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Ernst & Young appointed advisor to Iran pipeline project
New Delhi: Ernst and Young (E&Y) have been selected as the financial consultant for the $7bn Iran-Pakistan-India (IPI) transnational gas pipeline project. The appointment of a financial advisor marks a major milestone for the project, as the onus of recommending a preferred project structure for the country lies on the advisor.

KPMG and Standard Chartered were the other companies in the race.

Alongside, Iran, through a recent letter to petroleum minister Mani Shankar Aiyar, has intimated the Indian government was ready to hold the first trilateral dialogue on the IPI gas pipeline project and is now awaiting its response.

Iran has also informed India about the agreements initialed by it with Pakistan on this project. According to the Iranian communication, as per the agreement, the export of gas to Pakistan will start from 2010 with 10 million cubic meters per day (mcmd) and will reach 50-60 mcmd by 2015.

The term sheet for the sale of gas will be presented to Pakistan within two months and will be finalised latest by April 2006, the communication has indicated.

India has projected its initial requirement at 60 mcmd starting 2010, which would go up to 90 mcmd in 2-3 years.

The financial advisor E&Y will also advise the Indian companies on raising funds by the project company for transportation of natural gas.
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ADB chief: Despite oil price worries India to sustain seven per cent growth rate
New Delhi: Despite worries on the oil price front, the Indian economy will sustain a seven per cent growth over the next couple of years, Haruhiko Kuroda, President, Asian Development Bank (ADB), said at a press conference here.

He said that the Indian Government's resolve to push ahead with the unfinished reforms agenda would help accelerate growth even further.

He said that ADB's positive outlook on the Indian economy comes at a time when the bank might revise the growth projections of developing Asian economies downwards. "Currently, we are in the process of revising the forecast (for developing Asian economies). There is some slowdown," Kuroda said.

However, he said that in view of the robust growth in India and China, the overall growth for developing Asia might not be significantly revised downwards.

Kuroda was addressing the media after holding meetings with top Government officials including the President, Dr A.P.J. Abdul Kalam; the Prime Minister, Dr Manmohan Singh; the Finance Minister, P. Chidambaram; and the Shipping and Road Transport Minister, T.R. Baalu.

He said that ADB was considering a major step up in its assistance to projects in India. "We would give $1.3 billion loans to India during the current year. We might step up our support significantly in the coming years and annual lending could be $2.5 billion or more. In fact, between 2006 and 2008 our total assistance is expected to be in the region of $6.5 billion-$7 billion focussing on various infrastructure projects," he said.

He said that ADB and the Indian Government would establish a Joint Work Force to improve implementation and disbursement of project assistance.
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Council prepares draft plan for manufacturing sector
New Delhi: The National Manufacturing Competitive Council (NMCC) has prepared a draft National Strategy for Manufacturing in India. The draft focuses on creating conditions for growth and employment in the manufacturing sector, which currently contributes about 17 per cent of the country's gross domestic product (GDP).

The draft paper has laid out a 13-point strategy for increasing the share of manufacturing in the GDP and also for securing a larger share of the global market. The share of manufacturing in the country's GDP is substantially lower when compared to the figure of 25 to 35 per cent of the GDP in some of the East Asian economies.

The thirteen areas identified by NMCC for manufacturing competitiveness include greater support from the Government and lowering manufacturing costs. The draft strategy stresses on investment in innovations, strengthening of education and training facilities and the adoption of global best practices. It also focuses on the market framework, competition, regulations the promotion of small and medium scale industries, infrastructure development and the role of State Governments.

It calls for enabling public sector manufacturing industries to meet competitive market conditions and a monitoring mechanism that would lead to greater accountability.

The strategy paper covers the role of intellectual property rights, information technology and the various challenges facing the Indian manufacturing sector.
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Delhi govt. to share rollback burden along with Tata Power and BSES
New Delhi: The Delhi government along with private power distribution companies (discom), NDPL of Tata Power and BSES, have decided to share the burden of the roll back of a 10 per cent hike in electricity tariff, splitting it equally at 5% each. The state's share will take the form of a subsidy.

Subsidies from the government to the discoms will range between Rs80 and Rs90 crore, according to government sources. The other important step taken by the ministry is to ramp up anti-theft legislations and curb faulty billing and fast running electronic meters. Towards this end DERC has been entrusted the task of meter testing through independent meter testing agencies. The government has also taken the up the matter of testing the meters with the Bureau of Indian Standards.

Apart from this, the council of ministers has decided to kick off a stronger and more efficient redressal committee under the stewardship of minister of power Haroon Yusuf and two MLA's Narender Nath and Subhash Chopra.

The discoms had raised the tariffs by 10% with effect from July 15, leading to widespread protests from the residents. The Congress legislature party had on Tuesday agreed to roll back the entire 10% hike.
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