Economy
Rangarajan bats for raising diesel prices

“Domestic diesel prices are not in tune with the international prices of crude,” chairman of the Prime Minister's Economic Advisory Council C Rangarajan said

Kolkata: The government will have to take action to correct the prices of diesel as its consumption is on the rise, reports PTI quoting chairman of Prime Minister's Economic Advisory Council C Rangarajan.

 

“Domestic diesel prices are not in tune with the international prices of crude. Action will have to be taken to correct the prices of diesel for attaining fiscal consolidation,” he said at a seminar by Indian Institute of Foreign Trade.

 

Asked when the next diesel price hike was expected, he said that it depended on the government.

 

“It is necessary to raise the diesel prices which may also help in bringing down the headline inflation,” Mr Rangarajan observed.

 

Hike in railway passenger fares, which was announced earlier, would also help the government in achieving fiscal consolidation, he added.

 

Stating that high inflation, high fiscal deficit and high current account deficit (CAD) were major areas of concern, Rangarajan, a former RBI governor, said the government was working towards bringing them under control.

 

High gold imports had contributed to high CAD which stood at 5.4% in the second half of 2012-13 and was creating pressure on the rupee.

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New home launches decline 16% in top 8 cities

NCR saw maximum launches of new homes at nearly 54,500 units in 2012, followed by Pune (24,000 new units), Mumbai (22,500 units) and Chennai (20,800 units)

New Delhi: About 1.62 lakh housing units were launched last year in India's eight major cities—a drop of 16% from 2011, reports PTI quoting global property consultant Cushman & Wakefield.

 

The cities tracked by the consultant are NCR, Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Kolkata and Ahmedabad.

 

“Residential market across major cities in India witnessed a drop in total number of units launched by approximately 16% over previous year. 2012 recorded launch of about 1,62,000 new units of residential properties across the eight major cities,” the report said.

 

A majority of the units were launched in the mid-segment comprising about 83% of total launches, it added.

 

NCR, Chennai, Bengaluru, Hyderabad and Ahmedabad witnessed decline in home launches compared with 2011, but Mumbai, Pune and Kolkata reversed the trend with higher launches.

 

NCR saw maximum launches of new homes at nearly 54,500 units in 2012, followed by Pune (24,000 new units), Mumbai (22,500 units) and Chennai (20,800 units).

 

“In 2012, the residential market saw proactive and innovative marketing and new launches of specialist projects on one side but restrained activities in terms of large scale development as most developers were cautious not to overestimate the end user demand market,” C&W executive managing director (South Asia) Sanjay Dutt said.

 

High inflation as well as home loan interest rates and slow economic growth had a strong impact on the end users making them more price sensitive than previously experienced, he said.

 

Dutt noted that cash-strapped developers were not willing to take up projects that could fall short in interest from end users, keeping their risk exposure to the minimum.

 

“Investor activities however have been strong in the residential market, with many viewing this as the right time to enter the market with the much needed capital for developers. This has been the primary reason why most markets across categories experienced a rise in values,” he said.

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Government will ensure common man benefits from banking: Finance minister

“There is no doubt that efforts are being made on a large scale to ensure that benefits of banking facilities are made available to the people,” finance minister P Chidambaram said
 

Chhindwara: finance Minister P Chidambaram said the government is making all-out efforts to ensure that benefits of banking facilities are made available to common people, reports PTI.

 

“There is no doubt that efforts are being made on a large scale to ensure that benefits of banking facilities are made available to the people”, he said.

 

The minister was speaking on the occasion of inaugurating headquarters of Central Madhya Pradesh Rural Bank.

 

He said the processes for disbursing loans in education, home and agriculture sectors have been simplified so that anyone can avail these credit facilities.

 

On subsidised gas cylinders, the finance minister said, “Congress-run states have made arrangements to provide nine gas cylinders instead of six as stipulated by the Centre...

 

Non-Congress governments should also take steps to provide such relief to people.”

 

Mr Chidambaram praised urban development and parliamentary affairs minister Kamal Nath, who was accompanying him, for carrying out development in his parliamentary constituency of Chhindwara.

 

“The manner in which he (Kamal Nath) had nursed his constituency is an example that can be followed by any public representative. The work done by Kamal Nath has led to the development of Chhindwara constituency,” Mr Chidambaram said.

 

He said under the UPA government at the Centre, the country is on the progressive path of economic and infrastructural development.

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COMMENTS

M G WARRIER

4 years ago

Let us thank FM for his concern for the less privileged in Non-Congress ruled states which he expressed in the following words:
“Congress-run states have made arrangements to provide nine gas cylinders instead of six as stipulated by the Centre...
Non-Congress governments should also take steps to provide such relief to people.”
Let us also make a prayer to the Hon’ble Finance Minister to use his good offices to prevail upon the central government to consider revising the stipulation of six cyliders to nine so that people will make amends for voting Non-Congress governments in next election.

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