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25 Feb 2009 | 10:22 Edelweiss MF declares dividend for Monthly Interval Fund Edelweiss Mutual Fund has declared dividend under dividend option of Edelweiss Monthly Interval Fund - Series 1. The record date for the dividend is 2 March 2009. The quantum of dividend will be 100% of the available distributable surplus of the scheme as on the record date for the face value of Rs 10 per unit. The NAV for the scheme was at Rs 10.0413 per unit as on 19 February 2009. After payment of dividend, the NAV will fall to the extent of the payout and statutory levy, if any. The investment objective of Edelweiss Monthly Interval Fund - Series 1 is to generate regular income through investments in debt & money market instruments.

25 Feb 2009 | 10:26 ING MF ceases High Yield Liquid Fund ING Mutual Fund has wound up ING High Yield Liquid Fund, with effect from 25 February 2009. Since the scheme is not able to meet with the requirement of minimum of 20 investors. Accordingly, the fund house wound up the scheme under regulation 39 (2) (c) of Sebi Regulation, 1996. The fund house ceased to carry any business activities in respect of the scheme. It has also ceased to issue units in the scheme and has also ceased to create or cancel units in the scheme.

25 Feb 2009 | 10:36 ICICI Prudential MF declares dividend For QIP ICICI Prudential Mutual Fund has declared dividend under the dividend option of ICICI Prudential Interval Fund IV-Quarterly Interval Plan-A. The fund house has decided to distribute dividend upto 100% the distributable surplus of the scheme on the face value of Rs 10 per unit as dividend on the record date of 2 March 2009. The scheme recorded a NAV of Rs 10.1815 per unit under the retail option of as on 19 February 2009. ICICI Prudential Interval Fund I - Quarterly Interval Plan-A is a debt oriented interval scheme with an investment objective to generate optimal returns consistent with moderate levels of risk and liquidity by investing in debt securities and money market securities.

ICICI Prudential MF declares dividend For IPFMP-46-1YB ICICI Prudential Mutual Fund has declared dividend under the dividend option of ICICI Prudential Fixed Maturity Plan- Series 46-One Year Plan B (IPFMP-46-1YB). The fund house has decided to distribute 100% distributable surplus as dividend as on the record date of 2 March 2009 on the face value of Rs 10 per unit. The scheme recorded a NAV of Rs 10.667 per unit under retail option as on 18 February 2009 (published only once a week i.e. every wednesday). IPFMP-46-1YB is a close ended debt fund with an objective to seek to generate returns by investing in a portfolio of fixed income securities/debt instruments normally maturing in line with the time profile of the scheme.

25 Feb 2009 | 10:53 HDFC MF declares dividend in HDFC FMP 90D November 2008 (4) HDFC Mutual Fund has announced dividend under the dividend option of retail and wholesale plan of HDFC FMP 90D November 2008 (4), a fixed maturity plan under HDFC Fixed Maturity Plans-Series X, a close-ended income scheme. The fund house has decided to distribute 100% of distributable surplus as on the record date of 2 March 2009 on the face value of Rs 10 per unit as dividend. The scheme recorded a NAV of Rs 10.2080 per unit under the retail plan and Rs 10.2102 per unit under wholesale plan as on 20 February 2009. The investment objective of the scheme is to generate regular income through investments in debt/money market instruments and government securities.

25 Feb 2009 | 11:04 Fortis MF extends NFO closing date Fortis Mutual Fund has extended the closing date of New Fund Offer (NFO) period of Fortis Fixed Term Plan - Series 14 C to 20 March 2009 instead of 16 March 2009. The NFO was opened for subscription on 19 February 2009. Fortis Fixed Term Plan - Series 14- Plan C is a close-ended income scheme launched with an objective is to achieve growth of capital through investments made in a basket of fixed income securities in line with the duration of the scheme.

25 Feb 2009 | 11:30 Fortis MF announces changes in minimum application amount Fortis Mutual Fund has announced the changed in minimum application amount for Fortis Flexi Debt Fund under regular plan and regular plan A, with effect from 2 March 2009. Accordingly, the scheme proposed minimum application amount under Growth, Half-yearly dividend, Quarterly dividend, Weekly dividend and Daily dividend options as Rs 5000 per application and in multiples of Re 1 thereafter. Existing minimum application amount under Growth option is Rs 5000 per application and in multiples of Re 1 thereafter. Under Half-yearly dividend and Quarterly dividend option the minimum application amount is Rs 20,000 per application and in multiples of Re 1 thereafter. And under Weekly dividend and Daily dividend option it is Rs 1 lakh and Rs 10 lakh per application respectively and in multiples of Re 1 thereafter.

26 Feb 2009 | 10:35 UTI MF declares dividend under Fixed Income Interval Fund UTI Mutual Fund has announced dividend under dividend option of UTI Fixed Income Interval Fund-Series II-Quarterly Interval Plan VI. The record date for the declaration of dividend is 4 March 2009. The quantum of dividend will be 100% of distributable surplus available on the record date on face value of Rs. 10 per unit. The NAV for the scheme for both retail and institutional plan was at Rs. 10.1970 per unit on 24 February 2009. UTI Fixed Income Interval Fund- Series II-Quarterly Interval Plan VI is a debt oriented interval scheme with income-oriented portfolio consisting G-sec and other fixed income and debt securities. The investment objective of the scheme is generating regular income by investment in a portfolio of fixed income securities normally maturing in line with the time profile of the plan.

26 Feb 2009 | 10:20 Kotak MF declares dividend for quarterly interval plan Kotak Mutual Fund has declared dividend under dividend option of Kotak Quarterly Interval Plan -Series 7. The fund house has decided to distribute up to 100% distributable surplus as dividend on the record date 2 March 2009 on the face value of Rs 10 per unit. The scheme recorded a NAV of Rs 10.1903 per unit as on 19 February 2009. The specified transaction period is on 2 March 2009. Kotak Quarterly Interval Plan -Series 7 is an interval debt scheme with an investment objective to generate returns by investing in debt and money market instruments with a view to significantly reduces the interest rate risk.

26 Feb 2009 | 11:42 Mohit Verma resigns JM Financial MF Mohit Verma, Chief Investment Officer (Debt) and Fund Manager of JM Short Term Fund, JM Income Fund and JM G-Sec Fund has resigned from the services of JM Financial Asset Management. Shalini Tibrewala shall be the fund manager for the schemes managed by Mohit Verma. The change will be effective from 25 February 2009.

26 Feb 2009 | 11:52 ICICI Pru MF revises minimum application amount ICICI Prudential Mutual Fund has announced the revision of minimum application amount under ICICI Prudential Floating Rate Plan- Plan B, ICICI Prudential Long Term Floating Rate Plan - Plan A, Plan B and Plan C, with effect from 27 February 2009. As per revision, the minimum application amount for under ICICI Prudential Floating Rate Plan- Plan B & ICICI Prudential Long Term Floating Rate Plan - Plan A will be Rs 15,000 and in multiples of Re 1 thereafter. And under ICICI Prudential Long Term Floating Rate Plan - Plan B and Plan C the minimum application amount will be Rs 10 lakh and Rs 1 crore respectively, and in multiples of Re 1 thereafter.

26 Feb 2009 | 12:20 ICICI Prudential MF revises exit load under Opportunities Fund ICICI Prudential Mutual Fund has approved revision in the exit load structure under retail option of ICICI Prudential Opportunities Fund, with effect from 27 February 2009. In case of Systematic Transfer Plan (STP) and switch out from this scheme, into ICICI Prudential Growth Plan, ICICI Prudential Index Fund, ICICI Prudential Tax Plan, and ICICI Prudential Equity & Derivative Fund - Income Optimiser Plan and all other ICICI Prudential debt schemes of fund the exit load of 2.5% of the applicable NAV will be charged. It will be nil for STP and switch out of this scheme to equity scheme of the fund other than those mentioned above.

26 Feb 2009 | 12:40 ICICI Prudential Blended Plan announces various changes ICICI Prudential Mutual Fund has approved changes in the minimum application amount and exit load structure under ICICI Prudential Blended Plan, with effect from 27 February 2009. Accordingly, under ICICI Prudential Blended Plan - Plan B (Institutional Option) the minimum application amount will Rs 500 and in multiples of Re 1 thereafter, additional purchase amount will be Rs 100 and in multiples of Re 1 thereafter and minimum redemption amount will be Rs 100 and in multiples of Re 1 thereafter. Hereafter, the ICICI Prudential Blended Plan - Plan B (retail and institutional option) will charge an entry load of 1.50%. It will charge an exit load of 1.50% if the amount, sought to be redeemed or switched out, is invested for a period of upto 12 months from the date of allotment. No exit load will be charged if the amount sought to be redeemed or switched

26 Feb 2009 | 16:58 Mutual funds step up buying Mutual funds (MFs) purchased shares worth a net Rs 130 crore on Wednesday, 25 February 2009, much higher than Rs 24 crore on Tuesday, 24 February 2009. MFs' net inflow of Rs 130 crore on 25 February 2009 was a result of gross purchases Rs 396.60 crore and gross sales Rs 266.60 crore. The BSE Sensex gained 80.50 points, or 0.91%, to 8,902.56 on that day. MFs were net seller of shares worth Rs 1837.10 crore in this month, till 25 February 2009.

27 Feb 2009 | 10:30 ICICI Prudential MF declares dividend For QIP ICICI Prudential Mutual Fund has declared dividend under the dividend option of ICICI Prudential Interval Fund II-Quarterly Interval Plan-D. The fund house has decided to distribute dividend upto 100% the distributable surplus of the scheme on the face value of Rs 10 per unit as dividend on the record date of 5 March 2009. The scheme recorded a NAV of Rs 10.419 per unit under the retail option and Rs 10.4321 per unit under the institutional option as on 25 February 2009. ICICI Prudential Interval Fund II - Quarterly Interval Plan-D is a debt oriented interval scheme with an investment objective to generate optimal returns consistent with moderate levels of risk and liquidity by investing in debt securities and money market securities.

27 Feb 2009 | 10:46 Sahara MF appoints new fund manager Devesh Thacker is being appointed as fund manager (debt) with effect from 27 February 2009 in place of Puneet Srivastava for the debt oriented schemes namely Sahara Liquid Fund, Sahara Income Fund, Sahara Gilt Fund, Sahara FMP 395 days series 2, Sahara FMP 395 days series 3, Sahara Classic Fund, Sahara Interval Fund Quarterly Plan Series 1 and Sahara Short Term Bond Fund.

27 Feb 2009 | 10:53 Deutsche MF appoints CIO Aniket Inamdar, the Head of Domestic Equity of Deutsche Asset Management (India) has been appointed as the Chief Investment Officer (CIO) of the company with effect from 19 February 2009 and will continue as the fund manager for the following schemes of DMF i.e. DMS Alpha Equity Fund, DWS Tax Saving Fund, DWS Investment Opportunity Fund and as Co-Fund Manager of DWS Global Thematic Offshore Fund. Powered by Capital Market - Live News

27 Feb 2009 | 11:20 JM Financial MF announces change in key personnel JM Financial Mutual Fund has announced the change in the key personnel of AMC. Sandip Sabharwal ceases to be key personnel of the AMC. The schemes managed by him will now be managed by the existing equity fund management team. Asit Bhandarkar shall be the fund manager of the JM Cor 11 Fund - Series 1 and JM Emerging Leaders Fund, Sanjay Chhabaria shall be the fund manager for JM Multi Strategy Fund, Sandeep Neema shall be the fund manager for JM Tax Gain Fund and JM Contra Fund will be managed jointly by Sandeep Neema and Sanjay Chhabaria.

27 Feb 2009 | 12:01 UTI SPrEAD Fund introduces SIP & Dividend Payout facility UTI Mutual Fund has introduced the Systematic Investment Plan (SIP) and Dividend Payout facility under UTI SPrEAD Fund, with effect from 16 February 2009. The scheme has introduced the dividend payout facility under divided option. The existing investors of dividend option will continue to be under dividend option-reinvestment facility of the scheme on or after 16 February 2009. Systematic Investment Plan (SIP) is introduced under the scheme. The SIP is offered with Monthly SIP (MSIP) and Quarterly SIP (QSIP). Both the options can not be combined. A separate enrollment form needs to be filled in for MSIP and QSIP. SIP Mandate form can be submitted at least 1 month before the firs SIP installment date. The forms that are received within the period of 1 month before the first SIP installment date, will be considered from the SIP date of the follow

27 Feb 2009 | 12:30 UTI CCP Advantage Fund revises the load structure for SIP UTI Mutual Fund revised the load structure for investment routed through Systematic Investment Plan (SIP) under UTI CCP Advantage Fund, with effect from 26 February 2009. As per the revision, the load structure for the monthly investment upto Rs 3000 and quarterly investment upto Rs 12000 through route of SIP will be as follows: The scheme will not charge an entry load. The exit load of 5% will be charged if exited within 2 years from the date of acceptance of each installment. It will charge load of 2.00% if exited on a date on or after 2 years and before 4 years from the date of each installment. 1.00% exit load will be asked if exited on a date on or after 4 years and before 5 years from the date of installments and nil if exited on or after 5 years form the date of each installment. The load structure for monthly installments greater than Rs 30

27 Feb 2009 | 10:32 Centre to provide Rs 5000-crore assistance to states for affordable housing The Cabinet Committee on Economic Affairs (CCEA) on Thursday, 26 February 2009, approved a scheme to encourage states to increase the supply of land and construct 10 lakh affordable houses. The Centre will provide finance assistance of Rs 5000 crore over the next four years for the affordable housing projects. The scheme is expected to activate the measures announced for the housing construction sector under the economic stimulus packages, the government said. It will increase the stock of houses ranging from 300 square feet (sq.ft) to 1200 sq.ft plinth area built at affordable rates on land provided by state governments, it said. Construction and development is envisaged in public-private partnership (PPP) mode. Private Sector developers and builders as well as state housing boards are expected to be partners to the g

27 Feb 2009 | 11:21 Q3 GDP up 5.3% from a year earlier The gross domestic product (GDP) grew a slower than expected 5.3% in Q3 December 2008 over Q3 December 2007. The figure is sharply lower from 7.6% in Q2 September 2008 as the global economic crisis cut demand and exports. The manufacturing sector fell 0.2% in in Q3 December 2008 over Q3 December 2007, while the farm sector contracted an annual 2.2%, government data showed on Friday, 27 February 2009. India has estimated the economy to grow 7.1% in 2008/09, slowing from the 9% in the previous year.

27 Feb 2009 | 11:25 Capital goods sector's share in GDP in FY09 has fallen India's capital goods sector will contribute around 7.1% to the country's gross domestic product (GDP) in fiscal 2008-09, compared with 9% a year earlier, the heavy industry minister Sontosh Mohan Dev said in a speech on Friday, 27 February 2009. Sontosh Mohan said the decline does not bode well either for the sector or the economy as a whole. He further added that the sector has been greatly affected by cheap imports from some countries.

27 Feb 2009 | 11:54 Govt extends transport subsidy scheme The Centre on Thursday, 26 February 2009, said it has decided to extend the Transport Subsidy Scheme, 1971 for the time being, till the evaluation of the scheme is complete. The scheme compensates the cost of transportation of raw material and finished goods by providing subsidy up to 90% of the cost incurred on such transportation. It is provided to 14 states/Union Territories (UTs) located in hilly, remote and inaccessible areas. The Scheme has been very helpful all these years in facilitating the pace of industrialization in the beneficiary states/Union Territories with a large number of industries coming up in the regions resulting in substantial employment generation. The extension of the scheme is expected to boost further the industrialization in these beneficiary States/UTs, the government said in a release.

27 Feb 2009 | 15:28 GDP may rise 7% in FY09 - Govt official Expected stronger growth in the January-March quarter will help push India's full fiscal year economic expansion close to 7%, Economic Affairs Secretary Ashok Chawla said on Friday, 27 February 2009. Data released on Friday showed the economy grew a slower than expected 5.3% in Q3 December 2008 over Q3 December 2007, slowing sharply from 7.6% in Q2 September 2008 as the global economic crisis cut demand and exports. Ashok Chawla further added that the 5.3% growth is broadly in line with expectation. Generally the fourth-quarter contribution to gross domestic product (GDP) growth is normally better. Chawla said that the fourth quarter is expected to show robust growth, which will add up close to 7% for the whole year.

27 Feb 2009 | 15:38 Govt allows levy of development cess at Mumbai airport The government today, 27 February 2009, said that it has approved a levy of Development Fee (DF) by Mumbai International Airport (MIAL) at the CSI Airport, Mumbai. The DF will be Rs 100 per departing domestic passenger and Rs 600 per departing international passenger, inclusive of all applicable taxes, for a period of 48 months from 1 April, 2009. The government said it has approved the imposition of the levy to raise funds given that all other funding options appear to have been exhausted. This has been done to ensure timely completion of modernisation of the Mumbai airport.

26 Feb 2009 | 12:42 Inflation at 3.36% The official Wholesale Price Index for All Commodities (Base: 1993-94 = 100) for the week ended 14 February 2009 declined by 0.1 % to 227.8 from 228.0 for the previous week. The annual rate of inflation, calculated on point-to-point basis, stood at 3.36 % for the week ended 14 February 2009 as compared to 3.92% for the previous week and 5.66 % during the corresponding week of the previous year. The major group, manufacturing which carries highest weight in WPI, declined 0.1 % to 199.5 from 199.7 for the previous week mainly due to fall in index of food product, chemicals and chemical products, basic metals alloys and metal products and machinery and machine tools in this week as compared to previous week. However index for textiles group rose 1.2 % to 140.7 from 139.0 for the previous week due to higher prices of cotton yarn-cones (6 %), texturised yarn (2%) and synthetic yarn and polyes

26 Feb 2009 | 12:10 Cabinet hikes DA for govt employees The Union Cabinet today, 26 February 2009, raised the dearness allowance (DA) paid to government employees to 22% of basic salary, from an earlier 16%. The hike will cost Rs 3514 crore to the government, Home Minister P Chidambaram said. The decision to hike the DA is clearly aimed at wooing voters. The Election Commission is likely to shortly announce the dates for Lok Sabha elections which are likely to he held in April-May 2009. In another decision, the Cabinet allowed state government to run up higher fiscal deficits.

26 Feb 2009 | 18:24 Govt to provide Rs 325-crore incentive for leather and textile exports Commerce Minister Kamal Nath today, 26 February 2009, said duty credit scrip under duty entitlement pass book (DEPB) will now be issued without waiting for realization of export proceeds Announcing a review of the long term Trade Policy, Nath said exports growth target of $200 billion for the year ending March 2009 was unlikely to be achieved due recession in key global economies and amid a financial sector crisis. He expressed hope that the $200 billion exports target could be met in the next financial year. India's merchandise exports rose 13.2% to $144.26 billion in April 2008-January 2009 period over April-January 2008. Exports from special economic zones (SEZ) are expected to touch Rs 90000 crore in the year ending March 2009. The Commerce Minister also announced a special incentive of Rs 325 crore for various secto

18 Feb 2009 | 14:16 RBI governor says investment demand to decline further The Reserve Bank of India (RBI) governor D Subbarao today, 18 February 2009, said the impact of the global recession on India was sharper than expected. His comments stoked speculation of more interest rates cuts to shield the domestic economy from the global financial sector crisis and recession in key global economies Speaking at an event in Tokyo, the RBI governor said investment demand is on a decline adding that there would be further downturn in investment demand before it turns up. He said consumption, which accounts for about 60% of the $1.2 trillion economy, is holding up and said the recovery in India will be faster than in other countries. Subbarao said the current account deficit should be more modest than earlier feared because imports will shrink faster than exports thanks to lower commodity prices. Market men see a bigger ro

26 Feb 2009 | 11:32 FM says stimulus is helping industry revive Finance Minister (FM) Pranab Mukherjee on Wednesday, 25 February 2009, said the fiscal measures announced by the government are starting to have a positive impact as production has started picking up in some sectors. He said production is improving in cement and steel sectors. Mukherjee said the government needs to return to fiscal consolidation at the earliest opportunity. Concerns of a downgrade of India's sovereign rating by credit rating agencies loom large with widening fiscal deficit. Just before the announcement of a stimulus package by the government, the global rating agency S&P on Tuesday, 24 February 2009, cut its outlook on India's long-term sovereign credit rating to negative from stable citing worsening government finances, which could raise Indian firms' overseas borrowing costs and weaken the rupee. S&P, however, sa

13 Feb 2009 | 12:50 Railways revenues up 12% til December 2008 Railway Minister Lalu Prasad today said the average freight revenue rate of railways was up 3-8% in five years. At the time of unveiling an interim railway budget for 2009-10, he said the planned investment of railways in the 11th five year plan is pegged at Rs 2.3 lakh crore. He said railways had already spend Rs 70,000 crore out of cash surplus in the past four years He said 1,100 kilo metre of new rail lines were installed in last five years. He said goods train will have 78% more capacity and passenger trains will have 22% more capacity He said revenues were up 12% in the current financial year, till December 2008, which was more than expected

10 Feb 2009 | 09:53 PM's EAC chairman says more fiscal, monetary measures on the cards Prime minister's Economic Advisory Council (EAC) chairman Suresh Tendulkar on Monday, 9 February 2009, said the government is likely to announce more fiscal and monetary measures in the interim budget to stimulate demand in the economy. The Reserve Bank of India (RBI) is expected to take further measures soon after the vote on account, he said. The Central Statistical Organisation (CSO) on Monday pegged India's projected GDP growth for the year ending March 2009 at 7.1%, the slowest in six years and below the previous year's 9%. Foreign minister Pranab Mukherjee, who is also responsible for finance and will present the mini budget, said on Friday, 6 February 2009, the government would take measures to boost growth, especially in sectors where jobs are at stake. The government has so far announced two stimulus pac

17 Feb 2009 | 18:54 Govt expects exports at $170 to $175 billion in FY 2009 Minister of State for Industry Ashwani Kumar today, 17 February 2009, said exports will be short of the $200 billion target for the financial year ending March 2009 (FY 2009). Kumar said the global economic downturn has impacted exports, now expected at $170 to $175 billion in FY 2009. The impact of the slowdown in exports has been more pronounced in sectors like gems and jewellery, textiles and garments, handicrafts, automobiles, leather and leather products, marine products and plastic and linoleum. Kumar admitted that the economic downturn has affected employment in these sectors and the government is focussing on creation of new jobs to mitigate the problem. The government and the Reserve Bank of India (RBI) are closely monitoring both the domestic and international economic developments, Kumar said in Lok Sabha. Initial estimates ava

25 Feb 2009 | 14:51 Trai issues standards of quality of service for non-CAS cable operators The Telecom Regulatory Authority of India (Trai) has issued the standards of quality of service (QoS) for cable TV service providers in non-CAS (conditional access system) areas. The QoS for non-CAS cable operators requires compulsory issuing of bills and receipts by the cable operators to customers, prescribes standards for providing digital decoders and set top boxes for voluntary CAS. It also requires cable operators to provide connection of cable services to customers within seven days. The new norms will benefit over 8 crore consumers of cable TV services in non-CAS areas in India, being served by about 60,000 cable operators. Trai had issued QoS regulations for cable services for CAS notified areas three years back. The QoS regulations for Direct-to-Home (DTH) services were issued by the regulator in 2007 to benefit D

26 Feb 2009 | 12:03 Inflation at lowest level in nearly 15 months Inflation based on the wholesale price index rose 3.36% for the year through 14 February 2009, much lower than previous week's annual rise of 3.92%, data released by the government today, 26 February 2009, showed. It was the lowest rate of rise in inflation in nearly 15 months In stark contrast to a solid surge in 2008, inflation has been declining sharply in the new year calendar 2009. The market has been agog with expectations of rate cut by the Reserve Bank of India (RBI). The sharp fall in inflation has provided room for the Reserve Bank of India (RBI) to cut interest rates further to support faltering economic growth. As per reports, RBI governor D Subbarao will meet select heads of banks on Friday, 27 February 2009, to hold discussions on issues like credit flow and liquidity conditions. The global financial sector crisis and recession in

24 Feb 2009 | 18:15 Govt says making effective use of anti-dumping measures Minister of State for Commerce Jairam Ramesh today, 24 February 2009, said the government is effectively using anti-dumping measures and other safeguards for protecting the interest of the domestic industry from cheaper imports. He also said it is unrealistic to expect that loss of exports to US and western Europe could be made by increasing volumes of exports to the other countries. The government recently banned import of Chinese toys in India for six months to protect the domestic industry. Chinese toys dominate India's toys market.

24 Feb 2009 | 15:25 Centre cuts service tax to 10% from 12% Finance Minister Pranab Mukherjee today, 24 February 2009, announced a surprise cut indirect tax levies. While the general excise duty has been reduced to 8% from 10%, the service tax has been cut to 10% from 12%. Excise duty on bulk cement has been reduced to 8% from 10%. A previously announced 4% across-the-board cut in excise duty will continue beyond 31 March 2009, Mukherjee said in his reply to a debate on the interim budget for 2009-2010 in parliament. At the time of announcing a first fiscal stimulus package for the economy in December 2008, the government had announced an across-the-board 4% cut in excise duties till 31 March 2009. Mukherjee also announced that goods that attract 10% excise duty will now be charged at 8%. However, excise rates on items that attract 8% and 4% excise duty will not be changed. With regard to cement, the rate of centr

24 Feb 2009 | 14:11 S&P revises outlook on India to negative Standard & Poor's (S&P) Ratings Services, on Tuesday, 24 February 2009, revised the outlook on the long-term sovereign credit rating on the Republic of India to negative from stable. At the same time, Standard & Poor's affirmed its 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India. The outlook revision reflects that India's fiscal position has deteriorated to a level that is unsustainable in the medium term. S&P expects general government deficit, including off-budget measures such as oil and fertilizer bonds, to increase to 11.4% in the fiscal year ending 31 March 2009, from 5.7% in 31 March 2008. Higher global oil prices in the first half of 2008 and the global economic slowdown increased the fiscal deficit size further. With high government debt burden and deficits, its weak fiscal profile has

24 Feb 2009 | 12:04 RBI says constantly monitoring economic conditions The Reserve Bank of India (RBI) is constantly monitoring economic conditions and will take action as needed, RBI governor D Subbarao told Finance Minister Pranab Mukherjee on Sunday, 22 February 2009. The RBI governor briefed the finance minister on the evolution of the global financial crisis, the outlook for global economy and the response of advanced and the emerging economies to the crisis based on his meetings with central bank governors in Basel last month and Kuala Lumpur in February 2009, the RBI said. There are expectations that the RBI will cut interest rates further to support faltering growth. A sharp fall in inflation has provided room for the central bank to cut rates. The global financial sector crisis and recession in key global economies have pushed economic growth in India down to a six-year low. The Central Statistical Organi

24 Feb 2009 | 11:38 EPF interest rate unchanged for 2008-09 The Central Board of Trustees of the Employees Provident Fund (CBT), on 22 February 2009, decided to retain the interest rate at 8.5% to the subscribers for 2008-09. The CBT also considered the coverage of contract employees under the EPF Act and better extension of social security cover to existing employees. Six major trade unions, however, registered their protest over the decision claiming that the CBT should have recommended a higher rate of interest of 9.5% The decision to retain the interest rate 8.5% comes at at time when the Reserve Bank of India is expected to effect a rate cut in the wake of a marked economic downturn and the urgent need to boost consumption.

24 Feb 2009 | 11:13 Centre imposes sugar stock limits The Union Cabinet, which met on 23 February 2009, has decided to impose limits on the amount of sugar that can be stocked for four months from the notification date. Stock limits have been imposed due to rising prices of sugar. Home Minister P Chidambaram said the notification is likely to be issued on Tuesday, 26 February 2009. In the current year, there is a drop in sugar production and there is an indication of an increase in the prices of sugar, Chidambaram pointed out. Sugar future price is showing an uptrend right through September 2009, he added. India's sugar production is projected to decline to 18 million tonnes this year, compared with about 26.4 million tonnes in 2007-08.

20 Feb 2009 | 17:24 Prime Minister's Economic Advisory Council (EAC) Chairman Suresh Tendulkar today, 20 February 2009, said India's economy is expected to grow at 7.1% in the fiscal year ending March 2010 (FY 2010). That will be much better growth than that forecast by private economists. HSCB, for instance, expects 6.2% growth in India's GDP in FY 2010. Citibank expects India's FY 2010 GDP growth at 5% to 5.5%. The global financial sector crisis and recession in key global economies have pushed economic growth in India down to a six-year low. The Central Statistical Organisation (CSO) has pegged India's projected GDP growth for the year ending March 2009 at 7.1%, the slowest in six years and below the previous year's 9% rise. Tendulkar said growth may be weak in the first half of FY 2010 but it is likely to pick up in the second half of the year. He said the asset quality in the Indian banking system

20 Feb 2009 | 12:54 FM says govt to provide resources to boost demand Finance Minister Pranab Mukherjee today, 20 February 2009, said the government will provide additional resources to stimulate demand and provide more help to key sectors such as housing, infrastructure and real estate. The government has so far announced two stimulus packages including tax cuts and the capital injections for banks to shield the domestic economy from the impact of the global financial sector crisis and recession in key global economies. However, share prices tumbled earlier this week as an interim budget for 2009-2010 announced on 16 February 2009 did not provide an anticipated stimulus for the economy. If the government really intends to take more measures to stimulate domestic demand, it will have to do so as early as it can given that it won't be able to announce major policy decision once the mode code of conduct is in fo

20 Feb 2009 | 11:34 Govt studying proposal of FDI in airlines - Praful Patel The government is studying a proposal to allow foreign direct investment in domestic airlines (FDI), Minister of State for Civil Aviation Praful Patel, said in a written reply to Lok Sabha on Thursday, 19 February 2009. He was replying to a question whether the government is considering a proposal to allow (FDI in domestic airlines, including public sector Air India. The current FDI norms prohibit overseas airlines from picking up stake in Indian carriers. Kingfisher Airlines Chairman Vijay Mallya had sometime ago written to the Union Government to allow FDI in domestic carriers to make them internationally competitive.

20 Feb 2009 | 11:03 Pranab Mukherjee says govt aware of magnitude of the global crisis Finance Minister Pranab Mukherjee today, 20 February 2009, said the government is conscious of the magnitude of the deepening global crisis and has been taking steps to mitigate its impact on the Indian society. Jobs must be protected even if it means some reduction in compensation at various levels, he added. Two days back, the Reserve Bank of India (RBI) governor D Subbarao said the impact of the global recession on India was sharper than expected. The government has so far announced two stimulus packages including tax cuts and the capital injections for banks to shield the domestic economy from the impact of the global financial sector crisis and recession in key global economies. However, share prices tumbled earlier this week as an interim budget for 2009-2010 announced on 16 February 2009 did not provide an anticipated sti

19 Feb 2009 | 18:04 Kamal Nath says stimulating domestic demand is top priority Trade Minister Kamal Nath on Thursday, 19 February 209, said the government's top priority is to stimulate domestic demand. However, share prices tumbled earlier this week as an interim budget for 2009-2010 announced on 16 February 2009 did not provide an anticipated stimulus for the economy. The Central Statistical Organisation (CSO) has pegged India's projected GDP growth for the year ending March 2009 at 7.1%, the slowest in six years and below the previous year's 9%. The government has so far announced two stimulus packages including tax cuts and the capital injections for banks Nath said the the Reserve Bank of India (RBI) is watching the monetary situation and may respond as and when needed. Falling inflation has provided room for the Reserve Bank of India (RBI) to cut interest rates further to shield the domestic ec

19 Feb 2009 | 13:37 Inflation at 3.92% The official Wholesale Price Index for All Commodities (Base: 1993-94 = 100) for the week ended 7 February 2009 stood at 3.92% as compared to 4.39% for the previous week and 4.98% during the corresponding week of the previous year. It was the index's lowest annual rise since 3.83% on 29 December 2007. The manufacturing sector, which has highest weightage in total WPI, declined 0.4% to 199.7 from 200.6 for the previous week. The major contributors to the fall in manufacturing segment were: leather and leather product; basic metals alloys and metal products, which registered a fall for the week ended 7 February 2009 compared with a week ago. Also the textile industry, one of the major contributors of manufacturing index declined 0.7% to 139.0 from 140.0 for the previous week due to lower prices of cotton yarn-cones (4%) and cotton yarn-hanks (1%). Meanwhile, the prices of cotton knit

19 Feb 2009 | 12:14 Inflation at lowest level in more than a year Inflation based on the wholesale price index rose 3.92% in the year through 7 February 2009, much lower than previous week's annual rise of 4.39%. It was the index's lowest annual rise since 3.83% on 29 December 2007. Falling inflation has provided room for the Reserve Bank of India (RBI) to cut interest rates further to shield the domestic economy from the global financial sector crisis and recession in key global economies. RBI governor D Subbarao said on Wednesday, 18 February 2009, there is room for cutting interest rates further as the impact of the global recession on India was sharper than expected. But the question is whether rates should be cut, he said. The RBI governor was unsure about the timing and extent of the rate cut, if any. Market men see a bigger role for RBI in the coming months to shield the domestic economy from the im

18 Feb 2009 | 18:36 RIL to supply KG gas by April 2009 Reliance Industries (RIL) will start supplying natural gas from its eastern offshore KG-D6 fields in the Krishna Godavari basin by April 2009, Oil Minister Murli Deora said on Wednesday, 18 February 2009. The Reliance gas priced at $ 4.20 per million British thermal unit is least 50% cheaper than other competitive domestic gas and it would increase supply of urea in the country and bring down fertiliser subsidy, he said. It would also increase power generation and reduce dependence on imported oil to meet energy needs. The Centre has allocated an initial 40 million standard cubic metres of gas from Reliance's D-6 field for gas-based urea plans, liquefied petroleum gas (LPG) plants and power firms, the minister said. Gas would also be supplied to fuel households and automobiles. Recently the Bombay High Court after completing the hearing of a gas dispute be