Naxal violence to be focus of Army Commanders’ Conference

New Delhi, May 14 (ANI): The Naxal violence, which is spreading at an alarming rate and is regarded as the biggest internal challenge to the country’s security, will come up for discussion during the three-day Army Commanders’ Conference, starting here on Monday.

In the wake of prevailing and developing security environment, army commanders’ will also discuss key policy, and doctrinal issues.

The report, prepared by one of the Army commands, deals with resources required to tackle the Naxal menace, if the Army is called out to fight the Maoists.

“The Naxal situation is likely to be discussed and the resources required to tackle it, will be taken up by army commanders during the conference,” said a source.

This move is being initiated despite Union Home Minister P. Chidambaram saying the government does not envisage using the armed forces to tackle the Maoists.

“There cannot be army of air force action against the Maoists. It is simply not our policy,” Chidambaram said on Wednesday while addressing a conference of the Confederation of Indian Industry.

However, there have been instances in the past when the armed forces were called to assist the police to put down threats to internal security like in Assam, Nagaland, Mizoram, Punjab and Jammu and Kashmir.

Army Chief General V K Singh will chair the conference. All Army Commanders and senior officers of the Army will attend the deliberations of the conference, which will continue till May 19.

The conference will also discuss all aspects of force modernization, including battlefield transparency.

Senior army commanders are expected to discuss several important issues during the three-day deliberations like new operational concepts and evolution of administrative levels in the recent past. (ANI)

Canadian envoy in Chennai to strengthen trade with Tamil Nadu

New Delhi, May 12 (ANI): Canada””s High Commissioner Joseph Caron is visiting Chennai from May 12 to 15 to further strengthen Canada’s trade relationship with Tamil Nadu.

Caron will meet officials of the Government of Tamil Nadu and the heads of department of the Chennai Port Trust.

He will also meet heads of several business organisations, including Ashok Leyland, Apollo Group of Hospitals, Polaris Software Lab Limited, Cognizant Technology Solutions and the president of the Institute for Financial Management and Research.

Caron will also participate in a roundtable organised by the Confederation of Indian Industry (CII).

On the eve of his departure for Chennai, Caron said: “India and Canada are natural partners in a wide range of sectors; from trade and investment, to science and technology, to academic relations. We share the common values of Parliamentary democracies, federalist systems of governments, the rule of law and a commitment to global peace and security. Our extensive people-to-people contacts add to our vibrant bilateral relationship.”

Canada and India relations have intensified over past few years, particularly since the Canadian Prime Minister Stephen Harper””s November 2009 visit to India. There have been several high level bilateral visits in the recent past, including the visits of Kamal Nath, Minister of Road Transport and Infrastructure and Sachin Pilot, Minister of State for Communications & Information Technology, in March to strengthen the bilateral relationship between the two countries and enhance commercial opportunities for Indian and Canadian business.

India is a key priority for the Government of Canada’s foreign and trade policy agenda with two-way trade approaching five billion dollars. (ANI)

Oz Trade Minister’s visit to boost India-Australia links

New Delhi, May 3 (ANI): Australia’s Minister for Trade Simon Crean is in India on a weeklong visit to strengthen partnership and lay the groundwork for continued growth in the trade and economic relationship.

Crean visit to India started on May 2 and will last on May 8 during which he will take the Australia-India trade relationship to a new level.

The Australian Trade Minister will discuss the finalisation of the bilateral FTA Feasibility Study in meetings with his counterpart Minister of Commerce and Industry Anand Sharma in New Delhi.

India has a population of 1.2 billion, is the world’s largest democracy and is Australia’s fastest growing major trade relationship.

“This will be my third visit to India and comes at a crucial time with booming trade and investment between the two nations and an opportunity for even greater growth. The Government has put India in the front rank of our international partnerships,” Crean said

On Monday Crean will meet with the Chairman of the Organising Committee of the New Delhi Commonwealth Games, Suresh Kalmadi, and will be briefed on preparations for the October 2010 event.

“The Games will be a great event for India and New Delhi and we look forward to Australia sending its largest Commonwealth Games team ever,” he said.

“Part of discussions will be security arrangements for Australians representing Australia at the Games. We are pleased with cooperation so far and these talks will continue with the Games less than six months away.”

Crean’s visit will include the capital New Delhi, the financial centre Mumbai and Hyderabad.

In Delhi, Crean will discuss the FTA feasibility study and meet Indian Ministers from a variety of portfolios to push forward the broad bilateral agenda.

Along with his counterpart Sharma, Crean will address the Confederation of Indian Industry and meet delegates from the Joint Business Council.

He will host a function in honour of the Advance Emerging Leaders India Summit, which is being held in Delhi on 4 May. (ANI)

Canada sponsors seminar on corporate social responsibility

New Delhi, Apr.29 (ANI): The High Commission of Canada, New Delhi, and the Confederation of Indian Industry (CII), will jointly host the Canada-India conclave on Corporate Social Responsibility (CSR) on Friday, April 30, 2010 at Hotel Le Meridian, New Delhi.

The seminar aims to showcase CSR policies and best practices and successful engagement with stake-holders. It will highlight how Canadian and Indian companies are implementing CSR practices focussed on local needs and priorities.

Santha Sheela Nair, Secretary, Ministry of Mines, Government of India will be the Chief Guest at the conclave. Some of the eminent speakers at the event are Mr Joseph Caron, High Commissioner of Canada; Mr Pooran C. Pandey, Director, Times Foundation; Ms Amita V. Joseph, Director, Business & Community Foundation; Dr Nik Senapati, Managing Director, Rio Tinto – India and Dr Avanish Kumar, In-Charge of CSR at the GMR Group.

Dr. Jan Boon, Emeritus Scientist, International Division, Earth Sciences Sector, Natural Resources Canada, will be the principal interlocutor from the Canadian side.

The Government of Canada works with the Canadian business community, civil society groups and with foreign governments to foster and promote CSR. The Government of Canada encourages all Canadian companies working internationally to respect all applicable laws and international standards, to operate transparently and in consultation with the host government and local communities, and to develop and implement CSR best practices. Internationally-agreed voluntary principles are a key part of Canada”s CSR approach.

Canada also encourages countries to effectively manage various sectors with an emphasis on economic and social development, environmental stewardship and respect for human and labour rights, including the transparent development of legislation which strikes a balance between host government responsibilities and corporate activity.

At the seminar, representatives from industry, civil society and the Indian and Canadian Governments will discuss different perceptions and practices of CSR and the issues involved when corporations interact with stake holders in society.

Corporate Social Responsibility has become an important element in corporate planning. It is the way in which companies integrate social, environmental and economic concerns into their values and operations in a transparent and accountable manner. It is integral to long-term business growth and success. CSR initiatives are broad ranging and include activities by individual companies and industry sectors as well as international standards and norms endorsed and promoted by governments.(ANI)

Canadian team to visit India to advocate Indo-Canada CEPA

New Delhi, Mar.25 (ANI): A high profile Canadian delegation led by John Manley, President and CEO of the Canadian Council of Chief Executives (CCCE), and Roy MacLaren, Chairman of the Canada-India Business Council (C-IBC), will visit India from March 29 to April 1, 2010.

A Canadian High Commission release said they will be accompanied by a private sector delegation and will visit New Delhi, Mumbai and Bangalore.

They will meet Canadian and Indian business leaders, government officials, academics and economic policy experts to promote the mutual benefits of a Comprehensive Economic Partnership Agreement (CEPA) and advocate for a stronger commercial engagement between Canada and India.

During the November 2009 visit of Canadian Prime Minister Stephen Harper to India, a Joint Study Group was established to formulate the parameters of a CEPA. Representing the Canadian private sector, the delegation will meet with government officials, including Minister of Industry and Commerce, Anand Sharma, to convey the importance of the India-Canada commercial relationship.

They will also hold panel discussions with senior members of the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (FICCI), and Indian and Canadian business leaders.

This visit, as several other recent high-level visits to India and Canada, including the current visit of Minister of Road Transport and Infrastructure, Kamal Nath, strengthen the bilateral relationship between the two countries, and enhance commercial opportunities for Indian and Canadian business. (ANI)

Danish PM to discuss climate change during visit to India

New Delhi, Sep.10 (ANI): The Prime Minister of Denmark, Lars Loekke Rasmussen, will arrive here on Friday on a daylong working visit to India to speed up negotiations on a climate deal ahead of a key summit to be held in Copenhagen between December 7 and 18.

Rasmussen will meet with his Indian counterpart Manmohan Singh and the UN’s top climate scientist Rajendra Pachauri, who is chairman of the Intergovernmental Panel on Climate Change (IPCC).

Rasmussen will meet with Dr. Singh at Hyderabad House at 12 p.m. The two sides will have delegation-level talks after which an agreement on environment cooperation will be signed.

In the afternoon, he will deliver a speech on “Green Economy” organized in cooperation with the Confederation of Indian Industry (CII) at the Hotel Oberoi.

He will emplane for Vienna on Saturday morning.

On Tuesday, at the start of the Nordic Climate Solutions conference gathering decision-makers and businessmen in Copenhagen, Rasmussen said the negotiations were progressing slowly “in all areas.”

“It’s very difficult because these are not just issues concerning climate,” but also economy and technology, he said.

“Take the example of India, where I will meet the Indian prime minister who wants to gives his population of one billion some prosperity and who therefore doesn’t want to commit to restrictive reductions unless the world brings new technology to his country,” Rasmussen said. (ANI)

Namibian President to meet Manmohan Singh today

New Delhi, Aug 30 (ANI): Namibian President Hifikepunye Pohamba will hold official-level talks with Prime Minister Dr. Manmohan Singh here today.

Several agreements/MoUs for institutionalizing bilateral cooperation are expected to be signed.

The two sides will ink a MoU to provide an umbrella framework for Indian investment in the exploration of mineral resources, including gold, diamond and uranium in Zambia.

Later, President Pohamba will call on President Pratibha Patil.

Vice President Hamid Ansari, the Leader of Opposition L K Advani and UPA Chairperson Sonia Gandhi will also call on him.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM), the Confederation of Indian Industry (CII) and the Federation of Chambers of Commerce and Industry (FICCI) are jointly organizing an interaction with the Indian business community for the visiting Namibian delegation in New Delhi.

The Namibian President arrived here on Sunday a five-day state visit to India.

This is President Pohamba’s first visit to India.

He is accompanied by a 43-member delegation, which includes five Ministers, senior officials, representatives of Chambers of Commerce and Industry, businessmen. (ANI)

Namibian President arrives in India

New Delhi, Aug 30 (ANI): Namibian President Hifikepunye Pohamba arrived here on a five-day state visit to India today.

This is President Pohamba’s first visit to India.

He is accompanied by a 43-member delegation, which includes five Ministers, senior officials, representatives of Chambers of Commerce and Industry, businessmen.

During his visit, President Pohamba will call on President Pratibha Patil and would hold official talks with Prime Minister Dr. Manmohan Singh.

Several agreements/MoUs for institutionalizing bilateral cooperation are expected to be signed.

The two sides will ink a MoU to provide an umbrella framework for Indian investment in the exploration of mineral resources, including gold, diamond and uranium in Zambia.

Vice President Hamid Ansari, the Leader of Opposition L K Advani and UPA Chairperson Sonia Gandhi will also call on him.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM), the Confederation of Indian Industry (CII) and the Federation of Chambers of Commerce and Industry (FICCI) are jointly organizing an interaction with the Indian business community for the visiting Namibian delegation in New Delhi.

India and Namibia enjoy friendly and mutually supportive ties.

Both countries have excellent interaction in various international fora, including the UN, the NAM and the Commonwealth and share a commonality of views on major international issues such as UN Reforms and combating international terrorism.

Namibia has consistently expressed its support for India’s candidature for Permanent Membership of an expanded the UNSC.

The Namibian Government expressed its solidarity with and full support for India on the terrorist attacks in Mumbai in November 2008.

India has executed a number of projects in Namibia including plastic demonstration centres, biogas units and solar power plants.

India had gifted tractors and diesel engine pumps to the Namibian agriculture sector and 20 incubators to the Indira Gandhi Maternity Clinic in Namibia.

Namibia regularly avails of training facilities under ITEC programme in various fields. everal Indian ITEC experts have been involved with policy formulation in the country since independence. (ANI)

Nepal PM visits Rajghat

New Delhi, Aug.19 (ANI): Nepal Prime Minister Madhav Kumar Nepal, who is on a five-day official visit to India, visited Rajghat, the memorial dedicated to Mahatma Gandhi, on Wednesday.

Later, Nepal will meet External Affairs Minister S.M.Krishna at the Hotel Oberoi. He will proceed to meet President Pratibha Patil for about 30-minutes.

He will also attend and address a business luncheon meeting hosted jointly by the Confederation of Indian Industry (CII), the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Associated Chambers of Commerce and Industry (ASSOCHAM).

On Wednesday evening, he will call on Vice President Mohammad Hamid Ansari at the latter’s official residence and will meet UPA Chairperson Sonia Gandhi at her 10, Janpath residence.

Thereafter, he will proceed to Hyderbad House for delegation level talks with Indian Prime Minister Manmohan Singh. A signing of bilateral agreements will follow the meeting. Although the Pancheshwar multi-purpose project will be discussed, no specific agreement will be signed.

The main opposition CPN (Maoist) has warned the government not to sign any agreement related to the Pancheshwar project without a consensus.

On Thursday, Nepal will meet Finance Minister Pranab Mukherjee and Union Home Minister P. Chidambaram.

In the evening, he will address a meeting of intellectuals and academia at the India International Centre.

He will leave for a day-long visit to Mumbai on Friday and will return to Kathmandu on Saturday afternoon.(ANI)

Andhra industry fears losing Krishna-Godavari basin gas

Hyderabad, July 6 (IANS) The national gas grid proposed in the union budget by Finance Minister Pranab Mukherjee Monday triggered fears in the Andhra Pradesh industry that the gas found in the Krishna-Godavari (KG) basin might go out of the state, starving the local units.
An industry leader urged the state government to ensure the requirements of the local industry were met while building a national gas grid.

The finance minister, in his budget speech, said the government proposed to develop a blueprint for long-distance gas highway leading to a national gas grid. “This would facilitate transportation of gas across the length and breadth of the country,” he said.

Y. Harish Chandra Prasad, chairman of the Andhra Pradesh chapter of the Confederation of Indian Industry (CII), said: “We might be starved of the gas found in the KG basin if this gas grid takes shape in next two to three years.

“As an industrialist and an infrastructure company in Andhra Pradesh, I feel that the state government should buck up and do something about this,” he told reporters reacting to the budget.

“We are not opposing the national gas grid but as far as the state industry is concerned we have to think about it. The demand for this gas is here but more demand may be elsewhere and thus the gas might go out. we have to watch out,” said Prasad, who heads Malaxmi Infra Ventures India Private Limited.

“Gas is very important for us. Coal is not very useful as energy. We have underground mining. Coal is going to be very costly here. So what we have is gas. We expected a lot to happen in the state from the gas,” he said.

He pointed out that even the sector wise allocation of gas was in the hands of the central government and the state had to meet requirements for power plants, fertiliser plants and transportation.

Indian industry welcomes Mamata’s ‘unique’ Railway Budget

New Delhi, July 3 (ANI): The Confederation of Indian Industry (CII) on Friday welcomed the Railway budget presented by Railways Minister Mamata Banerjee.

“This budget is unique in the way inclusivity and overall development has been the focus without losing focus on safety, technology adoption and commercialization while providing opportunities for industry though its capacity expansion programme and setting up infrastructure through PPP mode”, said Chandrajit Banerjee, Director General, CII.

“The move to not increase fares and yet undertake developmental and capacity expansion plans with revenue coming from commercial use of railway property is an innovative approach,” he added. (ANI)

India Inc looks at ‘conducive’ milieu under Manmohan

New Delhi, May 22 (IANS) Riding high on optimism, India Inc has expressed great hope that Manmohan Singh’s second term as prime minister will bring India back on the path of economic growth.

Harsh Pati Singhania, president, Federation of Indian Chambers of Commerce and Industry (Ficci) said: “Under the leadership of Dr. Manmohan Singh, we are sure that we would get a conducive economic environment in which we could propel growth and go back to the 9 percent growth trajectory.

“We are happy with the achievement of political stability which will facilitate the acceleration of the reform agenda,” he added.

Noting that the outcome of the 2009 elections has been a stable government, Chandrajit Banerjee, director general, Confederation of Indian Industry (CII) said his organisation looks forward to working closely with the government in reviving the economy during the coming days, and charting a course towards higher economic and social growth.

Associated Chambers of Commerce and Industry of India (Assocham) president, Sajjan Jindal has promised him all possible industry support, and hoped the reforms in financial, agriculture and civil aviation and other sectors will continue for inclusive growth.

“Dr. Singh has already proved his mettle in the first term of the prime ministership and brought about metamorphic social and economic changes in India’s plural society,” he said, adding he hoped industry will see reforms happening in insurance, banking, financial, agriculture and labour sector so that India consistently achieves higher growth rate under which manufacturing will flourish and jobs created for rural and urban India.

The Assocham chief said he hoped that the National Rural Employment Guarantee Scheme and Bharat Nirman will receive higher allocation so that poverty is eradicated and rural India is adequately connected with urban one, bridging the current urban-rural divide.

CII president congratulates UPA on poll victory

New Delhi, May 16 (ANI): Venu Srinivasan, the President of the Confederation of Indian Industry (CII), on Saturday congratulated the UPA Government on their historic win in the general elections.

In a statement issued on his behalf, Srinivasan said: “The present economic conditions in India required an election verdict, which would provide stability at the Center. And the verdict has done just that. CII is looking at a five year stability, consolidation and reforms going forward.”

“The re-election of UPA would also provide the continuity that is important at this stage. Our expectation from the new government would be that the economic imperatives are paid adequate attention to and the reform process is fast tracked, because the current situation demands it. A key area of focus would have to be infrastructure, since it plays a key role in the economic revival and sustained growth of India,” he added.

“Needless to say that CII looks forward to working with the new government and provide the necessary assistance and support,” he said further.

Chandrajit Banerjee, Director General, CII, said: “A comprehensive majority for the UPA gives the necessary stability to the Government at the Center. This provides a great opportunity for the new government to take necessary and bold measures to deal with the emerging economic situation.”

“CII would shortly present to the Government its own wish list of reforms and measures. We are certain that the new government would be pro active on the reform agenda and CII looks forward to working very closely with the government,” he added. (ANI)

Indian business should intensify engagements with US counterparts: Blackwill

New Delhi, May 5 (ANI): “As US-India trade and investment in the coming few years will become more important than ever, I strongly encourage CII and the Indian business fraternity to intensify their engagement with American counterparts”, said Ambassador Robert Blackwill, Former US Ambassador to India and Senior Fellow and Senior Advisor to the President, RAND Corporation.

He was speaking at a session on “US-India Relations” organised jointly by the Confederation of Indian Industry (CII) and Aspen Institute India.

Ambassador Blackwill called for holding frequent bilateral strategic policy dialogue pertaining to geo-political and trade issues. Sharing insight about bilateral relations, he stated that the Obama administration has an affirmative view of India and admires it as a remarkable democracy.

It is positively influenced by the Indian-American community whose political voice is growing in the US. The US administration hopes that India will become a partner on climate change and non-proliferation issues. It wishes to increase markedly the volume of US-India trade.

According to him India should continue to cooperate closely with the US on non-proliferation and the US should treat India as a nuclear weapon state. The US President faces a binary choice regarding Iran’s nuclear weapon program – either to launch a US military attack on those facilities with disastrous long term consequences, or to acquiesce to an Iranian nuclear weapon capability with disastrous long term consequences. India should be far more forthcoming regarding much stronger international sanctions against Iran, he said. He mentioned that America will get strict with CTBT.

Blackwill further stated that both the countries should intensify military interactions, force planning, weapons acquisition, interoperability, joint exercises, intelligence exchange, and threat assessment for strengthening defence ties.

His address highlighted that India’s importance in the US worldview is diminishing due to instability in Afghanistan, Pakistan, Iran and Iraq.

Condemning the concept of good and bad Taliban being propagated by the Obama administration, he said that the ‘good Taliban’ which is harmless for the west in turn is harmful to the India. Therefore the fight against terrorism should be fought globally.

He pointed out that given the historical and cultural linkages between India and Afghanistan, the existing American belief that India will be a short term partner in Afghanistan’s development should be discarded. He also proposed that Washington should not, at this stage prepare an exit strategy from Afghanistan.

In the welcome remarks, Chandrajit Banerjee, Director General, CII, said that India-US relations in the context of present time should be viewed on a strategic domain. Aspen Institute and CII have been working closely on the issue since 2004 with a focus on value based leadership, and partnerships.

Delivering his concluding address, Hari Bhartia, Vice President CII and Co-Chairman and Managing Director Jubilant Organosys Limited said, Indian business fraternity should engage proactively with the US, which is in the interest of both the countries. He suggested that purchase of an item amounts to outsourcing and subject of outsourcing on the global domain has been misused. The US economy should not retract and put any barrier to it. (ANI)

President leaves for a week-long visit to Spain, Poland

New Delhi, Apr 20 (ANI): President Pratibha Devisingh Patil today left for a week-long visit to Spain and Poland.
During her visit, Patil is likely to sign a number of bilateral agreements to further boost India’s relations with the European countries.

Patil is being accompanied by Minister of State for Industrial Policy and Promotion Ashwani Kumar and a business delegation comprising members of the Confederation of Indian Industry (CII), the Federation of Indian Chambers and Commerce and Industry (FICCI) and the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Issues like economy and fight against terrorism would form the vital part of discussions between President Patil and her counterparts in Spain and Poland.

The President is also expected to address the Indian community there.

This will be the first-ever State visit by an Indian President to Spain and the fourth such visit to Poland.

The CII in its recent report has underlined potential areas of development and cooperation between India and Spain.

It has stated that the crucial sectors, which should be concentrated on, include IT, environmental technology, aerospace, automobile, infrastructure, transportation, pharmaceutical, SMEs and textiles.

India and Spain should consider having bilateral investment treaties as a tool to enhance investments, the report said, adding that New Delhi could be a gateway for Spanish enterprises to the South-East Asian region.(ANI)

President on a week-long visit to Spain, Poland

New Delhi, Apr 19 (ANI): President Pratibha Devisingh Patil is leaving for a week-long visit to Spain and Poland on Monday.

During her visit, Patil is likely to sign a number of bilateral agreements to further boost India’s relations with the European countries.

Patil would be accompanied by Minister of State for Industrial Policy and Promotion Ashwani Kumar and a business delegation comprising members of Confederation of Indian Industry (CII), Federation of Indian Chambers and Commerce and Industry (FICCI) and the Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Sweltering issues like economy and fight against terrorism would form the vital part of discussions between Patil and her counterparts in Spain and Poland.

The President is also expected to address the Indian community there.

This will be the first-ever State visit by an Indian President to Spain and the fourth such visit to Poland.

Meanwhile, the CII in its recent report has underlined potential areas of development and cooperation between India and Spain. It has stated that the crucial sectors, which should be concentrated on, include IT, environmental technology, aerospace, automobile, infrastructure, transportation, pharmaceutical, SMEs and textiles.

India and Spain should consider having bilateral investment treaties as a tool to enhance investments, the report said, adding that New Delhi could be a gateway for Spanish enterprises to the South-east Asian region. (ANI)

Holbrooke meets CII chief mentor

New Delhi, Apr 8 (ANI): United States Special Envoy to Afghanistan and Pakistan Richard Holbrooke met Confederation of Indian Industry (CII) chief mentor Tarun Das here on Wednesday.

The Chairman of the U.S. Joint Chiefs of Staff, Admiral Mike Mullen, was also present.

The meeting assumed significance in view of the top US officials huddling with India strategy group of CII over Indo-US cooperation in reconstruction of Afghanistan.

Holbrooke, along with Mullen, are expected to meet Foreign Secretary Shivshankar Menon and National Security Advisor M. K. Narayanan later in the day.

Holbrooke arrived here late last night and is expected to brief the Indian leadership about his recent visit to Pakistan and President Obama’s new strategy on Afghanistan and Pakistan.

The threat of terrorism originating from Afghanistan and Pakistan will form the core of discussions between the two sides.

This is Holbrooke’s second visit to New Delhi after taking up his new assignment.

Amid reports that the Pakistani Army is attempting to neutralise the effects of this new American strategy, India’s role in supplementing US efforts to defeat terrorism has assumed importance.

During his first visit to India, Holbrooke had described the Taliban as a ‘common threat’ to the US, India and Pakistan. (ANI)

CII tells govt to pump in more money

The Confederation of Indian Industry (CII) on Tuesday urged the government to print more currency notes to bridge the fiscal deficit and keep the economy afloat, which is reeling under the impact of the global financial meltdown.

“If the government is going to borrow from the market to fill the fiscal deficit, then they are going to suck up all the money available in the banks and we will be drained out,” new CII president Venu Srinivasan told reporters at his maiden press conference.

Pitching for monetisation of the Budget deficit, he said, “It means printing notes. Which means you have the risk of increasing inflation but at the same time you will keep the economy afloat.” Srinivasan further said that the government should also amend the Fiscal Responsibility and Budget Management Act, which imposes restrictions on public expenditure.

Raising concerns over the government’s decision to raise an additional Rs 300,000 crore during 2009-10 to fund public expenditure, the CII president said that very little money would be left for the private sector.

Adding off-budget items and state deficits, total government deficit is likely to be in excess of 10% of the GDP, he said, adding revenue deficit accounts for over 70% of the fiscal deficit.

Asked whether monetisation would help or not, Srinivasan said, “Otherwise, with such a high level of deficit, you will find investments drying up in the country.”

He also said that the government should further reduce key interest rates like repo (short-term lending rate) and reverse repo rates. “There is need to reduce repo and reverse repo rates by 50 basis points,” he added.

He said that at the current rates several projects are still not viable.

While ruling out any possibility about the country slipping into deflation, Srinivasan said that the government should not publish the inflation data weekly.

“High borrowing is keeping interest rates from falling in line with inflation,” he said.

Suggesting more fiscal measures, he said that the government should further ease the indirect taxes – excise, service tax for specific sectors.

He also said that to avoid injury to the domestic industry owing to artificially low-priced imports, an aggressive safeguard mechanism needs to be in place.

“This could be supplemented by strengthening anti-dumping directorate,” he said.

To deal with the land acquisition issues to stimulate the manufacturing sector, he said that the government should acquire land systematically and transfer it to industry in a transparent manner.

Nano will not affect two-wheeler market: Hero Honda MD

New, Delhi, Mar 27 (ANI): Dispelling apprehensions over the future of the two-wheeler segment with the launch of Nano, Pawan Munjal, the Managing Director and Chief Executive Officer of Hero Honda Motors, said that it will have no bearing in the two-wheeler market.

“I am not saying there will be no impact at all. Some two-wheeler aspirants definitely move to a car. But there will be no major impact. There is not change in the market,” Pawan said this on the sidelines of a meeting hosted by the Confederation of Indian Industry (CII) here on Thursday.

Hero Honda Motors promoted by the Munjals of Hero Cycles fame, is among the majors of two-wheeler manufacturers in India.

Tata Motors launched its much-awaited Nano car on Monday.

On that occasion, Ratan Tata, Chairman of Tata Motors had reportedly asserted that the car Nano would be available with the promised price tag of rupees 100 thousand.

It was launched six months behind schedule in a subdued market, with production in the first year severely constrained and the threat of further ratings downgrades hanging over the company.

Amidst all these trends, the company has said that it will take over a year to deliver the first 100,000 cars.

Since the Nano was first shown, the main production plant had to be moved from Singur in West Bengal following protests over the acquisition of agricultural lands by the State Government for the setting up Nano factory.

Consequently, Tata Motors posted its first loss in seven years with its shares declining by 70 per cent and its credit rating downgraded. (ANI)