TN, South Australia sign sister-state agreement
Chennai: South Australia is interested in promoting joint ventures with Tamil Nadu in various sectors including the mining and automotive industries, said Mike Rann, South Australia's Premier, who is leading the first trade mission to India by the State Chapter of Australia India Business Council,. The two states have signed a sister-State agreement.

Rann said that South Australia is sixth among the 64 mining jurisdictions in the world and has over 40 per cent of the global uranium resources.

South Australia's capital Adelaide is considered the `University city of Australia' and is interested in inviting students from Tamil Nadu for studies.

The agreement marks the start of a stronger relationship between the two partners with exchanges in tourism and education.

South Australia has a strong economy and unemployment is at its lowest. It is interested in joint ventures with India, particularly Tamil Nadu and Chennai, he said.
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RBI upbeat on growth of economy
Mumbai: The Indian economy would maintain the 8-9 per cent GDP growth on the back of a robust growth in the services sector and an impressive performance in the first quarter, the Reserve Bank said today.

The Indian economy maintained the momentum of growth recorded in the last three years, exhibiting a robust growth in Q1 FY 07, the RBI stated in its mid-term review.

The GDP registered an increase of 8.9 per cent in Q1 FY 07 as against 8.5 per cent in the corresponding quarter of FY 06, benefiting from strong manufacturing as well as service sector activities.

While growth in the agricultural sector was the same as a year ago, all major sub-sectors, except electricity, gas and water supply and construction recorded an accelerated growth during the April-June 2006 period.

The services sector remained the key driver of economic activity, contributing 71 per cent to overall GDP growth followed by industry at 22 per cent.

The monetary and liquidity condition of the economy too remained comfortable with strong deposit growth able to accommodate sustained growth of bank credit.

Growth in non-food credit has remained above 30 per cent YoY for more than a year while time deposits have recorded large accretion thus far.

Demand for bank credit from the commercial sector continued to remain strong during Q2 FY 07 with non-food credit of SCBs increasing by 9.8 per cent up to October 13 as against 11 per cent during the corresponding period of last fiscal.

On a YoY basis, non-food credit grew 30.5 per cent as on October 13, on top of a base as high as 31.8 per cent a year ago
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Textile ministry pitches SEZ-like benefits
New Delhi: The textile ministry is asking for special economic zones (SEZ) benefits for the industrial parks being constructed under the scheme for integrated textile parks (SITP). The ministry wants full SEZ status for four out of the 26 parks. SEZ status would mean that textile firms will get all the tax benefits available under the SEZ act such as tax holiday for 15 years. These incentives would include income tax exemption to the tune of 100 per cent for the first five years, 50 per cent for the next five Years and 100 per cent exemption on the profits ploughed back into the business for corresponding five years.

The firms would also avail of the benefits of service tax exemption and zero duty on capital goods. In comparison to SITP, the SEZ status would give considerable financial benefits to textile companies. Under SITP, the textile ministry provides infrastructure facilities such as roads, electricity supply including captive power plants and telecom lines to firms willing to set up textile units. The textile ministry may pursue this as apart of the budget proposals.

A proposal in this regard was discussed at a recent meeting of the task force for the sector under the Prime Minister's Office, government sources said.
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Wheat MSP raised by Rs100
New Delhi: The maximum support price of the current year's wheat crop, to be procured from April next, has been fixed by the Centre at Rs750 per quintal. This is Rs100 more than the Rs650-per quintal price set for 2005-06.

For the last year's crop, the Centre had also declared a bonus of Rs50 per quintal, over and above the Rs650-per quintal MSP. But since its announcement came as late as April 21 (by which time, the procurement operations had virtually come to an end), farmers were effectively paid a rate of only Rs650 per quintal by the Food Corporation of India (FCI) and State agencies.

But now, with elections in Punjab due in February, the Centre has raised the MSP to Rs750 per quintal. The decision, taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA) here on Monday, overrules the Commission for Agricultural Costs and Prices' (CACP) recommended MSP of Rs700 per quintal.

The Rs100-per quintal increase is the highest-ever in history, and ends a period, when the Centre kept a tight leash on procurement prices to control its spiralling food subsidy bill.
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