Author
India revised down its economic growth for the fiscal year 2012/13 to 4.5 per cent from 5.0 per cent earlier, the government data showed on 31 January' 2014, on lower than provisionally estimated output in farm and manufacturing sectors. The latest numbers are the first revised gross domestic product (GDP) estimates for the last fiscal year. The data also showed lower than estimated growth numbers for exports, capital investment and consumption sectors, suggesting deeper underlying weaknesses in Asia's third-largest economy, which grew at more than 9 per cent before the 2008 global financial crisis. The GDP growth for 2011/12 fiscal year was, however, upwardly revised to 6.7 per cent from 6.2 per cent, but that of the 2010/11 year was revised down to 8.9 per cent from 9.3 per cent, the data from the Ministry of Statistics showed. The government and the central bank have often blamed sharp data revisions for creating problems for policy formulations.(Reuters)
Read More
London-listed oil and mining conglomerate Vedanta Resources Plc's third-quarter core earnings rose 3 per cent, helped primarily by its oil and gas operations in India.The company, controlled by Indian billionaire Anil Agarwal, said group core earnings or earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased to $1.14 billion in the quarter ended Dec. 31 from $1.11 billion a year earlier.Revenue fell about 3 per cent to $3.45 billion.Vedanta simplified its byzantine structure last year when it overhauled its web of subsidiaries and created Sesa Sterlite - an umbrella unit that groups most of its assets.(Reuters)
Read More
Bowing to party pressure, the government today raised the quota of subsidised LPG to 12 cylinders per household in a year from nine at present and also put on hold paying users the subsidy into bank accounts using Aadhaar platform.Announcing the decision taken by the Cabinet Committee on Political Affairs, Oil Minister M Veerappa Moily said raising the LPG quota will cost Rs 5,000 crore in additional subsidy annually.Households will get one cylinder extra, on top of the quota of 9 cylinders, in February and March and from April they will be entitled for 12 cylinders -- one cylinder per month at subsidised rates, he said.Moily also said the direct benefit transfer for LPG (DBTL) scheme, where consumers in as many as get 289 districts in 18 states got the subsidy amount in their bank accounts so that they could buy cooking gas at market rate, has been put on hold.Explaining the reasons behind the move to put on hold a scheme that was dubbed 'game-changer, he said there were complaints about implementation of the scheme and a committee has been formed to look into them."Pending the committee examining the issues, the Aadhaar-linked LPG subsidy transfer has been put on hold," he said.DBTL, under which consumers got Rs 435 advance money in their bank accounts so as to help them buy a LPG cylinder at market price, was this month extended to 105 districts including Delhi and Mumbai.Currently, a subsidised LPG cylinder costs Rs 414 while the market price comes to Rs 1,021. Congress vice president Rahul Gandhi had at the All India Congress Committee session earlier this month asked Prime Minister Manmohan Singh to increase the quota of subsidised LPG to 12 cylinders of 14.2-kg each.There had also been demands from within the Congress to scrap the DBTL as many consumers did not either have the Aadhaar number or banks accounts linked to the Aadhaar number.Moily said 89.2 per cent of the 15 crore LPG consumers use up to nine cylinders in a year and only 10 per cent have to buy the additional requirement at the market price.After the quota is raised to 12, about 97 per cent of the LPG consumers would be covered by subsidised LPG, he said.The government had initially capped the supply of subsidised domestic LPG cylinders to six per household annually in September 2012 in a bid to cut its subsidy bill.The quota was raised to nine in January 2013.Consumers, who have exhausted their quota, have to buy LPG at the market price of Rs 1,258 per cylinder. Subsidised LPG costs Rs 414 per cylinder in Delhi.(PTI)
Read More
India has no target for the rupee's exchange rate and the currency will remain rangebound, the economic affairs secretary said, despite recent global market volatility.The rupee fell on Thursday (30 January), tracking weakness in emerging markets after the Federal Reserve further pruned its monetary stimulus."We are vigilant...we believe that we are capable of withstanding (the impact of the Fed tapering)," Arvind Mayaram said.(Reuters)
Read More
In a controversial move, government has asked private airlines to give special privileges like lounge access to MPs, sparking a furore with political leaders and others denouncing it for not being in sync with the times.Slamming the decision, Jammu and Kashmir Chief Minister Omar Abdullah said it reflected "a special kind of disconnect with the reality", an apparent reference to demands for austerity from the political class."To be demanding such special privileges for "VIPs" in this political atmosphere takes a special kind of disconnect with the reality," he said on Twitter.Supreme Court lawyer rpt lawyer Harish Salve took a jibe at MPs, saying, "What they want is special treatment without paying for it. Alas! Habits and mindsets don't change in a hurry.""I believe the "courtesies" include jumping queues at the security. Might as well allow Lal Baatis (red beacon) on their bags also !!!", he said on Twitter.He said the MPs seem to have missed seeing "Swiss president pushing his cart and standing in queue at the check"."The irony is that there are a lot of MPs who live a life of simplicity. Travel by bus to Parliament. Use trains. Work for their constituents."Congress MP Sanjay Nirupam said he does not support any such move. "I think it is better to travel like a common man.Moreover, our MPs already get executive class tickets... I feel it is not necessary."While the protocol to accord such special services to MPs have been in existence for over three years now, aviation regulator Directorate General of Civil Aviation, in a fresh directive to all airlines, has pointed out that the airports and airlines were "not adhering to the guidelines on protocol norms and courtesy to be extended to Members of Parliament."The protocol, which is "to be followed by all concerned, including private airports and airlines", includes reserved lounge facilities, complimentary tea, coffee or water, free access in the terminal building and designation of one officer of airport as Protocol Officer to extend all facilities and courtesies to MPs.Apart from Air India which has been extending such courtesies to the MPs so far, the other airlines which have been instructed are Jet Airways and the no-frills IndiGo, SpiceJet and GoAir.However, Union minister Praful Patel, who once headed Civil Aviation Ministry, saw nothing wrong in the directive."If an MP is given a little bit of privilege, a little bit of respect, I don't think this should be blown out of proportion."CPI(M) leader Sitaram Yechury said he does not see anything substantial in the order as they MPs already get "special handling". Noting that a 2007 circular of Civil Aviation Ministry providing the guidelines and instructions in this regard, had only listed Air India, DOGMA chief Prabhat Kumar also advised the Ministry "to review the order on protocol norms and courtesy for the Members of Parliament and include the names of other airlines companies including LCC (low-cost carriers)".The DGCA directive came after Parliament's 'Committee on Violation of Protocol Norms and Contemptuous Behaviour of government officers with member(s) of Lok Sabha', which is part of the Privileges Committee, had raised the issue with the Ministry late last year.The committee had said that "airports and airlines are not adhering to the guidelines on protocol norms and courtesy to be extended to the members of Parliament".(PTI)
Read More
ICICI Bank Ltd posted its slowest quarterly profit growth in four years as the ability of corporate borrowers to repay loans declined and the amount of funds set aside for bad debt almost doubled. India's biggest private sector lender, like rivals Yes Bank, HDFC Bank and IndusInd Bank, has had to contend with a wave of defaults by companies struggling to make ends meet as India's economy grows at its slowest pace in a decade. As a result, banks have increased the proportion of funds they extend to consumers from whom demand for home and car loans in particular has picked up as banks open branches in new territories. That shift helped ICICI on Wednesday (29 January) report net profit of Rs 2,530 crore in October-December from 22.5 billion a year earlier. That compared with the Rs 2,460 crore mean estimate of 23 analysts polled by Thomson Reuters I/B/E/S. Net interest income, or the difference between interest earned and paid, rose about 22 per cent to Rs 4,260 crore. Tax expense rose 45 per cent to Rs 1210 crore, hurting profit growth. Shares of ICICI, with a market value of $18.6 billion, briefly fell after the results but pared losses to trade up 0.8 per cent. The Sensex was up 0.3 per cent. ICICI's 13 per cent profit growth compared with Yes Bank's 21 per cent, HDFC Bank's 25 per cent and IndusInd Bank's 30 per cent. Past Its BestOf 50 analysts following ICICI, 44 recommend or strongly recommend buying the bank's shares, according to Thomson Reuters Starmine. The remaining six advise investors to stick with their current ownership, as some expect revenue growth to slow in coming quarters and credit costs to rise. "We believe the bank is past its best in earnings, at least in the medium term," Kotak Securities banking analyst M. B. Mahesh said this month in a research note. Net interest margin, a gauge of profitability, is likely to narrow because of a switch in focus to retail lending, Mahesh said. ICICI's net interest margin grew to 3.32 per cent from 3.07 per cent, higher than an industry average of around 3 per cent. Net non-performing loans as a percentage of total assets rose to 0.94 per cent from 0.76 per cent, primarily because of corporate defaults. The industry average is 2 percent. Mahesh changed his recommendation on ICICI to buy from sell after the stock fell 12 per cent over the past two months. Even so, he maintains a "cautious" view on the stock. Shares of ICICI, 38.4 percent held by foreign investors including Deutsche Bank Trust Company Americas and Merrill Lynch Capital Markets, are undervalued when compared with peers, trading at 1.8 times the book value of the bank's assets, according to Thomson Reuters Starmine. By comparison, HDFC Bank trades at 4.4 times its book value, IndusInd Bank at 3 times and Yes Bank at 2.2 times. (Agencies)
Read More
RBI Governor Raghuram Rajan, who today (28 January) surprised markets with a rate hike, defended the move saying a rate cut would not have impacted either banks or borrowers and that bringing down retail prices is the key to sustainable growth."If we cut policy rates, it won't have any impact on banks' cost of funds or lending rates for borrowers," Rajan told reporters in the customary post-policy press conference."Consumer price inflation is too high, we need to bring it down...and we should be able to reach the 8 per cent objective by end of the year with this rate hike," he added.Rajan said there was a need to create an environment for economic recovery to be strong and that inflation was a part of it. "I'm not in any way giving up on growth in coming months or quarters and that RBI is cognisant of the weak state of economy," he said.The best way to sustain growth over medium term is to bring inflation down to a tolerable level during the course of the year. This will give the RBI more room to take policy action later and that will help growth, he said.The RBI Governor said disinflationary factors must be taken into account in a weak economy, and focussing on retail inflation will "hasten path of disinflationary pressure."On the external sector threats, he said the economy is far better prepared now to face any risks, and attributed the recent rupee volatility to outflows of short term funds from the debt market.On whether the RBI has accepted the Urjit Patel committee recommendations on inflation targeting, he said: "It is premature to say the RBI is moving towards inflation targeting. We've not accepted Patel committee's inflation target."The central bank is studying the recommendations of the Patel panel on monetary policy and complete implementation of its report will need a dialogue with the government."Rajan also denied that the recall of the pre-2005 currency notes was an attempt at demonetisation and preventing black money or curbing tax evasion, and said it is aimed at reducing counterfeiting.(PTI)
Read More
The Indian rupee fell marginally by two paise to 63.12 against the dollar in early trade Tuesday (28 January) at the Interbank Foreign Exchange market on increased demand for the greenback from importers ahead of the Reserve Bank of India's policy review.The Indian rupee had lost 44 paise to close at 10-week low of 63.10 against the dollar in Monday's (27 January) trade amid fears that further stimulus tapering by the US Federal Reserve will hit capital inflows.Forex dealers said besides increased dollar demand from importers ahead of the RBI policy review, weakness in other currencies overseas against the American unit put pressure on the rupee, but a higher opening of the domestic equity market capped the fall.Meanwhile, the benchmark Bombay Stock Exchange Sensex recovered by 53.76 points, or 0.25 per cent, to 20,761.21 in early trade.(PTI)
Read More
The Narendra Modi government was responsible for "abetting and pushing" the 2002 Gujarat riots while the Congress government tried to stop the 1984 riots, Rahul Gandhi said on Monday (27 January) but offered no apology for the anti-Sikh violence.Pitted against Modi in a virtual Presidential-style contest in the upcoming Lok Sabha elections, Gandhi said he was not scared of him and claimed that Congress will defeat BJP.Making a direct attack on Modi, he said, "the fact of the matter is that innocent people died in 1984 and innocent people dying is a horrible thing and should not happen. The difference between Gujarat and 1984 was that the government of Gujarat was involved in the riots."Asked in an interview to Times Now as to how he could say that when Modi has been given a clean chit by the courts, Gandhi said, "... he was the Chief Minister when the Gujarat riots happened....The government in Gujarat was actually abetting and pushing the riots further."Seeking to differentiate the role of governments during the anti-Sikh riots in Delhi and 2002 in Gujarat, he said, "the simple difference is that in 1984, the government was not not involved in the massacre of people. In Gujarat it was."He insisted that the Congress government in 1984 "was not aiding and abetting the riots" but had tried to stop the violence.When pressed further on how he could attack Modi on the Gujarat riots, Gandhi said, "it is not me. It is a large number of people who saw actively the government of Gujarat being involved in the riots."I mean, people saw it. I am not the person who saw it.Your colleagues saw it. Your colleagues told me. They saw the administration actively attacking the minorities."To questions whether he would apologise for the 1984 riots and whether he felt that there was no need for it, Gandhi said, "First of all, I wasn't involved in the riots at all. It wasn't that I was a part of it."The questioner said Rahul Gandhi has avoided the whole question about whether he was open to PM's post and avoiding a difficult contest.In reply, Gandhi referred to his speech at the AICC meet here and said announcing a PM candidate before an election is "announcing your PM without asking your MPs. It is not actually written in the Constitution."Q: You did that in 2009.A: No, we didn't.Q: Of course, you did.A: What we did in 2009 was that we had an incumbent Prime Minister. The PM won the election. The MPs decided that the Prime Minister will continue.He avoided direct reply to questions on whether political parties should be brought under the purview of RTI, saying Parliament should decide on it if political parties are unanimous on this. "My position is that the more openness, the better."Asked why Congress protected former Maharashtra Chief Minister Ashok Chavan despite a judicial commission's indictment, Gandhi said the party had taken action wherever corruption was involved.He said he made his position clear on Chavan after the Maharashtra Cabinet had rejected the judicial commission's findings.On corruption charges against Himachal Pradesh Chief Minister Virbhadra Singh, he said, "there is a legal process.Follow it and conclude it."With regard to performance by Aam Aadmi Party, he said, "there are things how they have reached out to people. Don't take that away from them."To questions about dynasty politics, Gandhi said he said he is "absolutely against the concept of dynasty. But it happens in BJP, SP, DMK and Congress everywhere."He said he was being personally attacked because he is doing things that are dangerous to the system.At the same time, he admitted that "some Congress men were probably involved in 1984 anti-Sikh riots and they have been punished for it".Q: Will you apologise on behalf of Congress party?A: I think that riots, as all riots, were a horrible event. Frankly, I was not in operation in Congress party.(PTI)
Read More
The restrictions on gold imports will be reviewed by March end, Finance Minister P. Chidambaram said on Monday (27 January)."I am confident that by the end of this year we will be able to revisit some of the restrictions on gold import but we will do so only when we are absolutely sure that we have a firm grip on the current account deficit," he said while addressing tax officials at the Customs Day here.To contain the rising gold imports, the government had increased customs duty on the yellow metal three times in 2013. The levy currently stands at 10 per cent.Besides, the Reserve Bank has also linked imports of the metal to exports amid a widening CAD and depreciation of the rupee.Gold imports, which touched a high of 162 tonnes in May, fell to 19.3 tonnes in November in the wake of a series of curbs by both the government and the RBI.The imports in December was a "little higher" than in November, Finance Secretary Sumit Bose told reporters.(PTI)
Read More
