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India's trade with G8 countries up 17 per cent
New Delhi: India's trade with G8 countries in 2004-05 increased by 17% in dollar terms to touch the $48 billion mark, according to the PHD Chamber of Commerce and Industry (PHDCCI).

The trade between India and G8 countries constitutes 25 per cent of India's total trade.

The share of exports to G8 countries, which include USA, Canada, Italy, United Kingdom, France, Germany, Japan and Russian Federation, as a percentage of total exports stood at 33.6 per cent. However, the share of total imports from the G8 countries has come down from 22.5 per cent in 2003-04 to 20 per cent in 2004-05. But in absolute terms, they have registered an increase of over $3.6 billion to reach $21.4 billion.

The analysis also finds that trade with US has grown by 19 per cent in 2004-05 over the previous year. Exports to US has gone up by 16 per cent, while imports from US increased by 25 per cent in 2004-05 over the previous year.

PHDCCI officilas said that the trade between India and US has the potential to grow exponentially since the Indian Government has sought to engage US in newer areas like defence production and marketing of products.
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Dabhol revival set in motion
New Delhi: Indian lenders have made a settlement of around Rs5,000 crore to offshore lenders of the Dabhol Power Company by Friday.

After the settlement arrived at with General Electric and Bechtel last week, the stage has now been set for the debt recovery tribunal process, under which, assets are to be sold to a Special Purpose Vehicle (SPV) set up for the project. The project SPV comprising National Thermal Power Corporation and Gail India Ltd, will work on restarting the plant that has remained shut since 2001.

The government has set itself a target of restarting the plant by 2006.

An empowered group of ministers, which met on Saturday, also approved a one-time delegation of powers to National Thermal Power Corporation (NTPC) and Gail India Ltd, to allow their boards to make investments of up to Rs500 crore. Currently, the boards of these companies are empowered to make investments of up to Rs200 crore.

The limit, however, needs to be raised to enable the two companies to put in Rs500 crore each into the project SPV which will work on reviving the plant and the LNG terminal. The NTPC board met on Saturday to approve the Rs500 crore investment in the SPV.

Indian financial institutions, are meanwhile offering the government a loan at 9 per cent rate of interest. The loan would include an amount of Rs500 crore loan for the project and an approximate Rs5,000 crore worth of loans for the buy out that the Indian FIs have effected from offshore lenders.

Dabhol Power Corporation (DPC) shut the plant in May 2001 after a dispute with the Maharashtra State Electricity Board.
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Iran gas pipeline: Pakistan to seek specific timeframe
Islamabad: Pakistan intends to stress for a specific timeframe in order to bring the Pak-Iran-India gas pipeline into operation when its working group meets in New Delhi for two-day deliberations on Monday.

The Pakistan delegation is expected to press for discussions on technical and financial aspects to be completed before the end of the current fiscal year, with the practical work on the project starting from April next year, media reports emanating from across the border have said.

An eight-member delegation, headed by Petroleum Secretary Ahmed Waqar, will be leaving Islamabad on Monday to present Pakistan's point of view, assisted by a team of gas and oil technical experts.

Sources said that Pakistan would be for carrying forward the process for early completion of technical and other formalities at the meeting. The discussion of the working group would include pricing of gas, route for the pipeline, equity to finance the project, transit fees, etc.

Pakistan needs to have additional sources of energy in order to meet increasing demand within its country. The policy makers are fully aware that Pakistan would need at least one gas pipeline in the next five to six years to maintain the current level of growth in the industrial, agricultural and other sectors.
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Ras Al Khaimah to invest in food processing and garments in Andhra
Hyderabad: Ras Al Khaimah, one of the seven Emirates in the Gulf, has agreed to invest in Andhra Pradesh in the food processing and garment manufacturing fields. Shaikh Saud bin Saqur Ul Qassimi, Crown Prince of the Ras Al Khaimah, gave this assurance to Dr Y S Rajasekhara Reddy, the Andhra Pradesh Chief Minister, when the latter met him on Sunday in Dubai.

Dr Rajasekhara Reddy is leading a high-level delegation to Israel, Egypt and the Gulf. The delegation has invited the prince to the State to explore investment opportunities.
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CII urges greater investment in infrastructure
Chennai: The CII wants at least seven per cent of the GDP to go into gross capital formation in infrastructure. Such an investment would amount to about Rs200,000 crore a year.

According to CII, while the private sector could bring in about 20-30 per cent of the amount, the rest would have to come from the Government. Currently, only about half this investment is coming into infrastructure, according to a CII release, issued after a meeting of its national council.

Higher growth in core sectors and investment in infrastructure hold the key to sustaining the growth in economy, according to the CII.
According to the release, the CII's National Council is optimistic about the growth in all sectors, including agriculture, manufacturing, and services.

According to the council the core sector comprising power generation and coal, cement, and crude oil production must grow faster than the GDP growth, which is expected to exceed seven per cent in 2005-06. The Government has to ensure that infrastructure projects in roads, ports, power, coal, and airports have to be implemented in order to ensure growth.

"A regulatory framework is needed to attract such investments. A task force would also be needed to monitor the projects and to ensure that targets are achieved."

The CII's optimism on growth in the current year is based on the reducing trend in fiscal deficit, resilience to high oil prices, increase in VAT collections, and more than 20 per cent growth in non-food credit, the release said.
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