Montek for RBI action to arrest inflation

The RBI is scheduled to announce the first quarterly review of the monetary policy on 27th July, during which the central bank could take some action to deal with the deteriorating price situation

As the latest inflation data breached the double-digit barrier, the Planning Commission today suggested that the Reserve Bank of India (RBI) aim at curbing the galloping prices, reports PTI.

Planning Commission deputy chairman Montek Singh Ahluwalia said he agrees with the suggestion of Prime Minister's Economic Advisory Council (PMEAC) chairman C Rangarajan that rising inflation and not robust industrial output should guide the RBI.

"...I completely agree with (Rangarajan)", he said, when asked whether like the PMEAC he, too, favours policy action by the central bank to curb inflation, which crossed the double digit mark in May at 10.16%, hitting a 19-month high, as per provisional figures.

The RBI is scheduled to announce the first quarterly review of the monetary policy on 27th July, during which the central bank could take some action to deal with the deteriorating price situation.

Late last week Mr Rangarajan had told PTI that the RBI should look at the May inflation data and not the robust April IIP numbers to decide before finalising its next policy move.

Industrial production rose by 17.6% in April-the second best in over a decade.

"It would be completely absurd to start tightening monetary policy simply because the (industrial) production has increased. The only reason to tighten monetary policy is that if you feel that inflation has gone too high," Mr Ahluwalia said.

"In this case, a little bit of inflation is picking up…you also got good growth…supply is increasing... That is why (Mr) Rangarajan must have said inflation should be the basis (for tightening the monetary policy). I think that inflation is the relevant thing," the Planning Commission chief added, even though he hoped that inflation would moderate in the coming months.

"There is no doubt that in the first few months there has been rise in inflation. Our assessment is that it is going to come down towards the end of the year. I think that remains my view and you will see (that)," he said.

Prime minister Manmohan Singh last month had said inflation would moderate to 5%-6% by the end of the calendar year.

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Atlanta wins Rs114.48 crore order from Rites

Mumbai-based construction and engineering company Atlanta Ltd said its consortium  has received a contract order of about Rs114.48 crore from state-run Rites Ltd.

The scope of the work includes construction of earthwork, bridges, supply of P-way material, supply of ballast and P-way linking for proposed private railway siding taking off from Chacher railway station to inplant yard of NTPC Mauda district of Nagpur.

On Monday, Atlanta’s shares ended 2.4% up at Rs310 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.6% up at 17,338 points.

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MPSEZ starts doubling of 57 km Mundra-Adipur private railway line

Mundra Port and Special Economic Zone Ltd (MPSEZ) said it started doubling the existing Mundra-Adipur 57 km private railway line to meet the growing demand of its port.

The additional line will be parallel to the existing one. It will have four crossing stations and 99 bridges. It will be capable to handle 25 tonne axle load wagons at 100 kmph. The line will be commissioned in two phases. The first phase of 30 km will be commissioned by June 2011 and rest by the end of 2011-12.

Indian Railway has already doubled their track between Samaikhiali-Adipur and with the doubling of Adipur-Mundra by Adani Group and Samaikhiali-Palanpur by the Kutch Railway Company Ltd, the entire route from the Mundra Port to northern India will be double line, with capacity to handle close to 60 million tonne cargo annually. With this, Mundra Port shall become the second port after Jawaharlal Nehru Port Trust (JNPT) on the west coast, which shall be connected by double line rail corridor.

On Monday, MPSEZ’s shares ended 1.3% up at Rs690 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.6% up at 17,338 points.

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