PM puts brakes on divestment plans
New Delhi: The Prime Minister, Dr Manmohan Singh, has virtually put brakes on all plans to divest the government's stake in public sector firms Neyveli Lignite Corporation (NLC) and National Aluminium Company (Nalco), after one of its key allies, the DMK, threatened to withdraw support to the UPA Government if it went ahead with sale of NLC shares.

The statement came on the heels of an announcement in Chennai by the DMK chief and Tamil Nadu Chief Minister, Mr M. Karunanidhi, earlier in the day that his party was reconsidering the continuation of its support to the Centre on the issue.

This is the second time around that the Government has backtracked on the divestment issue. Last year, under severe pressure from the Left parties, the Government was forced to keep on hold its decision to divest 10 per cent equity in BHEL.

Welcoming the Government decision, Left parties today said that such a move was in the national interest and their "pressure" on the Centre was not meant to destabilise it.
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CCEA approves mandatory use of jute in packaging
New Delhi: The Cabinet Committee on Economic Affairs (CCEA) has approved 100 per cent compulsory packaging for foodgrains and sugar in jute bags for the Jute Year 2006-07 (July-June). The Minister for Information and Broadcasting, Priya Ranjan Dasmunsi, said "This is good news for Eastern India as it will help provide sustenance to millions of people engaged in the Jute Sector. The CCEA's decision is also in fulfilment of the pronouncements made in the Common Minimum Programme," he said.
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Rs3,20,000-crore to go into infrastructure in next 6 years
New Delhi: Development of highways, ports and airports will see an investment of Rs3,20,000 crore in the next six years, according to Gajendra Haldea, advisor to the Planning Commission Deputy Chairman.

Releasing a study on infrastructure prepared by Assocham, Haldea said that highways sector alone would see an investment of Rs2,20,000 crore in the six years and 75 per cent of the investment will be channelised through the public-private partnership model.

The development of ports will see an investment of Rs60,000 crore. The upgradation and modernisation of airports will see another Rs40,000 crore investment in the period where also much of the investment will come from the private sector.

The study estimates an investment of Rs6,50,000 crore or around $150 billion for infrastructure development programmes in the country. This includes Bharat Nirman programme that will require investment of Rs1,74,000 crore. Of this, Rs48,000 crore will be utilised for rural roads. The National Urban Renewal Mission will require another Rs1,00,000 crore for implementing urban reforms and upliftment of urban poor.
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Congress ministers advise halting commodities futures trade till UP polls
Mumbai: Senior Congress leaders, including some chief ministers, have advised the prime minister to temporarily stop futures trading in politically sensitive commodities like wheat, till the elections in Uttar Pradesh are over. There was a near consensus over the issue at a meeting of 12 Congress chief ministers on Wednesday convened by Sonia Gandhi.

"A section of the partymen holds the futures trading responsible for the current price hike of essential commodities like wheat."

However, the arguments in favour of curbing futures trade are flawed in the sense that even if one assumes that entire stock of wheat open position in futures is hoarded, it would just be 1 per cent of the total production. In actual fact the rise in price of wheat and pulses is due to a production shortfall and shift in demand pattern.

There is a wide perception that commodity exchanges are being made a scapegoat to the government's failure to build an adequate foodgrain stock and control prices.
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Pharma cos get 6-mth more to stick labels in Hindi
Mumbai: The ministry of chemicals and fertilisers has given the pharmaceutical industry six more months to implement labelling changes in products. The ministry has said it has postponed the deadline for incorporating details on labels in Hindi by six months on request from various pharmaceutical companies. Now the decision would be implemented from 2 October, 2006 instead of 1 April 2006.

Earlier this year, the ministry had directed the pharmaceutical industry to print the brand name, price, date of manufacturing and expiry date in English and Hindi on every product pack "for the benefit of the common man".

While the industry resisted the move initially, some companies did start printing labels in both languages.
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India tops as BPO destination: Study
Bangalore: According to a report released by Kelly Services titled, The Asian Contact Centre Industry Recruitment Index' for 2006 analyses major trends in both the in-and outbound call centre industry in the region. It shows that manufacturing, financial and outsourcing companies are still heading to India, Malaysia, and Singapore, to manage their call centre businesses.

India still shows the highest recruitment pace at 15-20 per cent depending on the location, sector, and whether it is captive or third party contact centre, showing a strong pace of recruitment in the country. India's contact centre business continues to grow despite closely emerging competitors such as the Philippines, Malaysia, and Thailand, the report added.

According to the study, which interviewed contact centres across nine countries in Asia, 44 per cent of recruitment is for new positions in the centres, thus pointing to growth in the industry. Indian contact centres have the most positive outlook for recruitment, with 88 per cent of those studied foreseeing an increased headcount over the next six months.

Key industries looking to hire are ITES, IT, banking, financial services, automobile, telecom, and insurance companies.
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