Business & Economy

Bureaucrats cautious about
Kalam's infrastructure idea

What is India News Service, Monday, 15 November 2004, 2000 hrs IST

North Block is in a major quandary: it feels President A. P. J. Abdul Kalam and plan panel deputy chairman Montek Singh Ahluwalia\92s idea of using the country\92s foreign exchange kitty is \93extremely dangerous and inflationary\94.

However, it is diffident about saying so as the original idea was floated by the President. 

To try and push the idea onto the backburner, there is a move to float a counter-proposal of a fund which would garner investible resources in hard currency for infrastructure development in the country. Investments in such a fund could be quasi-equity.

The idea of using the country\92s $120-billion forex reserves is considered inflationary and \93financially imprudent\94 as the money does not belong to the government. 

\93The money with the Reserve Bank does not belong to the government and, more important, from the monetary point of view, its rupee value has already been issued in the country. If we were to use the same foreign exchange again for any purpose within the geographical boundaries of the country, we would have to once again issue rupees of the same value of the foreign currency \97 this will amount to devaluing our currency and creating an inflationary situation,\94 top finance ministry officials said.

'Think big, create Brand India': President Kalam has asked industry "to think big with the whole world as our market by developing a strong and interactive technology-market-value adding competitive linkage". 

Left, Centre on collision course on pension scheme: The West Bengal government rejected the pension policy saying it would be unwise to risk the money of thousands of employees in a highly volatile capital market.

Scramble on for southern skies: Foreign airlines are rushing to add more flights to cities in south India.

Increase in interest rates imminent: While strong external demand driving up industrial production, the rising credit demand would restrain large fall in money supply, according to a think tank.

Ministry planning pre-negotiation of patented drug price: Even as the Government gears up to put in place a product patent regime by introducing the Patent (Amendment) Bill, concerns about astronomical prices for patented drugs have cropped up.  

National growth prospects bright: According to the latest business outlook survey the country\92s exports growth is expected to remain robust with export demand increasing substantially in the next six months.

Ashok Leyland gifts FunBus on Children's Day: "I am excited," said 24-year-old Sathish, with muscular dystrophy, getting ready for a bus ride through Chennai roads. So, what's special about a bus ride? One look at the children's faces and you know what makes a ride on FunBus special.
 
Air-India takes purdah to first class:  Air-India will take account of \93Indian culture\94 by building plastic screens between flat beds in first class.

Rs 6,000 cr for 5 new airports: The government has made allocations, but is yet to take a decision on the funding and operation of the airports 

Car spares firms can drive direct to EU: The export of automobile parts will now have access to the $7 billion EU market.

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