Iran: Trilateral meeting to assure gas pipeline safety
Bangalore: Iran has said that it would guarantee supply of natural gas to India through the proposed pipeline running across Pakistani territory, and said that it has scheduled a trilateral meeting in Islamabad towards formulating plans in this regard.

"Fortunately, some solutions for the guarantee has been found and some suggestions have been made in this respect. In the coming weeks, authorities of the three countries - India, Iran and Pakistan - will have a common meeting," said Iran Parliament's Speaker Gholam Ali Haddad Adel on arrival here on a two-day official visit.

Petroleum Minister Mani Shankar Aiyar has said Iran will have to ensure security of natural gas supply to India and cover risk of the Pakistani segment of the pipeline by securing adequate financial and sovereign guarantees as well as necessary insurance cover.

The $4.5 billion, 2,775-km long India-Iran gas pipeline, one-fourth of which will pass through Pakistan, is expected to be completed by 2009 and address the huge demand for gas in the country.
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Steel prices set for hike
Mumbai: Steel companies are set to pass on the hike in excise duty of steel to the consumers. Steel prices will go up by Rs800-1000 per tonne because of increase in excise duty from 12-16 per cent. Steel manufacturers will pass it on to consumers as they will not be able to take a hit, Ministry of Steel officials have said.

However, those industries using steel as a major input may not be affected as they can always claim credit for the higher price they pay while buying steel. But for the consumer there is no option as high steel prices are also being dictated by high input prices. Iron ore prices internationally have risen by 71 per cent.

Steel companies have no problem with rising prices, as the demand is showing no signs of slowing down. However, the consumer will have no choice but to shell out more for rising steel prices.
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Crisil says seven per cent growth in economy likely
Mumbai: The Indian economy can achieve seven per cent growth in the next financial year due to conditions such as foreign investment, initiatives in the direct taxes and money committed to infrastructure, according to Crisil officials.

Officials said that the factors in favour of India include two years of high growth, a benign inflation, non-agriculture growth, high forex reserves and favourable interest rates.

One of the positives of the Union Budget 2005-06 is that money has been allocated for sectors where it will be definitely utilised, he said. "In infrastructure sector, money has been allocated for airports and roads, where projects are in place and private participation has been put in place. So, good policy is aided by resources," officials said.

Officials also said that while the Budget may not have an immediate impact on the interest rates, conditions such as growth in the economy and a likely hike in interest rates by the US Federal Reserve, may push up interest rates in India as well.

While the cement industry will grow due to the incentives for infrastructure, the telecom industry too is poised for growth due to declining tariffs and increase in income.
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Maharashtra gets Rs11,000 crore from Planning Commission
New Delhi: The annual Plan of Maharashtra for the next fiscal has been determined at Rs11,000 crore, inclusive of additional Central assistance of Rs160 crore for completion of important irrigation projects.

This has been decided here at a meeting between the Planning Commission Deputy Chairman, Montek Singh Ahluwalia, and the State Chief Minister, Vilasrao Deshmukh.

In his initial remarks, while complimenting the State for sound performance, the Deputy Chairman of the Plan panel said the social indicators are also better than the national average with birth rates at 20.3 and death rate of 7.3 against the national average of 25and 8.1 respectively.

He said the State was well poised to score total fertility rate of 2.1 by the end of the Tenth Plan.

The attention of the State was drawn to substantial slip-up in Plan expenditure due to increase in non-plan expenditure and shortfall in resources mobilisation. It was pointed out that the State is facing severe financial stress with fiscal deficit at 4 per cent in 2001-02 and revenue deficit at 3.08 per cent during the same period.

The Planning Commission agreed to take up with Finance Ministry the issue of discriminatory rate of interest being charged on borrowings from the National Small Savings Fund. The State Government said that it was required to pay 9.5 per cent interest rate, while the Centre was paying much less.

The Chief Minister of Maharashtra said that the economy of the State has been growing at impressive rates after the setback it suffered in 2000-01. He said the shortfall in Plan expenditure was due to massive expenditure of Rs1,499 crore on relief works in districts hit by unprecedented drought.
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