"The first challenge is to return the GDP growth rate of 9 per cent per annum at the earliest," ... "The second challenge is to deepen and broaden the agenda for inclusive development" 1 hour ago IBNLive.com (30 occurrences) more by Pranab Mukherjee Pranab begins Budget presentationTimes of India - 1 hour ago NEW DELHI: Finance minister Pranab Mukherjee begins presentation of Union Budget 2009-10 in Lok Sabha. ( Watch ) Dressed in a spotless white bandgala suit, ... D-Street strollers look to Pranab for directionEconomic Times - - 7 hours ago Among other things, investors expect finance minister Pranab Mukherjee to announce a road map for selling stakes in state-owned companies. ... Markets in red as Pranab presents budget Times Now.tv Sensex opens positive ahead of Budget 2009 Times of India Pranab peppers speech with Gandhi, Kautilya quotesTimes of India - 8 minutes ago NEW DELHI: In preparing some of his fiscal proposals, finance minister Pranab Mukherjee found inspiration in Mahatma Gandhi and Kautilya, both of whom he ... Mukherjee presents budget for this fiscalHindu - 3 hours ago New Delhi (IANS): With a cherry-brown briefcase in hand, Finance Minister Pranab Mukherjee arrived in parliament Monday to present India's budget for this ... Pinning hopes on PranabThe Statesman - 12 hours ago ... Mr Pranab Mukherjee, are expecting a fair deal, as their basic needs have not been taken care of in the 32-years of uninterrupted Left rule. ... Panjab University gets Rs 50 croreTimes of India - 8 minutes ago NEW DELHI/CHANDIGARH: Finance minister Pranab Mukherjee on Monday announced a grant of Rs 500 million (Rs.50 crore) for Panjab University in Chandigarh, ... Pranab Babu, we need financial sector reformsLivemint - 17 hours ago The banking industry's expectations from Pranab Mukherjee's budget are pretty high. Indeed, bank stocks are a proxy for the broader economy and investors ... Pranab picks state IAS officer as private secyTimes of India - - Jul 4, 2009 KOLKATA: Finance minister Pranab Mukherjee will get his private secretary (PS) from the Bengal IAS cadre. His Bengali colleagues in the UPA, too, ... Ashok Leyland, Jaiprakash Hydro, Larsen: India Equity PreviewBloomberg - - 4 hours ago Budget: India's Finance Minister Pranab Mukherjee may increase spending on power, roads and aid to the poor in today's budget to bolster growth in Asia's ... Rail Budget: Populist or practical?Hindu Business Line - - 14 hours ago Well, to an extent, the credit goes to the Finance Minister, Mr Pranab Mukherjee. Call it the Bengal connection, but the fact is that Mr Mukherjee has ... I have catered to every state, not just Bengal: Mamata Times of India Stay up to date on these results: |
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Bank of Japan says economic slump easing
6 Jul 2009, 1315 hrs IST
Japan's economy has started to stop deteriorating, the central bank said Monday, upgrading its assessment of the country's nine regions for the first time since 2006.
RBI, Sebi turf war likely as policy makers root for single regulator 6 Jul 2009, 0600 hrs IST, Sangita Mehta, ET Bureau
MUMBAI: A policy proposal, somewhat lost in the numerous tables in the Economic Survey, could stoke an old, simmering turf war between two financial While policy recommendations in the survey, made by economists and technocrats in the government don’t necessarily translate into policy shifts, it has the potential to spark a debate. A few years ago, the central bank had resisted moves that could have eroded its hold on the debt market — a market for government securities and corporate bonds. The bank had argued that retaining control on this segment of the market is a prequisite for efficient conduct of the monetary policy. The movement of bond yields influences interest rate, which is a basic monetary policy tool. Chances are that the present proposal in the survey may not go down well with RBI. At present, Sebi regulates segments of financial markets such as equities and listed corporate bonds while RBI regulates the money market and foreign exchange market  Similar suggestions on transfer of regulations to the market regulator have been made by earlier committees, and one of the reasons why it could revive now is because of the initiative taken by the government to set up a debt management office that would decide the issuances of government bonds. However, sections in the market think that the government should not rush through any transfer of regulatory powers. “Care is necessary while contemplating any changes in regulatory structure so that core competencies of various regulators are not unnecessarily altered,” said Mridul Saggar, chief economist of Kotak Securities. Mr Saggar, who was a former RBI official, feels: “It’s important to keep in view that control over interest rates and monetary policy efficacy is preserved and if that requires segmentation of debt market regulation, it’s not such a bad thing when we already have entity wise regulation in place.” Over the years, the financial market has seen the emergence of new products and a proposal to shift regulatory powers would have to grapple with other issues. For instance, exchange-traded foreign currency derivative has been introduced and exchanges are believed to be at an advanced stage on the launch of interest rate futures. While over-the-counter market on foreign exchange, predominantly dominated by authorised dealers such as banks, is regulated by RBI, which also intervenes in this market, both regulators have a say in the exchange-traded currency futures market. However, financial intermediaries and institutions have long been demanding a single regulator. More recently, sections within the ruling party have demanded that FMC, the commodity market regulator, should be brought under Sebi. “To have a single regulator is a good idea. A super regulator would be better positioned to plug such gaps. In fact, many developed economies are looking at a single super regulator. But whether the onus should be on RBI or Sebi is a call that the government needs to take,” said Naresh Takker, MD and CEO of ICRA. | ||||
Presenting the Union Budget 2009-10, Finance Minister Pranab Mukherjee said, the Bill will soon be introduced after consultation with different stakeholders.
A draft Food Security Bill will be put up on the website of the Ministry of Food and Public Distribution for public debate on this issue, he added.
President Pratibha Patil had, on June 4, said a National Food Security Act would be formulated whereby each BPL family would be entitled by law to get 25 kg of rice or wheat per month at Rs 3 a kg, a promise made by the Congress before general elections 2009.
At present, the Centre provides 35 kg of rice or wheat per month to each BPL family. Wheat is supplied at Rs 4.15 per kg while rice at Rs 5.65 a kg to over four crore families living below the poverty line.
The Centre has enough foodgrain in its buffer stock to implement this law. On the back of bumper foodgrain output and higher minimum support prices, the government has procured a record of over 250 lakh tonnes of wheat and over 300 lakh tonnes of rice till July 3 this marketing season.
Presenting the Union Budget 2009-10, Finance Minister Pranab Mukherjee said, the Bill will soon be introduced after consultation with different stakeholders.
A draft Food Security Bill will be put up on the website of the Ministry of Food and Public Distribution for public debate on this issue, he added.
President Pratibha Patil had, on June 4, said a National Food Security Act would be formulated whereby each BPL family would be entitled by law to get 25 kg of rice or wheat per month at Rs 3 a kg, a promise made by the Congress before general elections 2009.
At present, the Centre provides 35 kg of rice or wheat per month to each BPL family. Wheat is supplied at Rs 4.15 per kg while rice at Rs 5.65 a kg to over four crore families living below the poverty line.
The Centre has enough foodgrain in its buffer stock to implement this law. On the back of bumper foodgrain output and higher minimum support prices, the government has procured a record of over 250 lakh tonnes of wheat and over 300 lakh tonnes of rice till July 3 this marketing season.
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India finmin sees econ growth at 9 pct in next FY
NEW DELHI, July 6 (Reuters) - India can return to economic growth of 9 percent per annum in the next fiscal year, as its economic fundamentals remain strong, the finance minister said on Monday.
"Today India is on the path of high growth syndrome. Of course, there has been a blip this year," Pranab Mukherjee said. "But next year, I do hope we get back to 9 percent of GDP growth."
India's economy grew 6.7 percent in the fiscal year that ended on March 31, its slowest in the last six years.
For a complete coverage of the budget, please click here (Reporting by Surojit Gupta)
Finance Minister Pranab Mukherjee presented the 2009-10 Union Budget in the Parliament on Monday. Following are the key highlights:
CHALLENGES
· To lead economy to high GDP growth rate of 9 per cent per annum at the earliest
· To deepen and broaden the agenda for inclusive development to improve delivery mechanisms of the government.
OVERVIEW OF THE ECONOMY
· Growth rate of Gross Domestic Product dipped from an average of over 9 per cent in the previous three fiscal years to 6.7 per cent during 2008-09.
· Whole sale price index rose to nearly 13 per cent in August, 2008 and had an equally sharp fall to zero per cent in March, 2009.
· The structure of India’s economy changed over the last ten years with contribution of the services sector to GDP at well over 50 per cent and share of merchandise trade doubling to 38.9 per cent of GDP in 2008-09.
Finance Minister Pranab Mukherjee began presenting India's budget for this fiscal in the Lok Sabha on Monday, promising all that his government can do to ensure inclusive growth and address the growing aspirations of the country's young population.
Dressed in a spotless white bandgala suit, the 73-year-old politician said the United Progressive Alliance (UPA) government would push forward an agenda that will ensure 12 million new jobs each year and reduce poverty by half by 2014.
"The government recognises the challenges," he said, referring to the global slowdown and the decline in India's high growth rate in the past year to 6.7 per cent from over 9 per cent in the preceding three years.
"The first challenge is to bring back the GDP (gross domestic product) growth rate to over 9 per cent per annum," he said, setting the tone of what is his fourth career budget.
"There are signs of an economic recovery."
He said the other challenges included better governance and to ensure that the fruits of development reached across regions to touch the lives of every citizen.
The exemption limit will now be Rs 240,000 for senior citizens, Rs 190,000 for women and Rs 160,000 for others. The 10% surcharge on personal Income Tax has also been slashed.
For women the exemption limit has been raised to 190,000 and for others the exemtion limit has been raised by Rs 10,000 to 160,000.
He has also gone ahead and abolshed the fringe benefit tax. The Budget has also abolished the Commodities Transaction Tax.
The stock market, however, tanked, with BSE benchmark plunging by over 700 points.
"Finance Minister Pranab Mukherjee's efforts to revive the economy back to nine per cent (growth) is in the right direction," ICICI Bank MD and CEO Chanda Kochhar said today.
"I am happy on behalf of the whole industry that Fringe Benefit Tax has been abolished, but I am a little bit unhappy about MAT," top industrialist Rahul Bajaj said.
The MAT rate was hiked to 15 per cent from 10 per cent. Kochhar felt that the Securities Transaction Tax too should have caught the government's attention.
"Health care sector has been ignored. We had been expecting a boost for the health care infrastructure, but nothing has been said. Budget was mute. We are disappointed," Shivinder Mohan Singh of Fortis said.
The stock market tanked 700 points mid-way during Mukherjee's Budget speech, but recovered partially at 1315 hrs.
The industry also welcomed restoration of seven year tax break on natural gas production, saying it will help attract foreign bidders for NELP-VIII.
"This was always there. It is not a new benefit. We are very happy about the clarification as it ends the ambiguity," said P M S Prasad, President and CEO (Oil & Gas), RIL.
"I am allocating Rs.39,000 crores for NREGA (National Rural Employment Guarantee Act). This is a hike of 144 percent," Finance Minster Pranab Mukherjee said while presenting the budget for fiscal 2009-10 in the Lok Sabha.
"NREGA is a magnificent success. The government is committed to providing a wage of Rs.100 a day to rural households in convergence with other schemes for rural areas. One hundred and fifteen pilot districts have been identified for these convergence schemes. The details will be given by the minister for rural development," Mukherjee added.
The finance minister said the government would soon publicise a draft food security (guarantee) bill and seek comments from everybody before finalising the bill. In its election manifesto earlier this year, the Congress had promised 25 kg of rice or wheat a month at Rs.3 per kg to families below the poverty line.
He also urged a return to fiscal responsibility targets as soon as possible. "The first challenge is to return the GDP growth rate of 9 percent per annum at the earliest," Mukherjee said. "The second challenge is to deepen and broaden the agenda for inclusive development." Bond yields rose rose after the announcement of additional spending, while stocks were down by 1.37 per cent.
The first budget of Singh's new administration is seen as a roadmap for how he will govern for the next five years after his Congress party-led coalition was reelected by an unexpectedly decisive margin. Mukherjee called on states to remove bottlenecks for infrastructure projects, and outlined plans for more flexible financing for infrastructure and development of long-distance gas pipelines.
Unconstrained by its previous alliance with leftist parties, Singh's new government has a freer hand to implement economic liberalisation measures to drive expansion but has also promised "inclusive growth" to support social programmes and rural development. At the same time India is hobbled by a fiscal deficit that ballooned to 6.2 per cent in the financial year that ended in March, with the bond market pricing in expectations that the figure could creep higher this year to as much as 6.5 per cent.
Including off-balance sheet items like subsidies for fuel and food, as well as state-level shortfalls, country's overall fiscal deficit for the year that ended in March was about 10 per cent of GDP. That compares with less than 3 percent of GDP for China and more than 12 per cent of GDP for the United States in the latest fiscal years.
Country's economy grew at 6.7 per cent in the most recent fiscal year, held back by the global downturn, after expanding at least 9 per cent for three straight years. The finance ministry said on Thursday that growth could rise to 7 per cent this year -- towards the high end of the range of private forecasts -- and subsequently increase to 8.5 to 9 per cent if the government adopts sweeping reforms and speeds infrastructure development.
With the developed world mired in recession, big emerging economies led by China, which is on track for 8 per cent growth this year, and India account for a rising share of global output and are expected to help drive global recovery. Both economies have been fuelled by stimulus spending to spur domestic demand.
The run-up to annual budget announcement, always subject to fierce jockeying by ministries, industries and other interest groups, was especially frenzied this year given the ruling coalition's decisive electoral win.
Anticipation that the government would unleash sweeping market-oriented reforms sent Indian stocks surging 17 per cent on the first trading day after the election result in May. But that has led market watchers to warn that expectations for the administration's first budget may be unrealistically high.
Stocks jumped by nearly half in the April-June quarter. Last week, the government unexpectedly raised fuel prices by as much as 10 per cent, passing part of the recent surge in global oil prices on to consumers. Friday's railways budget, however, included improved..
IANS adds:
Promising to halve poverty by 2014 and add 12 million jobs each year, Finance Minister Pranab Mukherjee presented India's budget for this fiscal that hikes income tax exemption limit and steps up allocations for welfare schemes and infrastructure, while assuring high growth for the $1.2 trillion economy once again.
The income tax exemption limit for senior citizens was sought to be hiked by Rs.15,000, while that for women and others was stepped by Rs.10,000. The 10 percent surcharge on personal income tax also sought to be removed in Mr. Mukherjee's budget presented in the Lok Sabha.
New incentives to farmers, 45 percent jump in funds for Bharat Nirman, India's flagship rural reconstruction programme, higher spending on urban development, fresh impetus on energy security and revival of the divestment programme were among the highlights of the 100-minute Mr. Mukherjee's budget.
He also announced that the national food security act will be enacted soon promising 25 kg of rice or wheat per month to the poor at Rs.3 per kg, while announcing a new health insurance scheme for those below the poverty line.
For India Inc, the corporate tax rate was kept unchanged, even as the finance minister sought to reduce the burden on industry by abolishing the commodities transaction tax, but hiked the minimum alternate tax to 15 percent of book profits.
Mr. Mukherjee also promised to scrap the fringe benefit tax to please corporates, introduce a pan-India goods and services tax from April next year and gave 100 percent tax deductions to political donations.
Dressed in a smart white bandgala suit, the 73-year-old politician - who had presented his last budget as finance minister in the government of prime minister Indira Gandhi 25 years ago - said the United Progressive Alliance (UPA) government would push forward an agenda that will ensure 12 million new jobs each year and reduce poverty by half by 2014.
"The government also recognises the challenges," he said, referring to the global slowdown and the decline in India's high growth rate in the past year to 6.7 percent from over 9 percent in the preceding three years.
"The first challenge is to bring back the GDP (gross domestic product) growth rate to over 9 percent per annum," he said, setting the tone of what is his fourth career budget watched by Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi.
He said the other challenges included better governance and to ensure that the fruits of development reached across regions to touch the lives of every citizen - the 'aam admi' (the common man) as he called them.
Mr. Mukherjee said infrastructure would also be a priority, especially in areas like roads, highways and energy. “I, on my part, will ensure that sufficient funds are made available to these sectors.”
The finance minister also said the unique identification plan, approved by the previous UPA government will be operational in 12-18 months and the process begin to hand over biometric smart cards to 1.17 billion citizens.
He said the total central government expenditure for the current fiscal year had been stepped up to Rs.10,20,800 crore, and compared it with Rs.193 crore that was set aside in the country's first budget over six decades ago.
Mr. Mukherjee said with industry still under the grip of global recession, the finance minister said he was providing additional incentives in the form of both direct and indirect taxes.
He enhanced the customs duty on items like set-top boxes, LCD televisions and premium textile goods to encourage domestic production and value addition.
Union Cabinet approves Budget 2009-10
New Delhi (PTI): The Union Cabinet on Monday approved the Budget for 2009-10.
As is customary, the Cabinet met an hour before the presentation of the budget in the Lok Sabha to put its seal of approval.
The government today abolished the Commodity Transaction Tax (CTT) that was announced in the Budget last year, but was yet to be
Finance Minister Pranab Mukherjee announced the scrapping of the CTT while presenting the Budget for 2009-10. He said the decision is in step with the recommendation of the Prime Minister's Economic Advisory Council.
The government had proposed 0.017 per cent as the CTT (Rs 17 on the transaction value of every Rs one lakh trade on commodity exchanges).
The CTT was announced in line with the Security Transaction Tax (STT) in the 2008-09 Budget by then Finance Minister P Chidambaram but was not notified following stiff opposition from regulators and exchanges.
Reacting to the decision, commodity market regulator FMC Chairman B C Khatua said, "We are very happy for industry."
Expressing satisfaction, a spokesperson with the country's largest commodity exchange MCX said, "Thanks to the government for taking the decision. This will make the domestic market more efficient to compete globally and risk management will become more effective."
Similarly, leading farm commodity exchange NCDEX spokesperson Madan Sabnavis said, "This is a blessing for the entire commodity market. We were eagerly looking for this. It will restore confidence in the market."
So far fertiliser manufacturers have been subsidised so that they sell to farmers at low prices. Mukherjee said the new move would lead to "unshackling of the fertiliser manufacturing sector", and he expected "fresh investments" as well as "direct transfer of subsidies to farmers".
According to AIAI president Vijay Kalantri, the increased allocation of Rs.5,000 crore for railways, 23 percent for national highways, higher allocation for gas grid, Rs.7,000 crore for rural electrification and 87 percent increase in the Jawaharlal Nehru National Urban Renewal Mission would generate employment and serve as a growth stimulus.
"The increase in allocation of 75 percent towards irrigation sector will boost the agro-industries sector," Kalantri said in a statement after Finance Minister Pranab Mukherjee presented the union budget for 2009-10 in the Lok Sabha Monday.
"AIAI also welcomes the hike in allocation to Market Development Scheme and the Rs.4,000 crore special fund to be operated by banks for SMEs to revive from the recessionary trends," he added.
"Since the print media is still passing through difficult times, the stimulus package for the print media is being extended till December 31, 2009," Finance Minister Pranab Mukherjee said while presenting the budget for fiscal 2009-10 in the Lok Sabha.
Budget for inclusive development
Published on Mon, Jul 06, 2009 at 13:59 in Business section
Tags: Union Budget 2009, IIFCL , New Delhi
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INCOME TAX LIMITS RAISED; FARMERS, EXPORTERS GET SOPS - Farmers reap a harvest from Pranab's Budget | Rs 39,000 cr for rural jobs
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- INCOME TAX LIMITS RAISED; FARMERS, EXPORTERS GET SOPS
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New Delhi: Union Finance Minister Pranab Mukerjee's Budget Speech seeks to address the three challenges facing the economy-to lead the economy back to the high GDP growth rate of 9 per cent per annum at the earliest, to deepen and broaden the agenda for inclusive development, and to energise government and improve delivery mechanism.
Insrastructure development has be given a big boost. Bootlenecks for speedy implementation of infrastructure project will be removed to ensure that sufficient funds are made available for this sector.
Infrastructure Finance Company Limited (IIFCL) will evolve a 'Takeout financing' scheme in consultation with banks to facilitate incremental lending to the infrastructure sector.
Allocation for the National Highways Development Programme is being increased by 23 per cent, Jawaharlal Nehru National Urban Renewal Mission by 87 per cent and Accelerated Power Development and Reform Programme by 160 per cent.
A new scheme, Rajiv Awas Yojana, will be introduced with the aim to make the country slum free in the next five years.
The Government proposes to develop a blueprint for long distance gas highway leading to a National Gas Grid. This would facilitate transportation of gas across the length and breadth of the country.
The target for agriculture credit flow has been increased from Rs 2,87,000 crore last year to Rs 3,25,000 crore for 2009-10. The interest subvention available for short term crop loans up to Rs 3 lakh per farmer will continue and an additional subvention of 1 per cent will be paid from this year to those farmers who repay such loans on schedule. Thus, the interest rate for these farmers will come down to 6 per cent year.
Increased spending on infrastructure likelyHindu - - 11 hours ago NEW DELHI: Increased spending on infrastructure to combat the ongoing slowdown and spur economic growth, a road map for public sector equity disinvestment ... Budget to focus on social spend, growth IBNLive.com Budget '09: Lack of reforms sees India Inc, mkts sulking Moneycontrol.com BSNL disinvestment likely to be announced todayCIOL - - 4 hours ago Earlier President Pratibha Patil in her, while addressing Parliament on June 4, had indicated to develop a roadmap for listing and people-ownership of ... A roadmap for reformsHindu Business Line - Jul 4, 2009 If proposals in the Survey are acted on: Retail investors can look forward to action in the primary market with plans to revitalise the disinvestment ... EDITORIAL COMMENT | A Reform RoadmapTimes of India - Jul 2, 2009 We urgently need the reform route to resource mobilisation: disinvestment, subsidy rationalisation, fuel price deregulation, auctioning of spectrum for 3G. ... India to grow at about 7% this fiscal: Ashok ChawlaMoneycontrol.com - Jul 2, 2009 ... which the economic policy makers would need to look at and one such area is disinvestment. On what the final roadmap will be, what the policy decision ... Bank, PSU stocks nosedive 6 pc as budget disappointsHindu - 7 minutes ago Marketmen said the plunge in the PSU stocks was largely because the government did not give any clear roadmap on the disinvestment programme. ... Mind that fiscal gap & aim for zero deficitEconomic Times - Jul 2, 2009 Disinvestment alone can fetch the government at least Rs 25000 crore annually, going by the survey's estimates. Though the major contributor to the ... Govt Bonds & OIS...Bond mkt to witness good rally on feel-good ...India Infoline.com - - 3 hours ago The market will look for forward-looking statements (in the budget) concerning growth; disinvestment; opening up of economy to foreign participation and ... BJP blames UPA for slow pace of reformsBusiness Standard - 14 hours ago “A stalled disinvestment programme, failure to promote foreign investments at desired rate and failure to channelise sufficient investments into ... Market awaits Budget signals for new driveHindu Business Line - - 14 hours ago But the contradictions and over-simplistic equation of reforms with disinvestments apart, a large section of market players want a roadmap rather than ... Stay up to date on these results: |
Nifty slips below 4300 as FM presents budget 6 Jul 2009, 1229 hrs IST, ET Bureau | |||||||
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MUMBAI: Indian markets were under pressure as the Finance Minister Pranab Mukherjee left the corporate tax unchanged in the union budget. However, At 12: 10 pm, National Stock Exchange’s Nifty was at 4299.75, down 124.50 points or 2.81 per cent. The index touched an intra-day low of 4293.60 and high of 4479.80. Bombay Stock Exchange’s Sensex was at 14472, down 440 points. Reliance Infrastructure (-4.25%), ONGC (-4.24%), Relaince Capital (-3.96%), ICICI Bank (-3.83%) and Jindal Steel (-3.79%) were amongst the Nifty losers. Ranbaxy was up 0.78 per cent and Hero Honda moved 0.28 per cent higher. Market breadth was negative on the NSE with 48 declines and 2 advances. | |||||||
A 3-7% correction acceptable: India Infoline CEO 6 Jul 2009, 0546 hrs IST, ET Now | |||||||
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A lot of positives have been discounted in the Budget — right from STT reduction to the removal of FBT, and a cut in the dividend distribution tax.
Some of these measures may come through, a lot may not. I think unless a large number of sweeping reforms comes through, the Budget is not going to have a large impact. Now you’ve got a trading range on the Nifty between 3800 and 4300. So unless the Budget throws up something extremely negative, I don’t think we’ll give a huge thumbs-down to the market. A 3-7% correction, given the kind of upswing which has happened in May, would be fairly acceptable. Mr Bhagat was speaking on the sidelines of the launch of a new overseas trading facility for India Infoline customers in India, offered in collaboration with Interactive Brokers of UK. http://economictimes.indiatimes.com/News/Economy/Policy/A-3-7-correction-acceptable-India-Infoline-CEO/articleshow/4742427.cms | |||||||
Can Pranab pull off the great Indian ropetrick? 6 Jul 2009, 0453 hrs IST, Shankar Raghuraman, TNN | |||
The radically different situation he now finds himself in — an economy desperately trying to keep its growth momentum in the face of a global slump — will mean he has a more difficult balancing act to do than most finance ministers.
Any Budget calls for trade-offs between various desired goals given the finite money available, but Mukherjee has the unenviable job of finding larger than normal amounts of money to fund a stimulus package and various social welfare schemes at a time when a sluggish economy has slowed down government revenue collections.
While presenting the interim Budget for this year in February, Mukherjee had said: "While the proposed provisions are appropriate for a Vote-on-Account, I would like to point out that Plan expenditure for 2009-10 may have to be increased substantially at the time of the presentation of the regular Budget, if we are to give the economy the stimulus it needs to cope with the global recession that is likely to continue through the year."
In other words, expect the expenditure figure to be significantly higher than the Rs 953,231 crore he had estimated five months ago. But that's not all. Since the FM made that comment, the government has promised to bring in a Food Security Act under which all families below the poverty line will be entitled to 25kg of rice or wheat per month at Rs 3 per kg.
How much that guarantee will add to the government's expenditure will depend on the precise details, which are yet to be announced, but even the most conservative estimates suggest the food subsidy bill will rise by at least Rs 3,000 crore.
On the revenue side, there is no reason to believe that the revenue receipts estimate of Rs 609,551 crore made in February was unduly pessimistic. In the absence of fresh taxes, it would be difficult to justify scaling up that figure. And fresh taxes will be difficult to impose. If anything, there is pressure from the middle class to give some concessions to relieve the impact of stagnant or declining salaries and job losses.
So where will the money to fund the additional expenditure come from? Again, Mukherjee himself answered that question in February: "Since the scope for revenue mobilization is bound to be limited in a period of economic slowdown, any increase in plan expenditure will increase the fiscal deficit."
http://economictimes.indiatimes.com/News/Economy/Policy/Can-Pranab-pull-off-the-great-Indian-ropetrick/articleshow/4742315.cms
New Delhi (IANS): The heads of government who are meeting this week for the G8 Summit in Italy need to find $23 billion a year to halve hunger by 2015, according to the latest calculations by development agency ActionAid.
"G8 is failing to help over one billion hungry people. In 2008, they made commitments to tackle the food crisis but since last year, the number of hungry has risen by 100 million," said Angela Wauye, food rights coordinator at ActionAid Kenya. "Poor people cannot eat promises. This year the G8 must do more."
ActionAid research suggests that trends which have pushed the number of hungry above one billion are set to worsen unless G8 leaders - who will meet from July 8-10 - take bold action to revive developing world agriculture and reverse global warming.
Food prices are still on the increase in many developing countries while crop yields are stagnant. Rising unemployment and falling incomes as a result of the global recession compound the growing hunger crisis, said a spokesperson of the NGO that works in over 40 countries.
ActionAid has put together a timetable of action for G8 leaders. They must find $23 billion a year by 2012 to meet the UN's millennium development goals of halving hunger and stop it from spiralling out of control.
France emerges as the champion of current spending on aid to combat hunger while Italy - the current G8 chair - languishes at the bottom, 70 percent off track on its targets.
"As hosts of a summit focussing on food security, Italy must show leadership by putting real money on the table, not empty promises," said Otive Igbuzor, ActionAid's head of campaigns. "It would be embarrassing for (Italian Prime Minister Silvio) Berlusconi to be hosting this summit and allow his country to remain in last place in the fight against hunger."
ActionAid's research shows that among the G8 countries, Britain is in second place in the fight against hunger with Germany third, Japan fourth, Canada fifth, the US sixth and Italy in last place.
France currently spends $0.66 billion but needs to spend $1.99 billion by 2012 if it is to pay its "fair share" of the solution to the hunger crisis, ActionAid calculates. "The UK spends $0.60 bn but must pay $1.87 bn by 2012. Germany is spending $0.81 bn but needs to spend $2.61 bn. Japan is spending $1.06 bn but needs to spend $3.69 bn. Canada spends $0.27 bn but must spend $1.05 bn. The US currently spends $2.04 bn but needs to up its share to $10.37 bn by 2012."
ActionAid is also calling for an ambitious climate change mitigation and adaptation package, a binding and enforceable code of conduct against land deals in developing countries and stopping enforced trade liberalisation.
"The G8 leaders provide one last chance to take bold action on hunger," said Otive Igbuzor, ActionAid's HungerFREE campaign coordinator. "Next week is it. We are throwing down the gauntlet for the G8 to act."
ActionAid's calculations of current donor spending are based on a three-year average of disbursements, in current prices, to the four sectors most relevant to the anti-hunger package of the UN Food and Agriculture Organisation: agriculture, forestry and fishing; rural development; biodiversity; and emergency food aid.
They include an imputed share of donor contributions to key multilateral agencies (EC, IFAD and IDA), as well as an imputed share of budget support that can be assumed to contribute to relevant sectors. The amount of budget support 'credited' is based on a rough estimate that 5.5 percent of developing country government budgets are spent on relevant sectors.
The rankings are based on the percentage of the "fair share" of aid needed that each donor is currently spending (based on a three-year average of disbursements). Aid needed is based on calculations by FAO, and "fair share" is based on the relative size of each G8 donor's GDP.
Washington (IANS): Besides Abraham Lincoln, President Barack Obama looks up to Mahatma Gandhi and Nelson Mandela as his heroes for bringing about transformative change without violence by changing people's minds and hearts.
"Abraham Lincoln is probably the President who I find most compelling because not only did he deal with probably the biggest crisis in American history, the Civil War, but he also did so in a way that was full of understanding of humanity," he told Russian state-run Rossiya TV and ITAR-TASS news agency.
"And his willingness to, I think, understand other people, from slaves to slave owners, and try to hold people together even when we were in the midst of war I think is extraordinary."
"Internationally - Nelson Mandela, Mahatma Gandhi. I always am interested in leaders who are able to bring about transformative change without resort to violence, but rather changing people's minds and people's hearts," Obama said.
The White House released a transcript of his interview on Sunday hours before Obama heads to Russia for his first trip as president.
Govt scraps CTT; Commodity bourses hail move
New Delhi (PTI): The government today abolished the Commodity Transaction Tax (CTT) that was announced in the Budget last year, but was yet to be implemented and the commodity exchanges rejoiced the decision.Finance Minister Pranab Mukherjee ... More
Apex court admits COAI, BSNL petitions against TDSAT ruling
New Delhi (PTI): The Supreme Court on Monday admitted the appeals of the COAI and BSNL challenging the telecom tribunal ruling that upheld the government decision to allow Reliance Communications to use dual technology for offering mobile ... More
Samsung announces earnings estimate
SEOUL (AP): Samsung Electronics Co. announced quarterly earnings estimates for the first time Monday, saying it hopes to reduce market confusion and speculation about its performance. The Suwon, South Korea-based corporation said it expects ... More
Asian stocks mixed as investors await profits Sensex regains 15,000 level, up 123 pts in early trade Rupee down by 6 paise against US dollar in early trade Oil plunges to near $65 on fears recovery may lag Toyota Prius is Japan's top selling car in June Budget expectations of oil and gas industry Prospect of Indo-Bangladesh trade bright: IBCCI chairman Budget expectations of the mutual fund industry
Mkts nosedive on budget disappointment; metals, banks crash
Sensex, Nifty down with big losses @ 12:59 hrs
Budget fails to live up to mkt expectations; banks dip
Sensex plunges nearly 450 pts in volatile trade
Sensex plunges on fiscal concerns
Nifty plummets below 4200
Budget fails to enthuse markets, Sensex plummets @ 12.25 hrs
Nifty breaks 4400; banks, metals, telecom, cap goods dip
Nifty hovers near 4450; tier II outperform
Sensex off to a bright start @ 10:31 hrs
 NRIs should be treated on par with Indians: Srichand P Hinduja Srichand P Hinduja , noted non-resident Indian businessman , believes India must bring in a transparent system.  A professor's labour helps fight H-1B visas Norm Matloff, a computer science professor with a Chinese-born wife, says the U.S. skilled-immigrant visa system exploits workers everywhere.  Obama changing approach to illegal immigration Federal agents will reserve tough criminal charges mostly for employers who serially hire illegal immigrants and engage in labor violations, officials said.  H1B petitions: Over 20,000 vacancies still left Amid the economic downturn and protectionist provisions in the US stimulus package, the demand for the visas, which is mostly availed by Indian professionals, has slowed down.  US to revamp immigration services, cut red tape: Obama Obama's move to ensure more transparency in immigration services will help Indian-Americans applying for Green Card.  TCS passport project gets delayed Promising a passport within three days, it peddled a dream to Indians crowding understaffed and overburdened regional passport centres.  Indians among highest Visa rule breachers in Oz Based on a review of the student visa programme, Indians were bracketed as a 'level-four' risk, which is the second highest risk category.  UK may emerge as most preferred study destination With first-rate education system & quick visas, Britain looks set to thrash Australia as most preferred study destination for Indians.  India demands visas for professionals, presses for WTO talks India's new Trade and Commerce Minister Anand Sharma said rich countries must grant Indian professionals more visas.  'Visa applications by Pakistanis lacked credibility' More than one in three successful visa applications by Pakistanis "lacked credibility", a secret internal report has indicated.  Obama 'committed' to immigration reform Obama outlines reform, saying people should not be allowed to come to US against law and employers must not exploit low-wage labor. Cos that receive max H1B visas  US job visa policy could affect Indian investment: Study Indian corporates could slow down investment in the US if the strict American policy on issuing temporary visas is not relaxed, says a study.  India denies Visa to US religious freedom watchdogs India foiled a proposed visit to the country by US Commission on International Religious Freedom, an organization that monitors religious rights worldwide.  US lawmakers seek to ease family immigration US lawmakers unveiled legislation to help reunite families split apart for years by creaky immigration system.  Illegal Indian immigrants convicted for biggest UK visa fraud Three illegal Indian immigrants have been jailed for their role in Britain's biggest visa fraud. Interviews
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Most FMs in recent years quoted leading lights. Will Pranabda too?
NEW DELHI: History, goes the old adage, repeats itself. That, read in the context of the presentation of the Union Budget Though Hugo’s actual quote did not have Singh’s 20th century pithiness (On resiste a l’invasion des armees; on ne resiste pas a l’invasion des idees — We can resist the invasion of armies; we cannot resist the invasion of ideas), the idea was well taken. Given the onrush of Urdu couplets and the like since then, it is clear we can resist the invasion of staid speeches but not quotations. Little wonder that every finance minister after him has taken the cue. P Chidambaram opted for the Tamil seer-poet Thiruvalluvar’s lines, “Iyattralum, eettalum, kattalum, katta; Vakuthalam vallath arasu (To be able to increase wealth, to lay it up and guard; And also well to distribute it, marks a royal lord), in his first Budget speech and stayed with him for every successive speech. Yashwant Sinha was noted for quoting Ramdhari Singh Dinkar’s lines, “The stars of the dark night are fading. The whole sky belongs to you,” in his first Budget speech, and then his own Prime Minister AB Vajpayee in his second. Jaswant Singh abjured such frills altogether, prompting an industrialist to enquire why he did not quote a single line of poetry. “Because it’s about economics,” was his reported reply. Without the Clintonian expletive at the end. As Pranab Mukherjee stands up to table the Budget on Monday, expectations are mixed. While he is an avid reader and a workaholic — thus unlikely to need a team of researchers to dredge up appropriate flowery aphorisms — some old habits may die hard. In 1982, when he took an inordinately long time to read out his maiden Budget speech, Indira Gandhi is said to have joked, “The shortest finance minister has delivered the longest Budget speech!” Indeed, given Mukherjee’s formidable erudition, he may well fall back on history, if not to cull out attractive phrases, then to show some parallels. Exactly a century ago, a ‘People’s Budget’ was presented in London, which aimed to deal with falling tax revenues while funding deeper social sector reforms. The 1909 proposals included an income tax hike, a super tax on the highest income, a rise in indirect taxes on petrol and tobacco, and a tax on the land (and its sale) held by the wealthy. | ||||||||
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The Bombay Stock Exchange's public sector undertaking (PSU) index gave best returns among the dozen other sectoral indices during the week ended July 5, in the run-up to the Budget presentation.
Among the 13 sectoral indices, the PSU index, which includes companies like GAIL, BPCL, HPCL, IOCL and MTNL, gave 2.07 per cent returns for the week ended July 5.
The PSU index ended the week at 8,226.83 points as against 8,059.77 points on June 29.
Marketmen said that the PSU stocks had been gaining on expectations of the road map for disinvestment being unveiled in the Budget and other reforms to be initiated by the UPA government.
Finance Minister Pranab Mukherjee will table the Union Budget in Parliament on Monday.
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Last week, the market was volatile and the benchmark index Sensex gave a return of nearly one per cent to end the week at 14,913.05 points.
The sectoral indices that fell into negative territory at the end of trading last week include auto (0.80 per cent), oil (0.16 per cent), power (0.19 per cent), realty (0.83 per cent), capital goods (1.54 per cent), consumer durables (0.60 per cent) and teck (0.02 per cent).
Further, the pre-Budget Economic Survey has also suggested that the government sell a minimum 10 per cent stake in all unlisted public sector enterprises and ÒauctionÓ those that cannot be revived, thus suggesting a disinvestment target of Rs 25,000 crore per annum.
During last week, PSU companies that gave positive returns were BPCL (7.5 per cent), GAIL (India) (9 per cent), HPCL (8.97 per cent) and MTNL (6.24 per cent).
ÒThe present government, with the clear and aggressive disinvestment policy, has a lot of cushion and headroom in its fiscal policy making. With the aggressive disinvestment policy, the fiscal deficit may not be such a serious threat to the Indian economy, as generally perceived,Ó SMC Capitals equity head Jagannadham Thunuguntla said.
Other indices that gave positive returns were FMCG (0.64 per cent), IT (0.66 per cent), metal (0.78 per cent), bankex (0.49 per cent) and health care (0.80 per cent).
 Warring Ambani brothers may come together for prayer meet Their fight may have reached the SC but Ambani brothers Mukesh and Anil are expected to come together once again.  RIL makes Govt party to gas supply dispute with RNRL Mukesh Ambani-led RIL has made the govt a party in its petition before the apex court challenging the Bombay HC verdict on the gas supply dispute with RNRL.  RIL moves SC challenging Bombay HC order on gas pricing Mukesh Ambani's RIL filed a special leave petition in SC, challenging Bombay HC's order on gas pricing.  RNRL first to move SC in gas feud The high stakes and increasingly Byzantine legal battle between the estranged Ambani brothers reached the Supreme Court on Friday.  RIL files caveat in SC against ex parte judgment RNRL earlier today moved SC seeking modification of the Bombay HC ruling that suggested firming up gas supply contract through negotiations.  RNRL moves SC, wants gas supply from RIL as binding RNRL moved the Supreme Court two days after RIL said it would move the apex court on the Bombay High Court order.  RIL to move SC against KG gas ruling RIL is expected to approach the Supreme Court on Monday, said a person close to the development, but this could not be confirmed with the company.  Govt may take action against RIL on KG gas Govt is contemplating penal action against RIL for committing 28 mn standard cubic meters of gas per day from its KG basin.  Letter war continues between RIL, RNRL Interminable exchange of letters between RIL and RNRL continued with RIL informing its rival that it would not sign any agreement on supply of gas from its KG basin without the approval of the government.  RIL not to sign pact with RNRL on gas supply Rejecting offer for talks, Mukesh Ambani-run Reliance Industries on Tuesday told Anil Ambani group firm RNRL that it would not sign any agreement on the gas supply issue without approval of the government.  RIL to move SC on gas supply dispute RNRL submitted that it should be given an opportunity to defend the matter before the apex court.  'Ambani MoU must not dictate policy’ Taking strong exception to the Ambani family settlement setting the prices of a natural resource like gas, the fertiliser ministry has said the MoU between the two brothers should not “over-ride the sovereign right of government to formulate policies aimed at larger public interest.  Govt may recast cabinet panel on KG gas dispute Govt may reconstitute its eGOM on gas allocation as it looks to play a more active role to safeguard its interests should the long-running bitter battle between the Ambani brothers over gas supplies escalate.  RNRL gets stood up by RIL; no meeting on gas supply A top management team of Anil Ambani group firm RNRL got stood up by Reliance Industries officials.  Ambanis under pressure to settle row over KG gas Family members and well-wishers are seeing adverse Bombay HC judgement on KG basin natural gas as an opportunity for Ambanis to mend fences. | ||
Budget to decide future market direction
If the budget fails to meet expectation Nifty might correct to 4000 level and Sensex at 14,100 level, according to the market men. But positive outcome can consolidate the market at the current levels.
Enchanted by Economic Survey report followed by a positive railway budget a large of traders meanwhile, refuses to leave hope for any positive budget outcome. Many of them are poised to take positions after budget only.
Said Madhumita Ghosh, vice president, Research and PMS, Unicon Securities, “Budget would be a mix of triangular factors - investors’ friendly, rural oriented and infrastructure focused. Based on these factors, this budget will reflect the future projection of individual companies, which will perform in the market accordingly.”
However, budget is not the only trigger that will single handedly derive future course of action for the market. Global cues equally remain relevant for the market despite India’s positive growth projections.
Said Daljeet Singh Kohli, Head – Research, PCG, Emkay shares, “global cues will keep influencing the market. Recent unemployment data (US unemployment data for the month of June) signifies that recovery is far from over globally. In the last one month market traded on sentiment but ultimately fundamentals have to prevail. Events like Budget or any global cue make fundamentals to play in the market.”
On the other hand, any probable correction would encourage fund managers to buy fundamentally good stocks at the right valuations. In the last one month, valuations were stretched riding on the crest of budgetary expectations.
“Chances are high that budget will finally result in correcting the market due to over expectation. For any such correction, we would be looking at buying value stocks at the corrected price,” said Mohit Mirchandani, head – equity, Taurus Mutual Fund, who feels that there will be knee-jerk reaction on market due to budget.
Mutual funds also intend to wait for executions of budget proposals in till the next budget in February 2010. It would give them a clearer picture to take sectoral calls in the market. However, a section of AMCs are expected to dilute their increased cash position in case of any considerable correction in the market next week.
But oil's decline could be curbed by news of fresh attacks on oil installations in Nigeria, Africa's top oil producer.
Nigerian militants said on Monday they had attacked Chevron's Okan oil manifold in the Niger Delta, a day after saying they had launched their third attack on Royal Dutch Shell's oil well head.
U.S. crude for August delivery fell $1.75 to $64.98 a barrel by 0319 GMT. London Brent crude fell $0.70 to $64.91, adding to Friday's losses of $1.04.
NYMEX floor trading was closed on Friday because of the U.S. Independence Day holiday, and although oil contracts were trading electronically, NYMEX did not issue an official closing price.
"Two major pieces of data will be remembered from the past week, the UK economy shrank by 2.4 percent, the biggest contraction since 1958, and the unemployment figure from the US, which hit 26-year high of 9.5 percent," said Stefano Vincelli, an equities and derivatives trader from Halifax Investments in Sydney.
"Overall, the supply and demand picture for crude is still a bearish number."
Asian stocks were soggy and currencies were subdued ahead of a much-expanded Group of Eight meeting this week as investors doubted the staying power of a global recovery. Japan's Nikkei slipped 1.6 percent while Asian shares outside Japan eased 1.1 percent.
Investors are still smarting from last week's dismal U.S. jobs report, which showed U.S. employers cut 467,000 jobs in June and the jobless rate hit a 26-year high.
Societe Generale said the correction in oil prices, which surged 42 percent in the last quarter amid over-hyped markets, was long-anticipated and predicted that oil prices would continue falling and average around $60 a barrel in July.
"Non-fundamental price support, based on economic optimism, risk appetite, and increasing medium to long-term inflation expectations, has faded for now," Michael Wittner, global head of oil research at Societe Generale, said in a research note.
As bearish sentiment returned, analysts said movements in the U.S dollar, which nudged up slightly on Monday, could play a greater role in influencing oil prices this week.
India does not have god-given right to high growth: CEA
"Please do not be complacent ... even though we have survived the short-term shock fairly well, please do not assume that this is some kind of a god-given right that we will have high growth," Virmani, who is the principal author of the Economic Survey that prescribed bold economic reforms, said in an interview.
However, the economy will grow at 7 per cent, plus or minus 0.75 per cent, in the current fiscal if the US economic downturn bottoms out by September and monsoon is normal, he said.
But to sustain long-run high growth, certain problems need to be addressed, he added.
There are four issues that need to be attended to for the economy to return to a high-growth path for a longer period, say, some decades and not five to six years, he said.
On the fiscal front, he said there is no way out but to expand the fiscal deficit for filling the gap created by the fall in export and private demand in the local economy.
The stimulus packages by way of increase in government expenditure and cuts in taxes to boost private and investment demand widen the fiscal deficit, he said.
Though the fiscal stimulus has to be maintained in the short term, Virmani said in the long run the deficit had to be reined in.
The Economic Survey prescribed reviewing the possibility of having a target of zero per cent fiscal deficit with the flexibility to widen it at a time of downturn.
Virmani said the Survey had thrown up an idea and he is nowhere saying that it should be implemented. It is an idea and it is for the Finance Commission to consider it.
On financial sector measures needed, Virmani said the financial system had to be tuned to encourage the flow of domestic savings towards investment as the fall in global capital flows will have its impact on India.
He further wished for an energy policy that reduced the country's dependence on others as the oil price fluctuation will remain. As a country that imports 75 per cent of its oil requirement, India cannot relax and needs to take care of the issue as oil accounts for a big part of its import bill, Virmani said.
The Economic Survey prescribed decontrolling petrol and diesel prices, and taking advantage of low inflation and global crude prices. It also asked for limiting subsidised cooking gas for domestic consumers to 6-8 cylinders per year.
He said high investment has been a driver of growth since 2003, but has now slowed down. As such, the country needs to ensure that investment takes place to return to a high-growth path.
Forex reserves rise $932 mn during week ended June 26
According to the latest data released by the Reserve Bank of India in its weekly statistical supplement (WSS), total foreign exchange reserves including gold and special drawing rights (SDR - currency with the International Monetary Fund) rose $932 mn to touch $264.58 bn during the week ended June 26.
Almost the entire growth in reserves was on account of the rise in foreign currency assets, which went up $924 mn, while the reserves with the IMF rose $8 mn.
Oil prices have doubled from a low of $32.40 a barrel in December last year and surged over 42 percent in the last quarter -- the largest quarterly gain since 1990 -- partly on hopes of an economic recovery.
The government raised prices of gasoline and diesel by as much as 10 percent on Wednesday, its first increase this year, passing some of oil's rally into an economy just beginning to find its feet amid a global recession.
HDFC Bank said the first round impact of the price hike could push up inflation by 35-40 basis points, while the second round impact through higher food prices on account of an increase in transportation costs could be higher.
However, HDFC Bank said the recent fuel price hike is unlikely to outweigh the impact of the high base effect on year-on-year inflation and wholesale price index (WPI) will continue to fall till September.
Higher fuel prices, along with a shrinking output gap and the liquidity overhang created by an accommodative monetary policy through July should see a rapid gain in WPI from -0.7 percent in September 2009 to 6.1 percent by December and 8.5 percent by March, 2010, the note said.
Given that the Reserve Bank of India's (RBI) central bank's inflation projection for March 2010 is 4 percent, it is likely to start monetary tightening in the fourth quarter of 2009/10.
"An exit strategy out of the RBI's open market operations buy-back operations to accommodate government paper supply through 2009/10 could be put in place as early as October-November 2009 followed by a 50-100 basis points hike in the cash reserve ratio in January 2010," the note said.
HDFC Bank also said it expects quantitative policy instruments to be given precedence over hiking rates like the repo and reverse repo in the initial phase of monetary tightening since liquidity management is likely to be the first line of defense against rising inflation.
West Bengal Industrial Development Corporation (WBIDC), the state’s nodal agency for promoting industry, has kicked off talks with leading banks in the country for the credit line to partly fund the acquisition of 15,000 acres required to restart 15 stalled projects. Top bankers in Kolkata confirmed this development. The funding will be done by a consortium of banks.
A senior SBI official told ET that the country’s largest bank had committed support to the government agency in building the crucial land bank. The official, however, refused to divulge details.
Among the projects that may benefit from the land acquisition drive are Bengal Aerotropolis Projects, which plans to build a township integrated with an airport at Andal in Burdwan district, several iron and steel factories to be built by firms such as Shyam Steel Industries, Adhunik Group of Industries and Jai Balaji Industries, and an aluminium smelter that Vedanta Aluminium plans to build.
However, the likes of Uco Bank and United Bank of India (UBI) have refused to take part in the consortium funding. Uco Bank executive director BM Mittal said his bank follows a policy not to offer direct loans for land acquisition even if the borrower is a state government. United Bank too takes a similar stance when it comes to financing land acquisitions.
“WBIDC had approached us for a Rs 100-crore loan for setting up the proposed land bank for industry. However, our internal lending policy does not permit us to sanction such a loan. However, if the government offers a guarantee against the loan, we may consider the case later,” a senior UBI official said.
Railway Budget 09-10: Infra industry eyes projects to develop railway stations
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Industry officials said the proposals, if implemented properly, will give a boost to the industry.
"It is a welcome decision," Hindustan Construction Company CMD Ajit Gulabchand said, but added that the projects should be completed in a time-bound manner.
Simplex Projects CMD B K Mundhra also hailed the announcement but said the PPP model should be developed in such a way that masses benefit from it.
"The model of development should be such that it caters to the needs of the masses," he said.
On whether his company would participate in the projects when they are implemented, Mundhra said, "We will look at participating in the process if the model is right."
Presenting the Railway Budget 2009-10, Railway Minister Mamata Banerjee called for the development of 50 world class stations in the country, with international facilities, "through innovative financing and PPP mode."
Fatal blasts in India factories
EVMs come under attack from poll 'losers'
Maneka writes to Manmohan on Varun's safety
Income Tax exemption limit increased, corporate tax rate unchanged
Mkts nosedive on budget disappointment; metals, banks crash
Rupee recovers early losses, rules steady against dollar
Asia Gold-India bargain hunts; premiums hardly changed
JP Hydro rises on fund raising plans
BSNL open to offer stake to foreign firm - paper
Wheat futures gain as govt lifts export ban
Pranab allots Rs 120 cr for Unique ID; first set in 18 months
Stocks to watch: HDIL, Prakash Ind, DLF, Reliance Capital ...
Four things corporate world looks for in Budget
Balancing growth & fiscal discipline will be tough
Mahindra Satyam open offer gets poor response
Airlines now lure students with a range of freebies
US armtwists Israeli firm on IAF deal
Aurobindo Marg opens after 1 month
Budget silent on edible oils tax, trade upset
India cuts excise duty on naphtha - budget
G8 leaders to set emissions goals
Telecom industry looks up to Budget '09 to accelerate it's growth
Indian stocks nudge up ahead of budget
BJP blames UPA for slow pace of reformsBusiness Standard - 14 hours ago Swaraj blamed the UPA government for choking economic reforms, which, she claimed, were initiated by the AB Vajpayee-led National Democratic Alliance (NDA) ... UPA policies led to economic mess: BJP Economic Times Revisiting reforms hailedHindu - - Jul 2, 2009 Confederation of Indian Industry President Venu Srinivasan welcomed the survey's proposal for revisiting the economic reforms agenda and said that the ... CII endorses significant reforms proposed by Economic Survey Webnewswire.com Economic Survey calls for new investment environment Economic Times Saw drought of economic reforms in 5 years: Yashwant SinhaMoneycontrol.com - Jul 5, 2009 Former finance minister Yashwant Sinha of the opposition party BJP said the country has seen a drought of economic reforms over the last five years. ... Budget preview: Promises to keep IBNLive.com Reforms push, not fiscal push Livemint Economic Survey: visionary or impractical?Hindu - 13 hours ago ... to them in his budget speech, it is highly unlikely that he will accept or be able to accept its recommendations — especially those on economic reform. ... Balancing growth & fiscal discipline will be tough Economic Times Budgets, commodities and the common man Commodity Online Reforms' progressive regression Government is growing, so are ...Organiser - 6 hours ago It is fascinating to evaluate our present status with all that was promised at the time of introducing economic reform. Seven major areas of policy reform ... Budget-making: Some thoughts Merinews Budget key to Re's fortunesDaily News & Analysis - - 11 hours ago From overall market's perspective fiscal consolidation and commitment to economic reforms would be the key things to watch out for. ... Rupee seen up, bonds yields down before budget Reuters India Sensex, Nifty gain one per cent each in bullish marketTimes of India - Jul 4, 2009 During the week, the Economic Survey has recommended sweeping tax reforms and asked the government to revitalize disinvestment programme and plan to ... Edgy market sees equities end little changed Economic Times Survey pitches for big-bang reformsHindu Business Line - Jul 2, 2009 These are among the big-bang reform measures suggested in the Finance Ministry's Economic Survey 2008-09 tabled in Parliament on Thursday. ... How about a saral tax structure? Economic Times Budget '09: Need for indirect tax reformsEconomic Times - - Jul 3, 2009 The expectation is that the Government will now fast-track the process of economic reforms and would provide the stimulus needed for economic recovery. ... Perverse policy signalsLivemint - 17 hours ago If policy signals are anything to go by, the execution of economic reforms remains as difficult as ever. After an anti-reforms Railway Budget comes the ... Stay up to date on these results: |
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