While writing about India's recent power crisis, the WSJ has profusely praised Gujarat's chief minister’s actions on the state’s electricity situation. However Narendra Modi is shunned by the US state department and still cannot get visa from the US
RBI has recently lowered the growth projection to 6.5% from 7.3% in the wake of deficient monsoon and global economic problems
New Delhi: Deficient monsoon is likely to pull down the economic growth in the current fiscal to about 6%, from 6.5%, a year ago, the Planning Commission said on Friday, reports PTI.
“If we factor in that agriculture which would not be strong, growth would be closer to 6%. I don’t think we have sufficiently strong industrial turn around yet,” Planning Commission deputy chairman, Montek Singh Ahluwalia, told reporters here.
In case of the Twelfth Five-Year Plan (2012-17), he said the annual average economic growth could be around 8.2% as against the earlier estimate of 9% envisaged in the Approach Paper to the policy document.
As regards 2012-13, the Reserve Bank of India (RBI) has recently lowered the growth projection to 6.5% from 7.3% in the wake of deficient monsoon and global economic problems.
On whether special schemes were needed to tide over the drought like situation, Mr Ahluwalia said, “I don't think you need an incentive. These are all issues that state governments have to tackle. They are usually very keen to take corrective measures”.
He further said that rural employment guarantee scheme Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) can deal with the problem of unemployment in rural areas.
“The growth rate in agriculture will be lower and that means that certain amount of income and employment stress in rural areas will have to be countered. In that perspective the existence of the MNREGA scheme provides a kind of automatic stabiliser. If people need work because of the drought, they will get work through MNREGA”, Mr Ahluwalia said.
The country had faced several monsoon failures, he said, adding there are possibilities that the situation would improve in the coming months.
“They (the Indian Meteorological Department) have actually said that the overall monsoon position in the next two months would be better than the previous two months but the overall would be deficient. There is nothing new in this. We have known that it would be deficient in first two months,” he said.
Mr Ahluwalia further said that “this is not the first drought we have had. Droughts do create a problem and we know what to do when they happen”.
On the impact of drought on price situation, he said, “it is true that inflation has been a problem. It has come down from the double digit but virtually all the government forecast say that it will remain around 7% for sometime and that is not good enough”.
He further said that inflation is under control if it is between 5%-6% but “inflation is above that... it is a matter of concern.”
The headline or Wholesale Price Index (WPI)-based inflation in June was 7.25%, while at the retail level it was at an alarming 10.02%.
The Company Law Baord observed the manner in which the auction process was being carried out was "very clever", before directing Uninor and other respondents to file their reply by Monday
New Delhi: The Company Law Board (CLB) on Friday stayed the auction of Uninor started by the telecom company's majority owner, Telenor of Norway, saying that the process being followed was "very clever", reports PTI.
Hearing an application filed by Unitech, which holds a minority 32.75% stake in Uninor, CLB Chairman Justice DR Deshmukh stayed the 1st August auction notice issued by Uninor and said that the Board would hear both the parties in length.
CLB observed the manner in which the auction process was being carried out was "very clever", before directing Uninor and other respondents to file their reply by Monday.
It listed the matter for next hearing on 8th August.
In the 1st August notice, Uninor set a minimum bid price of Rs4,000 crore and sought bids by 6th August. In case no bidder turns up, Telenor would pay Rs4,190 crore for the company, the notice stated.
CLB said the terms and conditions set out in the auction notice appeared to be "tough".
Telenor holds 67.25% stake in Unitech Wireless, that operates under the Uninor brand. Unitech which is opposed to the auction, had yesterday approached the CLB seeking a stay on Uninor's plan to sell the business through auction in which Telenor may possibly be the only bidder.
Telenor wants to scrap the joint venture with Unitech and migrate its business to a new company to seek fresh operating licences as the JV's 22 telecom permits were among the 122 quashed by the Supreme Court in February.
Uninor had said it wanted to auction the company's business, including its assets, while it is a going concern before the September 7 deadline set by the apex court for winding up of operations of all the firms whose licences had been cancelled.