Cabinet approves SAFTA implementation
New Delhi: The Union cabinet has given its nod to the implementation of the South Asia Free Trade Area (SAFTA) agreement to be launched on January 1, 2006, paving the way for the integration of entire South Asian markets of seven participating countries by way of free trade in goods.

The Union commerce and industry minister, Kamal Nath, told reporters that, "this is the first major step for a trade agreement with our neighbours" and hoped that "implementation of SAFTA will further strengthen our trade relations with the SAARC countries".

The seven members of the South Asian Association for Regional Cooperation (SAARC), who are signatories to the SAFTA, include least developed countries (LDC) countries such as Bangladesh, Bhutan, Maldives and Nepal and non-LDC countries India, Pakistan and Sri Lanka.

SAFTA envisages reduction of extant tariffs to less than 5 per cent within the stipulated time frame of 2016 by all the participating countries with due compensation to LDCs for loss of revenues on account of tariff reduction being undertaken by them on a phased liberalisation programme.
Back to News Review index page  

Cabinet approves amendment to FCR Act
New Delhi: The Union cabinet has approved the amendment of the Forward Contracts (Regulations) Act of 1952 and soon a bill to this effect would be introduced in the Parliament, said finance minister, P Chidambaram.

The proposed amendments and interim measure would strengthen the Forward Markets Commission and regulate and develop the commodity futures market.
Back to News Review index page  

Govt. and Left continue discussions on disinvestment
New Delhi: The Government is considering disinvestment in some non-Navratna PSUs and is in discussions with the Left parties on the matter. Finance minister Chidambaram said the Left parties wanted the navratnas to be kept out of disinvestments.

Asked whether any disinvestment would take place in the current fiscal, he said this did not matter as the proceeds would go to National Investment Fund (NIF) and could not be accounted for budgetary process.

Earlier, CPI(M) general secretary Prakash Karat, along with his CPI counterpart A B Bardhan met P Chidambaram yesterday, to discuss some disinvestment proposals. The Left parties though opposed to the divestment of profit-making PSUs, have said they are willing to consider divestment in non-Navratna PSUs on a case-by-case basis.
Back to News Review index page  

No disinvestment of RCF and NCL: Paswan
Mumbai: The Government has ruled out disinvestment in two public sector enterprises, Rashtriya Chemical Fertilisers Ltd (RCF) and National Chemicals.

Chemical and fertilisers minister Ram Vilas Paswan said. "We will not go for strategic sale of any of the Chemical and Fertiliser PSU plant. All the PSUs were functioning efficiently, and if at all there were some operational weakness, it was due to infrastructural bottlenecks," he said.

He said the government was also looking at increasing the country's steel production to 120 million tonnes from the current capacity of 38 million tonnes with an investment of Rs2.75 lakh crore by 2020.

Paswan also stated that the government should look at exporting iron ore only after the country's needs are met.
Back to News Review index page