CII predicts marginally lower economic growth at 8 pc in 2006-07
New Delhi: The Confederation of Indian Industry (CII) has predicted that the economy will grow at eight per cent in 2006-07, marginally lower than 8.4 per cent recorded last fiscal. The chamber says this is due to hardening of interest rates, rising fuel prices and inflation. It says the economy will still be able to log eight per cent growth as the major economies around the world are growing faster and agriculture may repeat last year's good performance on the back of a normal monsoon, according to the chamber.

The CII has commended the effort of the Reserve Bank of India in keeping inflation below its own projected target and achieving balance between inflation, liquidity, and growth. The chamber has also commended the efforts of the Government in increasing tax revenues in 2005-06.
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PSUs not being neglected: FM
Chennai: The Finance Minister P Chidambaram has denied the Left parties' charge that the UPA Government at the Centre was ignoring public sector units (PSUs). He said that the budgetary t's support to the PSUs has in fact gone up from Rs84,901 crore in 2003-04 to Rs1,42,447 crore this year. He said since IOC was one of the 'Navaratna' PSUs, to help the company continue to run profitably, people had to take some 'bitter pills', a reference to the petrol and diesel price hike.
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Oil prices down
Singapore: Oil prices were seen easing in Asian trade on Monday. At 0907 IST, New York's main contract, light sweet crude for delivery in August, was down nine cents at $70.78 per barrel from $70.87 in late US trade Friday. Brent North Sea crude for August delivery fell eight cents to $69.85. Iraq, which has one of the world's larges proven oil reserves, said its oil production is now more than 2.5 million barrels a day, a record since the fall of Saddam Hussein.
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Inflation stands at 1-yr high
New Delhi: The annual inflation rate topped 5 per cent in early June, accelerating to its highest level in more than a year, data showed on Friday, bolstering chances of an increase in official interest rates in July.

Government data showed the annual inflation rate for the week of June 10, based on wholesale prices, was 5.24 per cent compared to 4.72 per cent a week earlier, due to an increase in the cost of fuel, food and manufactured products.

At the end of the corresponding week last year June, the rate was 4.50 per cent.

Finance Minister P Chidambaram said the government would take further steps if needed to contain inflation.

Analysts had expected the latest data to show annual wholesale price inflation at 5.02 per cent but the higher than expected rate sent federal bond yields to new four-year highs.

"We expect the inflationary pressures to continue to build up," said Shubhada Rao, chief economist at YES Bank in Mumbai.

Chidambaram said no developing country can avoid inflation and high economic growth sometimes leads to an increase in inflation.
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Punjab approves Rs5,000-cr RIL project
Chandigarh: The Punjab government has approved Mukesh Ambani's Reliance Industries' proposal to set up a Rs5,000 crore mega agri project in Punjab that is expected to create over 30,000 new jobs.

Chief Minister of Punjab, Capt Amarinder Singh Reliance said Reliance Industries (RIL) will set up five agri hubs in Punjab near Chandigarh before October 31 with an investment of Rs500 crore, he said.

RIL has plans to set up 52 rural business hubs and over 300 satellite rural business hubs in different parts of the state, each hub would be spread over 20 to 40 acres. Apart from imparting training, providing new seeds, latest facilities and know-how to farmers, the Reliance project aims at launching agricultural insurance and banking finance in the state. The project also aimed at raising milk production in the state manifold and setting up educational institutions (primary and middle). The agricultural produce would be sold by the company through its 22,000 outlets.
When implemented, the project would cover 80 per cent farmers in Punjab, cover three lakh acres for marketing and processing, procure nine lakh tonnes of grains for domestic and overseas marketing, grow/process two lakh tonnes of horticulture produce, procure and process seven lakh liters of milk per day.

The project would begin with an initial investment of Rs500 crore, and it would generate direct and indirect employment for 30,000 people.

The Chief Minister said panchayat lands would be handed over on lease to RIL for Rs16,000 per acre, with a provision of escalation in the lease money by 5 to 10 per cent every year
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