Government to set up committee to examine IIP says Rangarajan

The former RBI Governor said industrial production growth rate in February and the revised one for January certainly indicate that industrial productivity has not yet picked up

Bangalore: The Indian government would set up a committee to examine the Index of Industrial Production (IIP) and look into ways to "tighten" various sources of data collection, Prime Minister's Economic Advisory Council Chairman C Rangarajan said on Thursday.

"....I think the Government is now setting up a committee to examine the Index of Industrial Production," he told reporters here when asked about concerns in some quarters about volatility of IIP data and whether the Government would address them.

The IIP growth has been revised downwards to 1.14% for January, from the provisional estimates of 6.8%, according to the official data released Thursday.

Mr Rangarajan pointed out that data relating to IIP comes from several sources, they are then put together by the Ministry and released. "Therefore, we really need to tighten the various sources from which the data are collected".

The former RBI Governor said industrial production growth rate in February and the revised one for January certainly indicate that industrial productivity has not yet picked up.

"Therefore, overall growth rate of industrial production during the year (2011-12) will only be what we have been indicating earlier....3.8%...."

Showing persistent sluggishness in the economy, industrial production growth slowed to 4.1% in February this year, mainly due to poor performance of manufacturing sector and consumer goods segment.

Output of the manufacturing sector, which constitutes over 75% of the index, rose by just 4% in February, compared to 7.5% in the same month last year.

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Company Law Board refers Unitech, Uninor dispute to arbitration

CLB held that an arbitrator alone can decide if 'Share Subscription Agreement' and 'Share Holders Agreement' had been vitiated or not due to fraud

New Delhi : In a setback to Norwegian company Telenor, the Company Law Board (CLB) on Thursday allowed its estranged partner Unitech's plea for settling dispute over control and transfer of assets of their joint venture (JV) Uninor through arbitration at Singapore, reports PTI.

Observing that Telenor had gone "berserk" in filing its petition seeking ouster of its partner Unitech after Supreme Court cancelled telecom licences of their JV, CLB Chairman DR Deshmukh held that an arbitrator alone can decide if 'Share Subscription Agreement' and 'Share Holders Agreement' had been vitiated or not due to fraud.

The Supreme Court had in February held that the process of allocating 122 licenses for 2G including those to Uninor was 'arbitrary and unconstitutional' and cancelled all of them.

Telenor, which bought stake in Uninor that was allocated 16 of those licences, sued Unitech for breach of warranties.

The order drew sharp reactions with Telenor saying it will challenge the CLB judgement in higher courts while realty firm Unitech said the order uphold the right of minority shareholder.

Telenor owns 67.25% in Uninor which has over four crore subscribers. Realty firm Unitech holds the remaining 32.75% in the JV.

"Telenor by claiming relief identical to relief claimed ... in its counter claim before the Arbitral Tribunal has left no room for any doubt that adjudication of the dispute arising ... must be left to the forum for resolution of dispute agreed by the parties i.e foreign arbitration," CLB said in its 38-page long order.

"Parties (Telenor and Unitech) are referred to arbitration in accordance with the arbitration rules of Singapore International Arbitration Centre as contemplated under article 13 of the Share Subscription Agreement entered into between the parties," it added.

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India Hospitality buys UK based Adelie Food Group for $350 million

IHC, promoted by two co-founders of Barista Coffee, bought Adelie Food Group, which is one of the largest players in global chilled food market

New Delhi: India Hospitality Corp (IHC) has acquired UK-based Adelie Food Group, a leading player in the convenience food segment, for $350 million in one of the largest takeovers by any Indian company in the food space, reports PTI.

IHC has been promoted by two entrepreneurs - Ravi Deol and Sandeep Vyas, who had also co-founded India's first indigeneous coffee chain Barista Coffee. IHC recently divested India's largest air-catering business SkyGourmet to Zurich based GateGroup.

Adelie Food produces and supplies food products like salads, quiches and sandwiches for supermarkets, coffee shops, cafes and airlines and is among the largest players in global chilled food market.

The Adelie Group currently employs more than 3,000 people across its seven manufacturing locations, Heathrow-based Head Office and nationwide distribution network.

The acquisition of Adelie Food is IHC's first major investment in UK. IHC had recently divested India's largest Air-Catering business SkyGourmet to Zurich based GateGroup.

IHC's India food partners business is already a leading provider of food products to major food retailers and coffee chains in the country.

IHC, which owns restaurant brands like Birdys, All Stir Fry, Jazz by Bay, Just Around the Corner, Dosa Diner, and hotel chain - Gordon House, has acquired 100% stake in Adelie group from Duke Streeet Capital, the company said in a statement.

"IHC plans to use the upstream sophisticated market capabilities of Adielie and Food Partners to accelerate the roll out of its food services business in India," IHC Foods Chairman Ravi Deol said.

"This deep product, innovation and chilled distribution expertise will enable us to delight Indian consumers with great tasting products and services," he added.

The Adelie Food Group includes British convenience food companies -- Buckingham Foods, Superior Foods, Food Partners, Brambles Foods, and ‘food to go’ brand URBAN eat.

Post acquisition, the existing structure of Adelie as the umbrella parent company will continue and Food Partners and Buckingham Foods will maintain their local identities.

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