Mizoram earlier this week been visited by a four-member World Bank team in various parts of the State. The World Bank officials are strongly pushing for a free trade regime in the region and keen to provide technical and financial support for infrastructural projects,” a Mizoram Public Works Department (PWD) official informed reporters.

The World Bank team was led by the Bank’s South Asia Region Senior Operations Officer, Diep Nguyen-Van Houtte.

The PWD official said: “During their visit, the team visited the Champhai-Zokhawthar border area (in eastern Mizoram) and other international trade points of the State. The visit is essentially linked to providing funding for the Mizoram State Roads Project Phase II under its Roads Infrastructure Development Programme”.

The Rs 2,000 crores project was earlier approved by the Central Government under the externally aided projects component, according to the officials.

“The project includes trade infrastructure, including roads linking all existing border trade points with Myanmar and Bangladesh”, the official disclosed.

Lack of financial assistance by banks and other financial institutions and logistical infrastructure as well as absence of coordination with the neighboring countries has stunted the growth of the border trade and other commercial hubs.

The much expected Kaladan Multi Modal Transit Transport Project to link the sea route in Myanmar with Mizoram under India’s Look East Policy is scheduled for completion in 2014 the official said.

Earthwork for Widening of National Highway-154 (Bilkhawthlir to Bairabi) to double lane standard has been completed already and widening of National Highway-54 (Kawnpui to Aizawl) is in progress.

Construction of the high level double-lane bridge over river Tut and River Tlawng are in progress, and expected to be completed somewhere soon in near future. Under the Pradhan Mantri Gram Sadak Yojana (Prime Minister’s Village Road Projects), the work is being undertaken to improve and upgrade a good number of roads.

Industry-starved Mizoram is a special category State with a population of little over one million and, like most small states, constrained by deficient infrastructure in most of the areas.

The Minister is scheduled to meet his counterpart in Dubai and also hold bilateral consultations with the SWFs (Sovereign Wealth Funds) during his day-long visit to the Gulf nation, an official source said.

The visit is part of Chidambaram’s global tour to attract foreign investments. He has held similar investor meets in Hong Kong, Singapore, Europe (including Germany), Japan, Qatar, Canada and the US to attract foreign investment into India.

Chidambaram has been emphasising that India offers “unlimited” investment opportunities in the infrastructure sector and the country is looking at spending around $1 trillion over five years in areas such as roads, airports and seaports.

During his latest tour, the Finance Minister told investors and the Government there that there is a huge opportunity in India, especially in infrastructure.

India is betting big on foreign resources to finance its current-account deficit (CAD) which had widened to 6.7 per cent in the October-December quarter of 2012-13.

In his earlier meetings with the investor community, Chidambaram had expressed India’s commitment to economic reforms.

He also highlighted the measures proposed in Budget 2013-14 for investments and markets to help the economy grow at 6.1-6.7 per cent.

]]> http://www.jaintv.com/2013/05/25/business/chidambaram-visit-dubai-tomorrow-woo-investments/feed/ 0 http://www.jaintv.com/2013/05/25/business/imf-chief-christine-avoids-charges-french-payout-scandal/ http://www.jaintv.com/2013/05/25/business/imf-chief-christine-avoids-charges-french-payout-scandal/#comments Sat, 25 May 2013 08:18:01 +0000 Admin http://www.jaintv.com/?p=35985 Paris: IMF Chief Christine Lagarde has avoided immediate charges but was named an “assisted witness” after French prosecutors grilled her for two days over a state payout to a disgraced tycoon when she was Finance Minister.

Lagarde was questioned for a total of 24 hours by prosecutors working for a court that probes cases of ministerial misconduct over her 2007 handling of a row that resulted in 400 million euros ($ 515 million) being paid to controversial business figure Bernard Tapie.

“My status as assisted witness is not a surprise,” she told reporters as she left the Paris courthouse late yesterday.

“I have always acted in the best public interest and in accordance with the law,” said Lagarde, 57, who has consistently denied any wrongdoing.

“My explanations came as a response to the doubts that had been brought up regarding the decisions I had taken at the time,” she added.

While Lagarde avoided being placed under formal investigation — the closest equivalent in French law to being charged — her “assisted witness” status means she could still face further questions — and possibly charges — at a later stage.

Lagarde said she would now return to Washington and report to the board of the International Monetary Fund, which again expressed confidence in its first woman leader after learning of the court’s decision.

The chic Lagarde, considered one of the world’s most powerful women, won respect as France’s first female Finance Minister for her no-nonsense attitude, intellect and style.

Criminal charges against Lagarde would have been an embarrassment for the IMF, after her predecessor Dominique Strauss-Kahn, also from France, resigned in disgrace in 2011 over an alleged assault on a New York hotel maid.

“The board will be briefed again in the coming days,” IMF spokesman Gerry Rice said in a statement yesterday.

“The Executive Board has been briefed on this matter several times and on each occasion expressed confidence in the managing director’s ability to effectively carry out her duties,” he added.

The investigation concerns Tapie, a former politician, who went to prison for match-fixing during his time as President of French football club Olympique de Marseille.

Prosecutors working for the Court of Justice of the Republic (CJR) suspect he received favourable treatment in return for supporting Nicolas Sarkozy in the 2007 Presidential Election.

“We’ve bought a lot of planes but we’re still short, we’re still leasing planes at the moment, so I was right buying these planes, and we may have to put in another order…fifty or something like that,” Mr. Fernandes told  in an interview.

AirAsia plans to launch an airline in India in partnership with the Tata Group to cash in on rising demands for domestic air travel among India’s expanding middle class. It would start with planes already on order but potentially trigger new orders.

Mr. Fernandes also said that the affiliate, AirAsia India, was recruiting to be ready to launch in the fourth quarter, subject to final clearances.

Wockhardt is the latest Indian drug producer to come under FDA fire.

As Wockhardt comes under FDA lens, soon after Ranbaxy pleaded guilty to poor manufacturing practices and agreed to pay $500 million as penalty, the global repute of India’s generic drug producers may have taken a hit. But even the big brand name companies (Big Pharmacy) like GlaxoSmithKline, Boehringer Ingelheim and Hospira are not immune to being investigated and issued warnings or even compelled to sign consent decrees by the FDA if they are found guilty of not following Good Manufacturing Practices (GMP) under US laws.

The consent decree approach is taken only after a drug company has received repeated FDA warnings concerning GMP observations and deficiencies, and if these repeated offences have not been corrected. It is a voluntary agreement that is signed by the firm’s top official, a US attorney and a US District Court, under which the company undertakes to take remedial measures and allow the FDA to visit its plants.

So if Indian companies heed FDA warnings and promptly amend their ways, they don’t have to fear having to exit the lucrative US drug market, which is the world’s largest one.

At the Multi Commodity Exchange, gold for delivery in June rose by Rs 47, or, 0.18 per cent, to Rs 26,487 per 10 gm in business turnover of 1,926 lots.

Similarly, the yellow metal for delivery in August traded higher by Rs 41, or 0.15 per cent, to Rs 26,685 per 10 gm in 415 lots.

Earlier, the BSE-30 share index, Sensex, opened smart at 19,765.32 points on heavy buying in metal and capital goods shares.

But bouts of volatility led the Sensex to trade down 19,597.72 before quoting 19,620.51 points at 1030 hours.

Khare added such incidents took place due to the lack of interest in information security expenditure. “This expenditure has not been in tune with the ever-rising threat that global hackers pose. We need to be equipped better. It’s like a police officer with his duty pistol fighting a terrorist having an automatic rifle”.

He adds that only sensitive facilities like airports, financial services, defense sector and companies that have been attacked in the past deploy advanced information security operation centers. “It is like a ticking time bomb”.

After a better start at 20,220.35, the 30-share index fell by 49.37 points, 0.25% to 20,062.24. It had lost 174 points in the last two days.

Similarly, the National Stock Exchange index Nifty fell below the crucial 6,100 level by losing 19.60 points, 0.32%, to 6,094.50.

The New Delhi District Consumer Disputes Redressal Forum pulled up the bank saying that HSBC’s act was not only “motivated by commercial gains”, but also by a “malicious mind” to “settle scores” with the complainant, who was a former employee, for challenging his termination in a labour court.

“In our considered view, opposite party (HSBC) has not only been motivated for its commercial gains, but also by a malafide malicious mind to settle scores of litigation in labour court over his challenge of termination,” a bench presided by C K Chaturvedi said.

“We are totally shocked at the behaviour of HSBC in its commercial dealings with a customer, who once happened to be its own employee. Such attempts in unfair trade practices should be dealt with iron hands…

“We hold it guilty of atrociously and maliciously deficient in services to complainant and tormenting the complainant for reasons foreign to commercial dealings,” Chaturvedi said.

The forum directed the bank to refund the amount it had charged from Delhi resident Naduthodi Janardanan as interest by keeping his loan account open from 2001 to 2008 and also ordered HSBC to pay him Rs 5.5 lakh as compensation and cost of litigation for the harassment caused to him.

In his complaint, Janardanan had alleged that HSBC kept his loan account outstanding despite he having settled it after leaving the bank’s employment.

Janardanan had also alleged that he was being targeted in this manner as he had challenged his termination in a labour court.

HSBC in its defence had refuted the allegations and contended that the complainant had not settled his loan and had instructed them to deduct payment towards it from his accounts with the bank.

The forum rejected the contention saying the bank acted “contrary to the instructions” of Janardanan.

Tariff value is the base price on which the customs duty is determined to prevent under-invoicing.

Till last week, the tariff value of gold was at $466 per ten grams and silver at $761 per kg.

The notification in this regard was issued by the Central Board of Excise and Customs (CBEC), an official release said.

However, the import tariff value of different varieties of vegetable oils, brass scrap and poppy seed has been kept unchanged.

Government has reduced the import tariff value of gold keeping in view the weak global prices of precious metals. In Singapore market, gold and silver prices are ruling down at below Rs 1,385 per ounce and $23 per ounce, respectively.

Similarly, gold in the national capital is costing around Rs 27,000 per ten grams and silver at Rs 44,200 per one kg.

India, the world’s largest gold consumers, is estimated to have imported 215 tonne of yellow metal in January-March period of this year. The demand for gold is expected to be robust in the coming months, as per the World Gold Council.

The rupee opened higher at 55.35 per dollar as against the previous closing level of 55.41 at the Interbank Foreign Exchange (Forex) market.

It slightly moved up to 54.34 in early deals, before quoting 55.45 per dollar at 1100 hrs, down by 4 paise over its last close.

The rupee hovered between of 54.34 and 55.49 per dollar during late morning trade.

In international market, the US dollar slipped against basket currencies on investors cautiousness ahead of Federal Reserve Chairman Ben Bernanke’s views in Joint Economic Committee meet over state of US economy as well as Fed’s current easing programme.

 Meanwhile, the BSE-30 share barometer Sensex was trading higher by 66.62 points or 0.32 per cent to 20,175.84 at 1105 hours.

The Competition Commission of India (CCI) has received an application seeking approval for the proposed Jet-Etihad transaction.

“We are looking into the deal,” a senior CCI official said.

Forging a strategic alliance, Jet Airways has decided to sell 24 per cent stake to Etihad Airways for about Rs 2,058 crore.

D-Link, a networking solutions provider is planning to set up a testing labs in India in the second half of this year to ensure better localization, according to the chairman A P Chen.

Presently D-Link has testing labs in South America, China, Taiwan and Russia  which was its biggest market until recently.

The testing lab will first be set up in Goa. Besides the lab D-Link will have its own service center and support system for repairing in the Goa. “We also have plans to serve markets like Sri Lanka, Australia and Singapore from the Indian testing lab”, Chen disclosed.

The company is also evaluating possibilities of establishing a software development center in India within a year.

However, there is no immediate plan to start manufacturing in India, at present India accounts for about seven to eight per cent of D-Link’s global revenue and is growing at more than 20% annually. “We may look at setting up a production unit here in the future if there is a certain scale”, the chairman A P Chen said.

“Expanding its footprint in the rapidly growing deodorant market in India, ‘Engage’ marks the Personal Care Business’ foray into deodorants,” ITC said in a statement.

ITC Ltd Chief Executive Officer, Personal Care Products Business, Sandeep Kaul said deodorants as a segment in personal care is experiencing swift and dynamic growth.

The fourth annual Invesco Middle East Asset Management Study states that UAE has gained the most of the private capital inflow (43 per cent) in the Gulf Cooperation Council (GCC) region which also includes Bahrain, Kuwait, Oman, Qatar and Saudi Arabia.

The study, which looks at the evolving asset management industry in the GCC, shows that the private capital flow entering the UAE is from emerging markets including 15 per cent from India, 10 per cent from Russia and 7 per cent from China.

The study reveals that capital inflow from emerging markets, most notably from India, Russia and China has overtaking those from developed markets.

Merely 13 percent of private capital is flowing in from developed markets including UK, Continental Europe and North America while over a third (35 per cent) of capital into the UAE came from the wider ‘Middle East and North Africa’ (MENA) region and nine per cent from the other GCC countries.

This inflow trend is supported by national statistics that highlight a 9 per cent net increase in bank deposits during 2012 and a 17 per cent annualised growth rate in UAE property prices over the same period, both indicators of increasing capital flow.

According to a third of participants, the key factor bringing private capital into the UAE is its relative political stability compared to the Mena region.

“This is a consequence of continued regional instability — not just in Syria but in Egypt and other parts of North Africa,” according to the study.

The second important factor for 29 per cent of participants is the local investment opportunity. “This is the overriding reason for Indian, Russian and Chinese markets investing in the region — an example of ‘South-South’ trade in action”.

“Our 2013 study provides a strong indication of a structural shift in the UAE’s fortunes. It seems to be showing signs of developing a leading position as a regional hub between Europe and Asia,” said Nick Tolchard, Head of Invesco Middle East.

While capital is flowing into the UAE, overall capital in remaining GCC markets including Bahrain, Oman, Kuwait and Qatar appears to be exiting home markets, making the UAE the key focus for capital flowing into the region, he added.

The rupee opened higher at 54.97 per dollar as against the previous closing level of 55.11 at the Interbank Foreign Exchange (Forex) market.

It gained further to 54.95 in early deals, before quoting 55.

The 30-share index, which had lost 62.14 points in the previous session, rose by 35.41 points, or 0.18 per cent, to 20,259.39 points.

The wide-based National Stock Exchange index Nifty gained 8.85 points, or 0.14 per cent, to trade at 6,165.75 points.

At the Multi Commodity Exchange, gold for delivery in far-month August rose by Rs 70, or 0.27%, to Rs 26,274 per 10 gram in business turnover of 98 lots.

The metal for delivery in the June moved up by Rs 69, or 0.26%, to Rs 26,157 per 10 gm in a turnover of 738 lots.

Analysts said a firming trend in global market after Moody’s Investors Service said that the US may face a credit downgrade, mainly influenced gold prices at futures trade here.

Meanwhile, gold rose by 2.49% to $1,394.10 an ounce in New York in yesterday.

Besides, it has also been proposed to provide Sebi with powers to seek information, such as telephone call data records, from from any persons or entities in respect to any securities transaction being probed by it.

The proposals to make required amendments in the Sebi Act and other relevant regulations have been finalised after detailed consultations with Sebi (Securities and Exchange Board of India) and are being presented before the Union Cabinet for its approval, a senior official said.

A Cabinet note in this regard has also been circulated by the Department of Economic Affairs to other departments in the Finance Ministry, as also to the Corporate Affairs, Home, Law and Telecom ministries, along with to the Reserve Bank of India, Planning Commission and Prime Minister’s Office for their comments and feedback on the proposals.

After getting the Cabinet’s approval, the government plans to introduce the Securities Laws (Amendment) Bill, 2013 in Parliament to carry out the proposed changes for grant of stronger powers to Sebi, the official added.

Sebi has been seeking an overhaul of regulations governing its powers and mandate for a long time, given the changing nature of the securities market in general, and newer tools being used by manipulators to take gullible investors for a ride, in particular.

The government has decided to accept most of the proposals made by Sebi in this regard and the amendments would be carried out after the Cabinet approves the move and the required amendment bill is passed by the Parliament, he added.

With regard to the regulation of Collective Investment Schemes (CIS), the proposal calls for Sebi being empowered to deal with all kinds of investment schemes involving pooling of funds totalling Rs 100 crore or more. Also, any investment scheme floated by a ‘person’ and not only a ‘company’, has been proposed to be brought under Sebi’s jurisdiction for CIS activities.

The proposed amendment seeks to bring all kinds of ponzi schemes, which are thriving in various semi urban and rural areas at the expense of gullible investors, are brought under Sebi’s oversight, which itself would be made much more effective to safeguard investors from being defrauded.

Besides, the government has also proposed to provide Sebi with direct powers to conduct search and seizure with authorisation from its Chairman. Currently, Sebi can conduct search and seizure only after approval from the Chief Metropolitan Magistrate, but this provision is often seen to delay proceedings and hamper the confidential nature of probe.

It has also been proposed that special courts be set up to deal with offences under securities laws and to recognise the counsels representing Sebi to be deemed as public prosecutors.

With regard to powers to attach properties, the current provisions do not provide for effective protection of investors in cases where there is fraudulent diversion of monies raised from investors such as ‘vanishing companies’ and ‘Collective Investment Schemes’.

In cases where Sebi passes orders for refund of money raised fraudulently from investors, the concerns have been there with regard to the enforcement of such directions since the regulator does not have any direct powers to attach movable or immovable properties.

The existing powers to freeze assets is available only with regard to an asset forming part of a transaction and it does not provide for a measure to provide remedy to investors from any other assets.

In the high-profile Sahara case, Sebi had passed the attachment orders on the directions of the Supreme Court and even in various other cases the penalties imposed by the regulator have remained unpaid.

Accordingly, Sebi had sought explicit powers to attach and sell movable and immovable properties of defaulters without recourse to any court of law, in pursuance of any order passed by it, or to recover fees and other regulatory charges due from various entities or the outstanding penalties.

As an additional measure, Sebi has also sought powers to make a reference to the Income Tax department for recovery of penalty as tax dues for recovery of uncollected dues. These proposals have also been accepted by the government and would be implemented under the proposed amendments to Sebi laws.

The other proposals include empowering Sebi to obtain or furnish information to other regulators across the world in matters relating to prevention, detection, enforcement and investigation of securities market violations.

Besides, it has also been proposed to grant Sebi stronger powers with regard to the disgorgement and consent orders.

Amendments have also been proposed in the Securities Contract (Regulation) Act and the Depositories Act to ensure consistency and alignment with the changes in the Sebi Act.

While proposals to these effects were being pursued by Sebi for almost four years now, a strong need to push with these changes was felt in the recent months in the wake of a long-running tussle between Sebi and Sahara group.

The recent developments involving an alleged defrauding of lakhs of investors by West Bengal-based Saradha group and other entities in the state have further underscored the need to change the regulations to give greater powers to Sebi.

The International Finance Corp, part of the World Bank Group, has been hired as the transaction advisor to assist Vizhinjam International Seaport Ltd (VISL). IFC is also managing about USD 1.6 million in trust funds for the project.

 After a steady start, Sensex touched intra-day high of 20,443.62 but emergence of profit-selling in ICICI Bank, ONGC, Bharti Airtel, Dr Reddys, Cipla and RIL dragged 30-share index to end 20,223.98, a fall of 62.14 points, or 0.31 per cent.

This is the first time in five sessions the Sensex ended in the negative terrain. It had climbed 595 points in past four sessions to touch highest levels since January, 2011.

Similarly, the broad-based National Stock Exchange index Nifty, after touching a psychological 6,200 level, fell by 30.40 points, or 0.49 per cent to close at 6,156.90. SX40 index, the flagship index of MCX-SX, also ended 25.02 points or 0.21 per cent lower at 11,947.50.

“Markets opened on a strong note on firmness in global markets and surged to new highs. However, profit booking was seen. Auto stocks like M&M, Bajaj Auto and Maruti were in limelight and showed strength while healthcare and consumer durables indices lost more than one percent each,” said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio.

Traders said investors and funds were encashing the recent upsurge in particular sectors and this ‘technical correction’ is good for the market health.

Banking stocks corrected after they gained recently on hopes of a rate cut while pharma shares slid on fears the new pharma pricing policy may hurt profits, they added.

Outside major indices, Tata Teleservices surged nearly 20 per cent, Hindustan Door by 17.8 per cent, Thomas Cook by 12.4 per cent and KSK Energy by 11.2 per cent on solid buying.

The healthcare sector index suffered the most by losing 1.79 per cent to 8,999.79 followed by consumer durable index by 1.19 per cent to 7,452.70. Banking index lost 0.92 per cent to 15,074.81 and oil and gas index by 0.86 per cent to 8,953.95.

MUMBAI: The Indian Rupee falls by 12 Paise to trade below 55 level against the Dollar on sustained demand of the US currency from importers despite lower Dollar overseas. 

According to organisers of an industry event here, LNG is one of the fastest growing segments of the gas market, with industry research suggesting that LNG demand is forecast to rise by 4.6 per cent annually over the next 15 years.

In the Middle East and North Africa (MENA) region alone, the International Energy Agency (IEA) expects demand for natural gas to rise by 79 billion cubic meters (bcm) or 20 per cent between 2011 and 2017, outstripping incremental supply in the region by 7 bcm as low gas prices encourage higher consumption by the utilities and transportation sectors.

On the customer side, demand from the Asia-Pacific region for LNG from the MENA region is strong – particularly from Japan, Korea and India. This trend looks like it will continue through 2020 with a significant increase in demand from China and Korea expected, industry experts said.

To meet these growing demands, the infrastructure underpinning global trade in LNG – storage tanks, terminals, tankers – will need to grow and develop in tandem, they added.

“The growth of the global LNG market is spurring innovation in the industry as companies think bigger but leaner at the same time.

“There are some fascinating cutting edge technologies being developed at the moment, which we will be getting an insight into at LNG 17,” said Jay Copan, Executive Director of LNG 17.

According to media reports, fresh hurdles have come up in the Jet-Etihad deal. There were also reports that the UAE-based carrier was seeking to revise a proposed deal with the Indian carrier.

Jet shares opened weaker and lost further ground to touch a low of Rs 511.

More than a dozen corporates as well as state-owned firms such as PFC, LIC and India Post, are likely to apply to the Reserve Bank for licence for setting up banks.

Forex dealers said euro’s gains against the American currency in the overseas market also supported the rupee.

The local unit had closed higher at 54.17 against the dollar on Friday.

Meanwhile, the 30-share BSE Sensex rose by 65.88 points, or 0.34 per cent, to 19,382.

The 30-share barometer rose by 65.88 points, or 0.34 per cent, to 19,382.89. The index had lost 325.74 points in the previous two sessions.

Similarly, the wide-based National Stock Exchange index Nifty edged up by 7 points, or 0.12 per cent, to 5,850.30.

Shares of Metal, FMCG, Banking, Consumer Durable and Auto sectors declined sharply on profit-booking while Realty, IT, Healthcare and Refinery counters attracted good buying support at lower levels.

Brokers said wary operators and retail investors turned cautious ahead of the Budget this month-end as also expiry of Futures and Options (F&O) contracts on the same day, and preferred to reduce their positions to pick up fundamentally strong scrips.

The BSE 30-share S&P Sensex resumed up at 19,496.25 and firmed up further to a high of 19,742.42. But, weak global cues on Thursday triggered heavy sell-off on local bourses on concerns over the US Federal Reserve’s policy-tightening moves to reduce liquidity.

The minutes of the last Fed meeting have raised concerns that, the Fed may withdraw the monetary stimulus if there is some improvement in the economic data. This has raised concerns about fund flows across asset classes, including emerging markets.

It then moved downwards to settle at two-month low of 19,317.01, showing a loss of 151.14 points or 0.78 pct. It has lost 786.52 points or 3.91 pct in straight four weeks.

The NSE-50 share Nifty also declined by 37.10 points or 0.63 pct to 5,850.30. IT has also lost 224.35 points or 3.69 per cent in the last four weeks.

Moody’s warning on India’s widening trade deficit and tepid activity in global markets also had a sentimental impact on the market.

The Reserve Bank, which has laid down an elaborate ‘fit and proper’ criteria, has not excluded any category like brokerages, real estate companies from entering into the banking space as has been advocated by the Finance Ministry.

The government has announced starting auction in March for 2G spectrum that remained unsold in November auction. Also, spectrum held by existing operators Airtel, Vodafone and Loop Mobile through licences that are due for renewal in 2014 will also be auctioned.

“The estimated realisation from this auction assuming that all spectrum put to auction is sold at the reserve price is of Rs 43,011 crore,” Deora said in a written reply to the Rajya Sabha.

In the second round of auction, the government will put unsold GSM spectrum in 1800 Mhz band and airwaves held by telecom licences in 900 Mhz band that is coming for renewal starting 2014 onwards.

The government slashed base price of CDMA spectrum by 50% and unsold GSM spectrum by 30%. The price of spectrum in 900 Mhz has been fixed at two times the price of airwaves in 1800 Mhz.

According to the auction guidelines, auction for 1800 Mhz and 900 Mhz band, currently being used for GSM services, will be conducted simultaneously and auction of 800 Mhz band, being used for CDMA services, in 21 out of 22 service area will be conducted separately.

The bids for spectrum will start from March 11 for which companies can apply by February 25.

Facebook founder Mark Zuckerberg and his wife Priscilla Chan are working alongside Google co-founder Sergey Brin and his wife Anne Wojcicki to create the Breakthrough Prize in Life Sciences worth USD 3 million. The project’s aim is to reward research aimed at extending human life.

The annual science prizes over the past year are worth USD 3 million apiece. That is more than twice the cash that accompanies a Nobel prize, the awards with which they are inevitably compared.

In the first round of awards 11 scientists were awarded a total of USD 33 million but going forward an annual amount of USD 15 million will be set aside for five prize winners, The Independent reported.

“Priscilla and I are honoured to be part of this. We believe the Breakthrough Prize in Life Sciences has the potential to provide a platform for other models of philanthropy, to people everywhere has an opportunity at a better future,” Zuckerberg was quoted by France 24 as saying.

Russian entrepreneur Yuri Milner asked the group to create the award after deciding to model a prize on a physics award he set up in 2012. To top the line-up of internet greats behind the prize, Apple chairman Art Levinson is heading up the board.

Prize-winner Cornelia Bargmann, 51, said, “I had to sit down for a while, I thought it must be a practical joke. The scale of this is so outsized I think it will have a huge impact on the life sciences.

The BSE-30 share index, Sensex, today resumed higher at 19,341.90 and hovered in a range of 19,366.64 and 19,299.53 before quoting 19,318.13 points at 1045 hrs.

It showed a slight loss of 7.23 points or 0.04 per cent from its last close.

]]> http://www.jaintv.com/2013/02/22/business/sensex-recovers-initial-losses-7-pts/feed/ 0 http://www.jaintv.com/2013/02/22/business/rupee-recovers-initial-losses-dollar-5-paise/ http://www.jaintv.com/2013/02/22/business/rupee-recovers-initial-losses-dollar-5-paise/#comments Fri, 22 Feb 2013 08:33:15 +0000 Admin http://www.jaintv.com/?p=35025 Mumbai: The rupee recovered from initial losses and was being quoted higher by five paise at 54.42 against the US dollar in late morning trade today.

The rupee’s gain was boosted by fresh selling of dollars by banks and exporters in view of persistent capital inflows from foreign funds into equity market.

The rupee resumed lower at 54.52 as against the last closing level of 54.

Forex dealers said euro’s gains against the American currency in the overseas market also supported the rupee.

The local unit had closed lower by 40 paise to end at an over one-month low of 54.47 on Thursday.

]]> http://www.jaintv.com/2013/02/22/business/rupee-4-paise-dollar-early-trade-2/feed/ 0 http://www.jaintv.com/2013/02/22/business/sebi-cautions-investors-public-dealings-sahara/ http://www.jaintv.com/2013/02/22/business/sebi-cautions-investors-public-dealings-sahara/#comments Fri, 22 Feb 2013 07:47:22 +0000 Admin http://www.jaintv.com/?p=35020 New Delhi: Close on the heels of ordering attachment of bank accounts, investments and all other assets of two Sahara group firms and their promoters, including group chief Subrata Roy, market watchdog SEBI today cautioned the investors and general public against transacting with these companies and persons.

“Anyone transacting with them (Sahara India Real Estate Corp Ltd, Sahara Housing Investment Corp Ltd and their three promoters and directors) would be doing so at their own peril,” the Securities and Exchange Board of India said.

The regulator said that in furtherance to a Supreme Court order directing refund of investors’ money collected by these Sahara firms, it has ordered “attachment of all movable and immovable properties, bank accounts and demat accounts of these two companies and that of its promoters and directors namely Subrata Roy Sahara, Vandana Bhargava, Ashok Roy Choudhary and Ravi Shankar Dubey“.

“Investors and general public are advised to exercise caution and take note of the said orders before transacting with the aforesaid entities/persons in any manner whatsoever,” SEBI said in a public notice.

On February 13, SEBI passed two separate orders, together running into 160 pages, directing attachment of properties and freezing of accounts.

It was after the Supreme Court said that the regulator was free to freeze the accounts and attach properties if Sahara firms were not complying with the apex court’s earlier orders of August 2012 towards refund of investors’ money totalling over Rs 24,000 crore.

The assets ordered to be attached included those related to the group’s Aambey Valley resort town near Pune, other real estate assets in Delhi, Mumbai and at other places across the country, shares, mutual funds and various other investments.

Passing the attachment orders, Sebi said that the two companies had raised Rs 6,380 crore and Rs 19,400 crore, respectively from bondholders and “various illegalities” were committed in raising of these funds.

With regard to Subrata Roy and three other directors, namely Vandana Bhargava, Ravi Shanker Dubey and Ashok Roy Choudhary, SEBI ordered freezing of all bank and demat accounts of these four persons, as also attachment of all moveable and immoveable properties in their name with immediate effect.

Subsequently, the Sahara Group claimed that the actions taken by SEBI were based on “old facts” and the orders for attaching assets of individuals is incorrect on part of the market regulator.

It also said that it has already deposited with SEBI an amount of Rs 5,120 crore that was in excess of its total liability towards refund to investors.

Snapping a three-day gaining streak, the S&P BSE Sensex had declined by over 140 points in early trade, as funds and retail investors booked profits amid a weak trend on other Asian bourses.

This would be the first investment in the aviation sector by any foreign airline after the Government last year hiked the foreign direct investment (FDI) limit from 26 per cent to 49 per cent.

In a statement issued here on Wednesday, AirAsia said it had applied to Foreign Investment Promotion Board (FIPB) to take 49 per cent in a venture with Tata Sons Ltd and Arun Bhatia’s Telestra Tradeplace Pvt Ltd.

If the proposal is approved by the FIPB, the airline operators would then approach the Director General of Civil Aviation (DGCA) for a permit to start operations.

Tata Sons will hold 30 per cent in the joint venture but will not have any operating role in the airline. AirAsia will hold 49 per cent stake in the JV and Hindustan Aviation of the Bhatias will hold 21 per cent.

This move also marks the return of Tata Group to the aviation sector. State-owned Air India had grown out of Tata Airlines, which began flights in 1932. It was in the mid-nineties that Tata Group had joined hands with Singapore Airlines to bid for a stake in Air India but it could never take off.

The statement by AirAsia said the proposed joint venture will operate from Chennai and will focus on providing domestic connectivity to Tier-II and Tier-III cities. As per current rules, a carrier must complete five years of domestic operations before becoming eligible for starting overseas flights. AirAsia, through its operations based in Thailand and Malaysia, flies to Chennai, Bangalore, Kochi, Tiruchirappalli and Kolkata in addition to 20 countries across Asia.

The three parties signed the partnership agreement and submitted the proposal to the Indian government earlier this week. “We have carefully evaluated developments in India over the past few years and strongly believe that the current environment is perfect to introduce AirAsia’s low fares which stimulate travel and grow the market,’’ AirAsia founder and group chief executive Tony Fernandes said in the statement.

The Tata Group holds nearly 6 per cent equity in SpiceJet, but has maintained that it was only a financial investor in the budget carrier. Telestra Tradeplace is an investment holding company of Arun Bhatia and one of its group companies is Hindustan Aerosystems Pvt Ltd which manufactures and supplies precision components for the aerospace industry.

The statement said AirAsia is confident that it can replicate its unprecedented success across Malaysia, Thailand, Indonesia and other joint ventures. In particular AirAsia believes its success in affording people to fly through superior operational performance by emphasising a focused and disciplined cost structure will tremendously benefit the Indian consumer. An email sent to Tata Group seeking its comments on the issue evoked no response.

The rupee resumed higher at 54.10 per dollar as against the last closing level of 54.18 per dollar at the Interbank Foreign Exchange (Forex) Market.

During the session, rupee hovered in a range of 54.03 per dollar and 54.

In the first tranche, which was launched On January 9 and closed on February 7, the company had raised Rs 2,195 crore.

The second tranche would open from tomorrow and close on March 15, 2013.

In December 2011, the country had attracted FDI worth USD 1.35 billion.

For the April-December period of 2012-13, the inflows have declined by about 42 per cent to USD 16.94 billion, according to the data of the Department of Industrial Policy and Promotion (DIPP).

In December 2011, the country had attracted FDI worth USD 1.35 billion.

For the April-December period of 2012-13, the inflows have declined by about 42 per cent to USD 16.94 billion, according to the data of the Department of Industrial Policy and Promotion (DIPP).

Chandra will report to Shaji Farooq, Senior Vice President, Advanced Technologies, Global Alliances and Go-to-Market Transformation, Wipro Technologies, Wipro Technologies said in a statement.

He replaces Suchira Iyer who had quit earlier this month, less than a year after taking up the position, to pursue interests outside the organisation, it said.

The nation-wide strike call has been given by United Forum of Bank Unions (UFBU), consisting of nine national level unions, including AIBEA, NCBE, BEFI, INBEF, NOBW and AIBOC.

Apprehending disruption in their normal banking operations, many banks had already informed their customers about the proposed strike.

Meanwhile, sources said, banks have taken steps to ensure that public do not face problems at least on the cash front during the strike period.

Banks have fed additional cash in ATMs to meet the cash needs of their customers.

Bank unions are pressing for early wage revision of employees, which they said is due from November 2012. They are also opposing banking sector reforms and any plan for merger of banks.

There are 26 public sector banks with employees strength of around 10 lakh.

In December 2012 also, four bank unions went on strike opposing amendments carried out in Banking Regulation Act and Banking Companies Act, enabling foreign equity in public sector banks.

The bank strike is part of a general strike call given by 11 central trade unions including Indian National Trade Union Congress (INTUC), All India Trade Union Congress (AITUC), Bharatiya Mazdoor Sangh (BMS), Centre of Indian Trade Unions (CITU) and All India United Trade Union Centre.

“Britain has shown keen interest to work with India for the establishment of National Manufacturing Investment Zones (NMIZs) or the industrial townships,” Sharma said after the India-UK CEO Forum meeting here.

Two of these investment regions will come along the proposed Bangalore-Mumbai Industrial Corridor, which will link up with the Delhi-Mumbai Industrial Corridor. One is the IT investment region near Bangalore and second the manufacturing and investment zone, the NMIZ, which has been approved for Tumkur (in Karnataka), he added.

The forum meeting was co-chaired by Tata Group Chairman Emeritus Ratan Tata and Standard Chartered CEO Peter Sands.

Per capita income (NSDP at current price) of Bihar is Rs 25,653 as against Rs 60,972 for All India in 2011-12, Deputy Chief Minister Sushil Kumar Modi, who also holds Finance portfolio, told reporters after tabling the economic survey 2012-13 in the state Assembly today.

“The ratio of per capita income in Bihar and India now stands at 42.1 per cent compared to 32.4 per cent in 2007-08,” Modi said.

Modi said the economic survey narrates the impressive trajectory Bihar’s economy and the impact of development strategies of the present government in the state on the population.

Modi said that the state witnessed impressive growth in all sectors.

Going into details, he said the production of cereals in 2011-12 was 17.2 million tonnes compared to 10.4 million tonnes in 2010-11. Production of rice increased to a new high of 8.2 million tonnes in 2011-12 against 3.1 million tonnes in 2010-11.

“The quantum jump in production is due to the use of of new ‘Sri’ technique of rice production,” he said.

Rubbishing the opposition criticism of the state government for “cooking up” figures to paint a rosy picture, Modi said two-third figures in the survey have been provided by the central government agencies.

Otherwise, also the assessment of economic performance of the state has been done on the parameters set by Central Statistical Organisation (CSO), which are correct and used for all the official purposes, he said.

In the forthcoming auction, the government will put up the spectrum that was left unsold in the November round of bidding. Once that is over, the government will start auction of the radiowaves that were freed up after the cancellation of telecom licences last year but were not put on auction in the last round.

“We will put all the spectrum in the 18 circles which was not auctioned in November for auction immediately after this (March auction) is done,” Telecom Secretary R Chandrashekhar said here.

The Supreme Court has ordered the auction of entire spectrum that was vacated by 122 2G telecom licences that court had cancelled on February 2, 2012.

As a result of the cancellation of licences, 514.8 Mhz of spectrum was freed up, but the government only kept 271.25 Mhz of spectrum for auction in November 2012.

Last week, on February 15, the apex court directed the government to auction “entire spectrum released as a result of quashing of the licences on 2.2.2012…without further delay”.

Chandrashekhar said that Department of Telecom ( DoT) is considering to increase the quantum of spectrum in Karnataka and Rajasthan cirlces for which auction is scheduled to start from March 11 to comply with apex court order.

The government has announced auction of 10 MHz each in Karnataka and Rajasthan, but spectrum freed from cancellation of licences in these circles was 22 Mhz and 17.6 Mhz.

“As far as Delhi and Mumbai are concerned, the quantum of spectrum is already compliant with the Supreme Court order of February 15,” Chandrashekhar said.

He said all spectrum that was released by cancellation of CDMA licences (800 MHz band) has been already up for auction.

The government has announced that it will auction 15 MHz of radiowaves each in Delhi and Mumbai in the 1800 Mhz band, currently used for 2G GSM services, whereas 4.4 Mhz and 13.2 Mhz was released through quashed permits respectively.

The Telecom Secretary said that apart from increase in quantum of spectrum, there is no change expected in March auction.

]]> http://www.jaintv.com/2013/02/19/business/dot-conduct-3rd-2g-spectrum-auction/feed/ 0 http://www.jaintv.com/2013/02/18/business/jet-reports-ethihad-revising-deal/ http://www.jaintv.com/2013/02/18/business/jet-reports-ethihad-revising-deal/#comments Mon, 18 Feb 2013 07:56:48 +0000 Admin http://www.jaintv.com/?p=34870 Mumbai: Shares of Jet Airways on Monday tanked more than seven percent on bourses amid reports that the Abu Dhabi-based carrier Etihad is likely to revise its deal to buy a stake in the Indian carrier.

According to reports Etihad Airways chairman Sheikh Hamed bin Zayed al-Nahayan said the Abu Dhabi-based carrier needs to revise its deal to buy a stake in the Indian carrier and it was too soon to say when a final agreement between the two carriers would be struck.

Reacting to the news shares of the company opened on a weak note and then lost further ground and touched an early low of Rs 572.20 on the BSE, lower by 7.46 percent from its last closing price.

Similar movement was witnessed on the National Stock Exchange as well, where the stock after opening at Rs 615, plunged further and touched an intra-day low of Rs 576.10, down 6.77 percent from its previous closing price.

Etihad is likely to buy 24 percent equity in Jet Airways valued at about Rs 1,800 crore. If the deal is carried through, it would be the first investment by a foreign carrier in an Indian airline.

At present, Moody’s has a ‘Baa3′ (lowest investment grade) rating for India with a stable outlook and any downward revision from here could pull the country’s credit rating into junk grade.

Commenting on the latest government data showing an increase in India’s trade deficit to USD 20 billion as on January 31, Moody’s said: “India’s widening trade deficit is credit negative… These rising deficits are being financed by increased foreign-currency borrowing, raising India’s vulnerability to international financial volatility.”

The country’s trade deficit in January stood at its second highest level, while the biggest ever gap of USD 21 billion was recorded in October, 2012.

“Wider trade deficits can also weaken the currency, raising domestic prices of imported commodities, further fuelling India’s already high inflation rate,” Atsi Sheth, Vice President – Senior Analyst, Sovereign Risk Group, Moody’s Investors Service said.

India’s trade deficits averaged about USD 13.5 billion a month in 2011 and USD 16 billion a month in 2012, up from an average of USD 9.5 billion a month between 2008 and 2010.

Moody’s said the three main factors responsible for widening trade deficit over the past two years include slowing global growth that has lowered demand for Indian exports, rising prices of oil and gold that account for a bulk of the country’s merchandise imports, and a loose fiscal policy which stimulates domestic demand, and thus demand for imports.

Loose fiscal policy also fuels domestic inflation, which erodes the competitiveness of both export and import-competing sectors, further widening the trade gap.

“Trends in the first two factors are unlikely to turn significantly benign in 2013. Therefore, an improvement in India’s trade balance will require a shift to policies to enhance domestic competitiveness,” Moody’s Sovereign Risk Group Associate Analyst Andrew Schneider said.

Since foreign-currency debt plays a larger role than foreign investment in financing India’s trade deficit, the external debt burden has risen to USD 365 billion as of third-quarter 2012 from USD 137 billion in third-quarter of 2006.

“Should the current trend of more rapid growth in debt and import payments than export earnings and non-debt inflows persist, these ratios, and thus India’s vulnerability to external shocks, will deteriorate significantly,” the rating agency said.

The rupee resumed lower at 54.43 per dollar against the last weekend’s level of 54.22 at the Interbank Foreign Exchange (Forex) market and hovered in a range of 54.32 and 54.44 before quoting at 54.

The 30-share barometer rose by 32.80 points, or 0.16 per cent, to 19,500.95. The index had lost 140 points in the previous two sessions.

Similarly, the wide-based National Stock Exchange index Nifty edged up by 4.80 points, or 0.08 per cent, to 5,892.20.

The meeting will take place in the UAE, and Sharma today left for a two-day visit to the country, an official statement said.

The strip maps were exchanged by external affairs minister Salman Khurshid and his Bangladesh counterpart Dipu Moni, as they discussed a wide spectrum of issues at the second meeting of the Indo-Bangla Joint Consultative Commission here.

The two sides also readied themselves to launch the Akhaura-Agartala rail link, besides signing MoUs on several issues including amending the double taxation avoidance treaty, opening of additional border haats in Tripura and Meghalaya among other things.

“We are ready to release the first tranche of $50 million from the total of $200 million line of credit (to Bangladesh),” Mr Khurshid said, detailing the series of MoUs and agreements signed by officials from the two countries.

The symbolic exchange of strip maps, carried out in accordance with the Land Boundary Agreement (LBA) of 1974, pertain to adverse possessions and undemarcated stretches. The crucial land boundary issue involves exchange of land in 111 Indian enclaves in Bangladesh and 51 Bangladeshi enclaves to India. The issue has been hanging fire for several years as additional protocols for the 1974 Land Boundary Agreement had to be formalised.

The protocols were signed during the 2011 visit of Prime Minister Manmohan Singh to Dhaka. The Union Cabinet on Wednesday cleared the constitutional amendments required for ratification of these protocols, a move that would facilitate the implementation of the LBA.

Maintaining that the amendments would be placed in the upcoming budget session of Parliament, Mr Khurshid said “We hope it will be actually passed by Parliament in this session itself, if all goes well”.

To a question about the opposition by the BJP to the LBA, he said the agreement was of mutual interest and a win-win situation for both the nations.

“We are moving forward with full consultations with all the stakeholders and expect the cooperation of all political parties including the BJP. It is the vision of our great leaders and reflects the collective aspirations of the people,” he said.

Asked about the pending Teesta river water sharing issue, stalled due to the opposition by West Bengal Chief Minister Mamata Banerjee, he said: “I have great regards for the chief minister. She is also a good friend of Bangladesh and is conscious of her responsibilities… We will ensure that West Bengal is fully with us. We are committed to the issue”.

He also sought joint participation of Bangladesh in the Tipaimukh project and also invited investments by Dhaka in the project.

Mr Khurshid also handed over a solar lamp to his Bangladeshi counterpart. During Manmohan’s visit here in September 2011, he had announced that India would provide 2800 solar lamps to the beneficiaries of the Sidr cyclone shelters.

So far, 1185 solar panels and lamps have been installed in Morelganj (608) and Sharonkhola (577) Upazillas in Bagerhat District of Bangladesh. The project is in advanced stage of implementation.

An MoU for the establishment of India-Bangladesh Foundation with the objective of enhancing linkages between the two countries, particularly through economic, scientific, educational, technical and cultural co-operation and the promotion of greater understanding between the peoples of the two countries was also signed.

The activities of the Foundation would be financed through revenues from a Trust Fund to be set up through grants made available by the two sides and administered by a board of directors with the High Commissioners of India and Bangladesh co-Chairpersons of the Board.

“Charging more than 26 per cent is exploitation. If you are not exploiting a person, then it is a reasonable rate.

So, the RBI has fixed the rate at 26 per cent,” Deputy Governor of RBI K C Chakrabarty said here.

“MFIs are basically relevant because the banking system in the country is inefficient.

Dismal corporate earnings by some bluechip companies also dented the market sentiment.

Shares of realty, capital goods, power, metal and consumer durable declined sharply on heavy selling pressure.

]]> http://www.jaintv.com/2013/02/16/business/mkt-extends-losses-week-3-sensex-27-pts/feed/ 0 http://www.jaintv.com/2013/02/15/business/indian-economy-8-growth-level-prez/ http://www.jaintv.com/2013/02/15/business/indian-economy-8-growth-level-prez/#comments Fri, 15 Feb 2013 17:13:52 +0000 Admin http://www.jaintv.com/?p=34832 New Delhi: President Pranab Mukherjee today exuded confidence that the Indian economy will bounce back to 8 per cent growth levels and said engineering sector could play a vital role in propelling it.

“Though our economic growth has recently declined somewhat, I am confident that we will be able to bring the deceleration to a halt and revert to the eight per cent growth levels that we attained many times in the past,” Mukherjee said inaugurating the 20th International Engineering and Technology Fair (IETF) by CII.

The underline growth impetus remains strong due to factors like continued rise in per capita income and expanding middle class consumers, he said adding, engineering sector could facilitate faster economic development.

“Our thrust on infrastructure development and industrial production provided further filip to this (engineering) sector…Large amount of investments is envisaged in the key sectors such as power and transportation,” Mukherjee said while calling for private sector investments.

These investments would create opportunities for business operating in the engineering sector, he said.

At the same time he urged the companies to focus on “productivity and competitiveness” saying new operating models were needed to promote the manufacturing sector.

“The contribution of manufacturing to total employment in India is about 11 per cent which is much lower than that of the emerging countries. The shares of the manufacturing in total employment is between 15 to 30 per cent (in those countries)” he said.

Stressing that the National Manufacturing Policy 2011 envisaged creation of 100 million additional jobs in the manufacturing sector by 2025, he said India needed to enhance its “capabilities on major fronts like primarily human skill , hardware and knowledge technology”.

In October last year, the expert panel headed by PMEAC chairman C. Rangarajan had recommended immediate removal of two major controls — regulated release mechanism and levy sugar obligation — and other restrictions gradually.

“Our sugar position is comfortable this year. The Rangarajan committee’s recommendations are before the Department. I believe in the next 15 days, we will be able to take a decision on the entire issues like levy sugar, release mechanism and others,” Mr. Thomas said at an Assocham event.

The minister assured that the Rangarajan committee’s recommendations will not see the plight of other panels’ suggestions which have not yet been implemented.

He also said the Food Ministry is seeking views of various ministries on the panel’s recommendations and a Cabinet note will be moved shortly.

According to sources, about 10 states have given their views on the panel’s suggestions on sugar decontrol. However, the two major sugar producing states — Uttar Pradesh and Maharashtra — have not yet responded.

At present, sugar sector is controlled right from production through distribution. Through the release mechanism, the Centre fixes the sugar quota that can be sold in the open market. Under the levy system, it asks mills to contribute 10 per cent of output to run ration shops costing the industry Rs 3,000 crore a year.

Currently, the Centre buys sugar from mills at about Rs 20 per kg and sells to ration card holders at Rs 13.50 per kg.

On removal of quota allocation for sugar sale in the open market, Thomas said: “We have moved to four-monthly mechanism. There is no problem in removing this system.”

The removal of release mechanism would help mills manage inventories and cash-flows better, while abolition of levy sugar system would result in saving of Rs 3,000 crore annually that it currently incurs on selling cheaper sugar to the Centre for running PDS.

Barring two key regulations with respect to fixing sugarcane price and sharing of 70 per cent revenue by sugar firms with farmers, the Rangarajan report has suggested giving freedom to mills to sell sugar in the open market and having a stable export and import policy.

Weak dollar in the overseas market also boosted the rupee value, a forex dealer said.

The rupee today resumed marginally higher at 53.91 per dollar as against the last closing level of 53.92 at the Interbank Foreign Exchange (Forex) Market.

In a pre-budget memorandum, submitted to the Union Finance Minister, P Chidambaram, the US India Business Council (USIBC) said it was concerned over the several recent policy initiatives of the Indian Government in this regard.

The 30-share barometer fell by 39.26 points, or 0.20 per cent, to 19,457.92. The index had lost nearly 111 points on Thursday.

Stocks of realty, auto, banking and power sectors declined on increased selling.

Similarly, the wide-based National Stock Exchange index Nifty fell by 18.90 points, or 0.

Weak dollar in the overseas market also boosted the rupee value, a forex dealer said.

The rupee today resumed marginally higher at 53.91 per dollar as against the last closing level of 53.92 at the Interbank Foreign Exchange (Forex) Market.

“We believe that there is a big concern over illegal sources funding part of election expenditure. Therefore, a government fund of Rs 5,000 crore over five years should be created for Parliamentary elections,” Assocham Secretary General D S Rawat said.

After a better start at 19639.83, the Sensex tumbled by 110.90 points, or 0.57 per cent to 19,497.18 as investors adopted a cautio stance, wiping a major portion of the 147 point gained in past two days.

“It is not sufficient to reach to any conclusion about the workforce scenario. I don’t believe that we can come to an unambiguous conclusion on the basis of NSSO data that what exactly is happening”, he said addressing an ILO conference here.

State Bank of India (SBI) had a net profit of Rs 3,263 crore in the October-December quarter of 2011-12 fiscal.

The total provisioning of the bank stood at Rs 4,394.70 during the December quarter, up from Rs 3,996.

“We will have to look at the details as to what is being proposed. We hope that nothing will be done by the US government which will adversely impact the ongoing partnership, particularly in the technology sector,” Sharma told the Nasscom summit here.

He further said, “Without getting into the specifics clearly, I would say that in today’s time what is expected from governments, nations and leaders is to bring down the existing barriers and not to allow new barriers of protectionism to come up, which will be counter-productive for the global economy, as they deepen the recession and delay the recovery.”

On the impact of the proposed measures on the IT sector, which draw nearly half its income from the American markets, Sharma said, “We have conveyed our concerns very clearly to the US and we shall continue to do what is expected of us to ensure that our IT industry grows from strength to strength and also the movement of professionals and their right to go and work wherever companies are located is fully respected.”

Yesterday, US President Barack Obama, fighting hard to bring back historically high unemployment in a weak economy, said: “…the American people deserve a tax code that helps small businesses spend less time filling out complicated forms, and more time expanding and hiring.”

“…a tax code that lowers incentives to move jobs overseas, and lowers tax rates for businesses and manufacturers that are creating jobs right here in the United States of America. That’s what tax reform can deliver. That’s what we can do together,” he added.

America shares 59 per cent of the total outsourcing business in India and the largest chunk of the outsourcing business is in the IT sector.

Manufacturing industries constitute 9 per cent of the total revenues generated from the outsourcing boom, in India.

Addressing the Nasscom session, Sharma further said we must allow professionals to meaning fully engage with companies. Historically protectionism has always been counter-productive.

“Artificial barriers in today’s time when the global economy is challenged, only delay the recovery process. To ensure there is economic activity, trade and movement of people it is sensible to step out and engage more to bring about change,” the minister said.

“Cabinet Committee on Economic Affairs (CCEA) has approved extension of sale of wheat under the Open Market Sale Scheme (OMSS) till March with same price conditions set earlier,” sources said.

However, the committee did not approve reduction in prices of wheat for sale, sources said.

The Chief Minister said the decision would benefit such beneficiaries to the tune of about Rs 1.50 crore in a year.

Hooda said the state government is already giving a subsidy of Rs 6.35 crore on wheat being given to AAY beneficiaries.

“The new Companies Bill will come up in the Rajya Sabha in the Budget session beginning February 21,” Pilot said on the sidelines of the Nasscom national summit here.

Noting that since the enactment of the Companies Bill in 1956, the number of registered companies has gone up to 8.

“The AAC, headed by S Machendranathan, the Additional Secretary and Financial Adviser of Ministry of Civil Aviation, has cleared the proposal of IndiGo to import four Airbus 320 and SpiceJet to import three Boeing 737 aircraft recently,” official sources said.

The proposal now awaits the final nod from the Civil Aviation Minister Ajit Singh before the two airlines are allowed to import the planes.

The decision to allow IndiGo to import more aircraft has come at a time when it is facing problems from the Government in importing 16 A320 aircraft which is part of the order of original 100 aircraft for which the airline already has in-principle approval.

“The AAC had earlier given them permission to bring in five aircraft. Now they have got the permission to bring four more as they said they had to maintain the delivery schedule,” the sources said.

IndiGo currently has 63 aircraft. It plans to induct three of the five cleared planes this year and two more in this fiscal.

The Ministry has asked IndiGo to submit detailed plans on how it intends to use the aircraft, as the ministry is in process of finalising new norms for schedule airlines to fly to tier II and III cities in the new Route Disbursal Guidelines to enhance regional connectivity.

“The Government is to soon receive two reports on enhancing regional connectivity. These reports would be merged into one and the new norms would have to be approved by the Union Cabinet before being implemented,” a senior Government official said.

Sources said IndiGo does not have small aircraft like ATRs to operate flights to tier II and tier III cities but plans to acquire some as “they also felt necessary to have them in order to expand their operations.”

The Sensex rose by 47.04 points, or 0.24 per cent to 19,608.08, after moving between 19,723.01 and 19,574.15. The index had gained over 100 points in the previous session.

Similarly, the wide-based National Stock Exchange index Nifty rose by 10.45 points, or 0.18 per cent, to 5,932.

The Minister will be going to the AICC headquarters for the deliberations during which partymen are expected to present their wish-list for 2013-14 Budget to make it a ‘please-all’ affair at a time when Lok Sabha polls are not far away.

Besides a strong pitch for hiking I-T exemption limit and raising allocations for anti-poverty programmes in the upcoming Budget, partymen could also bat for a better deal for farmers.

Congress leaders would want the government to come out with a ‘very promising’ Budget with a focus on populist schemes along with economic reforms.

This would be the last Budget of the UPA-II government. There would be vote-on-account in 2014 in view of elections.

Although Chidambaram has expressed his intention to bring down fiscal deficit to 4.8% of the GDP in 2013-14 from 5.3% estimated in the current fiscal, Congress leaders are likely to impress upon him the need to raise the tax exemption limit to provide relief to taxpayers from high inflation.

At present, the annual income tax exemption limit is Rs 2 lakh and the Standing Committee, headed by BJP leader Yashwant Sinha, had suggested that it be raised to Rs 3 lakh.

Party leaders have given hints that the budgetary exercise could witness start of many programmes which are going to have far-reaching consequences.

Several economic reforms, Food Security law and Direct Benefit Transfer (DBT) are among measures that are being planned to be implemented in the year ahead.

There has been talk that the Budget could be used for giving greater focus to the problems of the youth at a time when majority of the population is below 45.

The Budget Session of Parliament will start on February 21 and the Budget will be presented on February 28.

“It is going to be very tough maintaining high levels of increases (in budget allocations) given the fiscal situation.

It is a tough situation to be in,” Ramesh told reporters on the sidelines of a convocation at Reserve Bank-promoted IGIDR.

“…it has been decided that henceforth, banks would be permitted to open NRO account of individual/s of Bangladesh nationality without the approval of the Reserve Bank,” it said in a notification.

The permission is granted subject to the conditions the bank should satisfy itself that the individual holds a valid visa and valid residential permit.

Forex dealers said a lower opening at the domestic equity market also put pressure on the rupee.

The domestic currency had lost 28 paise to end at an over one-week low of 53.

According to the data released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle sales in last month grew by 7.45 per cent to 8,86,527 units from 8,25,050 units in the same month previous year.

Total two-wheeler sales in January 2013 increased by 8.

The 30-share index resumed higher at 19,517.59 and firmed up further to 19,543.44 on fresh buying from operators on the back of foreign capital inflows.

However, it declined afterwards to 19,450.47 on profit- booking before quoting at 19,468.20 at 1030hrs, showing a loss of 16.

Forex dealers said capital inflows worth nearly USD 280 million could not stem the fall in rupee.

The local unit started the day’s trade on a weak note at 53.44 against yesterday’s close of 53.22 at the Interbank Foreign Exchange (Forex) market.

“…I think what has happened is opportunities for grand corruption has increased as growth has picked up,” Rajan said while replying a query on impact of corruption on growth at an event organised by Citi-MIT Sloan here.

]]> http://www.jaintv.com/2013/02/08/business/oppy-corruption-rose-growth-picked-up-rajan/feed/ 0 http://www.jaintv.com/2013/02/08/business/kolkata-metro-seeks-increase-fares/ http://www.jaintv.com/2013/02/08/business/kolkata-metro-seeks-increase-fares/#comments Fri, 08 Feb 2013 17:59:19 +0000 Admin http://www.jaintv.com/?p=34651 Kolkata: Facing acute losses, the Metro Rail Kolkata has sought a hike in passenger fares to reach a “no- profit-no-loss” situation.

Singing in tune with a Railway Board committee which has recommended that Metro rail fares should be increased, Metro Rail Kolkata General Manager Radhey Shyam said, “There is a need for revision in the fare structure, which have not been changed in the past 10-12 years for us to reach a no-profit-no-loss situation.

“We had produced 260 million tonne foodgrains last year.

This year, we have crossed 250 million tonne irrespective of drought in some districts of Maharashtra, Gujarat, Rajasthan and parts of Karnataka,” Pawar said at Indian Seed Congress, organised by the National Seed Association of India (NSAI).

The Bombay Stock Exchange (BSE) sensitive index resumed lower at 19,589.44 and hovered in a range of 19,702.56 and 19,540.08 before concluding the day at the calender year’s low of 19,580.32 — a fall of 59.40 points or 0.30 per cent.

There are “clear imperfections in the onion markets and presence of interested cartels”, it said.

Bangalore-based Institute for Social and Economic Change conducted the study for fair trade regulator – Competition Commission of India (CCI).

This estimate by CSO is drastically lower than what has been projected thus far by the government and RBI.

“The growth in GDP (Gross Domestic Product) during 2012-13 is estimated at 5 per cent as compared to a growth rate of 6.

“We have said ourselves in the Plan, I think we should be very clear about that balancing deficit doesn’t mean zero fiscal deficit. But maintaining a target deficit that’s extremely important for the health of the economy,” Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters on the sidelines of a meeting with State Planning Commission/Boards.

Ahluwalia further said maintaining fiscal deficit at the targeted level is true for all the economies across the globe and the country wants to have a planning that is consistent with fiscal responsibility.

“I think that is true in all the countries, everywhere people are looking at that and we ourselves want to do a kind of planning which is consistent with fiscal responsibility, that is not a problem,” he said.

Finance Minister P Chidambaram in December said that some tough decisions taken by the government were necessary to bring down the fiscal deficit and it was important to augment resources and control expenditure.

To control the fiscal deficit and cap the rising subsidy burden, the government in the recent past has partially decontrolled diesel prices besides capping the number of subsidised cooking gas cylinder to nine per year per household.

The government has revised upwards the fiscal deficit target for 2012-13 to 5.3 per cent of the GDP from the 5.1 per cent earlier because of increasing expenditure and lower-than-estimated revenue realisation.

In reply to a question whether the government is planning to prune the planned expenditure in the next Budget, he said, “You know these are decisions, these are discussions going on. I don’t want to comment on many things until after Budget.”

A senior state government source said the matter was raised by Assam Chief Minister Tarun Gogoi with Reserve Bank of India Governor D Subbarao during a interaction between the two here.

The two met on the sidelines of the State Level Bankers Committee (SLBC) meeting.

Speaking at the inauguration of Aero India 2013, Asia’s biggest air show that took off here, Singh spoke about significant growth in India in terms of passenger traffic and augmenting of airport infrastructure and said the Government has approved 15 more airports.

“NTPC has signed a term-loan agreement for USD 250 million (approximately Rs 1,327 crore) with the New York branch of State Bank of India and Singapore branch of Mizuho Corporate Bank as lead arrangers and lenders,” the company informed the stock exchanges today.

The BSE benchmark Sensex resumed higher at 19,737.77 and firmed up further to 19,767.25, but declined afterwards to 19,692.11 before quoting at 19,711.94 at 1030hrs, showing a gain of 52.12 points or 0.27 per cent from its last close.

“It was a very good meeting and we had a long discussion during which several different issues came up. The Prime Minister gave his good wishes for the development of Gujarat and the success of the new government.

“There is of course apprehension that you may fall short of budget target. But, nevertheless, in the remaining seven weeks or so you must make efforts to achieve the budgeted target,” Chidambaram said while addressing officials of the Central Board of Excise and Customs (CBEC).

At Lasalgoan mandi in Nashik, onion prices eased to Rs 17.69/kg from yesterday’s Rs 18.21 per kg, according to data maintained by National Horticultural Research and Development Foundation (NHRDF). Prices have dipped by over Rs 4 per kg at Lasalgaon since February 1.

According to Mercom, a total of 23 M&A transactions were executed in 2012, amounting to almost USD 17 billion compared to 30 transactions worth almost USD 5 billion in 2011.

“Growth in aerospace cannot be limited to collaboration in manufacturing and has to be in all aspects – design, product and development,” V K Saraswat, Scientific Advisor to the Defence Minister, said.