Follow palashbiswaskl on Twitter

ArundhatiRay speaks

PalahBiswas On Unique Identity No1.mpg

Unique Identity No2

Please send the LINK to your Addresslist and send me every update, event, development,documents and FEEDBACK . just mail to palashbiswaskl@gmail.com

Website templates

Jyoti basu is dead

Dr.B.R.Ambedkar

Tuesday, July 28, 2009

STIMULUS UNLIMITED:PRANAB Opens National Revenue Gates for Desi ILLUMINATI. Tonic to Realty Sector after NILEKANI Booster. MNCS, BUILDERS, PROMOTER Sand LPG Mafia gets TAX Break. Tax Holy Day for Industry Parks. Realty Majors and Dons Rule India!


STIMULUS UNLIMITED:PRANAB Opens National Revenue Gates for Desi ILLUMINATI. Tonic to Realty Sector after NILEKANI Booster. MNCS, BUILDERS, PROMOTER Sand LPG Mafia gets TAX Break. Tax Holy Day for Industry Parks. Realty Majors and Dons Rule India!

 

Troubled Galaxy Destroyed Dreams, Chapter 304
 
Palash Biswas
 
Pl Visist my blog:
 
 

Tonic to builders and buyers

Calcutta Telegraph - ‎13 hours ago‎
Realtors have been pleading for relief after housing prices fell by as much as 15 to 25 per cent in many cities. "The incentive is expected to help more big ...

New home sales soar in June

 
 
 
Charleston Post Courier - Katy Stech - ‎7 hours ago‎
Realtors, builders and housing experts buzzed over an announcement Monday from US Commerce Department officials that new home sales ...
Housing market shows relief Monroe News Star
 

Fight to regularise forest houses on home stretch

Times of India - ‎Jul 17, 2009‎
Sources said that this would come as a relief to leading builders like Nirmal Developers, Runwal Construction and Oberoi Construction. ...

Incentives set to spur demand for housing

Hindu Business Line - ‎18 hours ago‎
While the real estate industry feels that the interest subsidy would stimulate the hitherto flagging demand, builders appear divided over the extent of ...

Drywall frustration grows

The News-Press - Mary Wozniak - ‎7 hours ago‎
Their homes were built by a variety of builders, but one thing is the same: They are all grappling with trauma to their lives caused by tainted drywall. ...

The next kill-joy, 'Commercial Property Loans Go Bad'!

OANDA Forex Blog - Dean Popplewell - ‎2 hours ago‎
It's not surprising to see that new home prices also dipped in June, similar to re-sale prices, as builders continue to increase incentives to shift stocks. ...

Editorial: Builder tax deferral on spec homes unfair

StarNewsOnline.com - ‎Jul 25, 2009‎
Perhaps with their gesture the Honorables just wanted to say they did something to offer relief to a segment of the suffering North Carolina economy. ...

Fort Myers drywall victim sick of wait

The News-Press - Mary Wozniak - ‎Jul 25, 2009‎
He wants relief now. He knows Aubuchon didn't put the drywall in his home intentionally. But he still thinks the builder bears responsibility. ...

United Way program receives grant

SouthCoastToday.com - ‎7 hours ago‎
... Safe Zones; MOMS Club of Fairhaven; and Team Builders Inc. For more information about the United Way Community Building Mini-Grants Program, ...

And the bucks keep flowing in

MiamiHerald.com - Carl Hiaasen - ‎Jul 25, 2009‎
You can't win a US Senate seat without a war chest, and developers, builders and banks are among Florida's most prolific campaign donors. As of mid-July, ...
 
  1. The Hindu Business Line : Pune builders working out 3-month relief ...

    26 Feb 2009 ... Pune builders working out 3-month relief package ... the Promoters and Builders Association of Pune is working out a three-month relief ...
    www.thehindubusinessline.com/.../2009022650741900.htm - Cached - Similar
  2. The Tribune, Chandigarh, India - Punjab

    Relief to promoters of PUDA-approved projects. Pradeep Sharma ... Mr F. S. Nagra of the Zirakpur Promoters and Builders Association, said here today. ...
    www.tribuneindia.com/2006/20060301/punjab1.htm - Cached - Similar
  3. The Telegraph - Calcutta (Kolkata) | Jharkhand | Builders seek ...

    4 Apr 2008 ... Builders seek strict rule relief. OUR CORRESPONDENT ... the building promoters operating in the steel city have sought relaxation in ...
    www.telegraphindia.com/1080404/jsp/.../story_9093922.jsp - Cached - Similar
  4. CAclubindia - CAclubindia : JUDICIARY : Relief to Builders ...

    26 Jun 2008 ... Relief to Builders. Court : Guwahati High court. Brief : : .... engaged for construction work and the builder/promoter/developer undertakes ...
    www.caclubindia.com/judiciary/judiciary_detail.asp?...id... - Cached - Similar
  5. The Home Builder Relief Act Of 2008 - Forbes.com

    The Senate takes on the housing crisis. Guess who's cheering.
    www.forbes.com/.../housing-senate-construction-biz-wash-cx_jz_0407housing.html - Cached - Similar
  6. Home Builders Support Foreclosure Relief Plan | Banking & Finance ...

    The National Association of Home Builders recently noted that it would help to keep people in their homes and avoid further surges in the inventory of ...
    www.allbusiness.com/banking-finance/.../11755419-1.html - Cached - Similar
  7. Losses may turn into relief for home builders | Reuters

    NEW YORK (Reuters) - Home builders are expected to post losses when they start issuing their quarterly earnings results this week, but they are likely to be ...
    www.reuters.com/article/.../idUSN1837852520080421 - Cached - Similar
  8. Relief for builders as govt mulls cut in impact fee-Hyderabad ...

    25 Nov 2008 ... HYDERABAD: With a slowdown in construction activity and requests from builders' associations, the municipal administration and urban ...
    timesofindia.indiatimes.com/.../Relief...builders.../3752742.cms - Similar
  9. Residential builders get some relief in price squeeze.(Real Estate ...

    Residential builders get some relief in price squeeze.(Real Estate) - A just-released report on the outlook for construction costs has some ...
    www.encyclopedia.com/doc/1G1-139599654.html - Cached - Similar
  10. TheStar.com | Business | Ontario builders seek relief in budget

    4 Dec 2008 ... TheStar.com | Business | Ontario builders seek relief in budget. Ontario builders seek relief in budget. TORONTO STAR GRAPHIC. Email Icon ...
    www.thestar.com/article/548098 - Cached - Similar


1 2 3 4 5 6 7 8 9 10 Next

 

EXCISE DUTY, SERVICE TAX REDUCED

Font Size A+A-

Pranab gives tax break, praises govt for growth

 

TimePublished on Tue, Feb 24, 2009 at 15:45, Updated on Tue, Feb 24, 2009 at 17:21 in Business section

FOOTNOTE TO BUDGET: Acting Finance Minister Pranab Mukherjee announces tax breaks.

FOOTNOTE TO BUDGET: Acting Finance Minister Pranab Mukherjee announces tax breaks.


 

What's your opinion

brought to you by

Manmohan Singh view profile

ibnlive.com is on mobile now. Read news, watch videos
be a Citizen Journalist. Log on to m.ibnlive.com NOW!

Top Headlines

Top Videos

Most Popular

Photogallery

Find us on Facebook | Join IBNLive community

Stay ahead with G-Talk Buddy | Click now!

New Delhi: The Lok Sabha on Tuesday approved 2-percent cuts in excise duty and service tax proposed by Union Minister Pranab Mukherjee, who said resilience of the economy which grew by an average of 9 percent annually in the last three years will help it overcome the current crisis.

Replying to the debate on the interim budget in the Lok Sabha, Mukherjee said the government had taken steps in the past two months to lift the economy and that such steps will bear fruit soon.

He proposed that the 4 percent cut in central value-added tax (Cenvat), announced in December to 10 percent, be extended beyond March 31, while proposing that the excise duty be further reduced from 10 percent to 8 percent.

The minister also proposed that naphtha imported to generate electricity be fully exempted from customs duty, and service tax on taxable services be cut from 12 percent to 10 percent.

In the case of cement, he proposed the excise duty at 8 percent ad valorem or a specific duty of Rs 230 per tonne, whichever was higher, resulting in a gain of Rs 3.50 per bag.

The House later passed by voice vote the interim budget, including the vote-on-account, to help fund the government expenditure till the regular budget is presented by the next government after elections, and passed by parliament.

"I express satisfaction on our overall performance for five years," Mukherjee said, summing up the achievements of the United Progressive Alliance (UPA) government since it took office under Prime Minister Manmohan Singh May 22, 2004.

External Affairs Minister Mukherjee, who had also tabled the interim budget, made comparisons with the achievements of the previous National Democratic Alliance (NDA) government.

"Never in the history of this country we can find a period of three consecutive years of sustainable growth of 9 percent," he said, adding: "And the allegation is we have destroyed the economy!"

He said under the NDA regimes, which lasted six years till 2004, the average growth was 5.8 percent, while under the UPA regime, the overall gross domestic product (GDP) expanded by an average of 8.6 percent.

He said, on every count - fiscal deficit, revenue deficit, tax-to-GDP ratio, or the savings and investment rates - his government had turned out much better performance.

At the same time, the revised budgetary estimates during the past five years had always turned out a much better performance compared with what had been budgeted for, said Mukherjee, who was himself finance minister in the 1980s.

"And you call it dismal performance?"

The veteran politician said all this had been achieved despite the high average cost of crude oil in the past few years, when it even touched $147 per barrel last year, as opposed to $27 per barrel during the NDA government.

"Let us have some self-confidence in ourselves," he said. "I have expressed deep concern on the impact of the global meltdown. Any responsible finance minister has to express this concern," he said.

"But I said I have confidence on the resilience of the Indian economy."

According to the foreign minister, it was because of parliamentary etiquette that he did not unveil new measures in the interim budget, as he thought it fit for the next government to present a regular budget after elections.

Efforts on to break TMC-Congress deadlock

Hindu - ‎14 hours ago‎
"Pranab Mukherjee [Union Finance Minister and president of the West Bengal Pradesh Congress Committee [WBPCC]] and Keshava Rao [general secretary of the All ...
 

SEBI to hear ad norm violation by Reliance MF on July 30

Hindu Business Line - ‎2 hours ago‎
"The hearing has been fixed on July 30,'' the Finance Minister Pranab Mukherjee told Rajya Sabha on Tuesday. SEBI had found that in the audio visual ...

Banks violated RBI guidelines: Pranab

Economic Times - ‎Jul 24, 2009‎
... prescribed cash reserve ratio (CRR) and statutory liquidity ratio (SLR)", finance minister Pranab Mukherjee informed the Lok Sabha in a written reply. ...

Govt extends breaks for industry parks, property

Reuters India - Rajkumar Ray - ‎21 hours ago‎
Pranab Mukherjee also told lawmakers in parliament the government would provide a 1 percent interest subsidy on home loans up to one million rupees ($20747) ...

India Leaves Rates Unchanged on Inflation Concerns

Bloomberg - Cherian Thomas - ‎3 hours ago‎
Inflation risks increased after Finance Minister Pranab Mukherjee this month unveiled plans to raise spending and widen the budget deficit to a 16-year high ...

First EGoM on 3G spectrum gets deferred

Business Standard - ‎Jul 27, 2009‎
The EGoM, headed by Finance Minister Pranab Mukherjee, was scheduled to meet on July 31. The meeting got postponed as Defence Minister AK Antony, ...
FM links food products' price rise to demand, MSP, and output
28 Jul 2009, 1614 hrs IST, PTI
 
NEW DELHI: Finance
Minister Pranab Mukherjee on Tuesday attributed the rise in prices of certain food products like tea and sugar to lower
production, high demand and increasing minimum support prices.

"Despite fall in overall inflation, for some of the food products and items of daily use like tea and sugar, it continues to remain high on account of lower production, increase in the minimum support prices and growth in demand," Mukherjee told the Rajya Sabha in a written reply.

Prices of certain food prices have continued to soar despite inflation entering negative territory in June. As per the latest figures, inflation was -1.17 for the week ended July 11.

Mukherjee, however, refused to link the sub-zero inflation to contraction of money supply saying "no one-to-one link can be ascribed to the inflation measured by WPI and changes in money stock and currency".

The minister said the overall monthly average wholesale price index-based inflation, which was 4.9 per cent in January, declined to 1.3 per cent in April before entering the negative zone next month.

The government is monitoring the price situation regularly, Mukherjee said, adding it has taken a slew of measures to check rising prices.
 
Realty stocks surge in early trade ahead of RBI policy

Mumbai (PTI): Shares of real estate companies advanced in early trade on the bourses ahead of the RBI quarterly monitory policy review on Tuesday, led by Unitech which surged nearly 5 per cent after the government provided interest subsidy on home loans.

Shares of Unitech opened firm on the bourses and gained further ground surging to a high of Rs 92.10, up 4.70 per cent over previous close.

Country's largest real estate developer DLF gained 4 per cent to a high of Rs 428.50 and Indiabulls Real Estate was up 2.06 per cent to Rs 243.

Mirroring the gains in the sector scrip, the 14-share BSE realty index rose 3.30 per cent to 4,037.62 points.

RBI in its quarterly monetary policy today is unlikely to tinker with key rates, as either a reduction or increase in rates would disturb the optimum level of liquidity.

Explaining the uptrend, marketmen said Pranab Mukherjee's yesterday's announcement to support lower and middle income housing was a major boost for this segment. The RBI policy scheduled to be unveiled today has also boosted the sector.

Finance Minister Pranab Mukherjee yesterday said lower and middle income housing deserves to be supported and announced a slew of concessions, including one per cent interest subsidy for lower and middle income housing loans.

Other major gainers on the index include Omaxe (2.17 per cent), Ansal Infra (4.53 per cent), HDIL (3.21 per cent) and Parsvnath (2 per cent).

 

The finance minister on Monday proposed an extension of tax breaks for industrial park schemes by two years to the end of March 2011.

Pranab Mukherjee also told lawmakers in parliament tax breaks would be offered to real estate developers and food processing units.

"Reforms will be on our agenda... reform is a continuing process," he added.

 

 

 
Tuesday ,July 28, 2009

Pranab announces 1% home loan subsidy

Pranab announces 1% home loan subsidy

New Delhi/Mumbai: Finance Minister Pranab Mukherjee announced an interest subsidy of 1 per cent for one year on housing loans of up to Rs 10 lakh for properties worth less than Rs 20 lakh, a move that has been widely welcomed by realtors and home loan companies. The measure is expected to cost the exchequer Rs 1,000 crore.
 
Mukherjee also allowed developers of housing projects a tax holiday under section 80 IB(10) of the Income Tax Act on profits from projects approved between April 1, 2007 and March 31, 2008, provided the projects are completed on or before March 31, 2012. Mukherjee asked developers to pass on the benefits of this tax break to consumers.

Mukherjee made these announcements in the Lok Sabha today as part of his reply to the discussion on the Finance Bill. Both houses of Parliament passed the Finance Bill 2009-10, which included a raft other concessions.

Assuming a monthly saving of Rs 60 per lakh, today's announcement implies that a borrower saves about Rs 7,200 on a 15-year loan of Rs 10 lakh. The interest rate subvention will be routed through the scheduled commercial banks and the housing finance companies registered with the National Housing Bank.

Pranab's panaceas 

* Extension of tax breaks for industrial park schemes by two years till the end of March 2011

* Poultry, real estate developers and food processing units to get tax breaks

* Tax sops on natural gas produced from coal seams

* Service tax on new services applicable from September 1, 2009

* Road repair and maintenance services exempt from service tax

* Legal guardian of the student who has applied for an education to get tax break

"The demand for affordable housing is picking up and the interest subvention of 1 per cent on home loans will make it easier for people to buy homes," said Pradeep Jain, chairman, Parsvnath Developers.

Today's announcements mark the second stimulus package for the slowing real estate sector, which has been hit by slowing demand and rising costs. Last December, the government had announced a concessional interest rate scheme for housing loans as part of the first fiscal stimulus package. The Indian Banks Association (IBA) had accordingly worked out an interest rate of 8.5 per cent for fresh home loans below Rs 5 lakh and 9.25 per cent for loans between Rs 5 lakh and 20 lakh. Now the rate for loans up to Rs 10 lakh will drop another percentage point.

http://news.in.msn.com/business/article.aspx?cp-documentid=3116377

 

Latest International News

 
  1. India Real Estate Link

    PVP Ventures has sold its 90- ground prime property at Vadapalani in Chennai to ..... Developers Association of India (CREDAI) said that with many industry ...
    indiarealestatelink.com/ - Cached - Similar
  2. Real Estate

    According to industry players, housing accounts for 4.5 per cent of gross ... It has also been suggested that India's property sector could begin to improve ...
    www.ibef.org/industry/realestate.aspx - Cached - Similar
  3. TIMES PROPERTY EXPO KICKS OFF IN STYLE|Real Estate in India|by ...

    On offer is the ninth edition of the Times Property Expo 2009, which kicks. ... Prime Properties, Purvanchal Construction, Riddhi Siddhi Infraprojects, ... leading names in the Realty Industry have already associated themselves with it. ...
    blogs.siliconindia.com/.../TIMES_PROPERTY_EXPO_KICKS_OFF_IN_STYLE-bid-3z9q67Dv98241780.html - Cached - Similar
  4. India Properties - Real Estate India - Indian Property News Site

    23 Jul 2009 ... It is estimated that the Indian hotel industry is to face a .... The properties are located in prime areas such as Altamount Road, ...
    www.indianrealtynews.com/ - Cached - Similar
  5. Buying and selling in Tamilnadu, vacant lands in Tamilnadu, prime ...

    Real Estate in India. Pearls Ooty India Lands in Tamilnadu ... Investment on the prime properties in Tamilnadu or vacant lands in ... Wherein you might be watching the regular ups in the only possible industry i.e. real estate industry. ...
    www.ooty-india.com/land-tamilnadu.html - Cached - Similar
  6. Prime Property Realty - Richmond Indiana Real Estate - Services

    Prime Property Realty offers a wide range of services to assist you ... From finding a home to helping you move in - Prime Property Realty will be there ...
    primesold.com/services.htm - Cached - Similar
  7. The 13th Annual WIEF Presents: India - The Road Ahead | Panels

    (Sub)Prime Property: India's Real Estate in the aftermath of the Subprime Mortgage Crisis. India's real estate industry is one of the largest contributors ...
    www.whartonglobal.com/india/panels.php - Cached - Similar
  8. Real Estate Industry, Indian Real Estate Market and Boom

    The real estate market in India is yet in a nascent stage and the scope is simply unlimited. ... Future Prospects on Real Estate Industry ...
    www.economywatch.com/real-estate/ - Cached - Similar
  9. India Real Estate Monitor

    PropertywalaEmaar MGF, Godrej Properties, Lodha Developers, Sahara Prime City, ..... Real estate industry has started showing the signs of recovery. ...
    indiarealestatemonitor.com/ - Cached - Similar
  10. Prestige group buys prime property in Chennai - Indian Real Estate ...

    Real Estate India - Indian Property Discussion Forum - No Buy, ... Industry watchers say that the price is 'about right' for the area. ...
    www.indianrealestateforum.com/showthread.php?t=2284 - Cached - Similar

1 2 3 4 5 6 7 8 9 10 Next
 

Invest in the Real Brazil

Investment International - Amanda Sharples - ‎1 hour ago‎
As one of the BRIC nations (along with Russia, India and China) – those expected to show substantial ...

Six realty cos plan to raise $2.5 bn via IPOs

Economic Times - ‎Jul 26, 2009‎
Emaar MGF, Sahara Prime City, Godrej Properties, Lodha Developers, Nitesh Estates and Sriram Properties will all hit the capital markets this year, ...

Crime Branch to probe Delhi Metro accidents

Gaea Times - ‎Jul 25, 2009‎
Crime & courts- msnbc.com http://ff.im/-5Hw17 realestate56 Real estate How You Can Avoid This Property Management Crime: How can you avoid bad tenants ...

Let professionals run Air India

Economic Times - ‎12 hours ago‎
... of the merged entity can be covered if both Air-India and Indian Airlines make optimal use of their prime real estate properties across various cities. ...

Hotel hub? Not quite to plan

Times of India - ‎Jul 22, 2009‎
Salarpuria Properties and Ambuja Realty are the only projects that are close to being on track in Rajarhat. The former is setting up a four-star property, ...

All existing projects, plans for next 2-3 years are on track

Myiris.com - ‎Jul 23, 2009‎
The Indian realty sector has borne the brunt of the current slowdown in the last few quarters. Leasing and sales transactions were both very inactive during ...

AI to leverage properties for raising funds

Hindustan Times - ‎Jul 10, 2009‎
"The move would help the airline garner some working capital," an industry analyst said. "Air India has some of the most prime real estate in India and ...

See Nifty beyond 4600 by Diwali or year end: Nirmal Jain

Moneycontrol.com - ‎Jul 17, 2009‎
India has nothing to do with sub-prime. Our credit penetration is very low, housing demand also is likely to be buoyant. I don't think that one should worry ...

Economics for Everyone-The Debate of disinvestment

India Infoline.com - M. Guruprasad - ‎Jul 16, 2009‎
Background:Historically, public sector undertakings (PSUs) have played an important part in the development of the Indian industry. ...

More concerted push for FDI needed

Malaysia Star - Angie Ng - ‎Jul 24, 2009‎
The initiatives by the Malaysia Property Inc (MPI), a joint public-private sector initiative officiated by Minister in the Prime Minister's Department Tan ...
 Finance
Secretary Ashok Chawla said on Tuesday that policy is accommodative with the focus on growth and inflation is not seen rising to
a level of concern.

Chawla spoke shortly after the central bank left its short-term rates and banks' cash reserve requirement unchanged as expected on Tuesday, and stressed that nurturing growth remains its priority as the economy recovers from the global downturn.
 
I belong to Nainital Terai under United Uttar Pradesh, the Plains of Ganges and Yamuna, the Green Empire of ARYAWART.
 
We did not see the Foreign Army of Aryans killing the Valley of Indus Civilisation and the Harappaand Mohanjodoro Urban Developed world linked to the Globe via Silk Route!
 
But I am destined to feel the LOSS of Fragrance of Forest as I was born and brought up in and around the remaining Gim Corbett fame Jungle full of Man eaters!
 
 Our People, the Bengali Aboriginal lot of Partition Victims were thrown once again amidst the Dense Forests of India including Dandakaranya, Andaman and Nicobar and Nainital!
 
Since Manusmriti was launched to kill Buddhism in Magadh, the Pathetic EXODUS does continue.
 
After the Pala Dynasty Fall, Senas from Karnataka ruled Buddhist Bengal and Vedic Culture overtook the Aboriginal land.
 
At the time, our Ancestors were driven away from Aryan mainstream into the Delta of Sundervanas Extended in southern Riverine Bengal!
 
 MY legacy is full of Water streams and Wild Smells!
 
I was linked to the Himalayas Region which adopted me with so much so affection that I never felt the Discrimination until I landed in Brahaminical Bengal and Encountered the Scientific Apartheid to know the Ultimate Truth about the Caste Reality.
 
Nilekani Unique Identity Number Project is now very Clear for me.
 
It is not only Doom`s day for all SC Bengali Dalit Refugees scattered all over the Country and Marginalised and Persecuted in Bengali Original geopolitics cutting the Political Borders and the Bengali Speaking Muslims in general, but it is also the Projected Ethnic Cleansing of Slum Dwellers in Urban and semi Urban areas countrywide.
 
 It means Total Destruction for the Nomadic tribes and Tribals who had been persecuted for thousands and thousands years.
 
Our friend respected Major Siddharth Barves is in Bhopal now from where he called me! from New Delhi,my Professional Friend Dilip Mandal called me.
 
We discussed PRANAB Nilekani Sunil Mitra agenda at large!
 
I warned Major Barves to modify our vision as not only Twenty Million Bengalies and Muslims, but EIGHTY Millions more Underclasses, slum dogs and aboriginal Tribal People have been Selected to be Sacrificed in this Post modern Ashwamedha Yagya and SHUDRAYAN neo!
 
Pranab made it very clear last day! Thanks, DE Facto prime Minister!
 
The Federation of Indian Chambers of Commerce and Industry has said any attempts by the new Government to withdraw tax breaks will be counter productive in attracting investments through public private partnerships mode.
 
"What is causing concern is that over the last two years the Government has been engaged in reviewing and phasing out tax exemptions and incentives largely owing to its feeling that these are costing the exchequer substantially," said FICCI in a statement.
 
The Chamber has expressed that phasing out fiscal benefits will impact the Government estimates of $300 billion investment in infrastructure over the next five years through the public-private partnership mode.
 
The Chamber has suggested that to cope with the situation of limited finance, sectors such as real estate and infrastructure may be allowed to issue tax free bonds for a limited period.
 

FICCI has emphasised such incentives on sectors with significant forward and backward linkages.

 
 The Finance Minister, Mr Pranab Mukherjee, today said that the economy has started showing signs of recovery and that it was possible to register 8-9 per cent GDP growth by the end of 2010.
 

Winding up the discussion on the Finance Bill (No 2), 2009 in Lok Sabha, the Finance Minister announced a slew of amendments on both income-tax and service tax fronts to achieve the objective of "generating economic activity in the present environment of economic slowdown."

 

The Lok Sabha later passed the Finance Bill (No 2) 2009, completing the third and final stage of the Budget exercise for 2009-10.

 

Major breaks
 

 

 

The latest amendments would particularly stimulate the housing sector, where developers have now been given tax holiday on profits derived from certain projects, roads sector (removal of service tax on repairs and maintenance of roads), industrial parks (sunset clause extension by two years till March 2011) and seven-year tax holiday on natural gas produced from coal-bed methane (CBM) blocks under IV round of bidding.
 
Moreover, tax holiday has now been extended for the business of processing, preserving and packaging of meat and meat products and poultry, marine and dairy products.
 

Mr Mukherjee also announced an interest subvention scheme to support lower and middle income housing. Under this scheme, interest subvention of one per cent would be provided to all housing loans up to Rs 10 lakh to individuals, provided the cost of house does not exceed Rs 20 lakh.

The Government would spend Rs 1,000 crore towards the interest subsidy, which will be routed through the commercial banks and the housing finance companies registered with the National Housing Bank.
 
Housing stimulus
 

 

 

To provide stimulus to the housing sector, tax holiday has been extended to real estate developers on profits derived from projects approved between April 1, 2007 and March 31, 2008, if such projects are completed on or before March 31, 2012.
 
"I expect the developers to pass on the benefit of the tax holiday to the home buyers by appropriately reducing their prices," Mr Mukherjee said, adding that both the expenditure and tax foregone initiative would help revive the real estate sector.
 
Mr Mukherjee also assured the House that the draft of the new direct tax code would be released for discussion shortly and that the Bill would be introduced in the winter session. "This new code will bring major changes in direct tax law and its administration," he added.
 
On Goods and Services tax (GST), the Finance Minister said that constitutional amendments can be pursued if legal pundits recommend them for ushering in the "major tax reform." Mr Mukherjee also said that it was possible for GST to be introduced on April 1, 2010, through the co-operation of the States.
 
Positive improvement
 

 

 

Stating that the economic situation has improved, Mr Mukherjee highlighted that the sectors of steel, cement and crude oil saw "positive improvement" in June and some sectors in the first three months of the current fiscal. In particular, recent manufacturing sector growth was quite encouraging.
 
"Fiscal stimulus we had provided had paid dividends to us. We had recorded economic growth of 6.7 per cent growth in 2008-09 even as some international agencies predicted less than five per cent growth," he said.
 

 

 

Meanwhile, for CBM blocks, tax holiday has now been extended to gas produced from CBM blocks to be licensed under the IVth round of bidding. This puts to rest all uncertainties on whether tax benefits would be extended to CBM blocks also. In Budget 2009-10, the Finance Minister had extended seven-year tax holiday for gas produced under NELP VIII.
 

The Government had in April simultaneously launched eighth round of NELP and fourth round of CBM offering 70 exploration and 10 CBM blocks, respectively. Under the tax holiday for NELP VIII and CBM IV, profits from production of natural gas is proposed to be tax exempt for seven consecutive years in cases where commercial production starts on or after April 1, 2009.

 
The Reserve Bank of India's decision to sit tight at the July meeting marks the end of the monetary loosening regime, believes Moody's
Economy.com.

The repo rate remains at 4.75%, the reverse repo rate at 3.25%, and the reserve requirement ratio at 5%. Amid a positive outlook, the need for monetary easing has softened. However, to support the current recovery, the central bank is expected to keep monetary policy at the accommodative setting at least for the rest of the year.

"Monetary policy moves take time to filter through to the economy. Although the global climate is still a little unstable, cutting rates cannot help to immediately boost domestic activity. Instead, policymakers are counting on previous rate cuts to influence market rates now. The several-month lag is due to commercial banks offering high interest rates to term deposits late last year, thereby preventing themselves from trimming lending rates in line with the RBI's policy rate cuts, or they would narrow the interest margin and hence drag on profitability," said Sherman Chan, economist at Moody's Economy.com.

According to Chan, the RBI will likely commence monetary tightening a year from now, as inflation may again emerge as a concern to policymakers. Although the wholesale price index has declined on a year-ago basis in recent weeks, it is expected to return to positive territory by the end of 2009, as improving global economic conditions continue to put upward pressures on
commodity prices.

The central bank has had little success in containing inflation during recent years and is therefore reluctant to push interest rates to even lower levels despite strong public calls to stimulate the economy. However, recent history shows that policymakers had been relatively less hesitant in hiking rates when needed.
 
Economic Times reports:
In its most optimistic prognosis for the economy in 2009, the Reserve Bank of India (RBI) said overall business sentiment was slated for a
sharp improvement from its nadir in the April-June 2009 quarter. The central bank also did not sound all that concerned about inflation, explaining an inevitable rise later this year to the waning base effect.

According to the report on Macroeconomic and Monetary Development, which is released on the eve of RBI's quarterly monetary policy review, there is a turnaround in business sentiment as per industrial outlook survey conducted by the central bank. The index measuring respondents' assessment for April-June 2009 improved sharply by 20.3% over the previous quarter. The index, which measures expectations for forthcoming quarter (July-September 2009), improved by 14% over the pervious quarter. Notably, last quarter these indices had touched their lowest levels since the inception of this survey less than four years ago.

"In a way, this is positive for equities as well as bonds. RBI is talking about some improvement in domestic growth, and at the same time, it appears to be taking a pretty benign view of inflation," said Sujan Hajra, chief economist at Anand Rathi Securities . He pointed out that since macro-economic surveys did not throw light specifically on growth or inflation, the market looked out for observations on business outlook and prices. "I expect RBI will upgrade its growth outlook in tomorrow's (Tuesday's ) policy and at the same time, maintain the outlook for inflation."

The bullishness is also there in the revised growth outlook by various professional economists whose forecasts are aggregated by RBI. The median of these forecasts, including those from IMF and the World Bank, has been revised upward to 6.5% from 5.7%. While agriculture growth could decelerate , industry and services are expected to clock higher growth.

Shubhada Rao, chief economist of YES Bank, shared Hajra's views on a higher growth forecast . "RBI may revise its growth forecast from 6% to 6.5% for FY10. We also expect inflation to pick up in the fourth quarter on the back of supply constraints as well as expected economic recovery," the chief economist said, adding that the central bank is likely to maintain a status quo on interest rates.

The report, which provides a disaggregation of bank credit, throws up another positive. Although credit growth has slowed, the industry's share of bank loans has grown. Bank loan data (up to May 22, 2009) show that 47.4% of incremental nonfood credit (Y-o-Y ) was absorbed by industry compared with 43.2% a year ago. The growth was essentially led by infrastructure, iron & steel, engineering and construction industries. The agri-sector absorbed 16.9% of the incremental non-food bank credit compared with 10.1% a year ago. Though home loans decelerated, real estate loans continued to be high (52% Y-o-Y).

RBI expects inflation to firm up by the end of the year, from 1.12% (negative) as of July 11. This is because the waning of the high base effect of last year, increase in commodity prices, delayed progress of monsoon that can drive up food prices, and inflationary implications of expansionary fiscal policy and accommodative monetary policy. It has also pointed out that inflation expectations have not declined, as consumer prices remained high in the face of negative wholesale level inflation.

The central bank said the growth in non-food credit, which witnessed deceleration since October 2008, has also reversed from June 2009, indicating signs of revival in demand for credit. Signs of improvements in global financial conditions observed in the first quarter of 2009-10 are necessary, but not sufficient, to induce a firm global recovery, particularly in view of the depressed demand conditions.
 
India to Sell Small Stakes in State-Run Units, Mukherjee Says
 
The Indian government plans to sell small stakes in state-run companies while retaining majority control, Finance Minister Pranab Mukherjee said.

"The government would offer small portions of its shareholding to the general public in the domestic market through initial public offerings or follow-on public offerings," Mukherjee said in a written reply in parliament in New Delhi today.

India should aim to raise as much as 250 billion rupees ($5.2 billion) a year from asset sales to stimulate an economy growing at the slowest pace since 2003, the finance ministry said in a report on July 2.

"The policy of the government is to develop people- ownership of public-sector undertakings while ensuring that the government equity doesn't fall below 51 percent," Mukherjee said in his reply.

The share sales of NHPC Ltd., the nation's largest hydroelectric power generator, and Oil India Ltd., are likely to be completed in the current fiscal year that started April 1, S.S. Palanimanickam, junior finance minister, said in a separate reply. "All cases of disinvestment are decided on a case-by- case basis."

The minister declined to say how much the government would raise from asset sales.

"It's not feasible to estimate the realizations from stake sales as the same would depend on various factors such as the percentage of equity to be disinvested, the prevalent market conditions and the time of actual disinvestment," Palanimanickam said.

The Bombay Stock Exchange Public Sector Undertaking index of 34 state-run companies jumped 52 percent in the quarter ended June 30, the most since the three-month period ended March 2002, on optimism the government will resume asset sales.

 

India Leaves Rates Unchanged on Inflation Concerns

 

http://www.bloomberg.com/apps/news?pid=20601091&sid=aamtPh9NMsdQ

 

 India's central bank kept borrowing costs unchanged, signaling an end to its deepest round of interest-rate cuts on concern that inflation will "creep up" from October.

The Reserve Bank of India held its reverse repurchase rate at 3.25 percent, according to a statement in Mumbai today. The central bank raised its inflation forecast for the year to March 31 to around 5 percent from an April estimate of 4 percent and said it may soon need to "reverse" the loose monetary policy of the past ten months.

Inflation risks increased after Finance Minister Pranab Mukherjee this month unveiled plans to raise spending and widen the budget deficit to a 16-year high to bolster growth. Policy makers from Tokyo to London, who in some cases cut interest rates to close to zero, have started to discuss when they will exit from the emergency measures employed to ease a global credit freeze.

"Central banks need to put in place now a timely, smooth and systematic exit from the monetary easing," said Siddhartha Sanyal, an economist at Edelweiss Capital Ltd. in Mumbai. "For India, it would be difficult to continue pursuing the current low-rate regime beyond six to nine months."

Governor Duvvuri Subbarao said the central bank will maintain an "accommodative monetary stance" until there are "definite and robust" signs of recovery.

Policy Reversal

"This accommodative monetary stance is, however, not the steady state stance," he said in today's statement. "On the way forward, the Reserve Bank will have to reverse the expansionary measures to subdue inflationary pressures while preserving the growth momentum."

Stocks narrowed losses after the central bank decision, which was expected by 20 of 23 economists in a Bloomberg News survey. The Sensitive stock index fell 0.4 percent to 15,312.63 on the Bombay Stock Exchange at 11:20 a.m. The benchmark 10-year government bond yields rose 1 basis point to 6.96 percent while the rupee was little changed at 48.225 against the dollar.

India, which releases final inflation numbers after a two- month lag, raised its estimate for the benchmark wholesale price index in the week ended May 16 to 1.65 percent from 0.61 percent, indicating that price gains are gathering pace.

Consumer price indexes that measure the cost of living for industrial and farm workers were running at between 7 percent and 10 percent in May, driven by high food costs.

'Danger Zone'

"The continuation of the monetary-fiscal stimuli is now hitting the danger zone," S. S. Tarapore, a former deputy governor of the central bank, said in Mumbai on July 16. "Given the budget is strongly expansionary, the RBI has little option but to gradually withdraw the monetary accommodation."

Mukherjee on July 6 announced plans to borrow a record 4.51 trillion rupees ($94 billion) to fund spending on roads, power and aid for the poor. The budget shortfall is forecast at 6.8 percent of GDP in the year to March 2010.

The central bank today estimated policy measures since September including lower interest rates and a reduced cash reserve ratio were worth 6 trillion rupees. It said a prolonged budget deficit can "crowd out" private investments and trigger inflation, and urged the government to lay out a roadmap to trim the budget shortfall, including details on revenue and expenditure targets.

Growth Forecast

The "immediate challenge" before the central bank is to provide ample cash in the banking system for companies and government borrowings to support growth, while at the same time control the "potential build-up of inflationary pressures on the way forward," Subbarao said in today's statement.

Inflation is showing signs of picking up elsewhere, with China's central bank today forecasting price gains to rebound in the second half of the year. The Organization for Economic Cooperation and Development expects U.K. inflation will be the highest among Group of Seven nations next year.

Subbarao today also raised the central bank's growth forecast for India in the year to March 2010 to 6 percent "with an upward bias" from the 6 percent estimated in April because of favorable funding conditions for companies and a revival in industrial production.

He said an "uptrend in growth momentum" is unlikely before September and that less-than-adequate monsoonal rainfall could reduce farm output. The rains, which start in June and last until September, were 17 percent deficient as of July 24.

India's $1.2 trillion economy, Asia's third largest, expanded 6.7 percent in the year ended March 31, the weakest pace since 2003.

Reliance Industries Ltd., India's most valuable company, on July 24 reported an 11 percent fall in net income in the three months to June 30 as the global recession curbed fuel demand.

Subbarao also backed Mukherjee's goal to boost growth to a 9 percent pace each year and sustain that momentum to cut poverty in the South Asian nation.

"The clear message seems to be that growth will be the main priority," said Finance Secretary Ashok Chawla. "But they're also going to watch how inflation plays out."

 
 World stocks hit 9-month peak; dollar posts 2009 low
28 Jul 2009, 1637 hrs IST, REUTERS
LONDON: World stocks extended gains to fresh 9-month peaks on Tuesday while the dollar fell to a 2009 low after upbeat US data and optimism over
corporate earnings prompted investors
to add risky assets.

U.S. stocks rose on Monday after data showed home sales surged in June, a sign that the domestic housing market -- which led the world's biggest economy into recession -- may have hit bottom and is starting to rebound. More housing data is due later.

"After yesterday's much better new home sales data and continued theme of better-than-expected news, we may well see traders taking the opinion that this rally has a few more legs to run yet," Jimmy Yates, head of equities at CMC markets, noted. MSCI world equity index rose 0.7 percent to its highest since October. The index is up 7.6 percent this month and has risen nearly 16 percent since January.

"The rally witnessed over the last two weeks could, in fact, imply that the market is getting ahead of itself and discounting a profit rebound, but we believe the underlying cyclical rally ultimately will be durable," Bob Doll, global chief investment officer at BlackRock, said in a note to clients.

"The risks are that inflation expectations put Treasury yields and borrowing rates higher before the recovery gains traction, and that improving consumer spending contracts again next year after the impact of fiscal stimulus."

The FTSEurofirst 300 index rose 0.7 percent, hitting its highest since November.

Deutsche Bank fell more than 5 percent after reporting a significant rise in loan provisions despite better-than-expected quarterly net profit.

According to Thomson Reuters data, out of 202 firms on the S&P 500 index, 156 -- or 77 percent -- beat earnings expectations.

Emerging stocks rose 1.1 percent.

U.S. crude oil rose 0.6 percent to $68.79 a barrel, supported by general flows into risky assets.

The September bund futures fell 17 ticks.

The dollar fell to its weakest level since December against a basket of major currencies while it hit eight-week lows of $1.4303 per euro.

The Australian dollar hit a 2009 high against the dollar and government bonds fell after the country's central bank governor Glenn Stevens said risks to the economy were now more balanced and warned that low interest rates could merely inflate a new housing bubble.
 

Exclusive


High-Frequency Traders Say Speed Is to Everyone's Advantage on Wall Street Frank Troise, the head of electronic equity trading products at Barclays Plc, says using computers to execute orders in milliseconds is no different than brokers jockeying for position years ago on the floor of the New York Stock Exchange.

Cowdery's Resolution, Snubbed by Friends Provident, May Find Deals Harder Clive Cowdery may find his second attempt at consolidating the U.K. life-insurance industry harder after Friends Provident Plc rejected his second takeover bid, the smallest of "three or four" acquisitions he is planning.

Former UBS Executive Joseph Grano Says Bank Ignored Paine Webber Pleas Joseph Grano, who ran UBS AG's U.S. wealth-management business before leaving in 2003, said the Swiss bank's senior management ignored his suggestion early last year that they spin off or sell the unit.

Bank of China to Continue Lending Expansion Unless Government Clamps Down Bank of China Ltd., which doled out the most loans among Chinese banks in the first half, plans to keep expanding credit unless the government clamps down on the nation's record lending boom.

Drugmakers May Enter Ad Wars With $100 Million for Health Overhaul in Fall Drugmakers may ramp up their push for an overhaul of the U.S. health care system by spending $100 million on ads starting as early as September, said a person familiar with the discussion.

Drowning Endowments at NYU, Colgate Trap Student Financial Aid Underwater Millions of dollars for financial aid is out of reach at New York University, trapped in endowment accounts that can't be touched because of a once-obscure state law thrust into prominence by historic investment losses.

Europeans Denouncing Bonuses Help New York Beat London as Financial Center David Butler, who advises hedge funds on tax issues, says he helped 23 firms leave London in the past 18 months, most of them for Switzerland.

LVMH, Chanel Defeat EBay, Force EU to Modify Draft Law on Internet Sales Luxury goods makers LVMH Moet Hennessy Louis Vuitton SA and Chanel SA may win more control over how Web-based retailers sell their products after a last- minute lobbying campaign over a draft European Union regulation.

Earthquake Shift of Nation Puts Kiwis Closer to Aussies in Distance Only Rob Valentine, the mayor of Hobart in Australia's island state of Tasmania, says New Zealanders should be thankful their biggest earthquake in 78 years pushed the neighbors 30 centimeters (12 inches) closer.

Maersk Hit With Frontline in Market Profit Squeeze as Fuel Oil Beats Crude Fuel oil, the waste left after making gasoline and diesel, is becoming as valuable as crude for the first time in six years.

Japanese Government Plans to Lure Asia's Rich to Foster Medical Industry Japan plans to market medical services to wealthy tourists for income to help the country cope with rising cost of its aging society.

IEA Projection for 1.7% Gain in Oil Demand Looks Optimistic: Chart of Day The International Energy Agency's forecast for a 1.7 percent gain in global oil consumption next year may be too optimistic, based on the historic relation between gross domestic product and energy consumption.

Liverpool Owners Said to Refinance Soccer Team's Debt After Making Payment Liverpool soccer club's American owners have refinanced 290 million pounds ($476.6 million) of debt with Royal Bank of Scotland Plc and Wachovia Corp., a person with knowledge of the transaction said.

Lennar Signals Fleeting Homebuilder Rally as Developments Miss New Buyers Townhouses and loft-style condominiums overlook manicured green lawns, flower-lined footpaths and gurgling stone fountains at the Central Park West development in Irvine, California. Just a short walk away there's a basketball court, a junior Olympic pool and a park.

Tightening Credit Becomes Bernanke Bind as Fed Faces Bond Purchase Unwind Now that the U.S. economy shows tentative signs of recovery, James Bullard, president of the Federal Reserve Bank of St. Louis, wants the Fed to adopt a plan for taming the inflation he expects may follow the end of the recession. Unless the central bank puts a strategy in place and presents it to the public, inflation expectations may run rampant, Bullard says.

Taylor Says Bernanke Gets Rate Rule Right While Goldman Doesn't Understand John Taylor has a message for economists who say Ben S. Bernanke is ignoring a benchmark guide for interest rates: They're wrong.

Liverpool Tries Refinancing as `Cheap Girl in Bar' Treatment Enrages Fans Fans partied in the streets with Tom Hicks and George Gillett Jr. in 2007 when the Americans attended one of their first matches as owners of Liverpool Football Club. A year later, Gillett was getting death threats.

Berlusconi's Sex Tape Scandal Unlikely to Be Fatal in Homeland of Casanova Italian Prime Minister Silvio Berlusconi will likely survive the sex scandal involving a high- priced prostitute that is dominating the Internet, front pages and espresso-bar conversations in a nation that made a hero of Latin lover Giacomo Casanova, political analysts say.

Stock Trading Slowdown May Indicate Rally Will Fizzle: Chart of the Day Stock trading in the U.S. hasn't slowed this much midyear in at least two decades, causing some investors to worry that the steepest Standard & Poor's 500 Index rally since the 1930s will fizzle.

Fido's $3,000 Stem-Cell Cure Builds an Industry With Promise for Humans Cris, a 5-year-old police dog in Fremont, California, faced retirement after a muscle injury. Marsh Mayfly, a 12-year-old mare that won a 2006 championship in Scotland, left competition after tearing a tendon.

http://www.bloomberg.com/news/exclusive/

 

 

RBI's wait and watch stance has merit

28 Jul 2009, 1605 hrs IST, Mythili Bhusnurmath, ET Bureau
 
If the Reserve Bank of India (RBI) has won the admiration of its peer group of fellow central banks for the manner in which it ensured the stability
of our financial system, it is not without reason. Its careful (some would say excessively careful) approach to financial 'innovations' saved the country from the excesses of a financial system that was punch drunk. Critics would say it prevented us from enjoying the upside more fully. But in a country with close to 25% below the poverty line, a steady, sustainable if lower rate of growth is infinitely preferable to the boom and bust growth witnessed in Latin America. (Watch)

On Tuesday the Bank lived up to its reputation, opting to wait and watch before acting; and then, possibly, regretting! All policy instruments – the repo rate (at which the RBI pumps in liquidity) the reverse repo rate (at which the bank absorbs liquidity) the CRR or cash reserve ratio which is the quantum of bank deposits impounded by the RBI, the bank rate (a largely defunct rate at which, in theory, the Bank lends to commercial banks) – have been kept unchanged.

Rightly so! Not only because the Bank had given sufficient indication of its thinking in its first quarter review of Macroeconomic and Monetary Developments Document released on Monday but because there is no case whatsoever to loosen policy further. Its actions since September last have already resulted in an actual/potential liquidity injection of Rs 561,000 crore (excluding Rs 40,000 crore freed up as a consequence of the 1% reduction in SLR (statutory liquidity ratio).

Year-on-year broad money growth is 20% and likely to grow further as a consequence of the RBI's open market operations. In a scenario where GDP is expected to grow 6%, even assuming an upward bias, the kind of growth in money supply should be more than adequate to oil the wheels of the economy.

Indeed it could well prove in excess of the economy's needs in which case we could see a return of inflationary pressures of the kind that we witnessed not so long ago. Already food prices are edging ominously higher and with the rains playing truant, the RBI cannot afford to relax its vigil or its 'accommodative stance' any further

In the circumstances the governor has rightly opted to hold his horses. For now! After all, there is no compulsion that policy announcements should always coincide with the Review. A proactive policy is one that responds as the situation evolves. Luckily for us, the RBI's track record on that front has not been wanting.
 
Omar Abdullah resigns over sex scandal allegations
28 Jul 2009, 1531 hrs IST, TIMESOFINDIA.COM
 
Jammu and Kashmir chief minister Omar Abdullah on Tuesday submitted his resignation to Governor N N Vohra after allegations against him by the
J&K assembly
More Pics: J&K assembly uproar
opposition PDP. The governor has accepted Omar's resignation.

During the J&K assembly session today, PDP leader and former deputy chief minister Muzaffar Beig linked the J&K chief minister to the infamous sex scandal that had rocked Srinagar in 2006.

He was accompanied to the governor's residence by his father Farooq Abdullah.

In an emotional outburst in the assembly, Omar Abdullah said," I can't bear this kind of humiliation. I am innocent until proven guilty."

Omar's name figures at 102 on the list of offenders involved in the sex scandal, the opposition alleged. His name is being probed by the CBI, it claimed. "I have to say with regret, there is the name of Omar Abdullah, son of Farooq Abdullah, in the list. He has lost the moral authority to rule the state. He must resign," Muzaffar Beig said, PTI reported.

To which the J&K CM said, "I am going to submit by resignation to Governor N N Vohra. I know it is a false allegation. But I want to resign till I am cleared of this false allegation. I cannot work till I am proved innocent. It is a blot on my character.

There was huge uproar in the assembly during Omar's statement. The MLAs and ministers physically restrained him from going out telling him not to resign and that the party would not accept it. He was virtually forced to take his seat by the ruffled members but he got up to shout at them saying "allow me to take this first step."

Abdullah, who came to power in January this year at the head of a National Conference-Congress coalition, was virtually forced to take his seat by the ruffled members but he got up to shout at them saying "allow me to take this first step"".

A huge sex scandal hit the Valley in 2006. According to reports, girls, including minors, were coerced into prostitution, blackmailed and supplied to top police officials, bureaucrats, politicians, ministers and surrendered militants. The state had witnessed angry protests over the issue.
 
India's entry fee ban unsettles Mutual Funds: Analysis
28 Jul 2009, 1328 hrs IST, REUTERS
MUMBAI: India's fiercely competitive fund industry is set to become even tougher for fund managers as a ban on entry fees slows growth, adds to
distribution costs, cuts profitability and delays the path to breakeven for newcomers.

The country's stock market regulator said earlier this month it would abolish front-end or entry fees charged by mutual funds from August 1, a move aimed at cutting costs for investors
and to discourage aggressive selling. The ban threatens the incomes of over 87,000 distributors, agents who sell funds for a fee, and bring more than 90 percent of the business to money managers.

It is expected to be particularly hostile to small and new players who depend on agent networks. Beyond a handful of firms such as Reliance Capital Asset Management and UTI, Indian money managers have limited reach and rely heavily on distributors to build up their client base. The move will also make it harder for the more than 20 would-be entrants into the market, which is forecast by Boston Consulting Group (BCG) to manage $520 billion by 2015, compared with $120 billion now.

Allianz, UBS and Credit Agricole are among foreign firms looking to set up shop in India. "It's bit of a blow ... a lot of the AMCs will have to look back at their strategy," said Sanjeev Gupta, chief executive of the emerging market investment unit of South Africa's second-biggest insurer, Sanlam.

"It's not just something that affects newcomers," said Gupta, whose firm is looking to enter the Indian market and had anticipated a ban on entry fees. For existing players, it would mean taking a hit on revenues to pay agents at a time when sales have dropped and operating expenses have nearly tripled to 113 basis points since 2004 due to higher marketing, distribution and administrative expenses. The upcoming rule change has led to a scramble to launch funds before it takes effect.

Units of Religare, Canara Robeco, JPMorgan, BlackRock and Franklin Templeton are among 10 firms who have launched funds in July. Domestic money managers typically charge about 2.25 percent as entry fee on equity mutual funds, their most profitable assets, and pay the entire amount as fees to distributors. By comparison, funds charge three to five percent in Singapore and about one percent in Europe and the United States.

 
 
'Daughter' at rights panel door

Bhubaneswar, July 27: The "daughter" of MLA of Jaydev Assembly constituency, Arabinda Dhali, today approached state human rights commission (SHRC) to claim her right as his legal daughter after demanding a DNA test to prove her claim yesterday.

On Saturday, Sanjita Dhali, 24, had claimed that the MLA was her father and alleged that she was tortured and harassed by him and his second wife. She had filed a complaint in this regard with Mahila police station yesterday.

"I hope that justice would be done. My two children and I require police protection and financial aid," Sanjita said, talking to reporters today.

Sanjita has claimed that she is the daughter of Dhali's first wife, Kamala Baral. The couple had separated when she was three. Following the separation, Sanjita was allegedly dumped at her maternal uncle's house and later married off to Dhali's driver at 14 years.

"My family tortured me. They wanted to get rid of me and married me off to the driver," she said, adding that she was subjected to physical torture several times.

After her wedding, Sanjita was allegedly tortured by her husband, till she left with her two children.

Sanjita also carried her school transfer certificate that carried the names of Arabinda and Kamala as her parents.

Meanwhile Dhali, the newly elected MLA from Jaydev Assembly constituency has refuted the woman's claim. "She is not my daughter," Dhali said, agreeing to any test to prove his point.

"I have been seeking my family's support to feed my two children, but so far my father has only threatened me," she alleged.

Tonic to builders and buyers

July 27: Middle and lower-income subscribers to new home loans stand to save as much as Rs 1.5 lakh on interest payment under concessions announced by the Centre today while wrapping up discussions on the budget.

Finance minister Pranab Mukherjee, replying to the debate on the Finance Bill that was later passed in the Lok Sabha, also offered some concessions aimed at easing the burden of the downturn-hit industry. (See chart)

The measure that will help middle-income earners most is the 1 per cent interest subsidy on home loans up to Rs 10 lakh to buy houses worth up to Rs 20 lakh. The subsidy will translate into a total saving of Rs 28,920 on interest payment during the tenure of a 5-year loan and Rs 1.51 lakh over a 20-year period.

As many as 70 per cent of home loan borrowers fall in the Rs 10-lakh bracket, industry sources said. The government's offer to underwrite 1 per cent of interest is expected to cost it about Rs 1,000 crore, according to the finance ministry.

"It (the subsidy) is a welcome step as it will improve affordability. Any such step tends to improve activity in the real estate and construction sectors, which are among the largest employment generators," said Renu Sud Karnad, joint managing director of HDFC.

The subsidy announcement came a day ahead of the RBI's credit policy which analysts do not expect to offer interest rate cuts.

Mukherjee did not confine the incentives to real estate to the subsidy alone. He also offered a tax holiday to projects that more or less got off the ground at the start of the downturn if they finish construction by March 2012.

Builders of projects that got approval between April 1, 2007, and March 31, 2008, need not pay tax on profits if they are completed on or before March 31, 2012. Given the euphoria of 2007, builders had rushed to launch a slew of projects that ran into rough weather when the tide turned in the latter half of 2008. Realtors have been pleading for relief after housing prices fell by as much as 15 to 25 per cent in many cities.

"The incentive is expected to help more big developers who are stuck with high leverage and low sales but the impact could be felt by all," Pradip Chopra, director of Calcutta-based developer PS Group, said.

Rajiv Talwar, the executive director of developer DLF, agreed: "These measures will help to a large extent to sell stocks of affordable housing and boost overall demand."

However, all real estate players were not enthused. Arun Puri, chairman of property consultant firm Jones Lang La-Salle Meghraj, said: "Such tokenism may not really perk up the market… larger gestures like reduction in interest rates and incentives for developers are needed to rescue the market."

Mukherjee also addressed an accounting concern of industry, clarifying that changes in service tax would be implemented only from September 1. Industry associations had requested the government for time to make changes in their tax software.

Industrial growth had shrunk in December and January, but Mukherjee asserted today that the measures already announced in the budget and earlier as part of two stimulus packages could push the growth in gross domestic product to 8 to 9 per cent by end-2010.

Mukherjee said he would stick to his promise of placing a draft direct tax code within 45 days of taking over as finance minister and it would be tabled in the winter session of Parliament. "We will make some major changes in the tax administration and related laws in the country," he said.

The minister promised to push through a nationwide goods and services tax by April 1, 2010, "with cooperation from states…."

The measure is expected to reduce taxes on goods and services and make taxation uniform throughout the country.

Mukherjee had a message for those disappointed by the lack of reforms in the budget. "Reforms will be very much on our agenda. It is a continuing process... it will not be a mantra to be chanted occasionally," he said.


RBI wake-up call on inflation

Mumbai, July 27: Inflation will torment the country in the second half of the year.

That's no longer a gloomy forecast by number-crunching economists; it is a fear that the Reserve Bank of India has officially articulated for the first time this year.

The bugbear — which had been thrown off our backs in early June when inflation turned negative for the first time after a gap 30 years — could return to haunt monetary policy makers at the central bank once again.

In a document released a day before it hunkers down to review its monetary policy at the end of the first quarter, the RBI said there were indications that inflation could firm up again by the end of this year.

Since September last year, the RBI had changed tack and had aggressively started trimming interest rates to jump-start a faltering economy as inflation started weakening and appeared to be less of a concern. But with the economy starting to lurch into forward drive, the RBI may have to start devising way to put a lid on inflation.

"The visible signs of price pressures, even as the headline inflation number turned negative over the short-run, pose complex challenges for the conduct of monetary policy, particularly given the dampened domestic demand conditions," the RBI said.

High commodity prices and the delayed monsoon could exert pressure on food prices.

Moreover, the high base effect, which has been cited as one of the major reasons for the lower levels of inflation, will almost disappear by October. It cautioned that fiscal stimulus and its accommodative monetary policy could have inflationary implications if they are sustained longer.

The RBI said kharif production, which accounted for about 57 per cent of the overall agricultural output, could be affected. The worst hit kharif crops could be rice, tur, urad, maize and soyabean which are all monsoon-dependent. However, rainfall in July has been relatively good and the improved sowing position as on July 17 indicates that sowing of most pulses, oilseeds and coarse cereals are close to last year's levels.

Growing economy

Many expect the RBI to raise its growth forecast for the economy from the 6 per cent it forecast in April. In 2008-09, the country had achieved a GDP growth of 6.7 per cent after three straight years of over 9 per cent growth.

The return of the growth phase is predicated on a set of positives that the RBI listed out in the document titled "Macroeconomic and Monetary Developments: First Quarter Review 2009-10".

These include a positive growth in the index of industrial production (IIP) in April-May 2009, higher growth in the core infrastructure sector and some indications of an upsurge in the services sector that accounts for over 55 per cent of the country's GDP.

There are other cues as well. A survey of professional forecasters conducted by the apex bank in June 2009 placed the growth rate for 2009-10 at 6.5 per cent, higher than 5.7 per cent in an earlier survey.

The RBI said non-food credit growth was turning positive since the beginning of June 2009 and the year-on-year deceleration in credit growth had shown a modest reversal since the last fortnight of June.

Moreover, capital flows had increased after two consecutive quarters of net outflows.

"Early information on the corporate performance for the first quarter of 2009-10 is indicating positive growth in both sales and profits over the corresponding period of the previous year," it noted.

Since October last year, the RBI has brought down the repo rate by 425 basis points and the reverse repo by 275 basis points to 4.75 per cent and 3.25 per cent, respectively.

The repo is the rate at which RBI provides funds to banks against the government securities they hold. The reverse repo is the rate at which it absorbs liquidity.

However, bankers do not expect any change in these key rates tomorrow.

 
Pandit's Citi to keep expanding in India, China
28 Jul 2009, 1212 hrs IST, IANS

 
WASHINGTON: Citigroup Inc's Indian American chief executive Vikram Pandit says he hopes to continue expanding the bank's business in the two biggest
engines of growth in Asia, China and India, despite tough local restrictions.

The bank wouldn't retreat from fast-growing Asian businesses even as the financial crisis has forced it to shrink its balance sheet by about 25 percent, he told Wall Street Journal in an interview at Citigroup's Hong Kong headquarters Monday.

"There's no question in our mind that Asia is going to represent a disproportionate amount of the world's growth over the next decade," he said adding, that will result in big opportunities for Citi to expand its presence in trade finance, custody business and cross-border cash flows, "The intra-Asia flows are going to grow exponentially," said Pandit, 52, who has held the top job at Citi since December 2007.

Citing Citi's efforts to help American homeowners and credit-card holders who are having trouble making their payments, he acknowledged "a significant responsibility" on Citi's part to help be "an integral part of the American recovery."

But "now it's the turn for the foreign consumer to rise," he said as cited by the Journal, and American businesses can help with the US recovery through exports to overseas consumers.

Pandit also dismissed suggestions that competitors speaking ill of Citi's bailout from Washington are affecting the business. "I've usually found that you don't win business by talking down somebody," he said.

There are points in time, Pandit said, when companies in one part of the world need loans and liquidity available from elsewhere in the world. "That's the business that we're in," he was quoted as saying by the Journal.

However, he added that the safety and soundness of its local businesses was critical and Citigroup worked closely with regulators everywhere it operates.
Global pension funds rush to India for better returns
28 Jul 2009, 0602 hrs IST, Kumar Shankar Roy, TNN
CHENNAI: Indian pension fund managers may have recently got the nod to dabble extensively in volatile stocks
, but global pension funds from the US
and Europe continue to back India for giving good returns.

US public pension funds such as California Public Employees' Retirement System (CalPERS), California State Teacher's Retirement System (CalSTRS) and European pension funds such as Norway's Government Pension Fund (Global), Denmark's LD Pensions, Netherlands' ABP Funds, all combined, have exposure to over 300 different companies listed in Indian bourses, apart from investments in real estate.

CalPERS, the largest public pension fund in the US, has just reported the most severe (23%) decline in assets to $181 billion in fiscal 2009 but yet it believes India is one of the "most promising" investment destinations globally. CalPERS has over $320 million exposure in listed Indian stocks plus $100 million in Indian real estate via India Realty Fund and India Real Estate Fund.

"We believe markets, including India, are perhaps the most promising investment sector in the coming years. Accordingly, our global equity, private equity, and real estate sectors are looking to allocate increasing share of their portfolios-up to 50%, to such countries. India is promising, especially compared with socalled developed US and Europe," a CalPERS spokesperson said. The fund administers retirement benefits for 1.6 million active and retired state, public school, and local public agency employees and their families.

Norway's Government Pension Fund (Global), where the surplus wealth produced by Norwegian petroleum income is deposited, has exposure to around 215 Indian listed companies. According to an official of Norges Bank Investment Management, which is responsible for investing the international assets of the fund, emerging markets such as India have been 'responsible for improvement in the returns' clocked by international listed stocks portfolio.

Netherlands' ABP and Denmark's LD Pensions have exposure to Indian stocks worth over $500 million as per latest figures. These funds serve the needs of nearly 3 million European pensioners.

Global pension funds rush to India for better returns
28 Jul 2009, 0602 hrs IST, Kumar Shankar Roy, TNN
CHENNAI: Indian pension fund managers may have recently got the nod to dabble extensively in volatile stocks
, but global pension funds from the US
and Europe continue to back India for giving good returns.

US public pension funds such as California Public Employees' Retirement System (CalPERS), California State Teacher's Retirement System (CalSTRS) and European pension funds such as Norway's Government Pension Fund (Global), Denmark's LD Pensions, Netherlands' ABP Funds, all combined, have exposure to over 300 different companies listed in Indian bourses, apart from investments in real estate.

CalPERS, the largest public pension fund in the US, has just reported the most severe (23%) decline in assets to $181 billion in fiscal 2009 but yet it believes India is one of the "most promising" investment destinations globally. CalPERS has over $320 million exposure in listed Indian stocks plus $100 million in Indian real estate via India Realty Fund and India Real Estate Fund.

"We believe markets, including India, are perhaps the most promising investment sector in the coming years. Accordingly, our global equity, private equity, and real estate sectors are looking to allocate increasing share of their portfolios-up to 50%, to such countries. India is promising, especially compared with socalled developed US and Europe," a CalPERS spokesperson said. The fund administers retirement benefits for 1.6 million active and retired state, public school, and local public agency employees and their families.

Norway's Government Pension Fund (Global), where the surplus wealth produced by Norwegian petroleum income is deposited, has exposure to around 215 Indian listed companies. According to an official of Norges Bank Investment Management, which is responsible for investing the international assets of the fund, emerging markets such as India have been 'responsible for improvement in the returns' clocked by international listed stocks portfolio.

Netherlands' ABP and Denmark's LD Pensions have exposure to Indian stocks worth over $500 million as per latest figures. These funds serve the needs of nearly 3 million European pensioners.
 
Reliance gas price was not fixed at dinner table: Anil Ambani
28 Jul 2009, 1647 hrs IST, IANS

 
MUMBAI: Reliance Natural Resources chairman Anil Ambani on Tuesday accused the petroleum ministry of being biased in the legal dispute with brother
Mukesh Ambani-led Reliance Industries over the price of natural gas from the Krishna-Godavari basin.

Addressing shareholders of the company, he also said the government would not lose a single rupee even if the gas from the fields off the Andhra Pradesh coast were to be supplied to his company at the originally contracted price of $2.34 per unit.

"The gas price of $2.34 per unit was not decided by two brothers on the dinner table," Anil Ambani said, adding the price was based on the prevailing global oil scenario and legitimately approved by the Reliance Industries board in 2005.

Last month, the Bombay High Court had asked Reliance Industries to supply 28 million units of gas to Reliance Natural Resources for 17 years at $2.34 per unit, after assigning 12 million units to the state-run power utility NTPC.

Reliance Industries challenged the verdict in the Supreme Court, which heard the case July 20 and fixed Sep 1 as the next date of hearing. It also asked all the parties to file their replies on the government position on the matter by then.
 
RIL-NTPC gas sale negotiations hit 'prejudice' clause roadblock
28 Jul 2009, 0202 hrs IST, Subhash Narayan, ET Bureau

Anil Ambani said his Reliance Natural Resources was not claiming ownership of the gas assets as was being made out by the petroleum ministry but only staking the legitimate claim over the supplies, based on a corporate agreement.

According to him, if the government so desired, it had ample leeway to even take over the gas assets. He also sought to bring to light what he called were questionable actions by the oil ministry ever since changes were made at its top level in 2006.



 




"For the record, I want to emphasise that the government does not stand to lose even a single rupee even if Reliance Industries sells the gas at lower than approved valuation price to any party," he contended.

"If Reliance Industries gets a higher sale price from us based on the price of what the petroleum ministry wants to fix for the first few years, 99 percent of all revenues and profits will go to Reliance Industries," he said.

"Only a measly 1 percent will accrue to government of India."

Petroleum and Natural Gas Minister Murli Deora said he could not comment on the scathing accusations levelled against his ministry by Anil Ambani as the matter was sub-judice.

Anil Ambani said Reliance Industries, founded by his late father Dhirubhai Ambani, was misusing its power as India's largest company and the near monopoly it enjoyed over natural gas production.

"It is unfortunate that Reliance Industries has tried every trick in the book, and apparently several outside the book, to back out of its solemn, legal and contractual agreement."
 

RIL-NTPC gas sale negotiations hit 'prejudice' clause roadblock

28 Jul 2009, 0202 hrs IST, Subhash Narayan, ET Bureau

NEW DELHI: The seemingly never-ending negotiations between RIL and NTPC over supply of gas to the public sector major's power plants in Dadri, Anta,
Auriya and Faridabad have hit a roadblock.

RIL has turned down NTPC's request to include a clause in the gas sales purchase agreement (GSPA) that the sale will be "without prejudice to the ongoing case over gas supply to NTPC's Kawas and Gandhar plants".

"We have reached an agreement on most things pertaining to the GSPA for supply of 2.67 mmscmd (million standard cubic metres per day) of gas. We are only saying this supply should be without prejudice to our rights and contentions in our court case. However, RIL is reluctant to give a written undertaking in this regard. This is likely to further delay the process," a high-level official at NTPC said, requesting anonymity.

The GSPA is for 2.67 mmscmd of KG gas from the 28 mmscmd gas made available by RIL for power companies under the government's gas allocation policy. This gas would be supplied at the government-mandated price of $4.20 per million British thermal units (mmBtu).

NTPC isn't keen on signing an agreement without this clause because it feels that doing so might affect its position in the case it is fighting in the Bombay High Court. The case pertains to supply of 12 mmscmd of KG gas at a price of $2.34 per mmbtu for expansion projects of NTPC's Kawas and Gandhar plants in Gujarat.

When contacted, an RIL spokesperson said: "Discussions between RIL and NTPC over finalisation of GSPA have progressed well and RIL is hopeful of concluding the GSPA with NTPC soon." While RIL has already concluded GSPAs with a host of power companies such as Torrent Power Limited Vatva, GVK Industries, Lanco Kondapalli Power, it has been negotiating with NTPC for past several weeks without a breakthrough.

The delay has cropped up even as the power PSU has agreed to other terms of the GSPA like payment of marketing margin and take or pay arrangements. RIL has included the "without prejudice" clause in GSPAs with other consumers in power and fertiliser sectors where it has agreed to supply gas for a period of five years.

The case between NTPC and RIL in the Bombay High Court dates back to December 2005. It concerns supply of gas from RIL's KG basin to NTPC's Kawas and Gandhar plants, expansion projects, for 17 years at a price of $2.34 per mmbtu. The non-availability of gas has held back expansion of these projects.

Meanwhile, the high court has also temporarily allowed RIL to sell gas from its KG basin finds to other consumers as per government's allocation policy. The legal battle between RIL and NTPC is linked to the more famous fight between RIL and the Anil Ambani-controlled RNRL over supply of gas from the KG basin as the price of $2.34 specified in that contract is derived from the NTPC case.

Government gets $510,000 as profit share from KG crude production
27 Jul 2009, 1952 hrs IST, IANS
NEW DELHI: The government has received $510,000 as its share of profit petroleum on commercial production of the Krishna-Godavari (KG) block crude
oil for seven months, it said Monday.

In a written reply tabled in the Rajya Sabha, Petroleum and Natural Gas Minister Murli Deora said that the government received $510,000 for the period between September 2008 to March 2009.

Profit petroleum is non-tax revenue receivable by the central government out of the profit generated from production of crude oil and natural gas from the fields it has awarded under a production sharing contract.

Deora told the house that Reliance Industries Ltd and Niko Resources had invested $5.98 billion till March 2009 on two major natural gas discoveries and one crude oil discovery.

Deora said the natural gas production from the KG-DWN-98/3 block is about 31 million metric standard cubic metres per day (mmscmd), which accounts for 25 percent of total natural gas production of the country.

The production in the block is currently 13,500 barrels per day, which is about 1.9 per cent of the total crude oil production of the country.
Gail lines up Rs 7,600 cr to set up India's longest gas pipeline
28 Jul 2009, 0159 hrs IST, ET Bureau
NEW DELHI: Gail India, the country's largest gas transportation company, will invest Rs 7,600 crore in building India's longest gas pipeline from
Jagdishpur in Uttar Pradesh to Haldia in West Bengal, chairman & managing director of Gail UD Choubey said.

"This is so far the single-largest investment in any pipeline by Gail," he said. "Besides the 2,050-km pipeline, the company will invest an additional Rs 400 crore to lay two spur pipelines. The board had approved the pipelines at its meeting on Friday, which are estimated to cost Rs 8,000 crore."

The two spur lines will link Barauni and Chhapra in Bihar with Gail's pipeline network. It currently operates 7,100 kms of gas pipelines and plans to double its network by March 2012 with an investment of around Rs 28,000 crore. Gail director (finance) RK Goel said funding the project will be done through internal accruals and debt. Gail's current debt, equity ratio is 0.12:1. Hence, the company is in a comfortable position to borrow substantially, he said. The company's current net worth is around Rs 14,000 crore.

Giving details of the Jagdishpur-Haldia project, Mr Choubey said it would be executed in phases. First 1,410 kms of pipeline will be laid from Haldia to Phulpur, along with spurlines to various consumers like Hindustan Fertiliser Corp at Durgapur and Barauni, Fertiliser Corp of India at Sindri and Barauni, power plant at Barh and Bettiah and in Patna, Chhapra, Siwan, Gopalganj and Bettiah, he said.

In the next phase, spurlines and feeder lines will be laid for a length of 450 kms to Kolkata, Ranchi, Jamshedpur, Varanasi and Allahabad and Sagardighi. In the last phase, the gas pipeline infrastructure will connect SAIL's plants at Durgapur and Bokaro and the petrochemical plant at Barauni with Gail's network.

One in three cos cuts employee costs in March quarter
Wage bill declines 7% on a sequential basis. One in three companies has witnessed a decline in its wage bills in the March 2009 quarter as against the quarter ended March 2008. This is the finding of a study of results announced by a sample of ...

IT biggies prune travel expenses in H2 of fiscal 2009
New Delhi/Chennai, May 3 In a difficult year that saw the global economy under severe stress, India's top IT companies ended up pruning their overall travel expenses – some by as much as 13 per cent – during the second half ...



Traditional splendour: 'P...
TODAY'S PICK (Latest Audio: English)
SRF (Rs 85): Buy
We recommend a buy in the SRF stock from a short-term trading perspective. It is apparent from the charts of SKF that it has been on a medium-term up trend since its one-year low of Rs 62, recorded on February 3. Since this low the stock has ...

Day Trading Guide


Japanese car makers to source more components locally
Some change export currency to minimise forex losses. New Delhi, May 3 Car makers are shifting their strategy to reduce costs and beat the currency ...

Retailers bet on private labels
Mumbai, May 3 With rising pressure on margins, retailers are now looking at private label sales to boost their ...

'There's no one magic formula to tackling pricing pressure'
Mumbai, May 3 The fourth quarter of the previous fiscal was one of the most difficult quarters for the Indian IT industry as a ...

Speculative buying pushes sugar prices to 3-year high
Funds bet on supply shortfalls in India, Pakistan. New Delhi, May 3 World sugar prices have surged to a near-three year high, on the back of speculative buying by funds betting on supply shortfalls in India ...

Gold futures to test support levels
Gold futures, ended marginally higher on Friday ahead of a bank stress test next week. Safe-haven demand in gold diminished further after the US equities, in April posted its best month in nine years. Gold was pressured after consumers ...

RCom told to clarify on GSM service launch in J&K without security nod
Company says it is fully compliant with licence conditions. The Department of Telecom has sought clarification from Reliance Communications as to why the company has started its GSM based mobile services in Jammu and Kashmir without taking ...

Investors may play waiting game till a Govt is formed
Derivatives segment activity may dominate the overall proceedings. This week the key indices are likely to meander through a valley. But an undercurrent of nervousness is ...

Most FIIs rejig portfolio
Show signs of re-entry into select sectors. Hyderabad, May 3 The last 45 days have seen heightened FII investment flows after nearly a quarter of lull and more than four quarters of gradual sell ...

Europe opening up to importing Indian manpower
Chennai, May 3 Amidst reports that protectionism in the US is gathering steam — in the form of restricting the issue of H-1B and L1 visas — Europe is awake to the possibilities of importing ...

The case for developing talent in-house
Time ripe for the resurgence of 'growth from within'. The virtues of developing talent within an organisation have seldom been argued by CEOs and HR leaders. For decades, organisations demonstrated the ability to bring in fresh ...

Insurance is not a good investment option
Choosing life insurance products such as ULIPs as an investment option may not be a wise thing to do, as complex fee structures may eat into your returns. Insurance products should be chosen only for risk cover; all other features of ...

The strategic East-West gas pipeline
After the first major inland cross-country Hazira-Vijaipur-Jagdishpur (HVJ) gas pipeline network was executed and commissioned by GAIL (India) Ltd in 1987, the east-west pipeline is the next single largest project undertaken in ...

Westerlies blow off the heat in Northwest India
Thiruvananthapuram, May 3 Cooler winds from a passing western disturbance helped rein in the runaway mercury in Northwest India but no such relief was there for the asking in Central East-Central India during the past 24 hours ending ...
 








INDUSTRY & ECONOMY

CINEMA: Evolving, frame by frame
The market for computer animated movies is still at a nascent stage in a nation hooked to star-studded live action films. But it is growing, slowly.. Not many would be unfamiliar with the heroic adventures of Stuart, a rat and the youngest ...

EDUCATION: Corporal punishment of children must end
I distinctly recall when I was in primary school in 1964, in a well-known convent in Kochi, my talkative bench mate, a seven year-old girl, was slapped across the face for chatting with me. And, I was struck across the upper thighs with a ...

EVENTS: The significance of May Day
Last week's May Day celebrations in Kerala highlighted the need to raise labour productivity to match the increases in wage and non-wage benefits that the State's organised labour has enjoyed for a ...

HEALTH: Second suspect of swine flu hospitalised in Hyderabad
NICD finds no trace of virus in first NRI patient. Hyderabad, May 3 Andhra Pradesh continues to be on high alert due to the threat from swine flu as the second patient with suspected virus has been admitted to the Government General and Chest ...

REAL ESTATE & CONSTRUCTION: Developers turn to tech innovations to cut costs
Realty players change construction materials 'without compromising on quality'. Bangalore, May 3 The slump in the real estate market has forced developers to look within and think ...

TEXTILES: Modernisation set to boost NTC southern region's performance
'Current year holds the key for real pay-off time for Corporation'. Coimbatore, May 3 Having borne the brunt of the market and managerial vicissitudes over the years on account of running the mills with obsolescent machinery, ...

EXPORTS & IMPORTS: Economics of raw sugar imports
New Delhi, May 3 What are the economics of raw sugar imports at today's ...

INDUSTRY ASSOCIATIONS: FICCI stresses need for continuation of tax breaks
New Delhi, May 3 The Federation of Indian Chambers of Commerce and Industry has said any attempts by the new Government to withdraw tax breaks will be counter productive in attracting investments through public private partnerships ...

INFRASTRUCTURE: Economic islands
Why are special economic zones (SEZs) described as countries within a ...

EVENTS: Workshops on central excise
 
CORPORATE

OUTSOURCING: Japanese car makers to source more components locally
Some change export currency to minimise forex losses. New Delhi, May 3 Car makers are shifting their strategy to reduce costs and beat the currency ...

NEW PROJECTS: Amara Raja Electronics invests Rs 35 cr in expansion
Co making UPS using solar power for charging batteries. Chennai, May 3 Amara Raja Electronics — the instant power source division of the Rs 1,080-crore Amara Raja Batteries Ltd, is investing Rs 35 crore to expand its ...

OUTLOOK: GM to launch new mini car in India by Dec
Pune, May 3 General Motors India (GMI) will launch the new mini-car in the Indian market by December, and increase its dealerships to 250 from the current 195, the company's Vice-President, Mr P. Balendran, has ...

MODERNISATION: Modernisation set to boost NTC southern region's performance
'Current year holds the key for real pay-off time for Corporation'. Coimbatore, May 3 Having borne the brunt of the market and managerial vicissitudes over the years on account of running the mills with obsolescent machinery, ...

PERFORMANCE: McNally Bharat project biz zooms in 2008-09
Kolkata, May 3 McNally Bharat Engineering Company Ltd (MBE) has regrouped its project business under four business groups, namely material handling and non-ferrous metals, steel, mines and port solutions, power and ...

TAXATION: FICCI stresses need for continuation of tax breaks
New Delhi, May 3 The Federation of Indian Chambers of Commerce and Industry has said any attempts by the new Government to withdraw tax breaks will be counter productive in attracting investments through public private partnerships ...

PEOPLE: Former Ford India chief to join Suzlon
Chennai, May 3 Mr Arvind Mathew, who was Managing Director and President of Ford India till June 2008, is set to join Suzlon Energy, according to reliable ...

FINANCIAL PERFORMANCE: Rise in non-core income of cos in 2004-08 period
Bangalore, May 3 Income from non-core sources – extraordinary income, income from financial services and other income – played only a small role in improving the toplines of Indian manufacturing between 2004-05 and 2007-08, the ...

MONEY & BANKING

CREDIT CARDS & DEBIT CARDS: Handle with care
RSA lists steps for safe credit card use.. You always knew it, didn't you? Credit cards are loaded guns that can go off any minute emptying your life savings if you aren't careful.The Payment Card Industry (PCI) Data Security ...

DEBT MARKET: Bonds remain steady on profit booking
Deluge of deposits may drive down yields further. Bangalore, May 3 Bonds remained steady last week as traders booked profits though financial markets continued to be dogged by the liquidity ...

INTERVIEW: Max New York Life plans to infuse Rs 800 cr this fiscal
'We are looking to break even in 2011-12'. Chennai, May 3 Some insurance companies are rationalising their branch network by shutting down or merging their branches to stay afloat due to dire market conditions. Max New York Life ...

LIFE INSURANCE: Life insurance cos witness rise in renewal premiums in 2008-09
Mumbai, May 3 Even though investors were wary of buying new life insurance policies in the just ended fiscal, they did ensure that they did not let their old policies lapse by paying their renewal premiums ...

PEOPLE: TMB Managing Director gets another extension
Tamilnad Mercantile Bank's Managing Director Mr G. Narayanamoorthy, whose term has been extended twice already, has got an extension of one more month, courtesy the intervention of the Madras ...
 
  FrontSTATES

OTHER STATES: RCom told to clarify on GSM service launch in J&K without security nod
Company says it is fully compliant with licence conditions. The Department of Telecom has sought clarification from Reliance Communications as to why the company has started its GSM based mobile services in Jammu and Kashmir without taking ...

KERALA: The significance of May Day
Last week's May Day celebrations in Kerala highlighted the need to raise labour productivity to match the increases in wage and non-wage benefits that the State's organised labour has enjoyed for a ...

TAMIL NADU: Amara Raja Electronics invests Rs 35 cr in expansion
Co making UPS using solar power for charging batteries. Chennai, May 3 Amara Raja Electronics — the instant power source division of the Rs 1,080-crore Amara Raja Batteries Ltd, is investing Rs 35 crore to expand its ...

KERALA: Port staff defer strike till May 11 meeting
Chief Labour Commissioner to meet union officials in Delhi. Kochi, May 3 The Kochi Thuramugha Samrakhana Samithy, a forum of trade unions formed to protect the interests of the Kochi Port, has decided to postpone the strike planned from May 4 to ...

ANDHRA PRADESH: Second suspect of swine flu hospitalised in Hyderabad
NICD finds no trace of virus in first NRI patient. Hyderabad, May 3 Andhra Pradesh continues to be on high alert due to the threat from swine flu as the second patient with suspected virus has been admitted to the Government General and Chest ...

TAMIL NADU: Modernisation set to boost NTC southern region's performance
'Current year holds the key for real pay-off time for Corporation'. Coimbatore, May 3 Having borne the brunt of the market and managerial vicissitudes over the years on account of running the mills with obsolescent machinery, ...

KERALA: Strike wave hits Kochi port
Disruption of operations at Kochi port on account of wildcat strikes seems to have become the order of the day. The port lost a total of 21 man days in the past four ...

ANDHRA PRADESH: Andhra Pradesh revises Bt-II cotton seed price to Rs 750
Hyderabad, May 3 Andhra Pradesh has put the price of Bt-II cottonseed at Rs 750 (for a packet of 450 gm) and that of Bt-I at ...

KERALA: 'Kochi Port needs financial discipline to tackle eroding revenues'
Kochi, May 3 The Cochin Port Trust is badly in need of urgent measures in ensuring strict financial discipline at all levels, if it wants to counter the present crisis of eroding revenues, the Port Trust Chairman, Mr N. Ramachandran, ...

 

KERALA: Traditional splendour
...

MAHARASHTRA: Beating the heat
...

ANDHRA PRADESH: Hindu Young World exhibition
...

 

ANDHRA PRADESH: Workshops on central excise
 Page

Corporate Markets Info-Tech Marketing Money & Banking Agri-Biz & Commodities Industry & Economy Logistics Opinion Variety Corporate Results Columns States Web Extras Index Archives

State Bank of India: Rates may rise in 2nd half
28 Jul 2009, 1712 hrs IST

The chairman of State Bank of India, the country's top lender, said credit growth will likely pick up in the second half of the year and that could push up lending rates.

'Notice issued to 70 Tv channels for surrogate advertisements' 
28 Jul 2009, 1708 hrs IST

Show cause notices were issued on 70 occasions to television channels in the last three years for broadcasting misleading and surrogate advertisements.

All News headlines >>

News By Company

More >>

News By Industry

More >>

Economy

More >>

International Business

More >>

Politics/Nation

More >>

Interviews
CP Gurnani, CEO, Mahindra Satyam

CP Gurnani, CEO, Mahindra Satyam

Deepak Khaitan, Vice-Chairman, McLeod Russel India

Deepak Khaitan, Vice-Chairman, McLeod Russel India

Manoj Gaur, Executive Chairman, Jaiprakash Associates

Manoj Gaur, Executive Chairman, Jaiprakash Associates

Bill Gates, Chairman, Microsoft Corp

Bill Gates, Chairman, Microsoft Corp

CP Gurnani, CEO, Mahindra Satyam

CP Gurnani, CEO, Mahindra Satyam

Chanda Kochhar, MD & CEO, ICICI Bank

Chanda Kochhar, MD & CEO, ICICI Bank

More >>

http://economictimes.indiatimes.com/News/articlelist/1715249553.cms

No comments: