|
Planning Commission to moderate growth target |
 |
 |
 |
|
Written by Heman Kothari
|
|
Wednesday, 08 July 2009 14:38 |
 New Delhi, July 8 : The Planning Commission on Wednesday began the Mid-Term Review of its 11th Plan to moderate the nine percent growth target for the next five-year period.
"We will have to moderate the growth target. It would not be possible to achieve the overall growth target of 9 per cent during 2007-12," a top official said.
The issues of growth and Mid-Term Review of the 11th Plan came up for discussion at the first meeting of Planning Commission.
"We hope that the Mid-Term Review (document) of the 11th Plan would be produced before the next Budget is presented," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters after the meeting on Wednesday.
"We intend that whatever comes out of the Mid-Term Review, whatever mid-course corrections may be needed, whatever consequences of re-prioritisation that has already taken place, get properly reflected in the next Budget," he added.
The 11th Plan had set an average economic growth target of 9 percent for 2007-12. Although the economy during 2007-08 expanded by 9 percent, growth plummeted to 6.7 percent during 2008-09 on account of the impact of the global crisis.
"The Mid-Term Review (document) of the 11th plan would be ready by November ... This would taken up for discussion in full Planning Commission meeting to be chaired by the Prime Minister in January next year," the Commission source said.
The Commission members have also been told to seek assistance and inputs of various agencies for the review as its main purpose is to prioritise programmes for the next Budget.
"The members have been asked to start work on the approach paper for the 12th Five-Year Plan (2012-17). This is expected to be ready by December 2010," the source said. (ANI) |
|
Govt. initiative to establish Power Exchanges benefited country: Shinde |
|
|
|
|
Written by Reetu Sharma
|
|
Wednesday, 08 July 2009 14:36 |
 New Delhi, July 8 : Union Minister for Power Sushilkumar Shinde on Wednesday said that the Government's initiative to establish Power Exchanges in India has benefitted the country.
The minister said it happened by ensuring payment security, promoting competition among stakeholders, reduction in transaction costs by providing a common platform for trading, empowering demand side response to price signals and bringing about efficiency.
"Power is a high priority sector for the Government and policy initiatives will continue to promote competition, efficiency, restructuring and investment," said Shinde while delivering the inaugural address at a seminar on "Journey to Competitive Markets" in the national capital.
Shinde said that a number of other initiatives have also been taken for empowerment of the State Load Despatch Centers, thereby, facilitating further growth of the Power Market.
These include setting up of committees by the Ministry of Power to look into various aspects to improve the infrastructure and other facilities in the State Load Despatch Centers and their ring fencing.
Organised by Indian Energy Exchange (IEX), the seminar was meant to mark its first anniversary and attended by several luminaries of power sector.
Shinde, on this occasion, said that during the year the total number of members and clients of IEX has crossed 130 and over 3,600 million units of power worth Rs. 3,000 crore has been traded through the Power Exchange.
The Electricity Act, 2003 has been brought about to facilitate private sector participation and to help cash strapped SEBs to meet electricity demand. It envisages competition in electricity market, protection of consumer's interests and provision of power for all.
The Act provides for National Electricity Policy, rural electrification, open access in transmission, phased open access in distribution, mandatory SERCs, license free generation and distribution, power trading, mandatory metering, and stringent penalties for theft of electricity.
The minister said considering the present inter-State power trading scenario and the need to promote power trading in a free power market, Central Electricity Regulatory Commission (CERC) approved the setting up of IEX as the first power exchange in India. (ANI) |
|
|
Government constitutes Global Advisory Council |
|
|
|
|
Written by Sheetal Mehta
|
|
Wednesday, 08 July 2009 14:32 |
 New Delhi, July 8 : Prime Minister Manmohan Singh has constituted a high level global advisory committee consisting of Noble laureate Amartya Sen, steel tycoon L. N. Mittal and Pepsico CEO Indra Nooyi, among others.
Announcing the government's decision in the Lok Sabha on Wednesday, Minister for Overseas Indian Affairs, Vyalar Ravi said council would develop an "inclusive agenda" for engagement between the country and the best Indian brains living abroad.
The Prime Minister, will head the committee, which will advice the government on the best way forward for a two-way engagement.
The GAC will consist of 23-members, including External Affairs Minister S M Krishna, City group CEO Vikram Pandit, NRI entrepreneur Karan Bilimoria, economist Jagdish Bhagwati, hi-tech Czar Sam Pitroda.
The council will also consider ways and means for accessing the skills and knowledge of Indian Diaspora for meeting the country''s development goals and facilitating investments by overseas Indians into the country, Ravi said.(ANI) |
|
Written by Deepak Joshi
|
|
Tuesday, 07 July 2009 04:14 |
 The Economic Survey (ES) report and the comments of Finance Minister (FM) in the parliament while presenting Lots of ifs and buts for future growth in FM’s speech had created uncertainty and market was not able to perform.GDP.
ES has identified certain critical areas where government may take some decision in the forthcoming budget.
ES reading and indication for budget:
• The mention about possible threat of dumping by other countries in India indicates possibility of increase in Import duty on various items which are vulnerable to dumping and can disturb Indian industry like steel sector.
• Research and development may be encouraged with fiscal policy. This may be good for Pharma Sector.
• The mention of narrowing the deficit is critical to keep interest rate low and to restore the high growth rate of GDP. This may act positive for banking sector and the capital markets. Announcement of increase in petrol and diesel price is also one step in this direction.
• The indication of generation of Rs.25000cr per year from disinvestment and another similar amount from sale of 3G licenses in ES will also help in reducing fiscal deficit.
• ES has mention of conservation of natural resources like Coal, Iron Ore and Natural Gas may indicate some export duty on export of Iron ore.
• The passage of Pension Fund Regulation and increase in Foreign Direct Investment (FDI) in the insurance sector to 49% was mentioned in ES.
• Higher and Skill education and faster implementation of infrastructure may be emphasized in the budget.
• ES has talked about growth in labour intensive industry and review of labour law. Any step in this direction can support Textile industry.
• ES also made a case for removal of multiple tax like FBT, Surcharge, STT etc for simplification of tax structure but considering the higher fiscal deficit government may be restricted from removing these taxes.
• FM speech may find some statement on corporate governance as well.
Highlights
• Economic growth decelerated in FY 2009 to 6.7%. This represented a decline of 2.1% from the average growth rate of 8.8% in the previous five years (FY 2004 to FY 2008).
• The growth in agriculture and allied activities decelerated from 4.9% in FY 2008 to 1.6% in FY 2009, mainly on account of the high base effect of FY 2008.
• The manufacturing, electricity and construction sectors decelerated to 2.4, 3.4 and 7.2% respectively during FY 2009 from 8.2, 5.3 and 10.1% respectively in FY 2008.
• Despite the slowdown in growth, investment growth was at a rate higher than that of GDP. The ratio of fixed investment to GDP consequently increased to 32.2% of GDP in FY 2009 from 31.6% in FY 2008. Gross capital formation (GCF), which was 25.2% of the GDP in 2002?03, increased to 39.1% in FY 2008.
• The gross domestic savings as a percentage of GDP at current market prices stood at 37.7% in FY 2008 as compared to 29.8 % in FY 2004.
• A noteworthy development during the year was a sharp rise in Wholesale Price Index (WPI) inflation followed by an equally sharp fall, with the WPI inflation falling to unprecedented level of close to zero %
• The index of industrial production for the year FY 2009 points towards a sharp slowdown with growth being placed at 2.4%. Manufacturing growth was placed at 2.3% in FY 2009 as compared to 9.0 % in FY 2008. Mining grew at 2.3% in FY 2009 as against 5.1% in FY 2008 while electricity showed a deceleration in growth from 6.4% in FY 2008 to 2.8% during FY 2009.
• For three consecutive years (2005?06 to FY 2008), food grain production recorded an average annual increase of over 10 million tonnes. The total food grain production in FY 2008 was estimated at 230.78 million tonnes as against 217.3 million tonnes in FY 2007. As per the third advance estimates, the production of food grains in FY 2009 is estimated to be 229.85 million tonnes. In the third advance estimates, there is an improvement of 1.97 million tonnes over the second advance estimates for FY 2009 but the estimates are still lower than the target of 233 million tonnes set out for the year and also
• The per capita income in FY 2009, measured in terms of gross domestic product at constant FY 2000 market prices, was Rs. 31,278. In FY 2008 this stood at Rs. 29,901. Per capita consumption in FY 2009 was Rs. 17,344 as against a level of Rs. 17,097 in FY 2008. |
|
Tokyo - The Japanese government puts high hopes in Yukiya Amano as the first Japanese ever to lead the International...
Washington, Jul 11 : `Poison Ivy' star Drew Barrymore and her lover actor Justin Long were seen making out in public ...
Damascus (Syria), July 2 : Syria''s First Lady has told Sky News that she would welcome the Obamas' should they decid...
Political Views
L''Aquila (Italy), July 8 : The Prime Minister, Dr. Manmohan Singh, today met his British counterpart Gordon Brown on the sidelines of the G-8-G-5 summit.