RBI rate hike to ease inflationary pressure: FM

"With this policy adjustment, we will be able to get back to a more comfortable inflation situation that takes us to the year-end inflation level of 6% to 7%," finance minister Pranab Mukherjee said

New Delhi: Welcoming the Reserve Bank of India's (RBI) decision to hike key rates by a hefty 50 basis points, finance minister Pranab Mukherjee on Tuesday said it will help bring down inflation to a comfortable level of 6%-7% by year-end, reports PTI.

"The Reserve Bank of India has sought to give a strong signal to further moderate inflation and check inflationary expectations," Mr Mukherjee said.

Inflation has remained stubbornly close to double-digit levels during the first quarter of the current fiscal.

Mr Mukherjee said the RBI rate hike was necessary to bring down inflation to an acceptable level at the earliest.

Overall wholesale price-based inflation stood at 9.44% in June. To tame the inflation monster, the RBI today hiked key policy rates by 50 basis points.

"With this policy adjustment, we will be able to get back to a more comfortable inflation situation that takes us to the year-end inflation level of 6% to 7%," Mr Mukherjee added.

The RBI has hiked its policy rates 11 times since March 2010, to curb inflation. However, the problem persists.

Mr Mukherjee said although food inflation has moderated in recent months, pressure in manufactured items has hardened.

While coming out with its first quarterly policy review for the 2011-12 financial year, the RBI admitted that there has been a moderation in growth, but maintained its previous estimate of 8% gross domestic product (GDP) growth for the current fiscal.

Mr Mukherjee said, "The overall GDP growth for 2011-12 so far is in line with the momentum attained in 2010-11."

There have been concerns that the country's economic growth could see some moderation on the back of a deceleration in factory output growth in April-May.

Industrial output growth in April-May this year averaged 5.7%, compared to 10.8% in the same period last year.

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Marg wins order worth Rs237.58 crore from Bhavnagar Energy

The time frame for completion of the project is 24 months

Chennai based Marg Ltd has won an EPC work order worth Rs237.85 crore from Bhavnagar Energy Company in Gujarat. The work order includes a sea water intake, outfall and circulating water system for the 2x250MW lignite based thermal power plant at Padva in Bhavnagar, Gujarat.

The scope of work includes laying submarine pipeline of 5km in the sea of Gulf of Cambay. The time frame for completion of the project is 24 months.

On Tuesday, Marg ended 0.47% down at Rs94.45 on the Bombay Stock Exchange, while the benchmark Sensex declined 1.87% to 18,518.22.

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JSW Steel Q1 net profit jumps 64% to Rs485 crore

JSW Steel’s total income for the quarter ended 30 June 2011 was up 53.47% to Rs7,455.67 crore from Rs4,858.09 crore a year ago

JSW Steel said that its consolidated net profit for the quarter ended 30 June 2011 jumped 64.25% to Rs485.16 crore from Rs295.37 crore for the corresponding quarter in the previous year.

During the same period, its total income was up 53.47% to Rs7,455.67 crore from Rs4,858.09 crore a year ago.

On Tuesday, JSW Steel ended 0.13% up at Rs870.35 on the Bombay Stock Exchange, while the benchmark Sensex declined 1.87% to 18,518.22.

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