Panel pill to tame fuel subsidy
Government subsidies on fuel could be maintained at a “bearable” level of Rs 20,000 crore per year irrespective of the price of crude in the international markets, if the government implements the Kirit Parikh panel report.
The panel said this could be done through free pricing of petrol and diesel, periodically raising prices of cooking gas cylinders (LPG) and kerosene, reducing the allocation of kerosene and directing ONGC Ltd and Oil India Ltd to part with some of their earnings when crude price goes above a certain level.
“If petrol and diesel are allowed free-market pricing, kerosene and domestic LPG prices are raised periodically… the subsidy burden of the government would come down substantially,” Kirit S. Parikh, chairman of the committee on sustainable pricing of petroleum products, said after submitting its report to petroleum minister Murli Deora.
The committee also suggested that when the crude oil price crossed $60 per barrel, state-owned Oil and Natural Gas Corporation Ltd (ONGC) and Oil India could be asked to part with a proportion of their excess earnings. This is only on crude produced from their nomination blocks.
Parikh said even if the price of crude changed from $70 per barrel to $140 per barrel “the burden on the budget of the government would remain stable at about Rs 20,000 crore, and that I think is a bearable burden for subsidy”.
He said “the government should compensate the gap by providing cash subsidy from the budget. The oil firms marketing PDS kerosene and domestic LPG should be compensated fully for their under-recoveries.”
N.R. Bhanumurthy of the National Institute of Public Finance and Policy said, “The recommendations should be the long-term objectives of the government, but given the political economy situation, it appears unlikely that they would be fully implemented in the medium term.”
In the sharing of revenue, if crude moved beyond $60 per barrel, the report suggested the levy of a special oil tax on ONGC and OIL. Parikh said such a levy should be restricted only on blocks given on a nomination basis.
According to the Parikh report, when crude price rules in the range of $60-70 per barrel, 20 per cent of the excess price over $60 should be the taxable rate.
When crude is in the range of $70-80 per barrel, the rate should be 40 per cent of the excess price over $70.
For crude at $80-90, the recommended levy is 60 per cent above $80. Beyond $90 per barrel, it is 80 per cent above $90.
In its presentation before the committee, ONGC had stated that a crude price hike led to an increase in the cost of inputs such as field service material and equipment. “(Therefore) SOT rate should be calibrated so that ONGC is able to retain some portion of increase in price to cover rise in costs.”
Till last year, upstream firms such as ONGC were asked to bear one-third of the total revenue loss suffered by the state-owned oil marketing companies for selling fuel below cost.
This year, they have been mandated to bear all of the revenue loss for selling petrol and diesel below cost.
ONGC has in the six years since 2003-04 doled out Rs 86,005 crore in fuel subsidies; this year it has already paid over Rs 5,000 crore.
In 2008, the B.K. Chaturvedi committee had recommended that the special oil tax should kick in at $75 per barrel, but its report had been not implemented so far.
The Parikh committee is the third panel constituted by the government on oil pricing. The recommendations of the previous C. Rangarajan and Chaturvedi committees have not been fully implemented.
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Feb 4, 2010
Petro potion tickles & rattles
- Radical proposals to raise prices leave govt with unenviable option
The Manmohan Singh government has been served a chalice of petroleum reforms too bitter to swallow politically but irresistible economically.
Transportation and kitchen fuel prices could rise if the government marshals courage to accept the sweeping recommendations made by a committee that suggested market-determined pricing of petrol and diesel, an increase of Rs 100 per cooking gas cylinder and a Rs 6-per-litre hike in the price of kerosene sold through ration shops.
“The current petroleum product pricing of the government is not sustainable,” said Kirit Parikh, chairman of the committee, after submitting the report today to petroleum minister Murli Deora.
Deora later said the Parikh report would be placed before the cabinet for discussion within a week. “We are very keen not just to discuss (the report) but also see what can be done for consumers and the government,” Deora added.
Parikh believes that the government, which is under pressure to put a lid on rising subsidies, will be receptive to the radical proposals. (See chart)
“This is the best time to free prices of petrol and diesel. The price increases will be very low now…. You ought not to wait for crude oil prices to touch $120 a barrel,” he added. Crude oil prices are currently hovering around $76 a barrel.
Industry sources said the price of petrol could go up by Rs 4.70 per litre and diesel by Rs 2.30 per litre if the government grants pricing freedom to the state-owned oil marketing companies like Indian Oil Corporation.
The economics may be right but the proposals have come at a time the government is battling price rise in a year elections will be held in Bihar.
Analysts expect political pragmatism to override economic wisdom, prompting the government to adopt only a few token measures.
“The government has to bite the bullet sometime but the quantum of the increase may not be as much as suggested by the panel,” said D.K. Joshi, economist with rating agency Crisil.
Political parties said they would oppose any move that raised the prices of essential commodities.
“We are confident that the government would keep the larger picture in mind while arriving at an appropriate decision,” said Congress spokesperson Manish Tiwari.
The government, which rode to power on the populist aam admi plank and the slogan of inclusive growth, will be hard pressed to raise the price of kerosene sold through the ration shops which hasn’t been changed since March 2002.
The committee felt that a price of Rs 15 per litre was justified as 35 per cent of kerosene sold through the ration shops was being diverted for unauthorised purposes including adulteration of diesel.
The committee believed that an inflated fuel bill for motorists – estimated at a maximum of Rs 1,000 a month for car owners based on an all-India average of driving distances and assuming global crude oil prices surge to $120 a barrel from current levels – is entirely bearable. People who live in the metros may have to pay somewhat more.
The more realistic medium-term assumption is that car owners in metros should expect a Rs 7 per litre hike in petrol prices, which would translate into a little over Rs 600 increase in monthly petrol bills if crude oil prices stay under $80 a barrel.
In the case of two-wheeler owners, the committee says the additional increase will be only Rs 50 a month (on the basis of an all-India average of driving distances and fuel efficiency standards) or Rs 80 a month in metros.
In the unlikely event that crude prices surge to $ 120 a barrel, the two-wheeler owners will have to pay just Rs 160 more every month – which it reckons isn’t going to be hard on the pocket.
The committee also said that there was no social reason to subsidise gas-guzzling sports utility vehicles (SUVs) and, therefore, proposed diesel prices should also be market determined.
- Radical proposals to raise prices leave govt with unenviable option
The Manmohan Singh government has been served a chalice of petroleum reforms too bitter to swallow politically but irresistible economically.
Transportation and kitchen fuel prices could rise if the government marshals courage to accept the sweeping recommendations made by a committee that suggested market-determined pricing of petrol and diesel, an increase of Rs 100 per cooking gas cylinder and a Rs 6-per-litre hike in the price of kerosene sold through ration shops.
“The current petroleum product pricing of the government is not sustainable,” said Kirit Parikh, chairman of the committee, after submitting the report today to petroleum minister Murli Deora.
Deora later said the Parikh report would be placed before the cabinet for discussion within a week. “We are very keen not just to discuss (the report) but also see what can be done for consumers and the government,” Deora added.
Parikh believes that the government, which is under pressure to put a lid on rising subsidies, will be receptive to the radical proposals. (See chart)
“This is the best time to free prices of petrol and diesel. The price increases will be very low now…. You ought not to wait for crude oil prices to touch $120 a barrel,” he added. Crude oil prices are currently hovering around $76 a barrel.
Industry sources said the price of petrol could go up by Rs 4.70 per litre and diesel by Rs 2.30 per litre if the government grants pricing freedom to the state-owned oil marketing companies like Indian Oil Corporation.
The economics may be right but the proposals have come at a time the government is battling price rise in a year elections will be held in Bihar.
Analysts expect political pragmatism to override economic wisdom, prompting the government to adopt only a few token measures.
“The government has to bite the bullet sometime but the quantum of the increase may not be as much as suggested by the panel,” said D.K. Joshi, economist with rating agency Crisil.
Political parties said they would oppose any move that raised the prices of essential commodities.
“We are confident that the government would keep the larger picture in mind while arriving at an appropriate decision,” said Congress spokesperson Manish Tiwari.
The government, which rode to power on the populist aam admi plank and the slogan of inclusive growth, will be hard pressed to raise the price of kerosene sold through the ration shops which hasn’t been changed since March 2002.
The committee felt that a price of Rs 15 per litre was justified as 35 per cent of kerosene sold through the ration shops was being diverted for unauthorised purposes including adulteration of diesel.
The committee believed that an inflated fuel bill for motorists – estimated at a maximum of Rs 1,000 a month for car owners based on an all-India average of driving distances and assuming global crude oil prices surge to $120 a barrel from current levels – is entirely bearable. People who live in the metros may have to pay somewhat more.
The more realistic medium-term assumption is that car owners in metros should expect a Rs 7 per litre hike in petrol prices, which would translate into a little over Rs 600 increase in monthly petrol bills if crude oil prices stay under $80 a barrel.
In the case of two-wheeler owners, the committee says the additional increase will be only Rs 50 a month (on the basis of an all-India average of driving distances and fuel efficiency standards) or Rs 80 a month in metros.
In the unlikely event that crude prices surge to $ 120 a barrel, the two-wheeler owners will have to pay just Rs 160 more every month – which it reckons isn’t going to be hard on the pocket.
The committee also said that there was no social reason to subsidise gas-guzzling sports utility vehicles (SUVs) and, therefore, proposed diesel prices should also be market determined.
Feb 1, 2010
Satyam in time plea for SEZs
Mahindra Satyam has sought more time from the authorities to set up its three special economic zones (SEZs) in Andhra Pradesh.
“We have decided to go slow on infrastructure and expansion because of global economic recession in IT, in particular. The company is in the process of analysing the worldwide economic situation to amend the expansion plans appropriately,” Mahindra Satyam said.
The board of approval for special economic zones, headed by commerce secretary Rahul Khullar, will take up the matter on February 11.
Satyam Computer Services, now called Mahindra Satyam, plans to develop three SEZs — at Hitec City and Bahadurpally (both in Hyderabad) and Thotlakonda (near Visakhapatnam) — in Andhra Pradesh.
The three proposed tax-free zones have already been given an extension, which would lapse in June.
The company said it had completed the first phase of the 12-hectare SEZ at Hitec City, with a built-up area of 2,41,064 square feet.
“We spent Rs 78 crore on this. Work for the second phase is in progress and is likely to be completed by September. We expect exports to commence by the end of next fiscal,” the company informed the board of approval.
The zones that get in-principle approval have to complete land acquisition within a year of approval, while a formally approved SEZ with land under possession has to make the tax-free enclave operational within three years.
Officials said the new management of the company, which is reviewing Satyam’s past activities, wanted to go slow on the SEZs as there was no demand for space.
The SEZ Act of 2005, which became effective from February 10, 2006, gave units within the zone and their developers certain tax benefits.
Under the act, developers are entitled to 100 per cent tax exemption on profits for 10 years on the trot during the first 15 years of operations.
Units are entitled to a 100 per cent tax exemption on export profits during the first five years of operations and 50 per cent exemption for the next five years.
From the 11th to the 15th year, the units are eligible for a 50 per cent waiver on reinvested profits.
So far, extensions have been granted to 105 developers. More than Rs 1 lakh crore has been invested in around 100 SEZs.
The BoA has so far notified 335 SEZs, while 147 have got in-principle approvals.
Mahindra Satyam has sought more time from the authorities to set up its three special economic zones (SEZs) in Andhra Pradesh.
“We have decided to go slow on infrastructure and expansion because of global economic recession in IT, in particular. The company is in the process of analysing the worldwide economic situation to amend the expansion plans appropriately,” Mahindra Satyam said.
The board of approval for special economic zones, headed by commerce secretary Rahul Khullar, will take up the matter on February 11.
Satyam Computer Services, now called Mahindra Satyam, plans to develop three SEZs — at Hitec City and Bahadurpally (both in Hyderabad) and Thotlakonda (near Visakhapatnam) — in Andhra Pradesh.
The three proposed tax-free zones have already been given an extension, which would lapse in June.
The company said it had completed the first phase of the 12-hectare SEZ at Hitec City, with a built-up area of 2,41,064 square feet.
“We spent Rs 78 crore on this. Work for the second phase is in progress and is likely to be completed by September. We expect exports to commence by the end of next fiscal,” the company informed the board of approval.
The zones that get in-principle approval have to complete land acquisition within a year of approval, while a formally approved SEZ with land under possession has to make the tax-free enclave operational within three years.
Officials said the new management of the company, which is reviewing Satyam’s past activities, wanted to go slow on the SEZs as there was no demand for space.
The SEZ Act of 2005, which became effective from February 10, 2006, gave units within the zone and their developers certain tax benefits.
Under the act, developers are entitled to 100 per cent tax exemption on profits for 10 years on the trot during the first 15 years of operations.
Units are entitled to a 100 per cent tax exemption on export profits during the first five years of operations and 50 per cent exemption for the next five years.
From the 11th to the 15th year, the units are eligible for a 50 per cent waiver on reinvested profits.
So far, extensions have been granted to 105 developers. More than Rs 1 lakh crore has been invested in around 100 SEZs.
The BoA has so far notified 335 SEZs, while 147 have got in-principle approvals.
Apr 29, 2008
Promoters thwart DCM takeover bid
R. SURYAMURTHY
New Delhi, April 24: DCM Shriram Industries appears to have thwarted a hostile takeover bid by HB Stockholdings Ltd.
The promoters of DCM Shriram have increased their stake in the company to 40.71 per cent by converting the warrants allotted to them on a preferential basis earlier this month. DCM Shriram has allotted 9,45,000 equity shares of Rs 10 each at a premium of Rs 80 per share.
Sources said the company had informed the Bombay Stock Exchange (BSE) of the board’s decision. “These shares shall rank pari passu (equal in status) with the existing equity shares of the company,” a resolution taken by DCM Shriram said. HB Stockholdings has informed the BSE that it has increased its stake in DCM Shriram to 25.05 per cent through open market purchases.
R. SURYAMURTHY
New Delhi, April 24: DCM Shriram Industries appears to have thwarted a hostile takeover bid by HB Stockholdings Ltd.
The promoters of DCM Shriram have increased their stake in the company to 40.71 per cent by converting the warrants allotted to them on a preferential basis earlier this month. DCM Shriram has allotted 9,45,000 equity shares of Rs 10 each at a premium of Rs 80 per share.
Sources said the company had informed the Bombay Stock Exchange (BSE) of the board’s decision. “These shares shall rank pari passu (equal in status) with the existing equity shares of the company,” a resolution taken by DCM Shriram said. HB Stockholdings has informed the BSE that it has increased its stake in DCM Shriram to 25.05 per cent through open market purchases.
Apr 7, 2008
Duty cut high on trade plan agenda
R. SURYAMURTHY
New Delhi, April 6: The foreign trade policy, to be announced on Friday, could make the import of food articles, commodities and metals cheaper, both to check inflation and make industry competitive globally by allowing firms access to raw materials at a lower cost.
To check prices, the government has scrapped import duties on edible oils, banned the export of non-basmati rice, cut duties on maize imports to zero from 15 per cent and extended the ban on pulse export by a year. It has also banned the export of edible oils and scrapped the export refund schemes in steel and cement.
With inflation touching a more-than-three-year high of 7 per cent, the government is expected to boost imports and encourage exports of only those value-added products that do not push inflation.
Analysts said inflation in commodities such as rice and pulses was because of a shortage in the supply of rice of up to 4 million tonnes and pulses of up to 2 million tonnes.
Fiscal measures such as reducing customs duties for a short period of time until prices stabilise will help to bridge the gap between demand and supply. There could be a similar move in metals and metal products.
R. SURYAMURTHY
New Delhi, April 6: The foreign trade policy, to be announced on Friday, could make the import of food articles, commodities and metals cheaper, both to check inflation and make industry competitive globally by allowing firms access to raw materials at a lower cost.
To check prices, the government has scrapped import duties on edible oils, banned the export of non-basmati rice, cut duties on maize imports to zero from 15 per cent and extended the ban on pulse export by a year. It has also banned the export of edible oils and scrapped the export refund schemes in steel and cement.
With inflation touching a more-than-three-year high of 7 per cent, the government is expected to boost imports and encourage exports of only those value-added products that do not push inflation.
Analysts said inflation in commodities such as rice and pulses was because of a shortage in the supply of rice of up to 4 million tonnes and pulses of up to 2 million tonnes.
Fiscal measures such as reducing customs duties for a short period of time until prices stabilise will help to bridge the gap between demand and supply. There could be a similar move in metals and metal products.
Inflation march gathers pace
JAYANTA ROY CHOWDHURY & R. SURYAMURTHY
New Delhi, April 4: Inflation spiralled to a more-than- three-year high of 7 per cent for the week ended March 22, setting alarm bells ringing within the ruling alliance, which decided to crack down on hoarding.
Rising vegetable and cooking oil prices were behind the high rate of inflation.
Vegetable prices shot up by nearly 5 per cent in just one week, while onion prices rose 22 per cent in two months.
Ten years ago, when onion prices rose sixfold, the BJP was voted out of power in two states.
According to Arun Jaitley, spokesperson for the BJP, which now hopes to play the price card in coming elections, “Inflation is a UPA tax on the aam aadmi.”
This year will see elections in Delhi, Madhya Pradesh, Rajasthan, Chhattisgarh, Karnataka and Jammu & Kashmir, while the Lok Sabha polls will be held next year.
Besides onions and vegetables, grain prices have jumped 17-20 per cent, pulses by 20-35 per cent and sugar by over 18 per cent in a little over two months.
Rising food prices have cost politicians their jobs in the past.
“Inflation has always proved to be a vote loser for ruling parties. ‘India Shining’ or ‘aam aadmi’ rarely work in inflationary situations,” said S.P. Gupta, former member of the Planning Commission.
JAYANTA ROY CHOWDHURY & R. SURYAMURTHY
New Delhi, April 4: Inflation spiralled to a more-than- three-year high of 7 per cent for the week ended March 22, setting alarm bells ringing within the ruling alliance, which decided to crack down on hoarding.
Rising vegetable and cooking oil prices were behind the high rate of inflation.
Vegetable prices shot up by nearly 5 per cent in just one week, while onion prices rose 22 per cent in two months.
Ten years ago, when onion prices rose sixfold, the BJP was voted out of power in two states.
According to Arun Jaitley, spokesperson for the BJP, which now hopes to play the price card in coming elections, “Inflation is a UPA tax on the aam aadmi.”
This year will see elections in Delhi, Madhya Pradesh, Rajasthan, Chhattisgarh, Karnataka and Jammu & Kashmir, while the Lok Sabha polls will be held next year.
Besides onions and vegetables, grain prices have jumped 17-20 per cent, pulses by 20-35 per cent and sugar by over 18 per cent in a little over two months.
Rising food prices have cost politicians their jobs in the past.
“Inflation has always proved to be a vote loser for ruling parties. ‘India Shining’ or ‘aam aadmi’ rarely work in inflationary situations,” said S.P. Gupta, former member of the Planning Commission.
Apr 3, 2008
Price-bitten Centre faces grain tussle
- Farm lobby calls for higher procurement rates
JAYANTA ROY CHOWDHURY AND R. SURYAMURTHY
New Delhi, April 2: The Congress-led government at the Centre is caught between the devil and the deep sea over grain prices.
Farmer groups and political parties are demanding an increase in the procurement price of wheat even as the Centre is trying to check an inflationary spiral fuelled by rising grain and food prices.
Sukhbir Singh Badal, the head of the Shiromani Akali Dal that rules Punjab, said: “Our farmers should get global prices for the wheat and rice they grow.”
The global price for wheat stands at over Rs 1,800 a quintal and paddy at about Rs 2,800 a quintal. The government had last year set a procurement price of Rs 1,000 a quintal for both and is likely to increase this by offering a bonus of Rs 100 a quintal.
- Farm lobby calls for higher procurement rates
JAYANTA ROY CHOWDHURY AND R. SURYAMURTHY
New Delhi, April 2: The Congress-led government at the Centre is caught between the devil and the deep sea over grain prices.
Farmer groups and political parties are demanding an increase in the procurement price of wheat even as the Centre is trying to check an inflationary spiral fuelled by rising grain and food prices.
Sukhbir Singh Badal, the head of the Shiromani Akali Dal that rules Punjab, said: “Our farmers should get global prices for the wheat and rice they grow.”
The global price for wheat stands at over Rs 1,800 a quintal and paddy at about Rs 2,800 a quintal. The government had last year set a procurement price of Rs 1,000 a quintal for both and is likely to increase this by offering a bonus of Rs 100 a quintal.
Mar 31, 2008
Myanmar message to Bangla
R. SURYAMURTHY
Way out
New Delhi, March 30: India will send a strong message to Bangladesh with a proposed transit transport project in Myanmar.
Earlier this week, the Union cabinet approved the Rs 535.91-crore project that will give the landlocked Northeastern states access to the sea. The project involves the development of the Sittwe port in Myanmar and facilities along the river Kaladan that runs through the Indian state of Mizoram as well as Myanmar and meets the sea at Sittwe.
New Delhi’s move to invest in the Myanmar port assumes significance in the wake of Dhaka’s reluctance to give India access to the Chittagong port, which is closer to the Northeast. The cabinet note, to which The Telegraph has access, said, “Bangladesh has practically held India, especially the Northeast, to ransom by denying transit through its territory.”
New Delhi plans to roll out the red carpet to the vice-chairman of Myanmar’s State Peace and Development Consul, Maung Aye, who will visit the capital on April 4 to formalise the deal. The State Peace and Development Consul is the ruling junta of Myanmar, and Maung Aye is the second highest ranking member of the consul after Than Shwe.
R. SURYAMURTHY
Way out
New Delhi, March 30: India will send a strong message to Bangladesh with a proposed transit transport project in Myanmar.
Earlier this week, the Union cabinet approved the Rs 535.91-crore project that will give the landlocked Northeastern states access to the sea. The project involves the development of the Sittwe port in Myanmar and facilities along the river Kaladan that runs through the Indian state of Mizoram as well as Myanmar and meets the sea at Sittwe.
New Delhi’s move to invest in the Myanmar port assumes significance in the wake of Dhaka’s reluctance to give India access to the Chittagong port, which is closer to the Northeast. The cabinet note, to which The Telegraph has access, said, “Bangladesh has practically held India, especially the Northeast, to ransom by denying transit through its territory.”
New Delhi plans to roll out the red carpet to the vice-chairman of Myanmar’s State Peace and Development Consul, Maung Aye, who will visit the capital on April 4 to formalise the deal. The State Peace and Development Consul is the ruling junta of Myanmar, and Maung Aye is the second highest ranking member of the consul after Than Shwe.
Mar 22, 2008
Resort
DLF to up stake in Aman parent
R. SURYAMURTHY & GARIMA SINGH NEOGY
New Delhi, Nov. 28: DLF Ltd, India’s largest property developer, plans to raise its stake in Silverlink — the holding firm for global luxury resorts chain Aman Resorts — to almost 100 per cent.
DLF, which has already taken a majority stake in Silverlink, “will buy out other shareholders within a month or so”, said sources close to the deal.
Negotiations are under way with other partners in Silverlink to buy out their holdings.
The KP Singh-owned DLF has already bought the stake that Lee Hing Development — a Hong Kong-based property fund — held in Silverlink.
R. SURYAMURTHY & GARIMA SINGH NEOGY
New Delhi, Nov. 28: DLF Ltd, India’s largest property developer, plans to raise its stake in Silverlink — the holding firm for global luxury resorts chain Aman Resorts — to almost 100 per cent.
DLF, which has already taken a majority stake in Silverlink, “will buy out other shareholders within a month or so”, said sources close to the deal.
Negotiations are under way with other partners in Silverlink to buy out their holdings.
The KP Singh-owned DLF has already bought the stake that Lee Hing Development — a Hong Kong-based property fund — held in Silverlink.
Africa-India
Funds bait for African oil
R. SURYAMURTHY
New Delhi, Nov. 4: The government is planning to give financial assistance to oil-rich African countries in return for access to crude and gas reserves.
Such a strategy is in the light of a flare-up in the global price of crude that has made it necessary for the country to look beyond West Asia for its supplies.
India imports 75 per cent of its crude requirements, with 73 per cent coming from West Asia and 16 per cent from Africa.
This approach is similar to the one being followed by China. Recently, the Democratic Republic of Congo, which has one-tenth of the world’s copper reserves, gave a Chinese company a majority stake in a mining joint venture as well as mineral rights, in return for a $5-billion loan.
R. SURYAMURTHY
New Delhi, Nov. 4: The government is planning to give financial assistance to oil-rich African countries in return for access to crude and gas reserves.
Such a strategy is in the light of a flare-up in the global price of crude that has made it necessary for the country to look beyond West Asia for its supplies.
India imports 75 per cent of its crude requirements, with 73 per cent coming from West Asia and 16 per cent from Africa.
This approach is similar to the one being followed by China. Recently, the Democratic Republic of Congo, which has one-tenth of the world’s copper reserves, gave a Chinese company a majority stake in a mining joint venture as well as mineral rights, in return for a $5-billion loan.
Export
Budget hope for exports
R. SURYAMURTHY
New Delhi, Jan. 22: The budget is expected to provide relief to labour-intensive export units as the appreciation of the rupee against the dollar has forced them to retrench a large number of workers.
Officials said the country was unlikely to meet the export target of $160 billion for the fiscal and would fall short by about $10 billion. For the April-November period of 2007-08, exports grew 22.08 per cent to $98.38 billion against $80.59 billion in the corresponding period of the previous year.
They said the recently constituted high-powered group under V. Krishnamurthy, the chairman of the National Manufacturing Competitiveness Council, could suggest steps to boost export.
R. SURYAMURTHY
New Delhi, Jan. 22: The budget is expected to provide relief to labour-intensive export units as the appreciation of the rupee against the dollar has forced them to retrench a large number of workers.
Officials said the country was unlikely to meet the export target of $160 billion for the fiscal and would fall short by about $10 billion. For the April-November period of 2007-08, exports grew 22.08 per cent to $98.38 billion against $80.59 billion in the corresponding period of the previous year.
They said the recently constituted high-powered group under V. Krishnamurthy, the chairman of the National Manufacturing Competitiveness Council, could suggest steps to boost export.
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