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PM meets global CEOs — says India will slash tariffs to Asean levels
New York: Prime Minister Manmohan Singh has promised that India will slash its tariff rates further to make the country as competitive as Asean, at meeting with a group of American CEOs. The prime minister was speaking at a meeting hosted by Indian ambassador Ronen Sen and JP Morgan Chase chairman William Harrison.

Singh outlined his economic vision for India, getting to know from and telling the captains of industry what all could be done to make the country an economic powerhouse.

Attending the interaction, which had no fixed agenda and which took the shape of a back-and-forth conversation, were the virtual Who's Who of American industry: Exxon-Mobil president Rex W. Tillerson, GE chairman Jeffrey Immelt, Citicorp/Citibank chairman William R. Rhodes, Dow Chemical chairman Andrew N. Liveris, Pepsico CEO Steven S. Reinemund, News Corporation chairman Rupert Murdoch and New York Stock Exchange CEO John A. Thain.

All of them are members of the India-US CEOs Forum that was set up in July this year. Taken together, they represent a market capitalisation of US$1.4 trillion and assets totaling US$3.3 trillion.

At the end of the meeting, it was decided that the business leaders would make concrete suggestions that would make India a better investment destination. The prime minister also assured them that the reforms, unleashed in 1991, were irreversible.
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Chidambaram: Centre to switch over to accrual-based accounting system
New Delhi: As part of fiscal reforms and improving the quality of public expenditure, the Centre has decided to switch over to a new and efficient accounting system and has also asked States to follow suit.

"Corporate sector has for many years practised the accrual-based accounting system... The Government is determined to switch over to the new system and I hope States will follow suit," the Finance Minister, P Chidambaram, said inaugurating a workshop on accounting systems organised by Controller General of Accounts and the World Bank.

This follows the recommendations of 12th Finance Commission, which suggested switching over from the present 'cash-based' accounting system to accrual-based system to capture the asset creation and large hidden liabilities like pay and pension.

"Because we don't have a accrual-based system, there are huge liabilities hidden in the system," he said pointing to the pension bill, revenue receivables, arrears, depreciation and replacement costs.
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Chidambaram: Inflation rate 'moderate'
New Delhi: Finance Minister P. Chidambaram has said that India's inflation rate was `moderate' and did not pose a threat to interest rates.

``As of now I don't see any pressure on interest rates,'' Chidambaram said today at a tax workshop in New Delhi. ``Inflation will moderately rise in two to three weeks after the petrol price hike. We will take counter-measures to tackle it.''
India's inflation rate slowed to 3.01 percent in the week ended Aug. 27, the lowest in more than three years, as prices of fruits, vegetables and oil seed fell, the government said Sept.9.

`Inflation is moderate, the rupee is strong and government revenue is according to budget projections,'' Chidambaram said. ``We are therefore encouraged to go in for ambitious programs like the national rural employment guarantee plan.''

Chidambaram today said he ``does not see any need to increase borrowings as of now'' in the current year to March 31.

India plans to cut its budget deficit to 4.3 percent of gross domestic product in the year to March 31, from 4.5 percent of GDP in the previous year. The budget deficit in the four months to July 31 reached 51.3 percent of the government's full-year target of 1.51 trillion rupees, the government said Aug. 31.
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TRAI asks for national plan for digitisation of cable TV
New Delhi: Setting the 2010 Commonwealth Games as a deadline, the Telecom Regulatory Authority of India (TRAI) has suggested preparing a national plan for digitisation of the cable television network in the country.

In its recommendations submitted to the Information and Broadcasting (I&B) Ministry, the TRAI has suggested a time-bound implementation, the first phase between April 1, 2006 to 2010 coinciding with the Commonwealth Games to be held in Delhi.

"The expansion of digital services in the country will help to provide consumers with better quality pictures as well as the ability to watch more channels. This will help in meeting the varied demands for various channels in cities with widely heterogeneous populations," it said.

The TRAI has said that digitisation and upgradation would enable cable service providers to compete with other emerging new technologies for delivering content. At present, digital cable television is available in the five cities of Delhi, Mumbai, Chennai, Pune and Bangalore.

It has also been recommended that there should be a clear policy framework for Head-end In The Sky (HITS), which could be on the lines of the permission already given by the Government to Siticable's venture. This technology combines channels provided by different broadcasters and puts them in one stream, which is finally given to distributors.

TRAI has further suggested offering incentives such as rationalisation of duties on set-top boxes (STBs) to promote the digitalisation of cable TV services. Customs duties on set top boxes for cable TV should be reduced to 10 per cent from 15 per cent, while excise duty be raised to eight per cent from nil, and import duty on ICs (integrated circuits) be down to eight per cent from 15 per cent from April 1, 2006.
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