Economic survey warns of high fiscal deficit
New Delhi: Pre-budget economic survey has cautioned against mounting fiscal deficit at 5.1 per cent of GDP and prescribed deep reforms including cut in small savings rates and subsidies and big ticket PSU sell-off to reverse the slowdown in growth at 5.4 per cent this year.

However, the survey is hopeful that the continued implementation of reforms along with upturn in the economic environment is likely to help regeneration of economic activity in the coming months. It  said identifying agriculture and tax reforms including a relook at exemptions were essential to push growth at higher than seven per cent.

The survey singled out fiscal stabilisation as the most difficult of the problems facing economic management. The problem of fiscal deficit should be addressed both on revenue and expenditure sides.

"Subsidies remain a continuing problem in expenditure structure of the central government," the survey said.
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Modest hike proposed in passenger fares
New Delhi: A moderate to stiff hike ranging from three to 12 per cent in passenger fares of all classes and freight rates has been proposed in the railway budget for 2002-03 to fetch an additional Rs 1,360 crores a year.

Railway minister Nitish Kumar sought to raise an additional Rs 910 crores through fare hike and Rs 450 crores through freight increase. The budget does not propose any change in the existing fare structure for Rajdhani and Shatabdi express trains, system of charging quarterly season tickets and in the rates of parcel and luggage including newapapers and magazines.
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Railways to close 21 uneconomic branch lines
New Delhi: Railways propose to close down 21 uneconomic branch lines which account for losses amounting to Rs 449 crore.

The rail budget showed that 115 lines, including 49 broad guage, 44 metre guage and 22 narrow guage, were uneconomical.

Instructions have now been issued for closure or dismantling of 21 such lines on the basis of the recommendations of a railways reforms committee.
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Moderate hike in freight rates
New Delhi: The government announced a moderate hike in freight rates for selected commodities like grains and pulses, urea, groundnut oil while marginally cutting transportation cost for steel, cement, diesel and kerosene as part of freight rationalisation that would help railways earn an additional Rs 450 crore during 2002-03.

Freight tariff was hiked by as much as 11.84 per cent for groundnut oil at 700 km followed by a 7.89 per cent increase for grains and pulses.

Freight rates were cut down by five of the 12 commodities,including iron and steel, cement and pig iron.

Freight for grains and pulses has been proposed to be hiked to Rs 37.21 per quintal for upto the distance of 700 km from the existing level of Rs 34.49, while for coal the rate has been increased marginally by 0.83 per cent to Rs 53.74 from Rs 53.30 per quintal.

In case of urea, the freight rate has been increased to Rs 37.21 per quintal for 700 km from existing of 35.21.

Freight rate also witnessed a hike of 123 per cent in salt for transporting it between Gandhidham and Jhansi to Rs 631.89 per tonne from Rs 283.30. 
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18 PSUs on divestment list
New Delhi: The government has once again inducted national air carriers Air-India and Indian Airlines along with 16 other PSUs for privatisation after 31 March 2002.

Others in the list of PSUs, which are on the anvil for disinvestment, include National Aluminium Company (Nalco), Shipping Corporation of India (SCI), Madras Fertilisers and National Fertilisers.

Privatisation of 10 PSUs, including Maruti Udyog (MUL), Hindustan Zinc, Indian Petrochemicals Corporation (IPCL)and ITDC would be completed during the current fiscal.

Amongst other PSUs which are on anvil for disinvestment are Hindustan Cables, Hindustan Copper, STC, MMTC, MECON, Tungabhadra Steel Products, Engineering Project India and Hindustan Salts.
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Maruti sale by March-end
New Delhi: The government will wrap up the sale of nine more state-run firms, including Maruti Udyog Limited and Indian Petrochmicals by the end of the current financial year.

The government would also complete stake sales in Hindustan Zinc by March.

Other firms on the block include Bharat Heavy Plates and Vessels, paper-mill NEPA, Instrumentation Control Valves, Jessop and Company and some properties of the India Tourism Development Corporation and Hotel Corporation of India.

In the case of Maruti, an equal joint venture between the government and Japan's Suzuki Motor, the government has announced a two-step plan to withdraw from the car maker.

Under the first step, the company will issue a rights issue of shares worth Rs 400 crore. Suzuki would get the right to buy its share of the offer as well as its partner's share, which the government will renounce in return for control premium.

In the second stage, the government will sell what is left of its remaining minority stake in the company.
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House panel rejects FDI in print media
New Delhi:  The parliamentary standing committee on information technology has rejected the proposal of allowing 26 per cent foreign direct investment (FDI) in print media.

Also rejected was a demand by some members that a vote on the crucial issue be postponed until the seven-odd vacancies in the committee were filled up. 
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Tax portal to help file I-T returns
Kolkata: The income-tax portal, incometaxinfo.com has planned to help individual taxpayers submit their return for a modest fee of Rs 200 through online and offline facilities.

The site provides all income-tax forms which can be printed and the returns can be filed online as and when the government allows the facility.
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