Business & Economy 

Left agrees to private participation

in airport renovation project

What is India News Service, June 26, 2004, 1630 hrs

State governments providing free power for farmers face the risk of losing out on World Bank loans. The policy tussle over revamping airports appears to have ended with the Left agreeing to allow private participation. IDBI opened its account in the Tamil film industry three years after entering the film-financing segment. The rupee pulled back from intra-day lows on Friday, helped by relatively light importer demand.

Senior World Bank officials said state governments which declare free power for farmers would not be entitled to World Bank loans. Tamil Nadu and Andhra Pradesh, which are giving free power, will not get any power sector aid from the bank till the policy is reversed. Even loans already sanctioned could be stopped if conditions attached to these projects are not honoured.

Civil aviation minister Praful Patel has consulted important Left leaders H S Surjeet and Sitaram Yechury in an effort to bring them on board for a meeting scheduled  Monday. Sources said that the Left wanted the government to maintain majority stake if it wanted to open up the Delhi and Mumbai airports to foreign direct investment.

Industrial Development Bank of India (IDBI) has opened its account in the Tamil film industry. The first Tamil film to get direct IDBI funding will be \91Annian\92. The film is produced by Oscar Films\92 Ravichandran and directed by Shankar. The film, tentatively planned for release this Diwali, is being produced at a whopping budget of Rs 17 crore. IDBI is extending funds to the tune of Rs 8.5 crore, which is 50 per cent of the film\92s total budget.

The rupee closed at 45.83/85 per dollar, up 0.1 per cent from Thursday\92s 45.88/91. It had hit a low of 45.97 during the day. Cautious sentiment was in evidence amid thinning capital flows ahead of an expected US interest rate hike next week. Also, the UPA government\92s maiden budget is due early next month.

Overall:

World Bank hits out at free power: State governments providing free power for farmers face the risk of losing out on World Bank Loans.

Left says yes: The policy tussle over revamping airports appears to have ended with the left agreeing to allow private participation.

IDBI okayed first film: Industrial Development Bank of India (IDBI) has agreed to fund a Tamil blockbuster.

Rupee was steady: The rupee closed at 45.83/85 per dollar, up 0.1 per cent from Thursday\92s 45.88/91. It had hit a low of 45.97 during the day.