a pool of over 400 frequently urged questions (FAQs) to be posted on the department''s website. Uttar Pradesh is in the process of adopting the new tax regime. Until recently, UP was the only state that had not adopted VAT. UP can learn from the problems faced by them and can avoid its replication here. Indirect tax committee, PHDCCI, highlighted the fears and worries that is bound to be present with the introduction of the new tax regime amongst the trading community, especially the small traders in regard to either the tax burden going up or possible hassles in the compliance of the law.

Sub-Prime Crisis Likely To Affect Emerging Economies

Mumbai: The US sub-prime mortgage turmoil could weigh heavily on the future constancy of financial markets and is also likely to have a wider affect on global growth, with particular worries centred on the prospects for emerging market economies. If credit conditions tighten, emerging market economies could become particularly vulnerable to reversals of capital flows with serious implications for their future prospects. The slowing down of the US economy, in combination with capital reversals, could also have adverse consequences for growth on a prolonged basis by affecting exports of manufactures and services, depending on the extent of linkage with the US economy. In general, recent financial market developments are indicative of evolving uncertainties for such economies with significant challenges for the conduct of monetary policy and for ensuring financial stability in their economies. The recent gains in bringing down inflation and in stabilising inflation expectations should support the current expansionary phase of growth cycle.

MP Introduces Online Tax Payment Facility For Transporters

New Delhi: Madhya Pradesh has launched dealer point registration and online tax payment facility for state transporters and vehicle owners. Madhya Pradesh is the first state in the country which has launched online tax facility. Now the 500,000-odd vehicle owners no longer need to do rounds of road transport office (RTO) and banks for payment of taxes. The department has developed an internet-based system for registration of the vehicles under which the dealers of vehicles have been given the powers for registration of vehicles. The state government has decentralised the powers to issue driving licenses and the principals of higher secondary school and colleges have been authorised to issue learning licenses to students and to people in their respective areas.

Nanguneri To Be Promoted As Cluster Of Sezs

Chennai: The Nanguneri SEZ, originally considered as a 2,500-acre multiproduct SEZ, will be promoted as a cluster of seven product-specific SEZs. The Tamil Nadu Government has passed orders to this effect following recommendations from the Tamil Nadu Industrial Development Corporation. The project is being implemented by AMRL International Tech City Ltd, which has acquired over 2,100 acres at Nanguneri, near Tirunelveli. To expedite the project it has been pending since 1999 the promoters have obtained the State Government''s approval to establish product-specific SEZs.

The SEZs to come up here are engineering industries (121 ha), autocomponents (110 ha), pharmaceutical (115 ha), electronic hardware (107 ha), logistics (70 ha), biotechnology (13 ha), and information technology (10 ha). TIDCO will immediately take steps to implement the project. TIDCO holds a 2 per cent stake and would facilitate the project. When it was originally conceived, the Nanguneri SEZ was promoted as the Nanguneri High Tech Park, promoted jointly by the Infac Group and TIDCO through a special purpose vehicle, ATMAC Ltd.

B0A Gives Formal Approval To 10 Sezs

The Board of Approval on Sept 18, formally cleared 10 special economic zones (SEZs) of the 19 it took up at a meeting here. So far, 386 SEZs have been allotted formal approval, the last stage in the clearance process before an SEZ is notified. To date, 149 SEZs have been notified. Among the zones granted formal approval are Mukesh Ambani-promoted three information technology SEZs in Navi Mumbai and Adani group''s SEZ in Mundra. A Tata Consultancy Services SEZ in Gandhinagar has also been permitted formal approval. However, the board deferred proposals for four SEZs in Uttar Pradesh. The decision on four SEZ proposals in UP, including that of DLF and Unitech Hi-Tech, have been postponed because they do not have the possession of land. The UP government, headed by Chief Minister Mayawati, has indicated that it is not in favour of clearing the SEZs proposed during the previous regime. The promoters of these SEZs could apply afresh. Over Rs 47,732 crore have been invested in 149 notified SEZs and the projects are providing direct employment to around 40,729 people.

FM Softens Blow On 4% Additional Customs Duty

The Finance Ministry has relaxed the blow on the 4 per cent additional customs duty by putting in place a refund mechanism for such a duty on all goods imported into India for subsequent sale within the country. This 4 per cent additional duty of customs was levied in 2005 to compensate for the sales taxes, VAT and other local taxes applied on products sold in India. The move to give a refund mechanism is being seen as an effort to address the concerns of the developed countries such as the US, which felt that the 4 per cent duty level was higher than the aggregate level of sales taxes and local taxes levied on products sold by Indian producers.

CII Signs Mou With Gujarat For Tribal Entrepreneurs

With a sight to fostering development in backward tribal areas of Gujarat, the Confederation of Indian Industry (CII) has inked a memorandum of understanding with the Tribal Development Department of the Gujarat Government as part of its efforts to groom 1,500 tribal entrepreneurs in the State. Under its Affirmative Action Agenda, CII will begin the project next month. The MoU envisages enhancing the capacity of youth from the weaker sections of society to develop their entrepreneurial skills, imparting basic computer education and soft skills.

Rupee Closed At 40.48 Against Dollar

The rupee appreciated by around 7 paise against the dollar on Sept 18, tracking the gains made in the stock market. The currency opened at 40.56/57 and reached an intra-day low of 40.62. It finally closed at 40.48 against the previous close at 40.55/56. In the forward premium market, the six-month closed at 1.76 per cent (1.72) and the 12 month at 1.82 per cent (1.77).

Economy To Grow At 8.5-9 Per Cent

Even in the wake of an apparent slowdown in industrial growth in July, the Planning Commission on Tuesday projected the economy to grow by about 8.5-9 per cent during the current fiscal. Reiterating the Commission''s projections on economic growth while speaking to newspersons on the sidelines of a conference on ground water management, Planning Commission Deputy Chairman Montek Singh Ahluwalia said: We have been predicting a slightly lower growth and the latest industrial output numbers are no reason to reassess the growth estimate.

Noting that the first quarter growth was good, Dr. Ahluwalia pointed out that a slight deceleration was expected in the second quarter this fiscal and the dip would not be as a result of the tight monetary policy adopted by the Reserve Bank of India. I would rather call it a moderation in growth rather than slowdown. I would call it a successful example of macro-economic management, consistent with extracting non-inflationary potential of the economy by maintaining growth, he said. It may be recalled that while the economy witnessed a robust growth of 9.3 per cent in the first quarter this fiscal, the industrial growth slipped to 7.1 per cent in April-July from 13.2 per cent in the same period a year ago, mainly owing to an all-round dismal performance in July this year.

External Debt Up 57Pc During 10Th Plan

An apprizing rupee led to the country''s external debt stock rising to $155 billion in 2006-07, a 22.6 per cent increase over the previous year, which totaled to 16.4 per cent of the gross domestic product. The country has added $56 billion or 57 per cent to its external debt during the 10th Plan period (2002-07), the largest increase during any Plan period.

Centre To Take Up 19 SEZs On Sept 18

The Centre will take up 19 SEZ proposals, comprising induction of co-developers in the Mukesh Ambani-promoted Navi Mumbai SEZ and projects planned by DLF and TCS, on Sept 18. The Navi Mumbai SEZ has asked the government''s clearance to comprise seven co-developers for building infrastructure. These companies will infuse about Rs 6,000 crore in establishing power plants, creating a transmission and distribution network, laying communication lines, giving water supply and sewage treatment, building industrial parks, schools, a commercial and residential complex, and setting up Internet and related services.

Indian Cos Set To Gain From Carbon Credits

Carbon credits are bought by polluting companies and are sold by the cleaner companies. It is becoming big business as Indian companies take up projects to reduce carbon dioxide emission. Indian companies will now get more money for the certified emission reduction units they earn by an auction system to be launched by Cantor soon and India is expected to earn over $1 billion per annum.

Till now they are not getting the right price for the CERs, India to earn three billion euros as revenues, said Dr Rambabu, MD- India, CantorCO2e. An American company spends $30 to earn every unit of carbon credit, while buying it from India is as cheap as $1. Indian companies are expected to sell carbon credits worth 50 million CERs this fiscal and 200 million by 2020. With the settlement date set by Kyoto Protocol nearing, the global demand for carbon credit is expected to be at 1 billion CERs every year, through auction platform Indian companies will be able to sell their carbon credits at a more competitive price.

Govt Notifies Service Tax Sops For Exporters

New Delhi: The Finance Ministry on Sept 17, made the first ever move to refund service tax paid by exporters on non-input services. The refund will now be available on four identified transport and port services that could be linked to export goods. Services offered to exporters by major ports, minor ports, road transport services given by a goods transport agency from inland container depot (ICD) to port of export and transport of export goods in containers by rail from ICD to port of export will now qualify for service tax refund. The refund on certain services came nearly five months after the Commerce and Industry Minister, Mr Kamal Nath, declared service tax exemption on services rendered abroad and charged on exports from India. He had also ensured exporters that tax on services rendered in India and utilised by exporters would be exempted or remitted. The Finance Ministry has identified the four taxable services and that the Commerce Ministry was yet to come up with a list of services or a simple and verifiable method to evaluate linkage of services with goods exported.

Rupee Ends At 40.56 Against Dollar

Mumbai: The rupee weakened by nine paise against the greenback on Sept 17, on speculation of rupee selling because of a fall in the offshore non-deliverable forwards (NDF) market. Foreign banks were also seen purchasing dollars, which weakened the rupee further. The home currency opened at 40.45/46 but declined to 40.59, which was also the intra-day low to close at 40.55/56, down from the previous close of 40.46/47. In forwards, the six-month premia closed at 1.72 per cent (1.62 per cent) and the 12-month closed at 1.77 per cent (1.74 per cent).

CII Plans To Conduct Vision Q1 Study For Industrial Growth In AP

The Confederation of Indian Industry (CII), Andhra Pradesh, is planning a study, Vision Q1, for attaining all-round industrial development in State by end of first quarter of current century (2025). They will consult all stakeholders including bureaucrats, academics, farmers, traders and non-governmental organisations, among others by conducting roundtables in Hyderabad, Visakhapatnam and Rajahmundry soon. Draft guidelines will be prepared to be shared with opinion leaders and policy-makers. Different States under CII Southern Region can adopt different methods and time-frames for this. In addition, CII is also planning to undertake a comprehensive study on the scope of industrial development in various districts of the State. To find out suitable industries for each district and suggest ways and means for their development, CII is planning to conduct similar surveys in other districts as well.

India Seeks Ease In German Visa Rules

India is likely to ask Germany to ease rules regarding work visa permits for IT professionals and reduce non-tariff barriers to trade when Finance Minister P Chidambaram visits the European nation this week.

Apart from allaying fears of German investors to invest in India, the Finance Minister is expected to take up issues such as non-tariff barriers, discriminatory German dividend tax and social security tax paid by IT professionals going for short duration, official sources said.

Chidambaram is scheduled to visit Germany during September 18-20 and will address German industrialists at Berlin and Munich on September 19 and 20. He will be accompanied by a 30-member business delegation, including CII President Sunil Mittal and FICCI President Habil Khorakiwala.

The Indian industry will like to take up the issues of EU over-regulation of chemicals sector, difficulties in getting work permits for IT professionals, besides the discriminatory German dividend tax, FICCI Secretary General Amit Mitra said.

Chidambaram''s tour will be followed by a visit of German Chancellor Angela Merkel to India toward the end of October.

AP Not To Increase Residential Property Tax

There is good new for owners of residential property in Hyderabad and other areas coming under the urban local bodies in the State. The Andhra Pradesh Government has decided not to hike the tax rate for residential properties. The decision comes in the wake of months of speculation that the Government was planning to hike the tax rates for residential and commercial properties in view of the boom in the sector. The then Telugu Desam Government had hiked taxes, but put a cap (ceiling) of 75 per cent, 100 per cent and 150 per cent on residential & commercial properties respectively.

Infrastructure Growth Slips In July

Indian infrastructure sectors'' gallop reduced to a trot in July, compounding the government''s disappointment with a slowdown in industrial production that signals a moderation in the country''s overall economic growth.

The growth of six core infrastructure sectors, which contribute slightly more than a quarter to industrial output, fell sharply to 6.3 per cent in July from 10.9 per cent in the year-ago month. Cumulative performance during April-July also dipped to 6.1 per cent from 8.7 per cent in the same period of the last fiscal, according to official data released Thursday.

All six sectors-cement, steel, coal, power, crude oil and petroleum refining-recorded a slower growth during the month as higher interest rates curbed demand for manufactured goods like automobiles and consumer durables, besides housing and commercial real estate.

The performance of infrastructure sectors merely mirrors the huge fall in industrial output-from 13.2 per cent in July 2006 to 7.1 per cent in July 2007.

The IIP (Index of Industrial Production) figures for July are disappointing, Finance Minister P Chidambaran said, but hoped demand will pick up once the festival season kicks off later this month.

Rupee Remains Range-Bound

Mumbai: The rupee was mostly range-bound throughout the day and closed at 40.45/46, one paise up from the previous close of 40.44/45. The home currency opened at 40.41/43 and moved in the range of 40.42-40.44 during the major part of the day before closing at 40.45/46. Market participants felt that the Reserve Bank of India was intervening at 40.42/43 levels in order to cap the appreciation of the rupee. Dealers expect the rupee to appreciate to 40.25 levels. In forwards, the six-month premia closed at 1.72 per cent (1.60 per cent) and the 12-month closed at 1.77 per cent (1.70 per cent).

Fin Min Seeks Forex To Fund Spvs

Indian companies looking for cheaper dollar loans to fund infrastructure projects abroad will have to wait more. The Finance Ministry is in talks with the RBI to offer $5 billion from its reserve to finance such projects at rates cheaper than currently quoted in the foreign markets.

The ministry had earlier announced the setting up of Special Purpose Vehicles (SPV). Finance Ministry has proposed that the Reserve Bank should subscribe to bonds and securities floated by the SPV. These securities will carry a government guarantee.

The RBI prefers the refinancing of forex loans, which the SPV will raise on its own rather than invest in its bonds and securities.

The Finance Ministry says that this will unnecessarily push up the cost of transaction for corporates. Thereby eroding the benefit of using foreign exchange for loans.

The Finance Ministry maintains that there is no standoff with the regulator and the modalities will be thrashed out within a month. However, to make forex loans competitive and enable the SPV to click with corporate houses, cost of credit has to be kept low.

The two cities on radar for the location of SPVs are London and Singapore. Finance Ministry says that regulatory regimes are strong in both these cities. Although, even once the final policy contours are known it will take more time for the SPV to actually get off the ground.

Scope Of Old Age Pension Scheme To Be Expanded

The Union Cabinet on Thursday decided to expand the scope of the National Old Age Pension Scheme by including all senior citizens above 65 years of age and living below the poverty line. At present, the scheme is applicable only to destitutes above the age of 65. Announcing the decision, Union Minister and Cabinet spokesperson Priyaranjan Dasmunsi said the scheme would be re-launched on November 19, birth anniversary former Prime Minister Indira Gandhi. It is estimated to cost Rs. 4,300 crore in the current financial year. The scheme was being expanded following an announcement by the Prime Minister in his Independence Day speech. There would be no change in other details of the scheme. It is expected to benefit about 1.57 crore people.

Mr. Dasmunsi said the Cabinet considered a proposal to amend the Commission of Sati (Prevention) Act. But, it postponed a decision as some technical issues had to be examined in greater detail. Likewise, it considered a proposal to amend the Immoral Trafficking Prevention Act and decided to refer it to a Group of Ministers for further consideration. Amendments to the Immoral Trafficking Act are understood to have encountered hurdles over a provision to bring clients under the law. Non-governmental organisations and sex workers have criticised the move on the ground that it would make prostitution go underground and defeat the efforts to increase awareness of HIV/AIDS and to undertake rehabilitation scheme for sex workers.

The Cabinet Committee on Economic Affairs, which also met here on Thursday, approved the continuation of the Centrally-sponsored livestock insurance scheme in the current financial year on an outlay of Rs. 35 crore.

The scheme is being implemented for the past two years and its performance is being assessed. Pending the assessment, it has been extended for the current financial year, Union Minister and CCEA spokesperson P. Chidambaram said.

WB Targets For More Agri-Lending

Kolkata: The West Bengal Government has decided to ensure that all districts in the State have 100 per cent financial inclusion by the 11th Plan. The State, which has witnessed a little over Rs 3,500 crore come by way of agri-lending by banks in 2006-07. Agri lending should Rs 5,000 crore by the close of this fiscal. In the first quarter, West Bengal recorded a 16 per cent growth in agri-lending. Co-operative banks scored better than commercial banks in this respect. The number of SHGs stood at 5.9 lakh or so in March this year.

Excise Duty Mop Up Rise 9-Pc In Aug At Rs 9,898 Cr

After recording a modest 2.1 per cent year-on-year growth in July 2007, the Centre''s excise duty mop up have witnessed 9 per cent growth in August 2007 to Rs 9,898 crore as compared to collections of Rs 9,082 crore recorded in the same month last year. The excise duty collections in July 2007 stood at Rs 9,388 crore. For the first five months of the current fiscal (April-August 2007), the Centre''s excise duty collections grew 6.3 per cent to Rs 44,469 crore as compared with Rs 41,836 crore in the same period last year.

For 2007-08, the Budget estimate on excise duty has been pegged at Rs 1,30,220 crore. This represents a 9.43 per cent increase over the Budget estimate of Rs 1,19,000 crore pegged for 2006-07. The actual collections in excise duty in fiscal 2006-07 were Rs 1,17,266 crore. Usually, the first half of the financial year showed sluggish growth rate in excise duty collections. To plug excise revenue leakages, the Centre has already embarked on number of initiatives including high impact audits. It has also tightened oversight on certain sectors that are excise duty evasion prone.

Meanwhile, the Centre''s customs duty revenues continue to be buoyant, with collections in April-August 2007 recording 18.74 per cent growth to Rs 40,571 crore as compared with collection level of Rs 34,169 crore in the same period last year. In August this year, the Centre''s customs duty collection stood at Rs 8,725 crore, which represents a 17.46 per cent increase over the collection level of Rs 7,428 crore recorded in the same month last year. For 2007-08, the Centre has budgeted customs duty collection at Rs 98,770 crore, which is about 28 per cent higher than the Budget estimate of Rs 77,066 crore for 2006-07.

Taiwan Trade Office To Be Set Up In Chennai

Taiwan External Trade Development Council (TAITRA) will be setting up the Taiwan Trade Centre liaison office at Chennai on September 15. This will be the second such centre in the country after Mumbai and will provide Taiwanese companies information about market trends and development in India and analyse regional competitiveness and bilateral trade issues. To further Indo-Taiwan bilateral trade (about $2.5 billion in 2005), TAITRA and the Taiwan Electrical and Electronic Manufacturer''s Association would be organising a three-day international electronics show, ''Taitronics India 2007,'' starting September 14, alongside the State government and the Confederation of Indian Industry organised event ''Connect 2007.'' This is the first time the event is being held in India. About 80 Taiwanese companies would be exhibiting products.

Rupee Appreciates Against Dollar

The rupee further appreciated against the greenback on the back of strong dollar inflows. The rupee opened at 40.51/52 and rose during the day to finally end at 40.44/45, against Tuesday''s close 40.56. Dealers said the rupee appreciated as banks continued to sell dollars during the day. In the forward premia market, the 6-month closed at 1.60 per cent (1.58) and the 12-month ended at 1.70 per cent (1.71).

Gujarat Forges Business Ties With China

China''s economy is zooming ahead and Gujarat has got a piece of this action. The business savvy community has sniffed and embraced the opportunity to trade with the Dragon. And the returns are showing.

Trade volumes with China have become the second biggest source of foreign exchange for Gujarat. And when money talks even language is no barrier. Morbi is a small city in Rajkot district of the state. It is in this Morbi that China''s ceramic capital Foshan has found a sister city.

Now the Chinese ceramic cluster is saying rather than competing with each other, we need to find a model by which we can co-operate with each other, like, a consortia of Indian and Chinese ceramic companies, said Jagat Shah, Deputy Secretary General, Indo-China Economic Council. It''s a ceramic tie-up that has become a metaphor for the larger Sino-Gujarati business boom in the unfolding.

For Gujarat, trade volumes with China has become the second biggest source of foreign exchange.

Forced to recognise this surge in trade top Gujarati industrialists last week took a delegation to the World Economic Forum in Dalian - the largest petroleum port in China - to boost business.

Industrial Growth Dips To 7.1%

The country''s industrial output growth slowed down to 7.1 per cent in July this year from 13.2 per cent in the same month a year ago. The slump is attributed to higher interest rates that forced consumers to cut spending on household items and automobiles, adversely affecting the manufacturing sector.

As per the quick estimates of Index of Industrial Production (IIP) released by the government on Wednesday, growth in the manufacturing sector came down to 7.2 per cent during the month as compared to 14.3 per cent in July 2006. Mining and electricity sector also witnessed deceleration in output. During the month, mining production grew at a slower rate of 4.9 per cent from 5.1 per cent last year. Electricity generation was down to 7.5 per cent as against 8.9 per cent in the corresponding month last year.

Manufacturing sector, such as automobiles, witnessed a slow down as the Reserve Bank has been following a tight monetary policy for the past few months that increased interest rates. This, in turn, has curbed consumer spending.

The output of consumer durables such as refrigerators and television fell 3.2 per cent against a growth of 16.1 per cent in July 2006. Similarly, production of consumer non-durables decelerated to 8.4 per cent from 17.1 per cent a year ago.

The growth of consumer goods sector in July slowed down to 5.3 per cent from 16.8 per cent last year.

According to the Society of Indian Automobile Manufacturers, automobile sales in August has also fallen 1.67 per cent. Total automobile sales in the country slipped 4.98 per cent in April-August.

Poor performance in July also pushed down the cumulative growth in industrial production during April-July 2007 to 9.6 per cent as compared to 11.1 per cent in the corresponding period last fiscal.

Govt May Relax ECB Norms For Infra Cos

India urgently needs more bridges, ports and power plants. But infrastructure projects are starting to face a cash crunch after the government and the RBI cracked down on external commercial borrowings last month.

Infrastructure companies have now once again asked policy makers to relax ECB restriction in the infrastructure sector and this time their voice may finally be heard in the corridors of north block.The government is considering relaxing the $20 million cap on ECBs for rupee expenditure in the case of infrastructure companies. The limit may now be raised to $50 million. The government may also agree to keep funds raised through exchangeable bonds out of ECB limit.

We have asked the government and are hoping for some relaxation, Prabal Banerji, CFO, Hinduja Group said. While sections in the finance ministry are coming around to the view that ECB ceilings may have to be revisited, the Reserve Bank of India is still reluctant to ease restrictions.

Ample liquidity

The RBI still feels that there is ample liquidity in the domestic markets. At the same time, spreads in the international market have also tightened making domestic borrowings as competitive as international borrowings.

But the infrastructure sector argues that the estimated $300-400 billion investment needed over the next five years cannot be met through domestic borrowings.

While the RBI has so far resisted requests to ease off on ECB restrictions even for infrastructure companies, the RBI and the government are expected to review the situation.

Rupee Appreciates 10 Paise Against Dollar

Mumbai: The rupee strengthened by around 10 paise against the greenback on September 11 as banks were selling dollars. The home currency opened at 40.60/62 and closed at 40.56, against Monday''s close at 40.66/67. Dealers said the rupee appreciated during the day to 40.55 but trimmed its gains as there was some oil-related dollar buying. It closed stronger as banks began selling dollars. Globally, the dollar has taken a beating against all the other major currencies as the view that US Fed will cut interest rates is gaining ground. The rupee is likely to stay within the range of 40.50 to 40.65. In the forward market, the 6 month closed 1.58 per cent (1.30 per cent) and the 12 month ended at 1.71 per cent (1.48 per cent).

Indian Shares Rise Tracking Gains In Asia But US Economic Concerns Nag

Indian shares were higher, tracking buoyancy in other Asian markets, but nagging concerns over the US economy kept the gains in check.

At 0450 GMT the Bombay Stock Exchange''s benchmark Sensex was up 0.59 pct or 92.63 points at 15,689.46, while the National Stock Exchange''s S&P CNX Nifty was up 0.65 pct at 4,537.30.

Among the BSE 30, 26 shares advanced and 4 retreated. In the broader market 1,485 shares advanced, 403 declined and 39 were unchanged.

Asian markets had managed to pull away from their earlier lows, but a weaker-than-expected US jobs data last week rankled sentiment about a possible slow down in the largest economy.

Value-buying continued in shares of Indian consumer goods companies, which focus on domestic demand for revenues.

Cigarettes maker ITC Ltd rose 1.90 pct to 188 rupees and Hindustan Unilever Ltd gained 0.51 pct to 215 rupees.

Social Security Bill Introduced

The Government, on Monday, introduced a bill in the Rajya Sabha for providing social security to unorganised sector workers, ignoring strong protests from supporting Left parties.The Left, which has been championing the cause of the unorganised labour, demanded separate legislations for agricultural and non-agricultural workers.Amidst unruly scenes during Zero Hour over the nuclear issue, Labour Minister Oscar Fernandes moved the Unorganised Sector Workers Social Security Bill, 2007 for introduction though it was not included in today''s list of business.The bill was brought in towards the fag end of the Monsoon session even though the CPI(M) and the CPI had conveyed to the Congress-led UPA that it had strong reservations on the draft legislation.This is the worst kind of tokenism. They (Government) want to introduce the bill just because it was promised in the National Common Minimum Programme, CPI(M) Politburo member Brinda Karat said.

She added that Arjun Sengupta, who chaired the National Commission for Enterprises in the unorganised sector, had himself recommended two separate and comprehensive legislations for farm and non-farm workers.

The bill provides that the Centre will constitute a National Social Security Advisory Board to recommend suitable schemes for different sections of unorganised sector workers.

There are 40 crore workers in the unorganised sector, constituting more than 94 per cent of country''s total workforce.

Competition Bill Gets Parliament Nod

The Parliament has passed a bill giving teeth to the regulator Competition Commission of India to deal with a host of contemporary economic issues including monopolies and takeovers of corporate firms.The Rajya Sabha approved without debate the Competition (Amendment) Bill, 2007 which was earlier passed by the Lok Sabha.

The bill moved by Company Affairs Minister Premchand Gupta was passed in the Upper House, even as it was witnessing uproar by NDA members over the Indo-US nuclear deal.According to the bill, the Commission will ultimately replace Monopolies and Restrictive Trade Commission (MRTPC).The new law, when it comes into operation, would bind the companies to inform CCI about mergers and acquisitions within 30 days. Companies could be penalised in case they fail to do so.

The bill has a provision for a three-member quasi-judicial body Competition Appellate Tribunal to hear appeals against any direction issued by the Commission.It also seeks to empower the CCI to impose penalty of up to Rs 25 crore or up to three-year imprisonment or both in cases of continued contravention of its orders if the Chief Metropolitan Magistrate deems fit.

Indian Markets Shrug-Off Global Fears

Wall Street is sneezing but Indian markets refuse to catch cold. On Friday US markets were rocked by rising jobless numbers, Indian Markets however opened weak but by closing it shrugged-off global fears.

Have India''s markets decoupled from the US? Those who believe that say that Asia''s domestic consumption and intra-regional trade have grown enough to insulate the region from US shocks.

Dow Jones was shed 250 points on Friday, however Sensex gained 6.41 points on Monday. And that is why India suddenly seems to have developed immunity from the global shocks. Sensex gained 1.13 per cent for the week while Dow Jones lost 1.83 per cent.

World stock markets have outperformed US equities by a factor of two since a global bull market began in 2003. Now if there were to be a severe correction in US equity market and a severe correction in the credit market, will this ratio still hold on the real test is still to be known.

In the event of a sharp deceleration in US consumption growth, it will be markets like India and for that matter the entire Asia ex-Japan markets which will face the critical decoupling test.

K`Taka Earmarks Rs 148cr For Tourism

Karnataka has announced a budgetary allocation of Rs 148 crore for tourism in the state this fiscal. State tourism department director Somashekhar said the funds would be utilised for the overall development of tourism. Somashekhar said the Suvarna Rath Yatra (Golden chariot) to mark the golden jubilee of the formation of Karnataka would commence on November 1.

The journey starting in Bangalore will reach Goa after passing through Srirangapattanam, Mysore, Shravanabelagola, Belur, Halebeedu, Badami, Aihole and Pattadakal. The yatra, to be organised in association with Indian Railways would have 80 tourists on 18 coaches. The Centre has provided Rs 10 crore for setting up food craft institutes at Dharwad and Hassan. A committee has been constituted to suggest measures to make Hampi, Badami, Pattadakal Halebeedu, Belur, Shimoga, Agumbe, Maravante, Dharmasthala, Jog and Kollur more attractive. Rs 3.25 crore has been earmarked by his department for converting Sadhanakeri Lake in Dharwad into a tourist spot The ''Cultural Island'' will have an open air theatre, Dr Da Ra Bendre''s statue and connecting roads. A committee under the chairmanship of the deputy commissioner has been already constituted in this regard. The government has already sanctioned Rs 50 lakh for the conversion of Nrupatunga Hill into a tourist spot while Rs 10 lakh has been released for the development of Unkal Lake.

Rupee Appreciates Against Dollar

The rupee appreciated by about three paise against the greenback on September 10 tracking the gain in the Indian stock market. The home currency opened at 40.75, saw an intra-day low of 40.78 and a high of 40.60/61 before ending the day at 40.66/67, up from the previous close of 40.66/67. Dealers felt that the sentiment for rupee would continue to remain bullish and it might strengthen further to 40.50 level, in the absence of the Reserve Bank of India''s intervention in the market. In forwards, the six-month premia closed at 1.30 per cent (1.29 per cent) and the 12-month closed at 1.48 per cent (1.44 per cent).

Rupee Appreciation Likely On Fed Cut Hope, Easy Liquidity

The rupee is expected to appreciate further. Since the non-farm payroll data released in the United States has been below expectations, all major currencies have begun appreciating against the dollar. This will indirectly impact the rupee movement as well. Since the non-farm payroll data has strengthened hopes of rate cut by the US in its forthcoming policy meeting on September 18, fund flows to emerging markets such as India are expected to continue. If the rupee appreciates below 40.60, it may lead to demand for dollars from importers, especially oil companies, since crude prices are also on the rise. However, the market expects the RBI to intervene if the rupee falls below 40.50. Forward premiums will be rangebound this week due to surplus liquidity. They may fall further if the market receives dollar inflows either from institutional investors or exporting companies.

Liquidity is likely to remain surplus this week as well. The foreign exchange inflows are no longer a steady source of funds, at least for the time being. Call rates are expected to rule easy this week as liquidity is surplus. They may inch up slightly if there is pressure on the rupee to depreciate. The rupee demand will rise if unwinding of the yen carry trade forces institutional investors to liquidate positions in emerging markets. Anticipating advance tax outflows, banks may play safe with liquidity impacting the availability of liquidity in the market in the very short term. The RBI will auction the 91-day and 364-day treasury bills for notified amount of Rs 3,500 crore (Rs 3,000 crore for MSS) and Rs 3,000 crore (Rs 2,000 crore for MSS). The cut-off yield on t-bills is expected to rule around similar levels as in the last week. According to dealers, liquidity is comfortable although advance tax outflows outflows are slated. Liquidity is important as any change is immediately reflected in the short-term interest rates.

Direct Tax Mop Up Likely To Surpass Indirect Taxes This Fiscal

For the first time ever, the Centre''s direct tax collections is likely to surpass the indirect tax collections this fiscal, if the current trend in tax revenue mobilisation is any indication. In April-August this fiscal, the Centre''s net direct tax collections grew 42 per cent to Rs 61,030 crore as compared to Rs 42,980 crore in the same period last year.

Even if the net direct tax collections in April-August 2007 is lower than the indirect taxes collections in April-July 2007 of about Rs 80,000 crore (the latest official data available till now), sources pointed out that the growth in direct tax collections has been above 40 per cent in each of the months so far this fiscal. There are strong indications to show that this trend is likely to be maintained during the rest of the current fiscal. For 2007-08, the Centre has budgeted direct tax collections at Rs 2,67,490 crore, which is only about 27 per cent over the budget estimate of Rs 2,10,684 crore. According to the revised estimates, the Centre''s direct tax collections in 2006-07 stood at Rs 2,29,272 crore, which represents a 38 per cent increase over collections of Rs 1,65,202 crore in 2005-06.

Analysts point out that even if a conservative 30 per cent growth materialises this fiscal, the Centre''s direct tax collections would comfortably surpass the budget estimates of indirect taxes, which has been pegged at Rs 2,79,190 crore for 2007-08. In all through the post-reforms era, the tax policy focus has in a way shifted from indirect taxes to direct taxes, with the taxation of earnings of individuals and corporates gaining more importance than production and trade. In fact, 2006-07 was the first year when corporation tax emerged as the biggest taxation source for the Centre, comfortably exceeding the excise collections for that year. In 1990-91, less than a fifth of the Centre''s gross tax revenues came from direct taxes. Now direct taxes account for almost 50 per cent of the Centre''s gross tax revenues.

Rs 2,000 Cr Makeover For Kolkata Airport

Kolkata airport is headed for Rs 2,000 crore makeover by 2010. Though there is no private participation, Civil Aviation Minister Praful Patel assured that the airport would not be inferior in any way to Mumbai, Delhi, Hyderabad and Bangalore. A new airport at Andal near Durgapur also got the ministry''s nod. Work on the Netaji Subhas Chandra Bose International Airport is expected to begin in January next year.

The airport, which currently handles five million passengers, will be able to cater to 20 million by 2010 and eventually 60 million.

Kolkata airport will be the hub for the entire eastern and north eastern region and the government of India is committed for building up the traffic from Kolkata within the country as well as overseas, Civil Aviation Minister Praful Patel said.

Township near Durgapur

While a greenfield airport near Kolkata seems to be shelved, Rs 10,000 crore township near Durgapur has been sanctioned. There will be private participation in the project which includes an airport over 2,300 acres. Land acquisition has already begun.

There will be an airport, plus other facilities, including an IT sector, an institutional sector, housing, market. In other words a new city between Durgapur and Asansol, adjoining it will be the airport, Chief Minister of West Bengal Buddhadeb Bhattacharya said.

Patel will be back in Kolkata later this month to flag off a flight to the recently reopened airport at Coochbehar. Finally, Bagdogra, north Bengal''s only airport as of now, may, sooner than later, go international.

Orissa To Come-Out With SEZ Policy

Orissa will soon come out with a SEZ policy keeping the social and business interests in mind. SEZ is a very complex word involving lot of issues. Nevertheless one just cannot ignore the benefits of having SEZs in the state. At the same time, there are some issues to be sorted out. The earlier SEZ policy of the centre had many shortcomings and hence we would come out with a policy which would be acceptable to all, Minister of Industries Biswabhusan Harichandan said.

With incidents of Singur and Nadigram in West Bengal along with Kalingnagar in Orissa, the minister added that steps are being taken so that no such incidents take place in future. The incidents had reached such a grave stage because of the handiwork of certain political parties. Taking genuine grievances into account, we have also brought out a special rehabilitation package, the minister added.

Senior officials looking after the rehabilitation process added that dialogues were undertaken with local people and hence every major son within a family would be treated as a separate family and unmarried women above the age of 30 would also be regarded so.

They added one member from each family would be given jobs at the factory for which their land have been taken after giving appropriate monetary compensation for land.

New Zealand Cos Eye Selling Retail Tech To India

Hyderabad: Betting big on retail boom in India, New Zealand companies are want to sell retail technology to Indian firms. They have already given cold chain technology for big names in Indian retail such as Reliance and Bharti. Currently, at least eight of its companies are holding talks with their Indian counterparts for selling technology. The interest of New Zealand timber companies in infusing in India is also growing. A model wood house was established in Gurgaon to showcase the fine quality of New Zealand wood for decorative purposes. On the education front, New Zealand is looking at attracting over 4,000 Indian students this year. The bilateral trade between India and New Zealand was estimated at about 750 million New Zealand dollars in 2006-07.

Corporate Must Look Ahead Of Profit Maximisation

Hyderabad: Tomorrow''s Global Company, a UK-based global corporate think tank, has generated a report on the role of companies in facing the challenges of a changing world. The report has identified some specific ways in which global companies can fulfil the need for expanding their role in society by going beyond profit maximisation. Dr Reddy''s and Infosys Technologies are the only two companies associated with Tomorrow''s Global Company from India. The report was generated after extensive roundtables with different sections of the society in various places on the globe comprising Mumbai and Hyderabad. It concentrates on expanding space of corporates by redefining success. Embedding values (in business processes) and creating frameworks to deal with important global issues with larger implications for society. They believe that much can be achieved by going beyond maximising profit.

Centre''s Net Direct Tax Collections Increases 42pc In April-August 2007

New Delhi: Helped by an increase in tax deductions at source-based collections, buoyant economic growth and improved compliance, the Centre''s net direct tax collections increased 42 per cent in April-August 2007 to Rs 61,030 crore as compared to collections of Rs 42,980 crore recorded in the same period last year. TDS collections increased 47 per cent on a year on year basis for the period under review and that there were signs of a reversal in the falling trend of the contribution of TDS to the overall direct tax kitty. The falling trend in TDS, seen in recent years, seems to be reversing during the current fiscal.

In 2005-06, TDS calculated for 28 per cent of the direct tax collections, lower than the 30 per cent level in the previous year. Advance tax collections increased 26 per cent in the first five months of the current fiscal on a year-on-year basis. Corporate tax collections during April-August 2007 increased 49.49 per cent at Rs 33,766 crore as compared to Rs 22,587 crore in the same period last fiscal. For the period under review, securities transaction tax (STT) collections increased 35.16 per cent and banking cash transaction tax (BCTT) grew 79.73 per cent. But buoyancy in economic growth alone cannot fully explain the 42 per cent growth in direct tax collections and nearly 50 per cent growth in corporate tax.

Rupee Ends At 40.80 Against Dollar

Mumbai: The rupee strengthened by 13 paise against the greenback on Sept 6, following good dollar supplies into the domestic market. The home currency opened at 40.92, little unchanged from Sept 5, close of 40.93/94 and remained steady at that level throughout the day before ending the day at 40.80, up from the previous close of 40.93/94. In forwards, the six-month premia closed at 1.10 per cent (1.13 per cent) and the 12-month closed at 1.32 per cent (1.31 per cent).

India Shielded From U.S. Downturn, Other Risks Seen

A small reliance on exports means India''s economy is shielded from a potential U.S. downturn, but growth could be stunted if current market turbulence is the start of a longer-term reversal in global risk appetite.

Other Asian economies, such as South Korea and Malaysia, are more reliant on exports, leaving them vulnerable if the U.S. crisis sparked by rising defaults in subprime mortgages prompts a major slowdown in the world''s biggest economy.

Paradoxically, one of India''s biggest export sectors -- its iconic outsourcing industry -- could even benefit if American firms look to the likes of Infosys Technologies Ltd to cut costs during a downturn, analysts say.

India''s global linkages are much weaker than other emerging economies, Tushar Poddar, an analyst at Goldman Sachs, said in a research report.

Poddar estimates a 1.0 percent cut in U.S. expansion would shave 0.25 percent off India''s growth, which was a cracking 9.3 percent annual rate in the April-June quarter.

Indian Subprime Exposure Limited - Jalan

The U.S. subprime crisis has led to a welcome tempering of investor exuberance in India, and it has also helped quell worries the economy could overheat, former Reserve Bank of India governor Bimal Jalan told.

Jalan, whose 1997-2003 tenure as head of the central bank included the Asian financial crisis of 1997/98, said huge capital inflows into India could complicate currency and liquidity management, and the economy had to be shielded from sudden large moves in the exchange rate.

Overheating concerns in the economy, paradoxically thanks to the subprime crisis, has quietened and, in fact, cooled substantially to a very large extent, Jalan said in an interview on Thursday.

I see the markets getting more cautious due to the effects of the subprime crisis, he said. In my opinion, that is a good thing. Some moderation in investor exuberance is necessary.

The Indian stock market hit a record high in July, before falling 13 percent as the subprime fears roiled global markets.

It has recovered strongly, rising on nine out of the last 10 days, to close on Thursday just 1.6 percent below its record high.

He said the Indian banks had very limited exposures to foreign loans, which would limit the direct impact of the subprime mortgage sector troubles.

IDBI Capital said in a report that data indicated India''s exposure to U.S. mortgage markets was less than $500,000.

Jalan, now a member of the upper house of parliament, expected the economy to stay strong, but said global market turmoil or political instability were risks.

17 FDI Proposals Cleared

Finance Minister has given clearance to 17 foreign direct investment (FDI) proposals worth Rs 2.85 billion, based on the recommendations of the Foreign Investment Promotion Board (FIPB). Chidambaram cleared a plan by France-based Sogeparticipations for setting up a wholly-owned subsidiary (WOS) to undertake portfolio management services and investment advisory services.Meanwhile, to rationalise the treatment of indirect foreign equity ownership in JVs the DIPP has suggested a significant relaxation in the definition of indirect foreign shareholding.

India Outperforms China In Economic Freedom: Report

Here is an area where India leads China - economic freedom to businessmen on the choice of the business they wish to pursue. India, which improved its global ranking to 69 among 141 countries in providing economic choices on business and competition, particularly since its economic reforms of 1991, is substantially ahead of China''s 86th position.

However, the ranking also marks a substantial slip for India from the 60th position, which it had reached in 2004. Among the five components of the EFW index, the largest increase for India is in Freedom to Trade Internationally, that enabled India to improve its score to 7.0 in 2005 from 3.9 in 1990.

According to the Economic Freedom of the World (EFW) annual report 2007 that evaluates countries on the basis of the degree of freedom it provided in 2005 to choose and pursue business, India scored 6.6 points out of 10 to reach the 69th position, China was 17 ranks below with a score of 6.3 for the year.

The report noted that in 1990, India was rated at 4.9 out of 10 to rank 80, in 2005 it improved to 6.6, making it one of the largest improvements in the last 15 years for any country.

As a global index, it measures the degree to which policies and institutions of these countries are supportive of economic freedom, which includes elements like personal choice, voluntary exchange, freedom to compete and security of privately owned property.

UNCTAD Projects 8.5 P.C. GDP Growth For India

In a conservative estimate, the United Nations Conference on Trade and Development (UNCTAD) on Wednesday projected an economic growth of 8.5 per cent for India in the current fiscal, even as the country has already notched up a GDP growth of 9.3 per cent in the first quarter. Although UNCTAD''s forecast for this fiscal is based on the quick official estimates of 9.2 per cent economic growth in 2006-07, which was later revised upwards by the Central Statistical Organisation (CSO) to 9.4 per cent, the UN agency''s estimate is in keeping with the 8.5 per cent growth projected by the Reserve Bank of India.

Releasing the UNCTAD Trade and Development Report, 2007 here, Nagesh Kumar, Director-General of Research and Information System for Developing Countries, said: These are just preliminary figures I am happy that economists have been proved wrong [in their estimates of Indian economic growth]. With better-than-anticipated growth achieved during the first quarter this fiscal, he said that, as per his personal assessment, he saw no reason why the country''s economy should grow at less than nine per cent during 2007-08.

Despite the impressive performance, India''s growth story still lags behind that of China, the northern neighbour having witnessed over 10 per cent growth each year since 2003. For the current calendar year, the Chinese economy is set grow by 10.5 per cent on top of a high base of 10.7 per cent. Not surprising then that UNCTAD has identified East and South Asia to be the fastest growing economic regions in the world, mainly owing to the robust performances by China and India.

Cabinet May Approve Unorganised Sector Bill On Sept 6

New Delhi: The Unorganised Sector Workers Social Security Bill will be approved by the Cabinet on Sept 6. Mired in controversy following trade union protests on the grounds that it was inadequate, the Bill that the Cabinet will consider on Sept 6, will incorporate some but not all concerns of the trade unions. The earlier version of the Bill was noncommittal on the schemes offered to unorganised sector workers. This caused an uproar when the Cabinet cleared this version on May 24 with trade unions and Left parties threatening to go on strike if the Bill was cleared in that form. Later, following a review by a Group of Ministers that concluded last week, the government put in place specific schemes that would get legislative assent of Parliament. In the Bill, which the Cabinet will approve on Sept 6, some schemes have been spelt out to be implemented by a National Board for Country-wide Rollout. The government has resolved to bring a separate Bill on working conditions of these two categories of labour, later.

Rupee Ends At 40.94 Against Dollar

Mumbai: The rupee strengthened by four paise against the greenback on Sept 5, backed by good inflows into the market. The home currency was, however, range-bound during the day. It opened at 40.92/94 and moved in the range of 40.90-40.95 before ending the day at 40.93/94, up from the previous close of 40.97/98. In forwards, the six-month premia closed at 1.13 per cent (1.10 per cent) and the 12-month closed at 1.31 per cent (1.25 per cent).

UKIBC Targets To Strengthen Ties, Investment

New Delhi: The fledgling UK India Business Council (UKIBC) aims to be the voice of business before the UK and Indian Governments in a bid to promote bilateral trade and investments between the two countries. The Council recently evolved out of the Indo-British Partnership Network (IBPN), which was set up in 2005 to implement the Indo-British Partnership initiative, which was created in 1993 by the then Prime Ministers of the UK and India. UKIBC may undertake studies on the Indian market and bring the potential that exists in various sectors to the British Government and indus try in the UK.

Indo-EU Trade And Investment Agreement Workshop On Sept 5

New Delhi: To look at the issues and worries of stakeholders of various Indian states on the forthcoming India EU Trade and Investment Agreement negotiations, a workshop is being conducted in the Capital on September 5. India and the European Communities have recently unveiled negotiations for a bilateral trade and investment agreement which will comprise the FTA on goods and services as well as agreements on investment and other areas. The EC and India hope to promote bilateral trade by removing barriers to trade in goods and services and investment across all sectors of the economy.

Eleventh Plan Final Document To Be Ready By Year-End

New Delhi: The final document specifying strategies and thrusts of the Eleventh Plan (2007-12) will be ready by the end of this year even as some of the important components of them have been recognized, discussed at length and incorporated in the Budget 2007, the Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, said. They are now working on a full meeting on education which will take a complete view the entire pyramid elementary, secondary, higher secondary, higher education, technical education, vocational training within the secondary sector and skill development outside the education sector.

In terms of focus of the 11th Plan, foremost was agriculture to ensure greater exclusivity especially for rural areas and so doubling of the growth rate of agriculture was very crucial. Besides, emphasis will be on education and health and in the former they are planning a big increase in government resources into primary secondary and higher education and a major effort to improve health indicators including maternal mortality and child care.

Rapid appreciation of rupee has put a strain on the exporting community. On the whole given the volatility in the international markets they are managing the position reasonably well. Many exporters have shown inherent strength and capacity to increase productivity in spite of appreciation of the rupee. In the long-run, it is not the exchange rate that makes the difference but it is the inherent productivity of the industry.

Ruppee Ends At 40.89 Against Dollar

Mumbai: The rupee weakened by eight paise against the greenback on Augon dollar. The home currency opened at 40.86/88 and witnessed an intra-day low of 40.99 before ending the day at 40.97/98, down from the previous close of 40.89/90. Market participants expect the rupee to appreciate to 40.75-40.80. In forwards, the six-month premia closed at 1.10 per cent (1.18 per cent) while the 12-month closed at 1.25 per cent (1.30 per cent).

Punjab Faces Rs 2,000Cr Lose Of VAT A Year

Jalandhar: Admitting that there was annual leakage of over Rs 2,000 crore of value added tax (VAT) in the state, Punjab Cooperation Minister Captain Kanwaljit Singh said measures were being taken to contain it. Revenue collection via VAT is not on hoped lines and VAT worth about Rs 2,000 crore is getting leaked. As far as Punjab''s economy is worried, it is developing at a very slow pace because it mainly depends on agriculture and industry, both of which were in shaky position. Agriculture sector in the state brings only 15 per cent of total VAT as for the last few years, wheat production has fell by 20 per cent and industrial growth of the state had also decreased by one per cent over last year. Out of total collection of Rs 5,200 crore from VAT, industry brought only Rs 750 crore.

Moreover, it was not only a benefit to the agriculture sector as the subsidy was being ultimately extended to consumers. Welcoming the Commission to re-look the Centre-state relations under the chairmanship of retired Supreme Court Justice M M Punchhi, Singh demanded that national debate should be held on the issue before finalising the recommendations of the Commission. Instead of centralisation of power, there should be decentralisation of all powers comprising financial power as different states have different problems and if financial resources were handed over to the state, it could plan the development according to its needs. While the agriculture debt of Rs 17,000 crore was waived in Maharashtra, for Punjab, which contributes more than 60 per cent to the Central pool of foodgrain, no such waiver was announced.

Quarterly E-TDS Returns Made Compulsory

New Delhi: Tax audit assessees and entities with deductee records of more than 50 will now be asked to electronically file their quarterly tax deducted at source (TDS)/tax collected at source (TCS) returns with the tax department. The Finance Ministry has expanded the scope of compulsory filing of quarterly TDS/TCS returns in electronic format. Prior to the latest move, government offices and corporates were the only two categories that were requisite to file their quarterly TDS/TCS returns electronically. The new norms have come into effect from September 1. Accordingly, quarterly statement for the quarter ended September 30 should be compulsorily filed in electronic format by all tax audit assessees and those with deductee records of more than 50.

CBDT Urges Targets Can Be Exceeded

New Delhi: The first quarter gross domestic product (GDP) growth of 9.3 per cent this fiscal portends well for the Income-Tax Department, which is confident of not only attaining budget estimates on direct taxes for 2007-08, but also exceeding it. For fiscal 2007-08, the Centre has budgeted direct tax collection at Rs 2,67,490 crore. This represents a 27 per cent rise over the budget estimate of Rs 2,10,419 crore set for 2006-07. The actual direct tax collections in 2006-07 were Rs 2,29,181 crore. In the current fiscal, the Centre''s net direct tax collections till August 15 grew 44.39 per cent to Rs 59,210 crore, significantly higher than Rs 41,006 crore registered during the same period last year.

Rupee Ends 40.90 Against Dollar

Mumbai: The rupee slightly weakened against the greenback on Sept 3, on dollar demand from banks. The home currency opened at 40.90 and reached an intra-day low of 40.94. It then gained to 40.84 but ended the day at 40.89/90, against the previous close at 40.88. In the forward premia market, the six-month closed at 1.18 per cent (1.10 per cent) and the 12 month ended at 1.30 per cent (1.20 per cent).

Growth Forecast Intact: Korea

A senior Bank of Korea official said on Monday that its full-year economic growth target of 4.5 per cent remains intact, even as the central bank revised second-quarter figures higher.Ahn Kil-hyo, head of the National Income Statistics Team of the bank''s Economic Statistics Department said he also expects private consumption to rise gradually in coming months.

Capital spending, however, may shrink in the second half of the year after a robust first six months of the year, he said.

Ahn said the country''s exports will continue to drive the economy in the second half of the year, though the outlook for domestic consumption appears ''positive'' in light of recent strong industrial output data.

Earlier on Monday, the central bank revised second-quarter growth figures upward to 1.8 per cent from the previous quarter. In late July, the bank''s preliminary estimate showed an expansion of 1.7 per cent over the previous quarter.

From the same period the year before, gross domestic product expanded five per cent, the bank said, compared with its July estimate of 4.9 per cent. South Korea''s economy grew five per cent in 2006.

Retired Seamen Seek Hike In Pension

New Delhi: The Retired Indian Seamen''s Association has appealed to the Centre to consider its long-pending demand of increasing the monthly pension granted to the retired Indian seafarers from Rs. 200 to Rs. 3,000.

The Association with a membership of about 22,000 retired seamen all over the country expressed concern over the continued neglect of their grievances at a time when even contract labourers were enjoying the benefit of Provident Fund, gratuity and medical facilities.

Association president Y. Arunachalam and other office-bearers told reporters here on Friday that the Association had made a representation to the Minister for Shipping and Surface Transport to consider the demand to enhance the monthly pension to Rs. 3,000. Other suggestions include setting up of a welfare fund for retired seamen to provide services like disability help line services, care services for the disabled and chronically sick retired seamen.Mr. Arunachalam wanted the government to have a realistic look into the grievances of seafarers as a whole, which includes marine engineers and navigating officers. He requested the Ministry to form a committee to look into the implementation of the suggestions given by the Association.

He said even the Khalasis, at the lowest rungs of the Port Trust, are enjoying better after service/retirement benefits, while we, the specialised trade, who meet exigencies out at sea are deprived of the same benefits.

Bangladesh Trade Delegation In WB

Kolkata: A team from the ministry of commerce of Bangladesh said it was West Bengal and India on a mission to understand the details of how the private sector can increase the overall trade scenario in the country, and public-private-partnership models. The Bangladesh government felt that the private sector was the engine of growth to promote trade. The team visited Delhi earlier in the tour, and met the faculty of the Indian Institute of Foreign Trade, and the members of India Trade Promotion Organisation (ITPO), Federation of Indian Chamber of Commerce & Industries(FICCI), Confederation of Indian Industries(CII) to know the Indian model of entrepreneurship development. The ministry of commerce was in the process of implementing the Bangladesh Trade Support Programme, and exploring the possibilities of foreign investment.

Currently, India''s export to Bangladesh was $1627.48 millions, and imports at $216.06 millions. The balance of trade was tilted in favour of India. The volume of trade amongst members of trade blocks like the European Union(EU) or North American Free Trade Agreement(NAFTA) was more than 50 per cent but the volume of trade amongst the member countries of SAARC was less than 5 per cent of the total trade of the countries. Issues and hurdles blocking trade between SAARC countries had to be sorted out through bilateral and multi-lateral meetings. Bangladesh was interested to increase items in the Free Trade Agreement with India.

AP Govt To Extend Rs 1 Lakh Cr To SHGs

Hyderabad: The Andhra Pradesh government is beginning an initiative to create economic self sufficiency for women in the state, under which it is aiming to extend loans to the extent of Rs 1 lakh crore to one crore women through self-help groups. Chief minister YS Rajasekhara Reddy on Sept 2, addressed the officials of the department of rural development to chalk out a blueprint that would facilitate a minimum loan of Rs 1 lakh at an interest of Rs 0.25 for every eligible women in the state. Stating that the interest on a Rs 1 lakh loan works out to only Rs 3,000 per year via this scheme, as against Rs 36,000 in the case of loans taken from money lenders, the chief minister said that the Rs 0.25 interest scheme will curb the irregularities of money lenders and microfiance organisation in the rural areas of Andhra Pradesh.

CII Organizes Biz Delegation To Taiwan

New Delhi: The Confederation of Indian Industry is organising a business delegation to Taiwan from September 2 - 4, under the leadership of Mr Gopal Srinivasan, Director, TVS Electronics Limited. The 10-member business delegation will cast India as an attractive investment destination and will explore potential to tap one of the largest growing economies in Asia. The delegation includes Government officials and industry members. The delegation represents sectors such as electronics, telecommunication, semiconductors, IT, R&D and leather among others. India''s strength can compliment Taiwan''s hardware expertise and the two countries together can become a reckonable force in the international markets.

North East Attracts Thai Investors

Kolkata: Taking the nod from Thai Commerce Minister Mr Krirk Krai Jirapaet''s recent call to escort in closer business alliance between the North East and Thailand, the Department of North Eastern Region (DONER) under the Government of India has planned a huge four-day road show in Bangkok from October 1. Labelled the North East Indian Investment Opportunities Week in Thailand, the event will be headed by a North East Investment Opportunity Day in New York on September 26 to put North East India on the world investment map. The three areas of cooperation selected for discussions at the Bangkok meet are infrastructure development, (particularly roads and power), tourism, and agri-food processing and horticulture-based industries. As a first step, the air-linking of Bangkok with Guwahati and an increase in intra-regional flights is hoped to figure prominently at the various sessions.

Mr Mani Shankar Aiyar, Union Minister of Doner, said the final plan of the 2020 Vision Document by an expert group of NIPFP was hoped to be ready soon, and will be placed before the NEC Plenary session in New Delhi in November this year. The Investment Week programme in Bangkok would be attended by all the eight chief ministers of NE states, plus two Union ministers and members of industry associations, trade bodies and other stakeholders including Central agencies.

INSAT-4CR Successfully Placed In Orbit

After testing the nerves of the Indian space research fraternity, the Geosynchronous Satellite Launch Vehicle (GSLV)-F04 successfully lifted off at 6.20 pm on Sunday and placed INSAT- 4CR satellite on its Geosynchronous Transfer Orbit (GTO).

The launch from Sathish Dhawan Space Centre (SDSC) at Sriharikota, a repeat using an identical satellite that was lost in the F02 fiasco last year, was not without high drama. Slated for 4.21 pm, the launch was postponed when the countdown entered the last 15 seconds as the ready signal for the cryogenic stage was not given from the ground station. The launch was put off till 5.20 and later scheduled for 6.20 pm.

The Liquid Apogee Motor mounted on the satellite would fire and place it on the Geosynchronous Orbit (GSO) in the next few days. Though the vehicle cruised on the precisely charted trajectory, the flight path was not smooth for Indian Space Research Organisation (ISRO) chairman G Madhavan Nair and his team.

The burden of the failure of GSLV F02 that resulted in the loss of INSAT 4C on July 10 last year, coupled with inclement weather conditions, made the lift off difficult for the scientists in the first attempt.

When the signals stopped on the screen, all our hearts stopped beating. But later, we had a nice take off - luminous and majestic, Nair said at a postlaunch media conference at Sriharikota.

The overall cost of the launch is around Rs 400 crore, including Rs 150 crore for the satellite and Rs 160 crore for the launch vehicle. The communication satellite would help the Direct-To-Home sector by providing Ku-Band transponders. This is the third in the INSAT 4 satellite series, and the first to be launched from Indian soil, with the previous two being launched through the European Ariane Launch Vehicle in 2005 and 2006.

Madhavan Nair said ISRO was planning two more launches of Indian workhorse vehicle Polar Satellite Launch Vehicle (PSLV) and another GSLV mission by the beginning of next year.