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Cabinet may consider the Pension Bill soon
New Delhi: The Union Cabinet is likely to take up for approval this week, the revised Pension Fund Regulatory and Development Bill, which is expected to allow 26 per cent FDI in the sector and make minor changes as per the recommendations of Parliamentary Standing Committee on Finance.

Ministry officials have indicated that the revised bill on pensions is likely to stipulate a FDI cap of 26 per cent as it is for insurance sector, but bar premature withdrawals. Officials said that the Employees Provident Fund is an example, where more than 90 per cent of the accounts have a balance of less than Rs20,000 during maturity.

Since pension is long-term savings, there is a need to have a lock-in period more than other saving schemes as it will enable pension fund managers to take a long-term view on their investments and ensure higher returns to the subscribers when they retire.
Ministry officials said that the government is pushing for passage of the pension bill in the current session or latest by the winter session.
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Forty seven new SEZs to be set up
New Delhi: The commerce and industry minister, Kamal Nath, has said that approval has been granted for the setting up of 47 new SEZs based on proposals received from State governments and private promoters,

Of the 47 SEZs approved for establishment, three SEZs, at Salt Lake (West Bengal), Indore (Madhya Pradesh) and Jaipur (Rajasthan) have already commenced operation, while others at Jodhpur (Rajasthan), Mahindra City (near Chennai) and Moradabad (Uttar Pradesh) are ready for operation, the minister said. The other zones are in various stages of implementation.

He also said that exports from special economic zones (SEZs) had almost doubled in the last two years registering a 36 per cent growth in 2004-05 at US$4.075bn against US$2.079bn in 2002-03. All the eight Export Processing Zones (EPZs) located at Kandla and Surat (Gujarat), Santa Cruz (Maharashtra), Cochin (Kerala), Chennai (Tamil Nadu), Visakhapatnam (Andhra Pradesh), Falta (West Bengal) and Noida (Uttar Pradesh) have been converted into SEZs.

At present, 811 units are in operation providing direct employment to about one-lakh persons, 40 per cent of whom are women.
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Montek: Domestic oil prices must align with global prices
New Delhi: The deputy chairman of the planning commission, Montek Singh Ahluwalia, has said that with a sustained increase in global oil prices, it was essential to align domestic oil prices with international prices.

"Domestic oil prices will have to be aligned with international prices. It's fiscally irresponsible not to align domestic oil prices. It's a form of hidden subsidy and has negative consequences. Its effect on oil companies in the long run would be adverse," he told newsperson on the sidelines of a meeting organised by the American Chamber of Commerce in India (Amcham India).

He added that exceptions could however be made for targeted groups, but for the rest of the consumers, the effect of the increase in prices must be passed on.

"It is normal practice of good economic management not to have open-ended subsidies on items where international prices are shooting up."

He also said that the Government was fully aware that the current situation is not sustainable. "In India, the situation is little complicated. Oil bears heavy taxation burden. Around the world, the principle that many countries have adopted in adjusting high oil prices is through lowering duties. More or less that's what we have been doing. But we have not done a neat job. I assure you that we are not going to leave this unattended," Dr Ahluwalia told Amcham India members.

The Finance Minister has said that oil companies would have to surmount under-recoveries of Rs30,000-Rs40,000 crore during this fiscal if the current trend in crude oil prices continues for some more months.

Petrol and diesel prices were last raised in June 2005.
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