Business Archive

Nobody above law, says Mukherjee on Madhu Koda

Published: November 3, 2009Posted in: Business, NationalTags:

New Delhi, Nov 3 – Reacting to allegations against former chief minister Madhu Koda for amassing wealth illegally, Finance Minister Pranab Mukherjee Tuesday said nobody was above law and that his government will take necessary action as warranted.

‘The law will take its own course. There are always exceptions in every field,’ the finance minister said during the course of an interaction at the Economic Editors’ Conference here, responding to queries over Koda.

‘Our government will do the needful, whenever required.’

The income tax department has been probing allegations against Koda and his associates for amassing wealth higher than their known sources of income and even conducted raids at 70 places in eight cities.

The tax authorities claim they have discovered documents relating to several illegal transactions worth some Rs.2,000 crore (Rs.20 billion). Koda was also interrogated by the sleuths and was charged with not cooperating with the investigation.

Allianz Insurance unit sets up third facility in Kerala

Published: November 3, 2009Posted in: Business, National, Sci-TechTags:

Thiruvananthapuram, Nov 3 – ACIS, a wholly-owned subsidiary of Allianz Insurance Plc of the UK, opened its third facility at the Technopark information technology (IT) campus here Tuesday.

British Deputy High Commissioner in southern India Mike Nithavrianakis and Allianz Insurance chief executive Andrew Torrance inaugurated the new facility, which is spread over 40,000 square feet.

The first phase of the facility will seat 250 and be primarily used for global application development and maintenance projects for Allianz.

The facility will seat 600 when complete.

Nithavrianakis described ACIS as an ‘excellent example’ of Indo-British partnership in Kerala.

Torrance said ACIS was on its way to emerging as a shared services centre for Allianz globally.

ACIS is a wholly-owned subsidiary of Allianz Insurance and part of Allianz SE, a global player in the financial services industry serving more than 75 million customers in 70 countries.

Recognising the potential of tier-III cities in India, it launched its IT operations at Technopark in 2003.

In 2004, ACIS forayed into the business process outsourcing (BPO) sector and was also the first to handle voice processes in Kerala.

With the new facility operational, ACIS currently employs 700 professionals.

Fiscal stimuli to continue till economy stabilises: Mukherjee

Published: November 3, 2009Posted in: Business, NationalTags:

New Delhi, Nov 3 – Finance Minister Pranab Mukherjee Tuesday said fiscal stimuli packages announced since December last year will continue even though the central bank had indicated a phased exit in its monetary policy update last month.

‘For the present, I maintain that the fiscal stimulus will have to continue, to allow its impact to fully run through the economy,’ the finance minister told the annual Economic Editors’ Conference here.

‘It is, however, an imperative to come back to the path of fiscal prudence as soon as the current economic circumstances permit us to do so,’ he said, adding the government was on track to achieve the targets on fiscal consolidation in the medium term.

‘Fiscal prudence is critical for maintaining a stable balance of payments, moderate interest rates and steady flow of external capital for corporate investment.’

According to the finance minister, the first challenge of the government was to take the economy back to the high growth path of 8.5 to 9 percent per annum, and even beyond, at the earliest and to ensure that it can be sustained for the next few decades.

‘For us the growth of income is important but it is more important for resources that it brings in,’ he said adding these provide the means to bridge various critical gaps that remain in India’s development, particularly for the welfare the vulnerable segments.

Sensex ends at two-month low

Published: November 3, 2009Posted in: Business, NationalTags:

Mumbai, Nov 3 – A benchmark index of the Indian equities markets fell sharply by 491 points to touch a two-month low Tuesday, with investors dumping stocks especially of realty, metals, energy and power companies.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened lower at 15,838.63 points, closed at 15,404.94 points, 491.34 points or 3.09 percent below Friday’s close at 15,896.28 points.

The S&P CNX Nifty of the National Stock Exchange (NSE) also closed in negative terrain at 4,563.9 points, down 3.14 percent or 147.8 from its last close.

Selling pressure intensified in mid-to-small capitalised scrips as well, with the BSE midcap closing 3.74 percent lower and BSE smallcap ending 1.5 percent down.

Realty, metals and energy scrips took a pounding, while IT, capital goods and state-run companies also figured among major losers.

The correction was widely predicted by analysts as most considered valuations not being commensurate with the earnings or business outlook.

The market breadth was negative with only 534 stocks advancing, as many as 2,171 declining and 56 remaining unchanged.

There were only three gainers on the Sensex: Bharti Airtel, up 2.67 percent at Rs.299.95; Maruti Suzuki, up 1.13 percent at Rs.1,418.80 and Sun Pharma, up 0.31 percent at Rs.1,386.

Among the losers were Hindalco, down 10.5 percent at Rs.109.15; DLF, down 9.04 percent at Rs.336.55; Jaiprakash Associates, down 7.52 percent at Rs.194.35, and Sterlite Industries, down 6.4 percent at Rs.722.15.

According to data with the regulator, the Securities and Exchange Board of India (SEBI), foreign institutional investors bought shares worth $156.7 million Tuesday.

Other Asian markets were under selling pressure as well.

The primary index of the Hong Kong Stock Exchange, Hang Seng closed 380.13 points or 1.76 percent lower at 21,240.06 points.

The Kospi, benchmark index of the Korean Stock Exchange, also ended in the red at 1,549.92 points, down 9.17 points or 0.59 percent.

However, the Shanghai Stock Exchange composite index shut shop 1.22 percent up at 3,031.33 points.

Japanese markets were closed Tuesday.

European markets were trading weak with Britain’s FTSE 100 index ruling 2.01 percent lower at 5,002.08 points and its German peer, DAX, was similarly ruling at 5,329.68 points, down 1.86 percent.

Grain output may have taken 14-mn tonne hit: Mukherjee

Published: November 3, 2009Posted in: Business, NationalTags:

New Delhi, Nov 3 – The erratic monsoon during this year, followed by floods in some parts of the country, could have lowered India’s foodgrain output by some 14-15 million tonnes, Finance Minister Pranab Mukherjee said Tuesday.

‘I’m waiting for a hard assessment of the sub-normal southwest monsoon and the impact of floods in some parts of the country,’ the finance minister said at the annual Economic Editors’ Conference.

‘There are some estimates that grain production will be less — 14-15 million tonnes. But we will have to wait for the inputs,’ he said during the interactive session, which, he added, would also be his last, ahead of the national budget in February.

India had logged record foodgrain output in 2008-09 (July-June), estimated at 233.87 million tonnes. But the failure of monsoon — on which depends 60 percent of India’s agriculture — cast a shadow on this year’s crop.

Mukherjee said there were some distinct signs of a pickup in the Indian economy, even though the global outlook, following the financial crisis since last year, remained uncertain. The farm sector was also a concern.

But in what will bring cheer to industry, the finance minister said the fiscal stimuli packages announced since December will continue till the economy stabilises, though the central ban has indicated a phased exit in its monetary policy update last month.

Mukherjee said some more state-run companies will be on the block for some divestment and that the government’s aim will be to sell stake in those public sector units in which outside holding is less than 10 percent.

‘A few other public sector undertakings have been identified for sale of small portions of government shareholding in the domestic market and for issue of fresh equities to meet their fund requirements, if required.’

He said during the past three months, the market capitalisation of two state-run firms — power utility National Hydroelectric Power Corp (NHPC) and hydrocarbons major OIL — jumped 106 percent and 177 percent respectively after divestment.

As a result, he said, the total value of the residual holding of government in these two companies has also increased by 78 percent in the case of NHPC and over 121 percent in OIL.

India’s exports decline for 12th consecutive month to $13.6 bn

Published: November 3, 2009Posted in: Business, NationalTags:

New Delhi, Nov 3 – India’s merchandise exports fell for the 12th straight month this September, dipping 13.8 percent to $13.6 billion, compared to the corresponding month last fiscal, a government statement said Tuesday.

India exported $15.8 billion worth of goods in September 2008.

Cumulative value of merchandise exports for the first six months this fiscal stood at $77.8 billion, down 28.5 percent from corresponding half yearly figure of $108.9 billion last year.

The country’s imports fell 31.3 percent to $21.38 billion in the month under review, compared to $31.13 billion in September 2008.

Total imports during the six months ending September were valued at $124.6 billion, a decline of 32.7 percent against $185 billion in the like period last fiscal.

Oil imports during September stood at $6.34 billion, 33.5 percent lower than what it bought in the corresponding period last fiscal.

Oil imports during April-September 2009 were worth $34.8 billion, 45 percent lower than the that in the corresponding period last year.

Non-oil imports for the month under review was $15.03 billion, 30.4 percent lower than the amount in September 2008.

Non-oil imports during April- September were $89.78 billion, which was 26.2 percent lower than the level registered in the first six months last fiscal.

The trade deficit for the six months ending September was estimated at $46.73 billion, which was lower than the deficit of $76.095 billion in first six months of 2008-09.

CII to host India IT Summit 2009 in Kerala next month

Published: November 3, 2009Posted in: Business, NationalTags:

Kochi, Nov 3 – The Confederation of Indian Industry (CII) will organise a two-day India IT Summit 2009 here next month, an initiative that is expected to accelerate growth of information technology (IT) in Kerala.

To begin Dec 10, the event themed ‘Changing Role of India in Global IT Business’ will consist of three plenary sessions.

According to CII Kerala State Council chairman Sanjaya Mariwala, IT’s role is fast changing — from supporting business to transforming it.

‘By holding the India IT Summit 2009 in Kerala, the state is getting national and international attention. CII is excited about this initiative, which will facilitate the accelerated growth of IT industry in Kerala,’ said Mariwala.

V.K. Mathews, event convener and IBS group chairman, said the world expected the domestic IT industry to contribute more in the next decade.

‘We need to meet this expectation by preparing for change. India IT Summit 2009 is the first major event to be held here to discuss the changing role of India in the global IT business, and gives a major advantage to Kerala’s IT Industry,’ said Mathews.

Industry leaders who will address the sessions include Infosys chief executive and managing director S. Gopalakrishnan, British Airways chief information officer Paul Coby, former Nasscom president Kiran Karnik, Cognizant vice chairman Lakshmi Narayanan, Tata Consultancy chief financial officer and executive director S. Mahalingam, and Indian Space Research Organisation chairman K. Radhakrishnan.

The event is expected to be attended by over 400 delegates.

West Bengal sets up awareness cell for farmers

Published: November 3, 2009Posted in: Business, NationalTags:

Kolkata, Nov 3 – The West Bengal government has set up a special cell to make farmers aware of fertiliser prices and seed quality, a senior official said here Tuesday.

‘We have set up a special cell at Writers’ Buildings (state secretariat) to monitor fertiliser prices and quality of seeds,’ said state Agriculture Secretary Sanjeev Chopra.

The state agriculture department will also issue an advertisement Wednesday advising farmers not to buy fertiliser at more than the maximum retail price (MRP), Chopra told reporters on the sidelines of a conference organised by the Indian Chamber of Commerce.

‘There is enough fertiliser available as far as the macro picture in the state is concerned. We want it to be sold at the MRP. Farmers get obsessed with few brands,’ he said.

‘There will be a second advertisement on quality of potato seeds. Basically the problem relates to red blight disease,’ Chopra added.

The state’s potato production in the coming season would be higher than this year’s output, he said and attributed it to the spiralling prices of the tuber.

‘Ideally, potato should be grown on 250,000-300,000 hectares but we fear this year the acreage would be higher due to high prices farmers got,’ Chopra said.

According to him, the prices of wheat, rice and pulses will remain more or less the same.

However, Chopra said, there would be a kharif crop deficit of around 2-3 percent due to the shortfall in rainfall this year.

‘Every year, kharif production is about 105 lakh tonnes. But this year it will be 100 lakh tonnes.’

Punjab targeting 140 lakh tonnes paddy procurement

Published: November 3, 2009Posted in: Business, NationalTags:

Chandigarh, Nov 3 – Punjab is targeting to procure more than 140 lakh tonnes of paddy this season, the Chief Minister’s office here said Tuesday.

Government procurement agencies and private millers have procured 114 lakh tonnes till Monday evening, the office of Chief Minister Parkash Singh Badal said.

According to food and supplies department officials, the procurement so far was satisfactory given the late arrival of paddy in the grain markets. Officially, the procurement started Oct 1 this season.

Last year, considered a good crop year, about 118 lakh tonnes of paddy had been procured in the corresponding period.

The officials said farmers have been paid over Rs.10,750 crore for the paddy purchased so far.

The state government and procurement agencies are upbeat about paddy output despite earlier concerns that the yield could fall owing to deficient rainfall and drought-like conditions this year.

Over 98 percent of the paddy arriving in over 1,600 grain markets across Punjab has been bought by government agencies – five from the Punjab government and the centre’s Food Corp of India (FCI).

Patiala led among the 20 Punjab districts with over 12 lakh tonnes of procurement, which is expected to continue till next month in the state.

Bihar cattle fair attracts foreign tourists

Published: November 3, 2009Posted in: Business, NationalTags:

Patna, Nov 3 – Asia’s largest cattle fair at Sonepur in Bihar is attracting foreign tourists. Scores of them have visited the annual event, tourism department officials said Tuesday.

‘All 30 special cottages have been booked by foreign tourists. There is no vacancy,’ said Mukesh Singh of the state tourism department.

Nearly 60 tourists from Japan, France, Germany, Australia, Austria, Canada and Britain are enjoying the charm of the cattle fair at Sonepur, 35 km from here.

Rais Azam, a tourism official, said: ‘Some foreign tourists are sunbathing, some are mingling with the locals, others are enjoying seeing the decorated cattle.’

In a bid to attract tourists, the government has offered free elephant rides at the fair that has become a huge hit. Boat rides are also popular among the foreigners.

‘We have provided all the modern facilities in the cottages, which were created with rural design and flavour,’ Principal Secretary Rashmi Verma told IANS.

BBC photographer and writer Steve Davey, author of ‘Unforgettable Places To See Before You Die’, is also at the fair with a dozen tourists. ‘He is a regular at the fair for last few years,’ Singh said.

Animals like horses, cows, oxes, goats, buffaloes, donkeys, ponies, monkeys, rabbits, bears, cats and guinea pigs are traded at the fair.

The fair, spread across 500 acres near the confluence of two rivers – the Ganga and the Gandak, has been held every year for centuries.

The event, which begins on Kartiki Purnima day, is reportedly the only one of its kind in the sub-continent.

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