MoF projects 6.9 per cent growth for FY 2004-05
New Delhi: The Finance Ministry has projected a growth rate of 6.9 per cent in 2004-05."The overall growth in 2004-05 is estimated at 6.9 per cent compared to 8.5 per cent in the previous year," the Finance Ministry said in its annual report for 2004-05.

Citing CSO estimates, it said agriculture is slated to grow by 1.1 per cent, industry by 7.8 per cent and services by 8.9 per cent during 2004-05. The ministry says that erratic and delayed monsoons, hardening of prices of oil, metals and minerals in global markets were responsible for the rising inflation that peaked to 8.7 per cent in August end and then slided to less than 6 per cent.

"Containment of inflation remains high on the agenda of the government," it said. Government has taken anti-inflationary policies like strict fiscal and monetary discipline, cut in excise and customs duties of essential items so that there is no endue burden on the poor.
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Industrial output up at eight per cent for 2004-05
New Delhi: Powered by manufacturing boom, industry recorded an impressive 8 per cent growth in 2004-05, compared to 7 per cent in 2003-04.The manufacturing sector logged an impressive 8.8 per cent growth and propelled overall industrial growth in 2004-05. The sector had grown by 7.4 per cent in 2003-04, according to figures released by government today.

Although electricity showed a marginal improvement to 5.2 per cent last fiscal from 5.1 per cent in 2003-04, mining sector witnessed a slowdown in growth to 4.3 per cent from 5.2 per cent a year ago. The Index for Industrial Production (IIP) stood at 204.2 points during the fiscal end compared to 189 a year ago.

The capital goods sector grew by a handsome 14.2 per cent followed by basic goods (6.9 per cent) and intermediate goods (4.1 per cent). Consumer durables sectoral growth was at 8.2 per cent while consumer non-durables logged 7.2 per cent growth. The overall consumer goods segment expanded by 7.5 per cent.
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Power crisis: Centre assures extra power for Maharashtra
New Delhi: Embarrassed by an acute power crisis, Maharashtra Chief Minister Vilasrao Deshmukh and Agriculture Minister Sharad Pawar met Prime Minister Manmohan Singh yesterday and have succeeded in getting his commitment for extra power supplies for the state.

"The Prime Minister has promised us 610 mw for now, another 400 mw will come from Naptha-fired power which the Centre has, while the remaining will be provided by NTPC and the Power Trading Corporation," said Deshmukh. The average shortage for the state is pegged at 3800 mw, shooting up to 14000 mw during peak hours.

"It will be very tough for the union government to give power to Maharashtra, but we are trying," said P M Sayeed, Union Power Minister.
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I&B Ministry asks Space TV to amend shareholder agreement
New Delhi: The Information and Broadcasting (I&B) Ministry has written to Space TV, the 80:20 joint venture between Tata Sons and the Star Group for direct-to-home (DTH) broadcasting, to amend its shareholders agreement.

According to government sources, the Ministry of Company Affairs (MCA) was of the opinion that the current shareholders' agreement is not in line with the existing DTH guidelines and the Company Law. The I&B ministry had sought its views on whether the minority foreign partner could enjoy powers equal to that of the majority stakeholder.

As per the agreement, any major decision by the board would require the approval of at least one nominee director of the minority stakeholder. It also provided for the board to appoint key officials and delegate powers. The Government was of the view that these clauses could be interpreted as giving the minority shareholders considerable powers in the management of the venture, which goes against the DTH guidelines.

The DTH guidelines issued by the I&B Ministry have stipulated that the applicant company must have Indian management control with majority representatives on the board as well as the chief executive of the company being a resident Indian.
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Maharashtra slashes stamp duty on bond deals
Mumbai: Maharashtra has provided substantial relief for bond traders dealing in corporate bonds, just a day after bond traders indicated that they may not be able to survive if the stamp duty was not cut on corporate bond deals.

The revenue department in Maharashtra has slashed the stamp duty from Re1 per 10,000 to 50 paise per 10,000 for all bond deals.

"The notification issued today brings the stamp duty in respect of non government securities at par with government securities," said Krishna Vatsa, Secretary, Relief and rehabilitation, Government of Maharashtra.

However, for 30 per cent of the stock markets, which invests in equities directly, also known as proprietary traders, there is still no relief. These trades are done by brokers for themselves and involve high volumes and low margins.
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Walmart CEO meets PM seeking FDI in retail
New Delhi: Walmart International President and CEO, John B Menzer, met Prime Minister Manmohan Singh seeking the opening of the retail sector for foreign direct investment (FDI).

"We had a good meeting with the Prime Minister... hope change will be there in FDI policy and we are allowed to come in," Menzer told reporters here, after the meeting. The CEO indicated that Walmart wanted to "invest significantly" in India for opening stores, apart from continuing outsourcing from the market.

Asked if the world's biggest corporate entity was open to investing if the government allowed FDI at levels of 26 per cent, which would require it to come through a joint venture, he refused a direct reply, "We have to look at the market and what the government offers."

Menzer allayed fears that opening of the sector for international players would mean closure for small and medium-size Indian retailers. "Indian economy is fantastic... there is room for everyone."

He said India was a very attractive market for Walmart for sourcing products. "It is the fastest-growing export market for Walmart globally," he said.
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