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Economy & Business   

Inflation will settle down by 
Sept: FM

What is India News Service, August 12, 2004, 2000 hrs IST


Without divulging the steps to be taken, the finance minister P Chidambaram said they would work in tandem with the RBI to bring down the spiralling inflation. Ruling out \93panic or knee-jerk\94 reaction, finance minister said the government would look at various options on fiscal side and the Reserve Bank of India (RBI) on the monetary side to tackle inflation, which he expects, would \93settle down\94 by September.

Attributing the \93totally unexpected and unanticipated\94 spurt in international oil prices, Mr Chidambaram said this was beyond the control of the government and had fuelled the inflation to 7.51 per cent.

Biotechnology sector set to cross $1 billion by 2005: India\92s fledgling biotechnology sector registered a 39 per cent growth during 2003-04 to reach $705 million revenues and is all set to cross one billion dollar mark in 2005, according to second ABLE-BioSpectrum biotech industry survey.

Car war- Ford takes cue from Maruti: Ford India today cut prices of the various models of its best-selling mid-sized sedan, the Ikon, from Rs 20,000 to Rs 60,000.
Ford\92s price cut comes close on the heels of Maruti Udyog Ltd\92s decision in June this year to slash prices of its mid-sized sedan, Esteem, by over Rs 40,000. 

IT exports from State to rise by 30 per cent, says govt: Describing Bangalore as the fourth largest tech hub in the world, state IT secretary said about one lakh IT jobs would be added in Bangalore this year and these would would grow to five lakh by 2010.

Meet today to discuss oil PSU cross-holdings: The Petroleum Ministry is set to review its informal ban on the unlocking of cross-holdings of Indian Oil Corporation, Oil and Natural Gas Corporation and GAIL (India) Ltd in each other. 

RBI Launches New Trading System On NDS: The Reserve Bank of India (RBI) is all set to launch an electronic anonymous screen-based trading in government securities on the Negotiated Dealing System (NDS). 

Tax techies, not products: Premji: The  Wipro Chairman, Mr Azim Premji, has asked the Karnataka Government to raise the professional tax levied on employees in the IT sector and review the State's move to hike sales tax on IT products and services. 

Eight pacts signed for Kulpi port: The state government today signed a set of eight agreements on development and concession of the proposed Kulpi port and its adjoining special economic zone with Bengal Port Limited, a consortium which has for its major partner P&O ports, a Britain-based global port operating major.
 
No raid-raj; tax collection on track: FM: Dispelling fears of a "raid-raj", Finance Minister P Chidambaram  clarified, that the taxmen would go all out after evaders for recovering tax arrears.

RBI clamps down on fictitious foreign cos: The Reserve Bank of India has clamped down on foreign entities, who are cheating people by promising huge sum of money through lotteries and financial assistance to Indian entities.

Montek to co-chair Indo-US economic talks: The Deputy Chairman of the Planning Commission, Dr Montek Singh Ahluwalia, has been designated the Indian Chairman, to co-chair the India-US Economic Dialogue, along with his US counterpart, Mr Stephen Friedman, the Economic Policy Assistant to the US President. 

Has government hit the panic button over inflation: The government appears to have hit the panic button in the face of recent data, for end-July, showing a spike in the inflation rate. 

Petroleum sector projects delayed: More than half the 37 big projects in the petroleum sector are delayed, seven of them seriously. 

IOC to buy equity in Indonesian firm for $ 600m: The state owned Indian Oil Corporation, IOC, is close to finalising a deal to acquire 40 per cent equity stake in an Indonesian oil and gas exploration firm, Medco, for a consideration of $ 600 million, a reliable source said here.

TRAI suggests news broadcast on FM radio: The private broadcasters cheered with Telecom Regulatory Authority of India (TRAI) recommending the removal of existing restriction on news and current affairs for broadcast on FM.

Steel price spurt raises alarm: A spurt in steel prices is causing alarm in the steel ministry forcing the minister, Mr Ram Vilas Paswan, to take up the issue with the finance minister.

Duty free shops at Delhi, Mumbai airports go haywire: It's been nearly two months after the Airports Authority of India (AAI) shortlisted New York-based international flavors and fragrances (IIF) Inc and Dubai-based Flamingo international for setting up duty free shops at airports in Delhi, Mumbai, Kolkata and Trichy.

Incubating business with World Bank\92s support: The World Bank (WB) has announced to support India to set up business incubators that will enable young scientists, bio-technologists and other professionals to set up ventures in \93ready to shift\94 buildings.

Government open to merger of banks: The Union Government is not averse to mega merger of banks and financial institutions such as IDBI and IFCI, if all stipulated norms of the Reserve Bank of India are met.

ICICI Bank bullish on retail segment: The Deputy Managing Director of ICICI Bank, Kalpana Morparia, brushed aside rumours on the bank's financials.

FTA with Thailand piques traders: The government has asked the domestic industry to prepare itself to accept the challenge of Free Trade Agreement (FTA) with Thailand since the only mantra for survival is to become globally competitive. 

Reliance takes over German polyester co: Reliance Industries has finalised the takeover of a leading polyester producer in Germany-Trevira with the European Commission giving its green signal this week.

RBI monitors inflation: The Reserve Bank of India today stated that it is monitoring the developments on the inflation front and respond to it with a view to maintaining price stability over the year. 

Beware of foul play by foreign cos- RBI: Calling upon the public not to fall prey to fictitious offers, RBI has warned that remittances in any form towards participation in lottery schemes are banned under FEMA. 

Sensex down 77 over inflation, oil worries: The markets finally reacted to the high inflation and oil prices, with the benchmark Sensex falling 1.5 per cent on Wednesday. Commodity stocks were the worst hit. A hike in Fed rate also affected market sentiment. 

Overall:

FM says inflation is being monitored: The finance minister P Chidambaram said they would work in tandem with the RBI to bring down the spiralling inflation. 

Petroleum ministry to review PSU cross-holdings: The Petroleum Ministry is set to review its informal ban on the unlocking of cross-holdings of Indian Oil Corporation, Oil and Natural Gas Corporation and GAIL (India) Ltd in each other. 

Government welcomes merger of banks: The Union Government is not averse to mega merger of banks and financial institutions such as IDBI and IFCI, if all stipulated norms of the Reserve Bank of India are met.

Steel price hike calls for immediate attention: A spurt in steel prices is causing alarm in the steel ministry forcing the minister, Mr Ram Vilas Paswan, to take up the issue with the finance minister.