India-ASEAN summit: Land mark agreement to be signed
Vientiane, Laos: Terming India as one of the fastest growing economies, the Prime Minister Manmohan Singh, said a long-term partnership agreement with ASEAN countries would provide a new dimension to its relations with the powerful 10-nation grouping.

``A new India is on the horizon'' and the future ``lies in working together,'' Dr. Singh said as he arrived here on a three-day visit to Laos to attend the third India-ASEAN Summit. A partnership agreement will be signed during the summit to give a collective vision for India and South East Asia in the political, economic, science, technology, health, culture and other key spheres. It would provide a new dimension to India's relations with ASEAN, the Prime Minister said, adding that India attached high priority to strengthening and expanding the scope of its mutually beneficial relations with ``our neighbours in the East with whom we have profound civilisational ties.''

India, Dr. Singh said, was according a thrust to its ``Look East' policy and that was the reason, New Delhi was trying to expand its links with the South East Asian countries. ASEAN comprises Indonesia, the Philippines, Malaysia, Thailand, Myanmar, Singapore, Laos, Vietnam, Cambodia and Brunei.

The External Affairs Minister, K. Natwar Singh, in a statement said ``this landmark document incorporates a plan of action for even more intensive cooperation on political and security issues as well as in the economic, social and cultural fields.''

During bilateral meetings the Prime Minister had with ASEAN leaders, Indonesia sought India's cooperation in countering terrorism and joint patrolling in the seas. The Indonesian leader also sought defence cooperation from India and emphasised on maritime security, joint patrolling in the seas and suggested an institutional arrangement.

In separate bilateral meetings with the Prime Minister, the leaders of Vietnam and Laos have extended support for India's candidature in an expanded United Nations Security Council.
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Indian Air Force gets first home-built Sukhoi-30 MKI
Nasik: The Hindustan Aeronautics Ltd (HAL) handed over the first home-built Sukhoi-30 MKI multi-role fighter aircraft to the Indian Air Force, at Nasik.

Though assembled mainly from the Russian-supplied knocked-down kit, the Su-30 MKI is fitted with major Indian avionics, such as the mission computer, radar computer and radar warning system developed by the Defence Avionics Research Establishment (DARE). Its communication system and Identify Friend or Foe (IFF) are from the HAL's Hyderabad Division.

HAL will produce 140 Su-30 MKIs for the Indian Air Force in four phases. While the aircraft building during the first three phases would be primarily out of the Russian kits, the indigenous component would progressively increase and the fourth phase would be out of raw materials. Of the 140 aircraft, 114 would be built in the fourth phase. The peak production would be twelve aircraft a year and all the planes will be delivered by 2017-18. The Russians have so far delivered about 40 aircraft and the last batch of 10 is expected by December-end. The Air Force will finally have 190 Su-30 MKI in its inventory.

The twin-engined twin seater, Su-30 MKI can be operated as interceptor, bomber and trainer. With its all-weather day-and-night flying capabilities, the aircraft has very high manoeuvrability. It can attack from any angle and is not required to take a particular position to take on its target.

Codenamed Flanker by the NATO, the aircraft can attain a maximum speed of Mach 2 or twice the speed of sound. It can fly up to 3000 km without refuelling and this range could be raised to 5200 km with one mid-air refuelling and to 8400 km with another. It can take eight tons of weapons including air-to-air missiles, air-to-surface missiles and Mid-Course Guided munitions. The Sukhoi could also be armed with the Brahmos missiles.
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Two gas fields discovered in Assam
Guwahati: Two new gas fields have been discovered in Duliajan in the Upper Assam belt, Union Petroleum Minister Mani Shankar Aiyar has said in the state capital Guwahati. An Australian group would be engaged for oil exploration from the Brahmaputra river bed, he said adding efforts are on to bring in gas from Myanmar through Bangladesh besides from Iran through Pakistan.

The Assam Gas Company Limited, now restricting its operations in the South Bank areas, should begin operations in the North Bank and the neighbouring Arunachal Pradesh, he also said.
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Economists forecast GDP growth at 6.5 per cent
New Delhi: Economists have pegged GDP growth to 6.3-6.5 per cent for this fiscal on apprehensions of a fall in farm output and an adverse impact from the oil price hike. The lower growth projection was mainly due to an expected one per cent decline in farm output this fiscal.

Rating agency ICRA had earlier forecast a 6.5-6.7 per cent GDP growth. Former Reserve Bank Governor Bimal Jalan and ICRIER consultant K L Datta said the economy was slated to grow at 6-6.5 per cent this fiscal.

Though the farm sector was likely to post a negative growth of one per cent, industry was expected to grow at 7.6 per cent and services by 8.8 per cent in 2004-05, according to the 'Mid Year Review of the Indian Economy 2004-05'. The manufacturing sector was expected to post an 8.0 per cent growth.
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Clearance for International airport at Pune
Pune: The Union Minister for Civil Aviation, Praful Patel, has said his Ministry is preparing to give an in-principle clearance for an international airport at Chakan near Pune, which will be a greenfield project, to be put up with private participation along the lines of the Bangalore international airport.

The Minister said he was also holding discussions with the Air Chief Marshal and the Air Force authorities, to get clearance for operating the existing domestic airport (under the air force jurisdiction) round the clock, and said the Ministry was working out the modalities for converting the airport into an international one in the interim period before the Chakan airport becomes functional.
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Orissa signs MoUs with ten companies for steel projects
Bhubaneswar: The Orissa Government has signed Memorandums of Understanding with as many as ten private companies for setting up of small steel plants at different locations in the State.

The proposed steel plants, involving an investment of over Rs2,600 crore, are likely to become operational over the next three to five years.

The companies that signed the MoUs include OCL India Ltd., AML Steel and Power Ltd, Maheswari Ispat (P) Ltd., Monnet Ispat Ltd, Aryan Ispat & Power (P) Ltd, Action Ispat & Power Ltd, Agrim Steel Industries Ltd, Sree Metaliks Ltd, MAL Industries Ltd and MSP Metaliks (P) Ltd.
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Hindustan Shipyard revival: Andhra Pradesh to waive sales tax
Chennai: The Hindustan Shipyard in Visakhapatnam is likely to be revived with the Andhra Pradesh Government agreeing to waive Rs42 crore of sales tax for the sick unit.

The Ministry of Shipping is also considering contributing another Rs45-50 crore for the unit's rehabilitation, according to T.R. Baalu, Union Minister for Shipping, Road Transport and Highways. There is every possibility of a revival, he said, ruling out privatising the unit.

The Cochin Shipyard has also shown good performance and it gave Rs8 crore as dividend last year. This was the first dividend after sixteen years, he told newspersons on Saturday at the Ennore port.

On infrastructure expansion at various ports, Baalu said he had recently instructed all port trust chairmen to go for "major expansion" in ports. "Take professional decisions, and it will be endorsed by the Shipping Ministry," he told the chairmen. He cited Tuticorin Port Trust's Rs830-crore expansion plan of the inner harbour as an example.

The Suez Canal Authority, which manages the Suez Canal, is willing to provide technical expertise, including training for tug pilots, for the Sethusamudram Ship Canal Project. A memorandum of understanding in this regard is to be signed soon between the Ministry of Shipping and the Authority, he said. The Panama Canal Authority has also shown a similar interest in training people in the maritime sector, he said.

The 5,846-km-long Golden Quadrilateral road project is to be completed by December 2005, and the North-East-South-West corridor by December 2007, Baalu said. In the Golden Quadrilateral project, 92 per cent of work is completed, and the rest 8 per cent is getting delayed due to court cases, he said.
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Micro-credit: "Poor more creditworthy than the richest"
Kinnigoli (Dakshina Kannada): The Union Finance Minister, P. Chidambaram, has said that the Government is working on a regulatory mechanism under which a part of the total credit available in the Indian financial system will be made available towards micro-credits.

Launching 1,503 self-help groups (SHGs) - promoted by the Sri Kshetra Dharmasthala Rural Development Project (SKDRDP) and Corporation Bank - at Kinnigoli in Dakshina Kannada district on Sunday, Chidambaram said, "I am confident that very soon I will be able to announce a regulatory regime under which every bank and every financial institution will be required to set apart a part of the total credit to be lent through NGOs and through micro-credit organisations. We will have regulations by which the money must go to micro-credit institutions, and through them it must go to the poor people."

He said that banks could not directly lend to the rural poor because it has no direct contact with them. The bank will lend money to NGOs such as SKDRDP. These organisations will then identify the beneficiaries and lend money.

Chidambaram said that the Government is emphasising on micro-credit because, "our experiences show that recovery rate from SHGs is almost 100 per cent." Stating that poor people have a sense of honour, responsibility and pride, he said when they take a loan they are determined to return it. He said there is a need to put an end to the misconception that poor people are not creditworthy.

"I have no hesitation in declaring poor of India, especially those living in villages, are as creditworthy, in fact, they are more creditworthy than the richest business people in India," he said. While rich people can easily borrow Rs1,000 crore, a poor man cannot borrow Rs1,000, he said.
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