Economy News 5 March 2008

PM says farm loan waiver scheme to clean up bank balance sheets

Prime minister Manmohan Singh today said the proposed Rs 60000 crore farm loan waiver scheme announced in Union Budget 2008-09, would provide relief to farmers and clean up balance sheets of banks. The debt relief scheme will be completed by June 2008, Singh said in parliament.

Singh also said the government was seeking a broadest possible consensus on Indo-US nuclear deal.

 

Indian crude basket hits all-time high

The basket of crude oil that Indian refiners buy hit a fresh all-time high of $97.16 a barrel on Friday, 29 February 2008. This was the highest for the current fiscal. The Indian crude oil basket averaged $92.37 a barrel in February 2008 against $89.52 in January 2008. On Friday, the price of New York crude touched a fresh high of $103.05 a barrel.

The soaring global crude prices have an impact on the profitability of the domestic oil marketing companies (OMCs), as they sell petroleum products below the cost price.

 

FM expects 8.8% plus in the 2008/09

Finance Minister P Chidambaram today said he expects the economy to grow 8.8% plus in the 2008/09 fiscal year. Chidambaram said an investment boom in was continuing but a sluggish farm sector was hurting overall growth.

 

Paswan says steel firms should not raise prices arbitrarily

Steel Minister Ram Vilas Paswan today said steel firms should not raise prices arbitrarily. Paswan said India would require an annual 108 million tonnes of finished steel by the fiscal year 2011/12.

The issue of export duty on iron ore is still under examination by the government and will be further pursued, Paswan said.