INDIA INTELLIGENCE REPORT

 

Economy & Business   

NTPC disinvestment to carry on 
despite resistance

What is India News Service, July 31, 2004, 1700 hrs IST


The government has decided to move forward for the divestment of its share in the public sector major National Thermal Power Corporation despite stiff opposition from the Leftist parties. NTPC would now file a combined prospectus for selling 5.25 per cent government stake and Initial Public Offer (IPO) for an equal quantity.

RBI monitors inflation trend closely
: The Reserve Bank of India Deputy Governor, Rakesh Mohan, today said the central bank closely watching the inflation trend and felt that there was no need to change the inflation outlook of around 5 per cent mentioned in the annual policy for 2004-05.

Electronic clearing facility relaxed for GTB account holders
: With Global Trust Bank under moratorium, SEBI today asked companies to pay dividends and interest through warrants to investors, who have opted for electronics clearing facility through GTB, without printing account details on the instrument.

U.S. imposes anti-dumping duty on Indian shrimps: The U.S. has imposed taxes ranging between 3.56 and 27.49 per cent on shrimp imports from India in the second phase of a probe into the petition alleging `dumping' at low prices.

Inflation an area of concern, says Munjal: The emerging situation in respect of inflation is an area of concern, according to Sunil Kant Munjal, the newly-elected President of the Confederation of Indian Industry (CII). 

IA crashes fares to Jet, Sahara levels: The war in air fares turned full circle today with the Indian Airlines announcing new apex rates for the ticket purchased 28 days in advance in eight sectors. It would help it compete with the private airlines offering similar fares to attract second AC train passengers. 

Steel exporters\92 gain is SSIs\92 loss
: The government\92s move to restore benefits to steel exporters is likely to directly affect the small-scale industry as the steel prices would soar further. The government has restored the benefits to steel exporters under the Duty Entitlement Passbook Scheme with effect from July 12. 

Auto stocks lead rally: Led by the auto sector, stocks continued their upward march for the second straight day lifting Sensex by another 50 points at close on the Bombay Stock Exchange.

GAIL to invest Rs 750 crore in the telecom business
: GAIL is pumping Rs 750 crore over next five years to expand its telecom business, including establishing 20,000-km cross-country broadband network connecting homes in 23 cities.

India secures special status for farm products at WTO: India has now offered its support to countries like Brazil and Argentina who could not win any such favours in order to champion their cause. The key members of the G20 such as Brazil and Argentina are angry that the trade-distorting domestic subsidies are not properly addressed.

India, Thailand iron out trade glitches: India and Thailand entered into an understanding on allowing a phased reduction of Customs duties on 82 items, that the two countries import from each other, from September 2004. The import of these items by India and Thailand from each other will enjoy a 50 per cent duty relief for the first year beginning September 2004 

IDBI-IDBI Bank swap ratio likely to be 1-1
: The swap ratio for the IDBI-IDBI Bank merger is likely to be 1:1 because of the financial institution\92s majority stake in the banking subsidiary. If the swap ratio is thus derived, IDBI Bank shareholders stand to benefit more from the merger. 


Drought may eat into 5-10% Plan spending
: The government may be forced to cut Plan spending by 5-10 per cent in the current fiscal to meet contingency expenses in case of a drought. 

A-I to buy over 25 long-range jets: Air-India (A-I) is planning to buy more than 25 long-range planes in the second phase of its fleet acquisition programme. The airline plans to double its capacity in the next two-three years. 

Government steps up drought relief plans: Concerned due to the lack of rains, the Centre has advised the concerned states to immediately arrange for the supply of drinking water and fodder in the drought-hit tracts. 

Revenue deficit at 61% of target
: The government will have a tough job reining in the revenue deficit for the current fiscal within 2.5 per cent of the Gross Domestic Product (GDP). The actual figures for the first three months of the year have already touched 61 per cent of the annual target. As per the Fiscal Responsibility and Budget Management Act, the Centre has to reduce the revenue deficit by 0.3 per cent in every fiscal year to achieve a nil level by 2008-09. 

Inflation static at 6.52 %: The annual rate of inflation, remained static at 6.52 per cent for the week ended July 17. This is despite an increase in the prices of essential primary articles and manufactured products. 

Markets rise for the fifth straight week: The market concluded with a gain of 1.91% banking on increase in FII activity and flow of strong corporate news. The improved outlook for the monsoon with fairly good rainfall in some parts of the country bolstered the sentiment. The BSE ended at 5170.32, a net rise of 96.98 points. 

Overall:

Disinvestment of NTPC will carry on: The government has decided to move forward for the divestment of its share in the public sector major National Thermal Power Corporation despite stiff opposition from the Left.

RBI keeps check on inflation: The Reserve Bank of India Deputy Governor, Rakesh Mohan, today said the central bank closely watching the inflation trend.

India Thailand straighten out trade issues:  India and Thailand entered into an understanding on allowing a phased reduction of Customs duties on 82 items.