Small Businesses wanted in Health

A majority of New Hampshire small-business owners supports efforts at the federal level to reform the health-care system, according to a new survey. Small Business Majority, a nonprofit research organization, in partnership with New Hampshire Voices For Health, a state health advocacy group, polled 200 small-business owners in a random phone survey. They found that affordability was the top concern. According to those businesses surveyed, the majority — 52 percent — do not pay for any coverage for their employees, with 48 percent paying some part or all to their employees’ health insurance. Some 76 percent of businesses that offer health insurance for their employees said it puts a strain on their companies. And 84 percent of those that do not offer health care said cost is the main reason they don’t. Nearly 50 percent of Granite State small businesses said they want to seem some sort of reform to the current health-care system with responsibility shared by the government, individuals and the employers themselves. In addition, 63 percent of those surveyed said they believe the federal government should have a role in achieving reform. Some 68 percent said they want to reform the current system by holding employers, individuals and the government responsible in making healthcare more affordable. In contrast, 8 percent said they want to replace the current system with government-provided healthcare and only 16 percent want to leave things as they are with no government involvement. “Small-business owners aren't shirking their responsibility where health care is concerned,” said John Arensmeyer, founder and chief executive officer of Small Business Majority. “They feel a responsibility to provide health care for their employees and are willing to do their part in fixing our broken system.”

For further details visit as : http://nhbr.com/apps/pbcs.dll/article?AID=/20090729/NEWS06/907289959

Bulgaria’s business climate

In July 2009, the total business climate indicator decreased by 1.2 percentage points from June with industry and retail trade as the aggravating factors, the National Statistical Institute (NSI) said on July 28 2009, Bulgarian news agency BTA said. Variations in the positive direction of the business climate indicators were registered in the construction and services sectors in July. The month saw the composite business climate indicator in industry decrease by 4.3 percentage points from June, reaching an all-time nadir after an alr eady worsening trend.The decrease was due both to lowered managers' evaluations of the present business situation and to more pessimistic expectations about the next six months. The July business climate poll found decreased production activity of industrial enterprises, but the rate of decrease was lower than in the previous months. The order book of industrial enterprises (measured in number of months) dropped from 5.0 in April to 4.4 months in July. In 2008 the average order book was 5.9 months long. The average capacity utilization in industry continued to decrease, reaching 63.9 per cent in July. Its 2008 average was 74.9 per cent. Dnevnik said that managers in all four sectors were preparing to cut more staff in coming months. The industrial sector is suffered the severest pressure, seeing its business climate index tumbled by 4.3 per cent month-on-month to a seven-year low at 11 per cent. The outlook for the next half is as downbeat. Retail companies also consider the environment has deteriorated from a month before, dragging the index by 1.5 points as sales slipped deeper, spelling more trouble in the coming months, Dnevnik reported. Expectations that it had finally hit the bottom gave rise to a 2.4 point increase in the construction indicator. But while optimists in July outnumbered those in June, the NSI registered a drop in orders combined with an increase in delayed payments from customers. The services sector indicator also reflected upbeat expectations, going up by 1.6 points from June on the back of relatively better assessment of the current business environment, Dnevnik reported the NSI as saying. Assessment for demand in the past three months was also positive but the six-year outlook is negative.

Source : http://www.sofiaecho.com/2009/07/29/762733_bulgarias-business-climate-worsens-in-july-for-third-straight-month

Business of Ideas

INNOVATION is a difficult-to-define and frequently illusive factor hotly pursued by most businesses. One common misconception is that innovation is tied closely to new technology, and resides solely in high-tech sectors, such as robotics and space exploration. Yet, the companies that fared well in the Best Employer Awards included not-for-profits that have little use for space-age technology. Insync Survey's WA state manager Tracie Dawson sums up an innovative employer as one with "an appetite in the leadership that is failure-tolerant".

Source : http://www.wabusinessnews.com.au/login.php?url=http%3A%2F%2Fwww.wabusinessnews.com.au%2Fstory%2F13%2F74107%2FIn-the-business-of-ideas

Bank of America to branches

Bank of America Corp. could eventually shrink its 6,100-branch network by about 10% as consumers use other methods of banking, a company spokesman said Tuesday. Bank of America spokesman James Mahoney made the comments when asked about a published report that bank executives described such a plan to investors. Bank of America became Michigan's largest bank based on deposits when it bought LaSalle Bank in 2007. The bank does not have a specific number of branches as a goal, Mahoney said. HEALTH CARE: Wellness Plan is financially rehabilitated. The Wellness Plan, a Detroit HMO under state control since 2003, has emerged from financial rehabilitation by an Ingham County judge, Michigan's health insurance commissioner said Tuesday. The company now is "positioned for success," said Ken Ross, commissioner of the Office of Financial and Insurance Regulation, in a statement. The HMO is part of an alliance with Wellness Plan Medical Centers, three federally funded clinics in metro Detroit.

For further details visit as : http://www.freep.com/article/20090729/BUSINESS06/907290322/1019/BUSINESS/Business-news-in-brief--Bank-of-America-to-cut-branches

Airtel Broadband Rates

The broadband war is all set to heat up as Bharti Airtel slashes rates. Subscribers will be able to experience 1 Mbps surfing speeds from Airtel at Rs. 1,699 per month, which is Rs. 100 more than current 512 Kbps. The 512Kbps speed plan will now cost Rs. 1,099, which is Rs. 200 more than current 256 Kbps. For Rs. 1,699, subscribers will be offered 1Mbps surfing speeds, along with a free VAS bundle from Airtel worth up to Rs. 500 every month. This bundle would include gaming on Games on Demand, Anti-Virus software PC Secure, Airtel Speed on Demand, and Online Desktop. While for Rs.1,099 per month, subscribers will get to experience 512 Kbps broadband speeds along with Rs. 100 worth of free call value per month. Get details on these plans here. According to Hindustan Times, state-owned Mahanagar Telephone Nigam Ltd. (MTNL) and Bharat Sanchar Nigam Ltd. (BSNL) have said that they would offer services at lower than Bharti prices. Get set for a speedier broadband experience for less. It only gets better!

Source : http://www.techtree.com/India/News/Airtel_Slashes_Broadband_Rates/551-104902-643.html

Airlines to raise

UB Group owned Kingfisher Airlines has decided to raise Rs 500 crore by way of equity. This was decided in the company’s Board meeting held on Tuesday.The company which has a debt burden of about Rs 6,000 crore says that they are planning to go for a rights and depository issue, for the proposed fund raising. It is understood that the company is in the process of appointing a merchant banker to expedite the processs.

Source : http://www.business-standard.com/india/news/kingfisher-airlines-to-raise-rs-500-cr/69239/on

RIL Dips in Trade

Shares of RNRL on Wednesday surged nearly five per cent on the Bombay Stock Exchange in the morning trade, a day after its Chairman Anil Ambani lashed out at the oil ministry and the Mukesh Ambani-led Reliance Industries. However, Reliance Industries fell by 1.1 per cent to 1,889.05 per cent on BSE. RNRL continued its uptrend for the fifth consecutive trading day and rose by 4.83 per cent to Rs 86.70. It had opened at Rs 82.50. Launching an attack on the Petroleum Ministry, Anil Ambani told the RNRL shareholders at its AGM yesterday that "it is evident that the apparently biased stance commenced in 2006, coincided with the changes in the ministry". "I'm sure all private companies in India wish that if they make commercial decisions, they wish to get out of, they too had a saviour to help bail them out as in the case of RIL," he said. Reliance Industries scrip opened weak for the fourth consecutive trading session at Rs 1,900 on the BSE. Later it fell to Rs 1,889.05, down by 1.10 per cent over its previous closing price. Over 1.8 lakh shares of RIL changed hands, while more than 77.95 lakh shares of RNRL got traded on BSE.

Source : http://economictimes.indiatimes.com/stocks-in-news-home/RNRL-surges-RIL-dips-in-early-trade/articleshow/4833140.cms

Paid Survey Web sites

There are many Paid survey websites.

It takes very little time to set up a paid survey website, and since there is big money in any kind of work from home website
You can create online surveys and polls for your website, blog and social network with own free account
Based on your visitors you Create your surveys and polls using our custom templates or create your own.
Use our in-depth reporting engine to aggregate, print and export your results

To create survey,some steps to be followed here:
1.Designing the survey

2.Collecting the responses

3.Analyze the required results

There are lots of Paid survey websites are available through Internet:
1.www.polldaddy.com
2.www.surveymonkey.com
3.www.paid-survey-websites.com
4.freeonlinesurveys.com
5.www.alistapart.com/articles/webdesignsurvey
6.http://www.paidsurveysonline.com/
7.www.netcraft.com/survey
8.www.igougo.com/forum-t312-Students_survey_about_travel_websites
9.www.barrierbreak.com/report.php
10.www.imediaconnection.com/content/
11.websoilsurvey.nrcs.usda.gov/
12.www.viacorp.com/pointers
13.www.ordnancesurvey.co.uk/site/ossites
14.ezinearticles.com/

Refer: www.polldaddy.com

HSBC Personal data loss fined

Three HSBC firms have been fined more than £3m for failing to adequately protect customers' confidential details from being lost or stolen. The Financial Services Authority (FSA) said customer data had been lost in the post on two occasions. The firms concerned are HSBC Life UK, HSBC Actuaries and Consultants, and HSBC Insurance Brokers. HSBC said it regretted the breaches, adding that no customer had reported any loss from these failures. Lack of training The FSA said that all three firms had taken action to address the concerns raised. It said it had found that "large amounts" of unencrypted customer details had been sent via post or courier to third parties. Confidential information about customers was also found left on open shelves or in unlocked cabinets, the watchdog said. It added that staff had not been given sufficient training on how to identify and manage risks such as identity theft. Lost disks The FSA identified two instances where unencrypted data had been lost in the post. In April 2007, HSBC Actuaries lost a floppy disk containing the personal information of 1,917 pension scheme members, including addresses, dates of birth and national insurance numbers. And in February 2008, HSBC Life lost a CD containing the details of 180,000 policyholders.

For further details visit as : http://news.bbc.co.uk/2/hi/business/8162787.stm

Rethink your plans for retirement

If the economic downturn has forced you to rethink your plans for retirement, it's a good idea to discuss your concerns with your spouse or partner. In many households, retirement is an even more contentious topic than politics, religion or whose turn it is to walk the dog. A study by Fidelity Investments found that more than 80 percent of couples disagree about a major component of their retirement planning, such as the age at which they plan to retire, whether they'll work in retirement or where they'll live after they retire. "People need to save more, and in order to do that they need more knowledge of their expenses and investments and together what they want out of their retirement," said Kathleen Murphy, president of Fidelity's personal investing unit. David Kay, a financial planner in Dayton, Ohio, said that among the couples he advises, one spouse usually assumes primary responsibility for the finances. "Generally, it's a result of personal preference," Kay said. "One of the two tends to be more interested in the financial dynamics of the family." The less-interested spouse, he adds, "is more than willing to pass on those duties. As a result, there isn't much conversation between the two individuals when it comes to retirement planning." Know your finances There's nothing wrong with playing to each other's strengths. If you're a gourmet cook and your spouse can't use the microwave without starting a fire, it makes sense for you to handle most of the meals. But both spouses should have a general understanding of family finances. Otherwise, if the spouse who manages the money dies or becomes disabled, the surviving spouse "will have some huge catching up to do," Kay said. The couples surveyed were aware of this problem: Only 15 percent said they were confident that one spouse could handle family finances if the other died.

For further details visit as : http://www.suntimes.com/lifestyles/1679459,HOF-News-EasyRetire23.article

Small business on health care

A new survey reports one in four U.S. businesses with five or fewer employees offers health insurance, and 26 million of the 46 million uninsured people in the United States are small business employees, owners or dependents. The nonprofit, nonpartisan Colorado Public Interest Research Group announced survey results from 309 U.S. business owners Tuesday at news conferences in Grand Junction, Colorado Springs and Denver. Danny Katz, the director, said the research and advocacy group hopes survey results will spur changes in the health insurance sector, including:

• Tax credits for small businesses that offer coverage;
• Access to state and national insurance pools for small businesses;
•Insurance rate reform; and
• Reducing the overall cost of health care by rewarding good medical care, cutting spending, increasing competition and making preventative care a priority.
“They’ve all been proposed at some point, but the legislation is changing every day,” Katz said. “We want to raise them up and make sure they’re included.” The study found that 80 percent of small-business owners who do not offer health insurance coverage would like to but can’t afford it. Health insurance premiums for small businesses have gone up 113 percent in the past decade, according to the Kaiser Family Foundation & Health Research and Educational Trust. State Rep. Laura Bradford, R-Collbran, said at the news conference she wants government to “rein in frivolous lawsuits” against doctors, lower the cost of medical malpractice insurance, and make it less expensive for small businesses to purchase health coverage for their employees

For further detaisl visit as : http://www.gjsentinel.com/hp/content/news/stories/2009/07/21/072209_5A_Health_insurance.html

Expertise by publishing a book

Differentiating yourself from your competitors is a key to business success. There are all kinds of ways of doing that but one of the most powerful, challenging, and underutilized ways to create differentiation is to share your expertise by writing and publishing a book. Being a columnist is one thing, but actually writing a book is altogether another experience, and I've written and published several books so far. My latest book, "Job Search Marketing: Finding Job Opportunities in Any Economy," publishing Sept. 1, extends the reach of my marketing experience and insights within the context of job search. In this two-part series, we'll explore the reasons for taking up the book publishing challenge and ways to get it done. Let's cover some basics here first. # Every business area has the potential for book publishing. Most people think you have to be in a consulting business or have to be an established "guru" to write a book. The truth is, it doesn't matter what your business is — you already have expertise that a wider audience could us e to their benefit.# You can write a book. If you don't think you can, you won't. While everyone has the potential to write a book, most don't. Writing a book takes three essential things: discipline, organization and determination to see the process through. Any level of those three can put you on the track of sharing your expertise with the wider world. # How many times have you heard someone say, "Someday I'm going to write a book" about this or that? Or have you found yourself telling someone, "You should really write a book about that?" It has become a cliche of a vision or dream never fulfilled. And that is precisely your advantage. Chances are, your competitors won't publish a book. # Publishing puts you in what I call the "expert plus" category. You can certainly consider yourself an expert without publishing a book but because so few actually publish, it becomes a way to differentiate yourself from nonpublishing experts.

For further details visit as : http://www.recordonline.com/apps/pbcs.dll/article?AID=/20090722/BIZ/907220346

It's Project business Interview

Engineering firm Thermax (THMX.BO: Quote, Profile, Research) is witnessing an improvement in its projects business and expects more orders for the company in the second half of FY10, its top official said on Wednesday. "Currently there are projects getting finalised and I can see an improvement in the inquiry inflow and also a positive sentiment in some segments," M. S. Unnikrishnan, managing director, told Reuters over the telephone. Thermax added orders worth 10 billion rupees in the June quarter, as against 5.80 billion rupees in the March quarter and it expects further growth in the third and fourth quarters, he said. The heat-equipments maker is focusing on bidding for 60 MW and above captive power projects and sees positive signs in that segment, Unnikrishnan said. "I am expecting that will compensate for, if there is a reduction in the products business." On Tuesday, the company reported 27 percent drop in the June quarter net profit of 464.9 million rupees, on the net sales of 5.22 billion rupees. (Reporting by Ketan Bondre; Editing by Ramya Venugopal)

Source : http://in.reuters.com/article/domesticNews/idINBMB00593720090722

East London's Blue Lagoon Hotel the chance of Team

A multimillion rand upgrade could give East London's Blue Lagoon Hotel the chance of hosting an international team during next year's 2010 Soccer World Cup. General manager Peter Gregersen said the hotel had received notification that it had been short-listed as a potential base camp facility for the 2010 tournament for one of the 32 competing teams. “We're the only East London hotel that was put forward as a potential host but will only know next year February if we've been successful,” he said. Gregersen said he was currently in negotiation with three international teams about one of them possibly using the hotel as a base camp. “I can't name them right now but I'm optimistic we'll get a team staying with us,” he said. “People don't realise it but East London has a lot of advantages; we're an hour and a half away from Johannesburg and Cape Town in terms of flying time and we've got excellent shopping, healthcare and training facilities located within five minutes of the hotel. “We've also got beautiful beaches and Nahoon River is literally on our doorstep.”

For further details visit as : http://www.bizcommunity.com/Article/196/438/38147.html

World Tourism Organization to grow in 2009

A new report by the World Tourism Organization says tourism within Arab countries is expected to rise between 2 to 6% this year as residents, wary of the new H1N1 flu and looking to save money during the financial crisis, opt to travel within the region. The number of tourists visiting Jordan is not expected to decline this year, with more than half of the total 4.8 million Arab tourists planning to spend their holidays there in 2009, while an estimated 2 million tourists, mostly Arabs, are expected to visit Lebanon, the report said.

Source : http://www.ameinfo.com/204457.html

New Zealand's popular Tourist "Seven World Wonders"

New Zealand's popular South Island tourist destination of Milford Sound has been shortlisted in a global search for the new seven natural wonders of the world, Tourism New Zealand said on Wednesday. Over 260 natural landmarks were nominated from people around the world. Experts chose the final 28 from the 77 landmarks with the most votes. The list will be reduced to a final seven in 2011. Other finalists included the Grand Canyon in the United States, Australia's Great Barrier Reef, the Amazon Rain Forest, Africa's Mount Kilimanjaro, Yushan in Chinese Taipei, Halong Bay in Vietnam, Jeju Island in South Korea and Komodo in Indonesia.Organizer Bernard Weber said over one billion people were expected to vote on the final seven. The competition is similar to that for the seven Man-Made Wonders of the world chosen in 2007. The winners then were the Colosseum, Italy; the Great Wall of China; the Taj Mahal, India; Petra, Jordan; the Christ the Redeemer Statue, Brazil; Machu Picchu, Peru; and the Pyramid at Chichen Itza, Mexico. t conservation area and tourist destination, Milford Sound attracts more than 500,000 tourists each year and was recently named No.1 Destination in the World by Trip Advisor, the world's largest travel community.

http://news.xinhuanet.com/english/2009-07/22/content_11751779.htm

China and Australia Trade

Australia and China traded warnings on Thursday over the Rio Tinto (RIO.L)(RIO.AX) spy case as the United States urged Beijing to ensure transparency and fair treatment for employees of foreign companies. Over a week after detaining an Australian Rio executive and three of his Chinese colleagues on allegations of spying in relation to sensitive iron ore price negotiations, China's Foreign Ministry warned Australia against "whipping up" the case. "We resolutely oppose anyone deliberately whipping up this case or trying to interfere in China's judicial independence," ministry spokesman Qin Gang told reporters. Australian Foreign Minister Stephen Smith said he did not expect relations would be harmed by the case, but warned: "China itself does need to think about whether its handling of this matter has any adverse implications for it." The Rio detentions and general murkiness of state secret laws put foreign investors potentially at risk when dealing with state-owned entities and potentially sensitive economic information, a point U.S. Commerce Secretary Gary Locke raised during a CNN interview on Thursday. "These are of course of great concern with respect to U.S. investors and multinational companies from around the world that have projects here," Locke said. "We need to have transparency, we need to have assurances and confidence that people working for these multinational companies ... will be treated fairly."

For further details visit as : http://www.reuters.com/article/marketsNews/idUSPEK25016420090716

Bajaj Hindustan midcaps underperform Sensex :

Equities continued to reel under selling pressure Monday led by losses in realty, metals and auto space. Heavy selling was seen in midcap and smallcap space. Negative opening of European markets also hurt sentiments. Benchmark indices were below crucial technical supports indicating a further correction in coming days. “The intermediate trend has turned very bearish after Nifty future closed below the psychological level of 4000. Markets are in a prolonged downtrend as this fall could lead us to 3720 in coming days. Monsoon concerns are also haunting the markets. Hence, markets are seeing a huge selling pressure build at higher level. Indian markets have corrected 15% from the recent peak of 4693 upto today’s low of 3977 but Nifty has left a huge gap after the budget results on 18 June 09 at 3670 and we believe that during this fall the gap will be filled which is a very good sign for the market. The technical oscillators are also suggesting that there could be another 7-10% fall from this point and this fall can be utilized as a buying opportunity from an investment perspective. Now the markets needs to consolidate at lower levels in the region of 3500-3700 and create a base before resuming the upside rally. Any sharp rise in the market should be used as an opportunity to exit or create fresh shorts. This trend will remain weak unless market trades below 4150-4250 and 14000-14300,” said Nirmal Bang report. At 1 pm, Bombay Stock Exchange’s Sensex was at 13279, down 225.22 points or 1.67 per cent. The index touched an intra-day low of 13219.99 and high of 13405.95. National Stock Exchange’s Nifty was at 3927.50, down 76.40 points or 1.91 per cent. The broader index touched a low of 3918.75 and high of 4003.40. Amongst the sectoral indices BSE Realty Index fell 5.23 per cent, BSE Metal Index declined 3.67 per cent and BSE Auto Index was down 3.62 per cent. BSE IT Index was up 0.95 per cent. Jaiprakash Associates (-6.90%), Mahindra & Mahindra (-5.76%) and Reliance Infrastructure(-5.68%) were amongst the Sensex losers.

For further visit as : http://economictimes.indiatimes.com/Market-Watch-Midcaps-underperform-Sensex-Bajaj-Hindustan-Gammon-fall/articleshow/4772074.cms

India’s Rupee Drops as Global Growth

India’s rupee fell, following its biggest weekly loss since February, as signs a global economic recovery is losing steam curbs demand for emerging-market assets. The rupee slid to a two-month low, declining in tandem with stock benchmarks and currencies across Asia’s 10 biggest developing economies. A U.S. report showed consumer sentiment dropped more than economists forecast in July and Treasury Secretary Timothy Geithner said “it’s going to be a while” for a strong, sustainable recovery to take hold in the world’s biggest economy. Investors are of the view that any economic recovery is not in sight, which is keeping the financial markets weak,” said Roy Paul, Mumbai-based assistant manager of treasury at Federal Bank Ltd. “Local assets are going to be under pressure.” The rupee weakened 0.6 percent to 49.295 per dollar as of 9:48 a.m. in Mumbai, according to data compiled by Bloomberg. It earlier reached 49.3625, the weakest level since May 15. The MSCI Asia Pacific Index dropped 1.5 percent, headed for its lowest close since May. Offshore forwards contracts indicate traders predict the rupee will decline to 49.42 in a month, compared with expectations for a rate of 49.11 on July 10. Forwards are agreements in which assets are bought and sold at current prices for future delivery. Non-deliverable contracts are used for currencies that aren’t freely convertible and are settled in dollars.

Source : http://www.bloomberg.com/apps/news?pid=20601091&sid=aBGNVvCqbwCo

Indian indices were off lows but still in the negative terrain after Euroepean

Indian indices were off lows but still in the negative terrain after Euroepean markets pared losses. IT stocks gained momentum while realty, metals and auto space capped losses. At 2:10 pm, National Stock Exchange’s Nifty was at 3963.15, down 40.75 points or 1.02 per cent. The broader index touched an intra-day low of 3918.75 and high of 4003.40. Bombay Stock Exchange’s Sensex was at 13366.71, down 137.51 points or 1.02 per cent. The 30-share index hit a low of 13219.99 and high of 13461.68. BSE Midcap Index was down 3.23 per cent and BSE Smallcap Index declined 3.70 per cent. Amongst the sectoral indices, BSE IT Index was up 1.22 per cent. BSE Realty Index was down 4.68 per cent, BSE Metal Index slipped 3.47 per cent and BSE Auto Index declined 3.07 per cent. Sun Pharma (2.73%), Infosys Technologies (2.43%), ITC (2.05%), HCL Technologies (2.01%) and GAIL (1.75%) were amongst the Nifty gainers. Siemens (-7.46%), NALCO (-7.07%), SAIL (-6.81%), Reliance Power (-6.14%) and ABB (-6.08%) were the top losers in the index. European markets gave away early losses led by gains in energy stocks. FTSE 100 was up 0.26 per cent, DAX declined 0.24 per cent and CAC 40 fell 0.13 per cent.

Source : http://economictimes.indiatimes.com/Market-Watch-Nifty-off-lows-as-Europe-turns-positive/articleshow/4772216.cms

The Financial crises as a challenge :

In the 1970s’, politics seemed to bury the ideas of Keynesian economics. Politicians were not applying his theory correctly and seemed to utilize our tax money to catch votes using popular policies. Keynes (1883-1946), a British economist, had a simple theory based on circular flow of money; i.e. when one person spends money it goes towards another persons earnings and when that person spends they are supporting another persons earnings. The circle continues thus supporting a normal functioning economy. Keynes advocated that the authorities should invest, in order to create demand and make money.At the end of 2008, authorities have put 2000 billion worldwide into the economy so you can speak about governmental revaluation. The stock value of companies was systematically too high compared to the real value. Banks must now return to acting as the financial buffer between governments, industries and consumers. Society needs a strong authority and a strong business world. One way to improve the economy is by employing a green economy. This can be done by using solar and wind energy; and by following the plans of the European governments to decrease the CO2 emissions by 20%,decrease energy consumption by 20% and increase durable energy by 20% by the year 2020.

For further details visit as : http://www.glassonweb.com/articles/article/557/

Tibet continues to increase amid the financial crisis

Amid the international financial crisis, the growth rate of the fiscal revenue of all provinces and municipalities offering assistance to Tibet experienced varying degrees of decline. However, assistance to Tibet has not weakened, and investment in and the number of Tibet- assistance projects have continued to increase. The fifth batch of nationwide Tibet-assistance projects has been successively carried out in June and July, 2007. By April, 2009, the fifth batch of assistance implemented 1,388 projects investing 2.995 billion yuan in these Tibet-assistance projects. The projects have achieved remarkable results in improving infrastructure, guaranteeing common people's housing conditions, accelerating the development of characteristic agricultural and pastoral industries, and boosting the contribution of science and technology to agricultural and animal husbandry. These projects have effectively promoted Tibet's comprehensive economic and social development and improved the Tibetan people's living conditions. In 2008, although the annual growth rate of Beijing’s fiscal revenue dropped by 10.5 percentage points year-on-year, Beijing strengthened its investment in the assistance projects. By March, 2009, Beijing's fifth batch of assistance projects had reached more than 60.

Source : http://chinatibet.people.com.cn/6699389.html

IMD Rains Pains

Poor monsoon may have triggered off cold vibes between the NCP chief Sharad Pawar’s nodal agriculture ministry and earth sciences and technology minister Prithviraj Chavan’s domain. The developments are being seen as mirroring the covert tensions between the coalition partners in the key state, which is set to go to the polls later this year. While the India Meteorological Department(IMD), which updates the press on the progress of the rains — seminal to India’s economic growth and food security — is part of the latter, it is the former that has to bear the brunt, in consonance with state governments, of the ground-level work to minimise the adverse impact of a poor monsoon on agricultural output. That mismatch, infact, appears to be crux of the problem, with the farm ministry disapproving the latter’s decision to “rush” to update the media on the poor progress of the monsoons in end June. The second stage of monsoon forecasts, infact, confirmed what was becoming increasing apparent countrywide but was as yet to be acknowledged by the government: rainfall for the 2009 south-west monsoon season (June to September was likely to be “below normal” and not “near normal” at 96% of the Long Period Average (89 cms) as forecast in the first stage on April 17. Ironically, the second stage of monsoon forecasts have been made in end June ever since the two stage forecasts began in 2003. From 1988 to 2002, the IMD used the 16-parameter power regression and parametric models developed by noted scientist Vasant Gowariker, who hails from Maharashtra. However, the model failed to forecast the marked failure of the rains in 2002 as a result of which the gross domestic product (GDP) growth rate dipped from 5.8% in the previous year to 4%. Agriculture output fell by 8%. Following that, the IMD adopted (in 2003) a two-stage long-range forecast strategy, of eight and 10 parameters, respectively. The first forecast for the SW monsoon was issued in April, using the eight-group parameter power regression and probabilistic models. An updated forecast is issued by the end of June, using the 10-parameter models. Interestingly, however, while the first stage forecast was announced at a jam packed press conference each year, the second stage forecast was issued as a press statement, cmparatively quietly, a strategy that worked well for the government especially if there was a negative mismatch between the first stage and the second stage forecasts. What appears to have irked the farm ministry intensely is that this year, the earth sciences ministry announced the bleak second stage forecast — which would impact the country’s GDP negatively — at a jam packed press conference, heightening the “adverse publicity” from the media. The farm minister’s perception, sources hold, was that with that one move, the earth sciences ministry turned strobe lights on Mr Pawar and his ministry at an eminently awkward moment, even while heightening panic over a possible countrywide drought. That came to a head on Thursday when Mr Pawar was finally forced to admit to Rajya Sabha that there was indeed a bad monsoon situation in many parts of the country. But, he stressed, he was still “hopeful,” a deliberate pointer to the ministry’s continued insistence that the IMD’s July and August rainfall forecast would turnaround the bad monsoon story. Indeed, it was the farm minister who, in his very first press conference after he took office this time (and long before the negative second stage monsoon forecast), firmly announced his decision to not allow foodgrain exports until the new rice season began in September and stock-taking had been done. The commendably sober (in retrospect) decision came despite a massive 50 million tonnes in procurement that forced the FCI and state agencies to stock twice their storage capacity. Congress sources, though, dubbed the charge against the earth sciences ministry as “baseless”. “The second stage IMD forecast has been issued in end June since 2003. Unlike other years, a media conference could not be held at the time of the first stage forecast since the Election Commission’s model code of conduct had already gone into operation, so one was held at the second conference.”

For Further Details Visit At:economictimes.indiatimes.com/News/PoliticsNation/IMD-rains-pains-for-Pawar/articleshow/4770671.cms

NTPC Signs MoU With Chhattisgarh Government

The National Thermal Power Corporation (NTPC) today signed a Memorandum of Understanding (MoU) with the Chhattisgarh government to set up a 4000-Mw power project in the state. The NTPC plant that will come up near Lara village in Raigarh district will have five units of 800 Mw each. This will be the first major power project, sources said. The MoU between the NTPC and the state government was signed in the presence of Union Power Minister Sushilkumar Shinde and Chhattisgarh Chief Minister Raman Singh. The project cost has been estimated at Rs 20,000 crore. Shinde said that the Lara plant of NTPC would not be Ultra Mega Power Project. But it would be producing 4000 Mw of power. The plant would be set up with super critical technology and hence would be environment friendly. The Union Power Minister said as per the condition put by the Chhattisgarh government, the NTPC would give 50 per cent power to the state. “The state government had put the condition in return of the land and water it will give to the NTPC for the plant,” Shinde said. The Chairman-cum-Managing Director (CMD) of NTPC, R S Sharma said that the Lara power plant would be one of the best plants in the country with most modern technology. He said the construction work of plant would start soon and was scheduled to be completed during the 12th Plan. The beneficiaries of this project would be the states and union territories of the Western region.

Source:www.business-standard.com/india/news/chhattisgarh-signs-mountpc-for-4000-mw-power-project/363696/

Rice Prices May Falls Down:Senior Rice Analyst

Global rice trade is likely to be thin in the second half of the year and prices could weaken since buyers expect supply to outpace demand as India resumes exports, a senior rice analyst said. Samarendu Mohanty, head of the social sciences division at the Manila-based International Rice Research Institute (IRRI), said demand in 2009 as a whole would be much the same as last year but some big deals had already gone through."The Philippines is already out of the market as they've already procured what they wanted," he told Reuters. He said some buyers had held back orders as the market realised there would be ample supply from India after it resumed exports following a hiatus of almost two years.India banned rice export in late 2007 but has in recent months allowed the sale of non-basmati rice through specific traders. Another factor would be how the Thai government decided to release rice from its stockpiles, Mohanty said, speaking ahead of a big rice convention in Thailand."Looking at the demand side, I think Africa is the only active buyer in the second half of this year," he said. That echoed the view of traders. They believe demand from African countries in the second half of this year should remain strong and expect them to buy 100,000-200,000 tonnes of Thai rice a month, mostly parboiled rice. Around 300,000 tonnes of Thai parboiled rice was sold to African buyers in June after an estimated 250,000 tonnes in May , traders said. Demand for parboiled rice has helped support prices in general in Thailand, the world's biggest exporter, as parboiled rice is made from the benchmark grade of white rice paddy.The benchmark 100 percent B grade white rice RI-THWHB-P1 has been steady at $580 per tonne for the past month, even though demand for white rice, which accounts for around 50 percent of annual Thai rice exports, has been thin. Mohanty forecast that export prices could drop slightly in late 2009, especially if Thailand released its stocks. Its stockpile has risen to a record high of 6 million tonnes of milled rice, which senior officials said needed to be released soon in a bid to cut storage costs. [ID:nBKK509978]Mohanty forecast benchmark white rice could eventually move in a range of $525-$550 per tonne, while the broken grade 5 percent white rice should be in a range of $470-$500."I don't think prices will go up to the $1,000 per tonne they were at last year. We're not in that situation," he said. (Editing by Alan Raybould)

Source:in.reuters.com/article/domesticNews/idINBKK47806620090713?sp=true

Pranab Mukherjee Budget Has High Fiscal Deficit In GDP

The single-most worrying aspect of Pranab Mukherjee’s budget for 2009-10 was the high fiscal deficit of 6.8% of the gross domestic product (GDP) estimated for the year. Any slip-up in meeting this target can impact the country’s sovereign rating and may make foreign investors pack up. Last year, the government has missed budgetary estimates for tax revenues and fiscal deficit. But this year it could be different as revenue estimates seem conservative and easily achievable. The tax revenue is expected to grow by just 2% to Rs 6,41,079 crore in 2009-10 . This growth is expected to come entirely from a 16% jump in corporate tax collection, which account for 40% of India’s total tax receipts. Accruals under personal income tax and custom duty, on the other hand, are expected to fall 7.95% and 9.26%, respectively . Excise duties and services tax receipts are expected to be flat. Now the key question is how realistic are the budget estimates of a double-digit growth in corporate taxes? Well, there is good news. Corporate tax collection for the first two months (April-May ) has recorded 10% growth. Moreover, advance taxes for the first quarter saw a rise of 15%. The momentum can be sustained as the economy is expected to revive in the second half of the year. Then, attaining a growth of 15% in corporate tax may not be difficult. The abolition of fringe benefit tax is already factored in. There are no receipts assumed under the head of other taxes, which normally includes fringe benefit tax, securities transaction tax and tax on bank cash transactions. A bigger worry could be service tax collection, which dipped 7% in the first two months. The budget has estimated service tax receipts to be flat at last year’s Rs 65,000 crore. But, the tax rate has been cut to 10% from 12% since March. The good news is, even if the government misses the service tax target, it would only have a marginal impact as it accounts for only 10% of overall tax revenues. In short, the government can easily attain its receipt targets as the estimates are conservative. In fact, it may surpass the targets if the economy revives faster than expected. If tax receipts better estimates and expenses remain within target – both look eminently possible – then the fiscal deficit would actually be less than the estimated 6.8% of GDP. Such a surprise would bolster the equity and bond markets, both of which reacted negatively on the budget day. The picture will get clearer as months pass and advance tax figures become available. It’s too early to predict on budget targets, but this should be enough signal for the optimist to stay invested in riskier assets and not exit the market entirely in the post-budget market meltdown.

Source:economictimes.indiatimes.com/Features/Investors-Guide/Budgetary-estimates-could-investors-confidence/articleshow/4770825.cms

Sensex Falls Down

With investors looking to exit counters at every noticeable rise in prices, the market is finding it extremely difficult to make a significant move up north today. With not much time to go for the closing bell and not much buying happening in heavyweight stocks, the market looks headed for a somewhat flat close today. The Sensex is down in the red with a loss of 45.31 points or 0.33% at 13,723.84. The Nifty is down with a small loss of 2.55 points at 4076.35. Metal and oil stocks have posted notable gains. FMCG, pharma and realty stocks have also come off their intra-day lows. Select PSU and power stocks are trading firm. Consumer durables, information technology and capital goods stocks remain quite subdued this afternoon. Auto and bank stocks are exhibiting a mixed trend. Reliance Infrastructure, Sun Pharmaceuticals, Tata Power, Jaiprakash Associates, Sterlite Industries, Reliance Industries, ITC, Tata Consultancy Services, HDFC Bank, Hero Honda, Tata Steel, State Bank of India, Bharti Airtel and Reliance Communications are up with notable gains. Jindal Steel, up 5.5% at Rs 2561, is the top gainers in the Nifty index. GAIL India and HCL Technologies have gained 3.4% and 3.15% respectively. Ambuja Cements, SAIL, Cairn India, Unitech, Ranbaxy Laboratories, Cipla, BPCL, Reliance Capital and Power Grid Corporation have also posted sharp gains. Tata Motors, ICICI Bank, Axis Bank, Hindalco, Wipro, DLF, Hindustan Unilever, Infosys Technologies, Larsen & Toubro, BHEL, ONGC, Siemens and Mahindra & Mahindra are down by 1% - 3%. Junior Nifty stock Ashok Leyland has vaulted 11.5% to Rs 34.50. Wockhardt Pharma, Apollo Tyres, United Spirits, Canara Bank, Biocon, Bank of India, TTML, Hindustan Petroleum Corporation and Patni Computer Systems have also posted smart gains.

Source:sify.com/finance/fullstory.php?a=jhjp2xccffi&title=Sensex_looks_set_for_a_flat_close_%40_15%3A20_hrs

Prices Of Food Items Turned Expensive Due To Inflation

Inflation further declined to (-) 1.55 per cent for the week ended June 27 even though prices of food items like pulses, fish marine, and fruit and vegetables turned expensive. The wholesale price index stood at (-) 1.30 per cent in the previous week, while in the corresponding week a year ago the rate was as high as 12.03 per cent. During the week, prices of fish marine were dearer by 10 per cent, arhar, fruit and vegetables by 2 per cent each while urad and moong rose by 1 per cent each. Prices of butter and imported edible oil also became costlier by one per cent each in the said period. However, prices of cast iron casting, steel ingots and other metal products and some chemical items got cheapers. Prices of fuel items remained unchanged during the week. According to HDFC Bank Economist Jyotinder Kaur, "the fuel price hike is likely to affect it (inflation) by 35 basis points for the week ended July 4". Year-on-year, the prices of cereals went up more than 12.2 per cent, pulses 16.7 per cent, and fruit and vegetables 10.5 per cent. At the same time, the prices of milk have gone up nearly 4.8 per cent over last year, while spices were more expensive, by about 6.2 per cent. Among manufactured food products, sugar, khandsari and gur went up about 34.3 per cent while processed fish turned dearer by more than 42.7 per cent over the last year During the week, fish marine was dearer by 10 per cent, arhar and fruit and vegetables by two per cent each, and urad and moong rose by 1 per cent each. Also butter and imported edible oil turned dearer by one per cent each.However, the prices of eggs declined 10 per cent, tea 3 per cent, and maize and masur one per cent each. Among manufactured items, prices of cast iron declined 12 per cent, alloy steel 5 per cent and steel ingots 1 per cent. At the same time, epoxy resin prices dipped as much as 35 per cent, calcium ammonium nitrate n-content 16 per cent, and methanol 3 per cent. Inflation for the week ended May 2 was revised to 1.48 per cent from 0.48 per cent as estimated provisionally.

Source:www.business-standard.com/india/news/newsalertinflation-falls-to155-/67164/on

Oil companies expect the Budget make major announcements.

The auto fuel price hike was music to the ears of the three public sector oil marketing companies (OMCs) though they still believe that it is only the “tip of the iceberg” and that the Union Budget will make some major policy announcements. If the Economic Survey 2008-09 is any indicator, deregulation of petrol and diesel prices is the way forward coupled with restricting subsidy on domestic LPG while phasing out kerosene supply subsidy. Despite the price hike, the OMCs may face a revenue loss of about Rs 57,000 crore this fiscal (assuming that the Indian crude oil basket averages $70 a barrel) on the four products – petrol, diesel, PDS kerosene and domestic LPG. This has resulted in a great degree of uncertainty on the subsidy sharing mechanism that is yet to be worked out by the Government. Industry sources said it was still unclear if the kerosene and LPG subsidies (Rs 30,000 crore estimated for 2009-10) would be transferred to the Budget so that the OMCs are spared this burden. The Finance Ministry is reportedly in favour of a formula where up to one-third of the losses on petrol and diesel will be borne by the upstream companies (ONGC and Oil India) and GAIL with the balance to be raised from the market in the form of price hikes. This will, of course, depend on crude price movements and so long as they are under $75 a barrel, the going will be smooth. The industry expects the Budget to address the way forward when prices shoot beyond this level. The recent price hike has raised the hackles of political parties. While defending the increase, the Petroleum Minister, Mr Murli Deora, told Business Line, “From the beginning of 2004, international oil prices started rising steeply besides witnessing high volatility. To protect the consumer from this inflationary impact, the Government has been modulating the retail prices of petrol, diesel, PDS kerosene, and domestic LPG.”However, this has caused a huge fiscal burden on the Government.

For further details visit as : www.thehindubusinessline.com/2009/07/06/stories/2009070651910100.htm

One Side Of Aurobindo Marg Reopened

After staying closed for over a month, one side of Aurobindo Marg in south Delhi was reopened for traffic on Sunday. The reopening of the road brought huge relief to the commuters heading towards Central Delhi and Ring Road from IIT, Mehrauli and Gurgaon. The road was closed on June 2 after rainwater backflow led to leakage of sewer and damaged the stretch. Now, Delhi Metro Rail Corporation (DMRC) has repaired the 60-year-old storm water barrel below the road near Green Park and restored the stretch. DMRC said water from the damaged drain mixed with the soil above the tunnel. "Our engineers had to excavate the area for proper investigation to avoid surface settlement. The road was excavated five meters below the surface to reach the brick barrel, which was leaking, as plans of the barrel were not available with any civic agency,'' a DMRC official said.

Source:timesofindia.indiatimes.com/Delhi/Aurobindo-Marg-opens-after-1-month/articleshow/4741376.cms

Perverse policy signals remains as difficult as ever

If policy signals are anything to go by, the execution of economic reforms remains as difficult as ever. After an anti-reforms Railway Budget comes the decision of the Employees Provident Fund Organisation (EPFO) to continue with an 8.5% interest rate on EPF subscription. This is an indicator of how no one wants to tackle the issue of interest rate distortion created by political compulsions. The central board of trustees (CBT) of EPFO on Saturday recommended an 8.5% interest rate. CBT also ruled out investing 15% of its Rs1.82 trillion in select equities, a decision that spells business as usual for EPFO. This deserves comment. India is witnessing a move to a low interest rate regime. Not only has the government pushed the banking system towards lower interest rates, the macroeconomic environment, too, is moving in that direction. The rise in lending risk, too, has peaked. In this situation, EPFO did not address the issue of finding high-return investment opportunities. Given EPFO’s risk preference for “fail-safe” investments, such opportunities do not exist in the Indian economy. The more serious concern at the moment is how EPFO and other government-mandated investment vehicles, such as the small savings schemes, distort the interest rate structure of the economy. Banks simply can’t reduce their interest rates below the rate offered by these entities. As a result, there is an inbuilt upward bias in lending rates that affects the economy in a perverse manner. The government and these organizations, however, could not care less. EPFO has, for example, maintained the 8.5% return rate for five consecutive years. It does not, and will not in the foreseeable future, realize that it is part of the Indian economy: The damage it inflicts via its interest rate demands rebounds on it, too. The issue that looms large in all this is the government’s lack of will in arresting this political economy of decay. To talk of economic reforms in an environment where politicians are unwilling to take hard decisions and government employees remain stubborn is at best an economist’s dream. And now, at least, that dream seems deferred. Are high provident fund rates a sweet poison?

Source:www.livemint.com/2009/07/05205332/Perverse-policy-signals.html?h=B

Oil Prices Falls Down in Asian Trade

Oil prices extended their losses in Asian trade on Monday after the latest unemployment report in the United States showed that a recovery in the world's biggest economy is unlikely to come soon. In morning trade, New York's main contract, light sweet crude for August delivery, was down $1.89 to $64.84 a barrel. Brent North Sea crude for delivery in August dropped $1.01 to 64.60. Both contracts were down from their highest level this year of more than $73 a barrel reached last Tuesday. "Prices are extending their looses from last week based on the poor jobs report in the United States," said Tony Nunan, an energy risk manager with Mitsubishi Corp in Tokyo. "People are starting to wonder about the strength of the US economic recovery... This does not look good for oil demand because it means that consumer spending will remain weak." A closely watched US Labor Department report last week showed US job losses had surged worse than expected to 467,000 in June, pushing the unemployment rate to a new 26-year high of 9.5%. The report, seen as one of the best indicators of economic momentum, reversed the improvement seen the previous month when job losses fell to 322,000. Nunan said profit-taking amid a global supply glut was also helping push down prices. "People realized that maybe the market is getting ahead of itself with oil at $70 a barrel. Inventory levels worldwide and in the United States are still very high so probably people realized that this is a good time to take profit," he said. The focus on economic recovery and robust oil inventories worldwide have minimized the impact of fresh attacks by Nigerian rebels on the country's oil facilities. Nigerian militants said Monday they had destroyed a strategic facility owned by US oil group Chevron, just hours after they claimed responsibility for an attack on Anglo-Dutch oil giant Shell in the restive Niger Delta. Oil prices are currently down about 56 percent from historic peaks of more than $147 a barrel reached in July last year after the global economic and financial crisis dampened energy demand.

Source:timesofindia.indiatimes.com/Business/Oil-prices-dip-below-65-in-Asian-trade/articleshow/4742800.cms

Expectations Of Indian Telecom Industry

The fast track growth of the Indian telecom industry has made it a key contributor to India's progress. India is making a big mark as a growing economic power and has at present, one of the fastest growing teledensity in the world. The dynamism of the sector though, is far from over. The Government's policy announcements for 3G and Broadband Wireless Access (BWA) licenses focus on deployment of broadband, phased implementation of Mobile Number Portability (MNP) and the likely introduction of Mobile Virtual Network Operators (MVNO) promise to further stir things up. However, with low ARPU (Average Revenue Per User) and tariffs, reduction in levies is required to sustain this growth. The telecom sector is plagued by multifarious taxes and levies like license fee, spectrum charges, service tax, entry tax, octroi, stamp duty, apart from corporate income tax, and rationalizing them has become essential in order to give impetus to the expansion of the telecommunication network in the country. The industry expectations from this budget include: Extension of tax holiday under section 80IA of the Income tax Act, 1961 (Act) - Given the long gestation period and huge capital costs (including upfront spectrum fee) involved in establishing 3G and broadband networks, for effective roll out of tax holiday under section 80 IA should be extended to provision of 3G and broadband services considering them to be separate and distinct undertakings. Similarly, tax holiday should also be extended to tower companies to facilitate a faster roll out of passive infrastructure which is critical for network expansion by the telecom operators.

For Further Details Visit At:economictimes.indiatimes.com/articleshow/4741093.cms

To Stimulate Gowth Is challenge to the Finance Minister.To Stimulate Gowth Is challenge to the Finance Minister.

The much-awaited Budget of the new government is indeed a tightrope walk for the finance minister to find a sustainable means to stimulate growth while dealing with the challenge of fiscal prudence. While timely actions of the government, in the form of stimulus packages, have undoubtedly helped combat the effects of the global economic slowdown in India, there are still a few sectors that have not yet come out of the resultant stress. There continues to be indications of weakness in investment demand, even as consumer demand has shown signs of recovery. Although there are slow, but clear signs of recovery in terms of investors and consumers, there are nevertheless definite challenges that lie ahead. Challenges that need immediate attention. One such is to continue to revive the economy with emphasis on preserving rural demand, which is set to peak due to the possible delay in the onset and magnitude of monsoon. Another major challenge is to secure high rates of growth in the short term by promoting investments and securing growth in the medium to long term by addressing the structural challenges of pursuing long-awaited economic reforms. The mere mention of this in any Economic Survey is like a breath of fresh air to investors. Investment in infrastructure is critical, both to stimulate investment demand and to facilitate growth in the medium and long term. The challenge is how we fund infrastructure investments, given that market sentiments favouring investment have just started to pick up, with the appetite for risk still running very low. The classic solution would be public investment, but that, too, is currently starved of funds. To a certain extent disinvestment can help, but given the enormity of the need for infrastructure funding this still remains a huge challenge that calls for innovative solutions. It is important, however, to recognise that the positive aspect of infrastructure spending is that it has a huge multiplier effect.

For further details visit as : economictimes.indiatimes.com/articleshow/4742115.cms

Reliance Capital Plan to Enter Domestic Banking Sector

Anil Ambani group company Reliance Capital is planning to enter the domestic banking sector - when the regulations allow - and expand its Top Indian Banks "We have drawn up exciting growth plans for the next three to five years," R-Cap Chairman Anil Ambani informed the shareholders. These growth plans include entering "the banking sector as and when regulations permit (and) globalise operations by leveraging our domestic experience and capabilities to expand our asset management, life insurance and broking operations in emerging markets across Asia, Africa, and the Middle East". Besides, the company aims to increase its customer base from 15 million to 50 million, increase the distribution reach from 5,000 to 20,000 cities and towns and increase number of business partners from half a million to one million, Ambani added. "Together, these initiatives will further accelerate our growth and lead to substantial value creation for each of us," Ambani said in his letter to shareholders which is being sent to them as part of Reliance Capital's Annual Report for 2008-09 ahead of its AGM on July 21.

Source:economictimes.indiatimes.com/News-by-Industry/Reliance-Cap-to-expand-overseas/articleshow/4740319.cms

BSNL Ready To Offer a stake to Forgin Telecom Firm

Bharat Sanchar Nigam Ltd (BSNL) is ready to offer a stake to a foreign telecom firm if its proposed IPO does not go through, the Business Standard reported, citing the state-owned firm's chairman. BSNL's board had last year approved divesting a 10 percent stake through an initial public offering, which was seen raising up to $10 billion. But opposition from its employee unions forced it to shelve the plan."Foreign partners definitely bring in some expertise that will help the company improve its performance," the paper quoted BSNL Chairman Kuldeep Goyal as saying. The paper said Goyal declined to say how much stake BSNL was willing to offer a foreign investor. Goyal also said they would discuss the stake sale plan with the employee unions and was yet to get a government go-ahead for it. "We have to talk to our employees about whether they would prefer a foreign partner or an IPO," he said. "We also have to see what the government wants." Goyal could not be reached immediately for comment by Reuters.

Source : in.reuters.com/article/businessNews/idINIndia-40826320090706

Indain Finance Minister Pranab Mukherjee Present The Government Budget today

India’s Finance Minister Pranab Mukherjee will present the government’s budget for the year ending March 31 in parliament in New Delhi today. The first budget after the Congress party-led coalition’s May election victory may include increased spending on roads and ports and the lowering of taxes to help Asia’s third-biggest economy rebound from its slowest pace of growth since 2003. The government may raise its annual bond-sale target by 10 percent to a record to fund a widening deficit, a Bloomberg News survey showed. Borrowing in this fiscal year may increase to 4 trillion rupees ($83.5 billion) from a previous estimate of 3.62 trillion rupees, according to the median forecast of 17 economists and investors. The government will announce industrial production data for May on July 10. Output at factories, utilities and mines unexpectedly rose 1.4 percent in April from a year earlier, indicating interest-rate cuts and stimulus measures are helping resuscitate demand. Infosys Technologies Ltd., the nation’s second-largest software-services provider, will report earnings for the three months ended June 30 on July 10. The company’s net income in the quarter ended March 31 climbed to 16.1 billion rupees from 12.5 billion rupees a year earlier.

For further details visit as : www.bloomberg.com/apps/news?pid=20601091&sid=auPv.eA.BRvc

An Interview With Former Finance Minister Yashwant Sinha

Member of the opposition party BJP and former finance minister Yashwant Sinha said the Pranab Mukherjee should go all-out in presenting the union budget and must not think it would be valid for only about eight months. Sinha added that the FM would have got enough time to prepare the budget document even if it has just been 45 days since the government has been formed. “It is the same finance minister who had presented the interim budget [in the previous government]. He would have given some thoughts in the interim budget about what the final budget should be like,” Sinha said. “So, in a way, it is a continuation of the same thought process. I would think that the time that Pranab Mukherjee has had is enough because in the interim budget, most of the expenditure proposals are finalised because the expenditure proposals are for the whole year.”Excerpts from the exclusive interview with Yashwant Sinha on CNBC-TV18. Also watch the accompanying video.Q: You have run finance ministries, you have presented budgets – I’ll start by asking you the most basic of questions. It has been 45 days roughly since this government was elected. The first 15 days went in the formation of the Cabinet. Do you think the Finance Minister and Finance Ministry in these 30 days has had enough time to put out a fully fleshed out, well thought out and proper budget document?A: First, this budget is valid for only about eight-nine months. However, it is the same finance minister who had presented the interim budget [in the previous government]. He would have given some thoughts in the interim budget about what the final budget should be like. So, in a way, it is a continuation of the same thought process. I would think that the time that Pranab Mukherjee has had is enough because in the interim budget, most of the expenditure proposals are finalised because the expenditure proposals are for the whole year. Therefore he could concentrate on either new items of expenditure which he might include in the expenditure budget, on the revenue budget, on the fiscal side and on the new schemes that this government might want to introduce.Q: I asked this question because between the interim budget and this budget has come in probably an election result which was unexpected even by the government in power – to that extent do you think they would have thought about what their next budget step would have been because may be this mandate came unexpectedly?A: Apart from the fact that it has been a very convincing victory for the ruling alliance, there is another factor that you may not have taken into account when he presented his interim budget: the delay in the monsoon, which might lead to some crop failures. However, I should think that he has had enough time. He otherwise also had the option to present it a later date, say, August 6, than on July 6.Q: He has another budget coming up in seven months time. Let me request you to put yourself in his shoes and say do I want to make my first budget a big one or I just do something which works for seven months, not an interim budget but my big policy moves come in the first proper budget which is lying seven months down the line where I have more time to think about it – which would it be?A: I was in his shoes way back in 1998 when presented a budget on June 1 and then presented another budget in February the next year. However, I would say that this is the first budget of the new government, this is the first regular budget of the new finance minister in a long time and therefore this is an opportunity that he may not want to miss as far as many facets of a real budget are concerned. I don’t think he has the option of postponing it to next year.

Source:www.moneycontrol.com/india/news/economy/budget-only-for-8-monthspranab-should-go-allout-ex-fm/404502

Economic Survey 2008-2009

In spite of the current global recession being the worst since the Great Depression, in India the downturn has been more muted than previous ones. The Economic Survey compares the 2008-09 slowdown with previous ones in 2002-03, 1997-98 and 1991-92. The details are seen in the chart. The most obvious fact is that gross domestic product (GDP) growth has been much higher in the current slowdown. The survey points out that the growth rate of GDP at factor cost is 6.5% higher than the average of the last two slowdowns.But if we look at the components of GDP growth, we find that while the survey has raised concerns about consumption growth, private final consumption expenditure growth has been the highest in the current downturn. The biggest positive, of course, has been government consumption, which went up a huge 20.2% in 2008-09 and was the chief prop to growth.But then, it’s amply clear that the main reason for the falling off of growth was the deceleration in gross domestic capital formation, growth in which is at much lower levels than during the earlier two recessions. The gross domestic capital formation (GDCF) rate is at around half that in the previous two slowdowns, although it has certainly not been as bad as in 1991. The survey says, “This is perhaps an indication of how strongly the heightened global uncertainty, risk perception and risk aversion have impacted Indian entrepreneurs.”Also See Comparing Slowdowns (Graphics) More importantly, with so much overcapacity globally, it’s unlikely that companies in India will be in a hurry to rush through with capital expenditure. So, the whole burden of improving the investment rate will fall on government spending on infrastructure. Interestingly, agricultural growth was lower during all the previous slowdowns. Manufacturing growth, too, wasn’t all that bad, being higher than the 1991-92 and 1997-98 downturns. Export growth for 2008-09 as a whole was higher than for 1991-92 and 1997-98, although admittedly exports fared far worse in the second half of the fiscal. Of course, the structure of the Indian economy has changed dramatically since the 1990s. So, the survey gauges the extent of the slowdown by taking the five- year average growth rate and then comparing it with GDP growth in the year of the slowdown. By this method, the survey finds that “the 1991-92 slowdown was the sharpest, while the other three were of similar orders of magnitude”.That raises an interesting point. If, despite the deepest recession in the West since the Great Depression, the slowdown in India is just of the common or garden variety, could it be that there’s something in the decoupling thesis after all?

Source :www.livemint.com/2009/07/04000329/For-India-this-downturn-is-no.html