Economy slated to grow by 9.2 per cent in 2006-07
New Delhi: The Indian economy is slated to grow by 9.2 per cent in the current fiscal, the highest-ever achieved growth rate since the all-time high of 10.5 per cent achieved in 1988-89. But while 1988-89 was preceded by two low-growth years on account of drought (3.8 per cent in 1987-88 and 4.3 per cent in 1986-87), the 9.2 per cent figure of 2006-07 comes on the back of a 9 per cent GDP increase in 2005-06.

The current fiscal has been preceded by four successive years of 7.5-plus per cent growth of which three have registered annual increases of over 8.5 per cent. The only other time when comparable growth has taken place is the mid-1990s, with three years — from 1994-95 to 1996-97 — witnessing growth rates of 7.3 per cent, 7.3 per cent and 7.8 per cent.

The present boom is largely being led by industry (more specifically, manufacturing) and services. While industry as a whole is expected to grow by 9.9 per cent this fiscal, the corresponding rates for manufacturing are even higher, at 11.3 per cent and 11.2 per cent respectively.
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Indian Railways income up 15.43 per cent
New Delhi: Indian Railways' income stood at Rs50,563.83 crore during the April 2006 to January 2007 period as compared to Rs43,806.35 crore earned during the same period last year, an increase of 15.43 per cent.

The total goods earnings have gone up from Rs29,529.91 crore during April 2005-January 2006 to Rs34,212.55 crore during April 2006- January 2007, an increase of 15.86 per cent, an official release said.

The total passenger revenue earnings during April 2006-January 2007 stood at Rs14,125.55 crore compared to Rs12,634.06 crore during the same period last year, an increase of 11.81 per cent.

The revenue earnings from other coaching amounted to Rs1370.86 crore during April 2006-January 2007 compared to Rs977.41 crore during the same period last year, an increase of 40.25 per cent.

The total sundry earnings, it said have also gone up from Rs664.97 crore during April 2005-January 2006 to Rs854.87 crore during April 2006 and January 2007.
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Govt again looks at PSU divestment
New Delhi: The Government is planning to raise resources through disinvestment of five to 10 per cent Government stake in three power utilities as well as increase their equity base by issuing fresh shares. The Cabinet Committee on Economic Affairs (CCEA) is expected to take up the proposals on Thursday for disinvesting 10 per cent Government stake in Rural Electrification Corporation (REC) and five per cent each in Power Grid Corporation of India Ltd (PGCIL) and National Hydroelectric Power Corporation (NHPC).

Last year, the Prime Minister, Dr Manmohan Singh, had put on hold all PSU disinvestment decisions after objections were raised by the Tamil Nadu chief minister, M. Karunanidhi, to the stake sale in Neyveli Lignite Corporation. Since then, only issue of fresh equity in select PSUs has been allowed by the Government.

Currently the Government holds 100 per cent stake in all these three companies. Post issue the Government stake in REC would come down to 81 per cent while in case of PGCIL and NHPC the post issue Government stake would stand at 86 per cent in both the companies.

At present, REC has an equity of Rs780 crore and the shares having a face value of Rs10 each has a book value of Rs53 each. In case of PGCIL, the equity base is Rs3,620 crore and the Rs 10 face value shares have a book value of Rs26 each.

In case of NHPC, the equity base is Rs10,340 crore and the book value of the shares stand at Rs14 each.
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