DON POWER Intact as REVENGE Play Enacted to Make IPL Score SHASHI Equal Lalit Modi Only and NO Hound is Supposed to Unearth the Hidden Treasure of the Ruling Zionist Brahaminical Hegemony. All Party Share in SWISS Bank Accounts and Illegal Trans Border Interactions and Corruption, TAX Evasion and Money Laundering Continues with Reshuffled Readjustment with a Fine Media Based MIND Control Game Indian Prostitution League Premium with Economic Ethnic Cleansing and Parliamentary Realty SHOW Round the Clock!What if the LPG Mafia Stripped Naked as CARNIVALS are quite in Vogue!
Pranab Mukherjee, P Chidambaram and Sharad Pawar meet on IPL row!
Sources say that BCCI views the current crisis as the biggest it has ever faced. Manohar's visit comes amid reports that the top brass of BCCI are planning to remove controversial Modi from the post of IPL Commissioner and Chairman.
Earlier in the day, Pawar distanced himself from Modi. He told reporters that he had nothing to do with the IPL.
"I am not dealing with this subject, am not a member of IPL committee. I am not aware of any BCCI meeting or impending decision. I have not received any notice of the meeting, only read in the papers that such a meeting has been scheduled for April 25," said Pawar.
But sources said that Manohar, who has also refused to comment in public on the issue, is in New Delhi to meet Pawar to discuss Modi's removal.
A final decision on Modi will only be taken by the BCCI after the IPL finals on April 25. The course of action is likely to be decided today, a private television channel reported.
The Cricket Board has also rescheduled its Working Committee meeting from April 24 to May 2 as it wants the IPL Governing Council -- which is expected to meet here on April 26, a day after the IPL final -- to first discuss the issue.
Pawar spoke with Modi at an ICC Board meeting in Dubai last night, where the two were attending a board meeting of the International Cricket Council (ICC).
Pawar said that he has nothing to do with the IPL governing council and won't interfere with its affairs.
Lalit Modi is likely to quit from his position after the final match of the Twenty20 extravaganza this weekend, said BCCI sources.
The BCCI top officials are said to be extremely unhappy with Modi after he triggered the controversy by tweeting the Kochi franchise's stakeholding pattern, which also brought the cricket board under the Income Tax department's scanner.
Modi himself is under fire for allegedly helping his family and friends buy stakes in various IPL teams.
Meanwhile, Sharad Pawar's daughter Supriya Sule today sprang to her family's defence, saying none of her relatives has anything to do with any of the Indian Premier League franchises.
Reacting to reports claiming that a powerful union cabinet minister's son-in-law's name figured in the papers of an industrial group that unsuccessfully bid for a new IPL team, Sule said her family had nothing to do with it.
Amid allegation that Modi apparently has some stakes in RR made through his brother-in-law Suresh Chellaram, Royals chairman and co-owner Manoj Badale said, "There are no hidden stakes in the Rajasthan Royals -- our ownership structure is a matter of public record through out FIPB (Foreign Investment Promotion Board) application process."
"Mr Chellaram, one behalf of his wife and two children, has been an investor with the Royals since inception and represents 44.2 per cent of the ownership stake of the franchise," Badale said.
"Everything else is speculation," he added.
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Government orders parallel probes into IPL affairs-Politics/Nation ...
19 Apr 2010 ... Pranab said that all aspects of IPL will be probed, inclusive of sources ... Economic Times Business. Politics/Nation ... NEW DELHI: The government has ordered parallel probes by virtually all its economic intelligence units to ... also whether there has been tax evasion by IPL and its franchisees. ...
economictimes.indiatimes.com/news/politics/...IPL.../5831634.cms - Cached
Income tax officials to probe 8 IPL franchises-ET Cetera-News By ...
16 Apr 2010 ... however, was black money abroad and tax evasion. ...
economictimes.indiatimes.com/articleshow/5821707.cmsIPL dirt may cost BCCI dear-ET Cetera-News By Industry-News-The ...
The question is not about just tax evasion, but we need to go into the ...
economictimes.indiatimes.com/IPL-dirt-may-cost-BCCI.../5823957.cmsMore results from economictimes.indiatimes.com » -
Quotes from Economic Times
17 Apr 2010 ... The source of funds in some of the IPL franchises are not clear. ... The question is not about just tax evasion, but we need to go into the source ... I want to share "Quotes from Economic Times" via @Daylife with you. ...
www.daylife.com/quote/004Ca0763q9IR - Cached -
SME Times - Pranab Says Full Probe on Source of Funds into IPL ...
19 Apr 2010 ... This will be coordinated by the Central Economic Intelligence Bureau ... also whether there has been tax evasion by IPL and its franchisees. ...
smetimes.tradeindia.com/smetimes/.../pranab-says-full-probe-on-source-of-funds-into-ipl61265.html - Cached -
IPL dirt may cost BCCI dear, Times of India
19 Apr 2010 ... The question is not about just tax evasion, but we need to go into the source of funds ... Other Times Group news sites. The Economic Times ...
timesofindia.indiatimes.com/iplarticleshow/5823064.cms - 21 hours ago - Cached
Get more results from the past 24 hours -
The Times of India on Mobile
19 Apr 2010 ... a news report on an 'I-T report' accusing him of tax evasion, money laundering, ... It is just another attempt to discredit IPL," Modi said. The Economic Times reported on Monday that it had gained access information in a "highly confidential report" by the Income-Tax department that has been in ...
m.timesofindia.com/articleshow/5831374.cms - Cached -
IFC News Government orders parallel probes into IPL affairs ...
Economic Times … black money stashed abroad was being brought back into the country illegally, as also whether there has been tax evasion by IPL and its ...
www.ifcnews.com/government-orders-parallel-probes-into-ipl-affairs-economic-times/ - United States -
Government orders parallel probes into IPL affairs | State Times
19 Apr 2010 ... This will be coordinated by the Central Economic Intelligence Bureau," ... whether there has been tax evasion by the IPL and its franchises. ...
php.statetimes.in/.../government-orders-parallel-probes-into-ipl-affairs/ - 8 hours agoGet more results from the past 24 hours -
IPL news-Govt probes BCCI affairs, noose tightens around Modi
The Centre has ordered parallel probes by virtually all its economic intelligence units ... as also whether there has been tax evasion by the IPL and its franchises. ... It might be the end of 'good times' for Lalit Modi as the Board of ...
www.zeenews.com/news620483.html - 19 hours agoGet more results from the past 24 hours -
Govt orders parallel probes into IPL affairs | iGoa
20 Apr 2010 ... Income Tax authorities have asked the Board of Control for Cricket ... also whether there has been tax evasion by IPL and its franchisees. ...
www.navhindtimes.in/.../govt-orders-parallel-probes-ipl-affairs - 17 hours agoGet more results from the past 24 hours
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Market Update
Tue, Apr 20 - 4:53PM IST
The domestic market today closed on a positive note on the back of the favourable cues from the global markets. After an early surge, market pared gains triggered by higher Asian stocks. However, the ...
Market Movers
| Company | Price | Change | % Change | |
|---|---|---|---|---|
| Most Active | more | |||
| UNITECH.BO | 83.50 | +3.65 | +4.57% | UNITECH LTD |
| DCB.BO | 40.50 | +3.65 | +9.91% | DEV CRBANK |
| Top Gainers | more | |||
| KIRLBROS.B | 334.25 | +72.95 | +27.92% | KIRLOSKAR BR (BSE INDONEXT) |
| FLUIDOM.BO | 30.60 | +5.10 | +20.00% | FLUIDOMAT LT |
| Top Losers | more | |||
| SATRAPROP. | 11.33 | -2.10 | -15.64% | SATPROP LTD |
| FALCONTQ.B | 152.00 | -23.90 | -13.59% | FALCON TYRE(BSE INDONEXT) |
| Company | Price | Change | % Change | |
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| Most Active | more | |||
| UNITECH.NS | 83.55 | +3.60 | +4.50% | UNITECH LTD |
| SUZLON.NS | 72.00 | +2.20 | +3.15% | Suzlon Energy Limited |
| Top Gainers | more | |||
| SHRENUJ_a. | 51.60 | +13.00 | +33.68% | SHRENUJ & CO LTD |
| KIRLOSBRO. | 337.35 | +76.80 | +29.48% | Kirloskar Brothers Ltd |
| Top Losers | more | |||
| ZEENEWS_a. | 18.15 | -58.05 | -76.18% | |
| BAGFILM_a. | 19.15 | -5.85 | -23.40% | B.A.G. FILMS LIMITED |
| Shashi Tharoor statement in Lok Sabha | |||
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| uesday April 20, 02:11 PM |  |
HIGHLIGHTS - RBI's proposals for financial markets
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MUMBAI (Reuters) - Following are the proposals for financial market products and financial market infrastructure in the Reserve Bank's monetary policy statement for 2010/11.
FINANCIAL MARKET PRODUCTS:
* To start interest rate futures on 5-year and 2-year securities as well as 91-day T-bills
* Final guidelines norms on below one-yr NCD issuance by end-June
* Draft report on plain-vanilla over-the-counter credit default swaps for corporate bonds by end-July
* Final guidelines on over-the-counter forex derivatives by end-June
* Plain vanilla currency options on spot dollar-rupee exchange rate to be allowed on stock exchanges.
* Banks to be allowed to classify investments in non-SLR bonds issued by infrastructure companies, with minimum 7 years maturity in held-to-maturity category.
FINANCIAL MARKET INFRASTRUCTURE
* To introduce reporting platform for secondary market dealers in CDs and CPs.
* To set up working group to work out single point reporting system for all over-the-counter rate and forex derivative deals.
FOREIGN BANKS AND NEW BANKS
* Discussion paper on the mode of presence of foreign banks in India through branch or wholly-owned subsidiary model to be prepared by September 2010
* Discussion paper on licensing new banks by end-July
(Reporting by Suvashree Dey Choudhury; Editing by Rosemary Arackaparambil)
| uesday April 20, 03:40 PM | |
RBI: Not ruling out mid-policy action
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MUMBAI (Reuters) - The Reserve Bank of India Governor Duvvuri Subbarao said on Tuesday a mid-policy action was not ruled out, after the Reserve Bank of India (RBI) raised policy rates by an expected 25 basis points.
The policy view was taken on liquidity, growth and inflation outlook for the next six months, he said in response to questions at press conference.
The RBI raised rates for the second month in a row as it battles inflation near double digits.
(Reporting by Swati Bhat and Suvashree Dey Choudhury)
(For more business news on Reuters Money visit http://www.reutersmoney.in)
(For full coverage of RBI Policy Review click http://in.reuters.com/news/globalcoverage/rbi-policy-review)
Pawar tells Modi that he is in a difficult situation. BCCI wants Modi to resign today after his arrival from Dubai.BCCI may convene special AGM if Modi doesn't quit.
The die has been cast for Lalit Modi. It is no longer a matter of whether. It is just a matter of when.
Even as the government launched a multiple-agency probe into the Indian Premier League (IPL), the mood in the Board of Control for Cricket in India (BCCI) too is against the IPL chief.
And the defining day for him could be April 26 — he may either have to resign or be sacked that day.
Why April 26? Because the BCCI president has asked him to convene a meeting of the IPL governing council that day.
Modi has not responded yet. If he doesn't, BCCI president Shashank Manohar may invoke his special powers. Manohar will also be asked to take charge as the IPL chairman from that day.
Till Monday, the talk was that Modi will have to share power and position with the BCCI president — the 'decentralisation' plan was scrapped after Monday's damning media reports against him. His adversaries are expected to go for the kill. "Don't ask what, when and why. Just wait," a prominent Modi-basher said. "We will rather do than say."
Modi, currently in Dubai for a meeting of the International Cricket Council (ICC), could not be reached, but reports said he will be back in India on Tuesday.
Till now, Modi was assured of support from Sharad Pawar, a former BCCI president who is on the verge of becoming the chief of ICC. But it is unlikely that the Union agriculture minister will be able to offer a helping hand to his protege.
If he does, there is likelihood that some heat could be turned towards him.
The road map for the Modi's end could be that the governing council will force him to resign or pass a no-confidence motion against him. It could be approved in the subsequent BCCI working committee meeting which has been strategically postponed to May 2 from April 24.
A formal meeting of the key officials is expected to take place in Mumbai on April 23 but contrary to reports, no owner of the existing franchises will be invited.
The presence of owners, the perception is, could dilute their strategy against him as Modi is known to be a favourite with the team owners.
DNA was first to report the postponement and the reasons for the decision. If that fails, the board may convene a special general meeting to impeach him.
Modi said he would cooperate with the investigating agencies but not many in BCCI were willing to buy his argument. "These are serious allegations. We have to do the clean-up job," said a member of the governing council.
"Following preliminary investigations the Financial Services Authority (FSA) has decided to commence a formal enforcement investigation into Goldman Sachs International in relation to recent SEC allegations. The FSA will be liaising closely with the SEC in this review," the UK regulator said in a short statement.
Capturing or killing Osama America's top priority, says White House!
Noting that America has been successful in inflicting damage to the terror group by arresting several of its top leaders, White House Press Secretary Robert Gibbs said, "Bringing him (Laden) to justice, capturing or killing him obviously remains a priority."
"I think, if you were to only focus on one and not on, quite frankly, a broad array of important players in al-Qaida, we wouldn't be discussing today an important and debilitating step that helps further cripple al-Qaida in Iraq," he said.
The official said this while referring to the killing of Abu Omar al-Baghdadi and Abu Ayub al-Masri, who had direct links with bin Laden, in a shootout 10 kilometres southwest of Tikrit, the home city of executed dictator Saddam Hussein, in Iraq.
"If you examine the tempo with which this administration has prosecuted the war on terror in rooting out and helping to, as we did in Iraq, root out high-value targets, we've done so in a way I think that by all accounts has greatly damaged the capabilities of al-Qaida," Gibbs said.
"But we know that as long as there are those members that seek to do this country harm, the President will remain vigilant in pursuing those targets," he asserted.
American forces have always said Masri -- a veteran Egyptian militant named Al-Qaida chief in June 2006 following the death of his better-known Jordanian predecessor Abu Musab al-Zarqawi in a US air raid -- was the real al-Qaida in Iraq leader.
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Lalit Modi says he won't quit as IPL chief
IBNLive.com - 45 minutes ago
It was reportedly, decided that Pawar would ask Modi to resign as IPL Commissioner. Is Sharad Pawar the real power centre in the BCCI and IPL? ...IPL row: Sharad Pawar summons Lalit Modi to New Delhi - Economic Times
Pawar summons Modi to Delhi, promises 'collective decision' - NDTV.com
IPL Governing Council will decide Modi's fate: Pawar - Rediff
Times of India - Oneindia
all 678 news articles » -
'I have no connection with cricket, IPL', says Praful Patel
Oneindia - 1 hour ago
... for Cricket in India (BCCI) strongman Sharad Pawar backed the two groups, ... Earlier in the day, Pawar distanced himself from IPL Commissioner Lalit ... -
Praful Patel to NDTV: No link with cricket, IPL
NDTV.com - 4 hours ago
The Indian Premier League (IPL) continues to earn its reputation as the Indian ... Describing Sharad Pawar's role in Indian cricket and in the BCCI as ...Section of Cong. spreading slander against me on IPL: Praful - The Hindu
all 24 news articles » -
Shashi Tharoor may make statement in Lok Sabha
Daily News & Analysis - Harish Gupta - 17 hours ago
The party, in no mood to rub Sharad Pawar the wrong way beyond a point, ... there is no thought of scrapping the IPL or superseding the Board of Control for ...Government orders full probe into IPL affairs - Hindustan Times
Former Indian minister in cricket controversy says conscience clear - Earthtimes (press release)
Tharoor assailed by partymen's veiled barbs and bouquets - Peninsula On-line
Oneindia - Rediff
all 402 news articles » -
Section of Congress slandering me, says Praful Patel
Economic Times - 1 hour ago
Welcoming the government's decision for a probe into the funding of IPL, ... Denying his and party chief Sharad Pawar's links with the Adani Group of ... -
'Illegal bookmaking racket behind IPL bomb'
Times Online - 6 hours ago
As this year's tournament approaches the crunch knock-out stages the IPL is become mired in ... Modi's most important political patron is Sharad Pawar, ... -
Government says all aspects of IPL under scrutiny
Yahoo! Eurosport - 6 hours ago
A day after the resignation of Indian minister Shashi Tharoor, the IPL and ... Modi's fate could be decided by his mentor Sharad Pawar, nominally the head ...IPL glorified gambling: Vayalar Ravi - Express Buzz
Greed and sleaze may taint IPL (Comment) - India-Forums.com
all 653 news articles » -
Leaders demand probe into IPL's financial transactions
Press Trust of India - 4 hours ago
The Minister was asked if NCP chief Sharad Pawar was backing Lalit Modi in the IPL controversy. "Whatever has been promised by our Finance Minister in the ... -
Now, Pawar play in Kochi IPL story
NDTV.com - 5 days ago
If the high-profile Tharoor-IPL tale was not already fairly tangled, NCP chief and former BCCI president Sharad Pawar has added a twist to it. ...
NewsX
Twitter supports Tharoor - Livemint (blog)
Sharad Pawar gives Modi a clean chit in Kochi IPL row - Moneycontrol.com
Calcutta Telegraph - Rediff
all 4028 news articles » -
Bhujbal on radar after Shashi exit
India Today - Deepak Lokhande - 10 hours ago
Sources in the IT department said IPL commissioner Lalit Modi had got away so far only because of his relations with NCP president Sharad Pawar. ...
| 1 | 2 | 3 | 4 | 5 | Next |
Shashi Tharoor statement in Lok Sabha
Tharoor's Twitter account silent
M called Kerala leaders before accepting Tharoor resignation
| "It is important to me that my name is cleared, which has been besmirched," Tharoor said, as he had lived a life of probity throughout his career abroad. more by Shashi Tharoor - 7 hours ago - Times of India (8 occurrences) |
I want to clear my name: Tharoor
Tharoor in Parliament: My conscience is clear
MP remains an enigma for Kerala leaders
Netizens rally in support of Tharoor
Opposition wants ban on IPL and JPC probe into funding
MPs: Ban IPL, go back to Tests
Writers' community throws weight behind Shashi Tharoor
IPL Governing Council to decide Modi's fate on MondayEconomic Times - 37 minutes ago NEW DELHI/MUMBAI: The meeting of the Indian Premier League's (IPL) Governing Council on Monday is expected to serve a charge-sheet to its chairman and commissioner Lalit Modi and if his replies are unsatisfactory he will be asked to put in his papers. ... Three former captains hold the key to Modi's futureTimes of India - 1 hour ago NEW DELHI: Lalit Modi's continuance as Indian Premier League (IPL) chairman and commissioner is in the hands of the three former India captains and their voice and vote will decide his fate. Nawab Mansur Ali Khan Pataudi, Sunil Gavaskar and Ravi ... Lalit Modi says he won't quit as IPL chiefIBNLive.com - 47 minutes ago New Delhi: IPL Commissioner Lalit Modi who arrived in Mumbai on Tuesday, put all speculation to rest saying he is going to stay as the IPL chief. Modi will be meeting BCCI former chief and ICC vice-president Shahrad Pawar later. ...
There's nothing to worry about, says ModiRediff - 20 minutes ago Under-fire IPL commissioner Lalit Modi [ Images ] parried questions about his impending resignation, saying the matter will be discussed and a unanimous decision taken at the upcoming Governing Council meeting on April 26. "I think all of you have the ... The enchanting IPL!Central Chronicle - 20 minutes ago The premier cricket league of India, IPL, whose games are being watched by millions of cricket fans in India and around the world is now in the news for all wrong reasons. The issue of Tharoor and the Kochi IPL team has snowballed into a major ... Modi may be sacked if he doesn't resign: SourcesIndia Today - 29 minutes ago Lalit Modi's fate as Indian Premier League (IPL) commissioner appeared to be sealed on Tuesday with the BCCI determined to have him out. According to BCCI sources, Modi may be asked to resign although he would possibly retain his post until the ... BCCI, Pawar agree that Modi must quit as IPL chiefOneindia - 1 hour ago New Delhi, Apr.20 (ANI): Union Agriculture Minister and cricket strongman Sharad Pawar has reportedly reached an agreement with Board of Control of Cricket in India president Shashank Manohar to ask Lalit Modi to quit as Indian Premier League ... Modi-politician conversation on tape?indiablooms - 1 hour ago New Delhi, Apr 20 (IBNS) Some conversations between Indian Premier League (IPL) chairman Lalit Modi and senior politicians have been taped, said national news channel Times Now on Tuesday. The channel quoting unnamed sources said that beleaguered ... Indian cricket's 'black money' under scrutinySydney Morning Herald - - 14 minutes ago NEW DELHI: Investments in Indian Premier League teams are under scrutiny as allegations of corruption engulf the multibillion-dollar tournament. The Indian government has announced a sweeping investigation into ''all aspects'' of the IPL's financing, ... Pawar summons Modi to Delhi, promises 'collective decision'NDTV.com - 4 hours ago Will surging allegations of financial irregularities, and a detailed inquiry against Lalit Modi make it tough for Sharad Pawar to stand by his man? (Forum: Can the IPL survive without Lalit Modi's vision?) For now, Pawar simply says: "The IPL governing ...
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Senior Bharatiya Janata Party (BJP) leader Murli Manohar Joshi Tuesday accused the government of behaving like a stooge of the US and taking critical foreign policy decisions under American pressure.
Joshi, a former minister for human resource development, also accused the government of neglecting cultural diplomacy.
'India can't become a world power by riding on the shoulders of the US. India has to become an independent power in its own right,' Joshi told the Lok Sabha during a discussion on grants for the ministry of external affairs for 2010-11.
'We have become a lover or a client state of the US.'
According to Joshi, the government had compromised India's relations with Iran at the behest of the US by voting against Tehran's nuclear programme. That's why Iran is not giving India gas, he said.
'There is no direction in our foreign policy. We are not paying sufficient attention to cultural diplomacy,' Joshi said while alerting the government about the potential threat to India's interests from an assertive China.
"I think all of you have the same question. On April 26, we have the Governing Council. We will meet there and discuss all these allegations that are coming out," Modi told reporters on his arrival from Dubai where he had gone to attend the ICC's Executive Board meeting.
Although there is intense speculation that Modi would step down after the final of the IPL on Sunday, he did not talk on the subject at all.
"There is no point discussing it. BCCI president Shashank Manohar and Sharad Pawar had already met this morning. They are all united in the same area. Decision will be taken unanimously by the Governing Council," he said.
"I will present all the facts against all the allegations. There is nothing to worry about and we will carry on," the beleaguered administrator added.
The stand against Modi in the BCCI has hardened over the last few days as the rapidly-developing events surrounding Kochi franchise's stakeholding pattern has opened a pandora's box about alleged financial irregularities in the IPL.
Modi himself is under fire for allegedly helping his family and friends buy stakes in various IPL teams.
India plans to take the European Union to the World Trade Organisation over the seizures of generic drugs, a trade ministry source said on Tuesday.
"Pharma issue will go the WTO. India is not satisfied with what is happening in the European Union," a senior trade ministry source, who did not wish to be identified told reporters.
"In China, the inflation rate exceeds the deposit rates, while India is witnessing higher inflation and the Reserve Bank of India is having to raise interest rates more rapidly than expected. This is due to higher input costs for food, commodities and agriculture," she said.
She further said the challenges facing the world economy include the enormous debt burden of western nations, which is pushing interest rates up in countries like Greece, Portugal and even in the United States.
On the GCC as an economic union she said it will emerge stronger in time.
"What the GCC decides in terms of their currency being linked to the US dollar and the possibility of moving away to a basket of currencies will be paradoxical. The basket of currencies, which includes the euro and sterling are falling, which could expose the GCC to more inflation," she said.
Malmgren has served as an advisor on international economic issues to George W Bush.
The rate hike by the Reserve Bank will gently tighten money supply and help moderate inflation -- which is hovering close to 10 per cent, Finance Minister Pranab Mukherjee said on Tuesday.
He, however, also felt that inflation has peaked and would begin falling and be lower than the 5.5 per cent projected by RBI for this fiscal.
"These policies should have a gentle impact in tightening money in the economy and should dampen further inflationary pressures," he said.
The central bank today hiked key short-term lending and borrowing rates (repo and reverse repo) and CRR, the portion of money banks park with it, by 25 basis points each. These moves are aimed at tempering demand for loans and would, in turn, check consumer spending.
The hike is part of the steady exit from the easy money policy that the RBI unveiled in the wake of the global financial meltdown in 2008. RBI began rolling back monetary stimulus in January when it hiked CRR to 5.75 per cent and later in March, it hiked repo and reverse repo by 0.25 percentage points each.
"If nothing untoward happens on the weather front, my belief is that overall inflation has peaked and should be on downward trajectory from now on," Mukherjee said.
Wholesale prices-based inflation was 9.90 per cent in March and is largely fed by food inflation, which is around 17 per cent. Food prices are on a high due to supply side constraints.
"My own belief based on analysis done in my ministry is that inflation is now on downward trajectory and in 2010-11 will be less than 5.5 per cent and in fact closer to four per cent with an upward bias," Mukherjee said.
The measures complement well the policies of the Finance Ministry aimed at controlling inflation and promoting sustainable growth, he said.
The RBI projected the economy to grow 8 per cent this fiscal.
"The well balanced measures which involves raising the repo rate, reverse repo rate and CRR by 25 bps each reflect a mature and balanced view of the needs of our economy and I fully endorse the measures," Mukherjee said.
India has now bounced back with growth seemingly back on track and inflation, though high, on a clear downward trend, he said.
"Hence I believe that it is time to move back towards 'neutral' policy rates that is rates should prevail when an economy is stable and on track," he said.
TODAY - 20 April, 2010
Headmistress at age 12
Once abandoned at a railway station in Bihar as an infant, she has now become the headmistress at a school in Kusumbhara. Meet her
DON POWER Intact as REVENGE Play Enacted to Make IPL Score SHASHI Equal Lalit Modi Only and NO Hound is Supposed to Unearth the Hidden Treasure of the Ruling Zionist Brahaminical Hegemony. All Party Share in SWISS Bank Accounts and Illegal Trans Border Interactions and Corruption, TAX Evasion and Money Laundering Continues with Reshuffled Readjustment with a Fine Media Based MIND Control Game Indian Prostitution League Premium with Economic Ethnic Cleansing and Parliamentary Realty SHOW Round the Clock!
| uesday April 20, 06:20 PM | |
EU, IMF Greek talks start Wed, focus on 2011, 2012
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By Jan Strupczewski
BRUSSELS (Reuters) - European Commission, European Central Bank and IMF officials will begin talks with Greece on Wednesday on a lending plan that will cover fiscal measures the Greek government should take in the next two years,
The talks are to pave the way, if Athens asks for help, for a quick payout of up to 30 billion euros in euro zone emergency loans.
Initially scheduled to start on Monday, the talks were delayed by disruptions to air travel caused by the volcanic ash crisis, the EU executive said on Tuesday.
"They should be normally starting tomorrow with officials from the IMF, the Commission, the European Central Bank and of course Greek officials," Commission spokesman Amadeu Altafaj told a regular news briefing.
If the ash clouds over Europe continued to disrupt travel, the talks, involving mid-level officials from the EU executive, could still go-ahead using videoconferencing, commission officials said.
Discussions on a macroeconomic adjustment programme usually took around two and three weeks, but Altafaj said a lot of work had been carried out by the European Commission and the International Monetary Fund together already.
"There is a converenge of the assessments," he said.
He said that for 2010, the key was the implementation of the already adopted fiscal measures by Greece, which are to reduce its budget deficit by 4 percentage points to 8.7 percent of gross domestic product.
"There is a need now to be more specific in relation to fiscal adjustment measures for 2011 and 2012 to deliver an ambitious programme of structural reforms in Greece," he said.
Asked to comment on remarks by Bundesbank head Axel Weber, that the whole three-year aid programme for Greece could require some 80 billion euros, Altafaj said euro zone finance ministers only made commitments of 30 billion euros for the first year.
"Forecasting funds for the second and third year is quite a difficult exercise, so we are now focusing only on the first year," he said, explaining Greece might use up all of the 30 billion in the first year, or none of it.
(Reporting by Jan Strupczewski, editing by Timothy Heritage and Simon Cameron-Moore)
| Wednesday April 14, 03:30 PM | |
POLL - India's growth prospects pick up, rates to rise sharply
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By Anurag Joshi
MUMBAI (Reuters) - India's economy is seen growing at a faster pace in 2010/11 than earlier expected, supported by a global recovery, domestic demand and a double-digit expansion in factory output, a Reuters poll shows.
Such expansion will generate greater inflation than previously expected, requiring a steady series of rate rises from the Reserve Bank of India (RBI) by the end of December.
Asia's third-biggest economy will grow at annual rates above 8 percent in coming quarters and is seen expanding 8.4 percent for the 2010/11 fiscal year, the survey of 20 analysts showed.
A similar quarterly poll in January had forecast growth of 8 percent.
The poll showed that growth would accelerate in the fiscal year 2011/12 to 8.6 percent.
"A good pick-up in growth will depend upon good private demand and investment demand. Two factors sustaining growth in FY11 will be a normal monsoon and the level of global crude prices in the band of $70 to $80 a barrel," said Rupa Rege Nitsure, chief economist at Bank of Baroda.
"Growth will gradually build up because real sector adjustment takes time," he added.
India's economy grew 6.7 percent in 2008/09, slowing from rates of 9 percent or more in the previous three years. The government has said it expects growth in 2009/10, or the fiscal year that ended on March 31, to have been 7.2 percent.
Analysts expect the Reserve Bank of India (RBI) to tighten policy further, raising the repo rate , at which the RBI lends to banks, by 100 basis points to 6.0 percent by the end of December from the current 5 percent.
Last month, the RBI raised the repo rate and the reverse repo rate , at which it absorbs excess cash from the banking system, by 25 basis points each. That took the reverse repo rate to 3.5 percent.
The rises were the first since the RBI began cutting rates in 2008. The RBI cited inflationary pressures and a steady economic recovery for the move.
Fifteen out of 16 economists surveyed said the RBI would raise the repo rate between 25 and 50 basis points by the end of June.
All 16 expect the RBI to raise the repo rate by the end of December between 25 basis points and 125 basis points.
"What the RBI seems to be doing is following a gentle trajectory," said Abheek Barua, chief economist with HDFC Bank.
"It will follow a calibrated approach and avoid coming across as aggressive when most other central banks are in a wait-and-watch mode," he added.
"Besides inflation, there are other concerns like bond yields, growth and government borrowing the RBI has to balance," Barua said.
INFLATIONARY PRESSURES STRONG
Economists expect inflationary pressures to remain strong in 2010/11 on high food prices, but they could abate by March 2011, the survey showed.
The wholesale price index in February was 9.89 percent higher than a year earlier, marking the strongest inflation since October 2008.
The full-year average for wholesale price inflation is forecast at 7 percent in 2010/11, easing to 6 percent in 2011/12, the survey showed.
In the previous poll, analysts had forecast 2010/11 wholesale price inflation at 5.8 percent.
The Indian rupee , which closed around 44.48 per dollar on Tuesday, is forecast to appreciate about 1.2 percent between now and end of December. It has already gained 4.7 percent so far this year.
| Tuesday April 20, 04:10 PM | |
Rate hikes unlikely if inflation eases - Ahluwalia
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NEW DELHI (Reuters) – The government may not need to further hike policy rates if inflation returns to normal, Montek Singh Ahluwalia, the deputy chairman of the Planning Commission, said on Tuesday.
The Reserve Bank of India (RBI) on Tuesday raised key interest rates by 25 basis points, as expected, to battle near double-digit inflation, signalling gradual tightening ahead to sustain growth and manage record government borrowing.
March inflation reached 9.9 percent year-on-year, its fastest pace in 17 months.
Asia's third-largest economy is set to grow at 8.5 percent in the current financial year and 9 percent the following year, and inflation is spreading beyond food to fuel and manufactured goods such as cars.
(Reporting by C.J. Kuncheria; editing by Malini Menon)
(For more business news on Reuters Money visit http://www.reutersmoney.in)
(For full coverage of RBI Policy Review click http://in.reuters.com/news/globalcoverage/rbi-policy-review)
| Tuesday April 20, 03:40 PM | |
Indian rail damage hits NMDC iron ore supplies
By Sujeet Kumar
RAIPUR, India (Reuters) - Iron ore supplies from India's largest miner, NMDC Ltd, have stopped from a key state after suspected Maoists rebels damaged rail tracks, government officials said on Tuesday.
A freight train carrying 4,000 tonnes of iron ore from state-run NMDC's mine in Dantewada district of Chhattisgarh in central India derailed on Monday following sabotage of tracks, they said.
"It is not confirmed who removed clips from rail tracks that led to the derailment but it seems to be an act of Maoists," P. Sundarraj, a senior police official in the state, told Reuters.
Railway officials said the track could be reopened by Wednesday.
S.P. Himanshu, assistant general manager at NMDC, said the disruption has halted 56,000 tonnes of iron ore the company shipped each day on the sector.
NMDC has two mining complexes in Chhattisgarh's Bailadila sector that produced 77 percent of the company's total output of 28.52 million tonnes in 2008/09.
Steel companies that get iron ore from the Dantewada mines are private sector Essar Steel and Vikram Ispat and state firms Visakhapatnam Steel Plant, Rashtriya Ispat Nigam Ltd.
Maoist rebels, operating out of jungle hideouts in eastern and central India, often bomb railway tracks, damage government property and kill policemen and politicians.
They ambushed and killed 76 government forces earlier this month, their worst attack in a four-decades-old insurgency that underscored their growing strength.
(Editing by Ranjit Gangadharan)
(For more business news on Reuters Money visit http://www.reutersmoney.in)
I-T probe to find if Lalit Modi holds benaami stake in Rajasthan Royals
Jaipur: The income tax (I-T) department has launched a probe to find out if IPL chairman Lalit Modi holds a benaami stake in Rajasthan Royals (RR).
- Lalit Modi mum on resignation, says will present his case
- Shiv Sena leader moves high court, demands entertainment tax on IPL
- Excise dept asks payment details from Yuvraj, 4 other Kings XI mates
- Injured Virender Sehwag out of T20 World Cup
- IPL mess: Countdown begins for Lalit Modi's fall
Amidst allegations that RR is owned by Modi and his kin through a complex network of firms, the department has sent a detailed questionnaire to the BCCI. I-T department got suspicious after it emerged that RR was awarded to a company that had not originally bid for it.
According to the sequence of events pieced together by DNA, in January 2008, Emerging Media (EM) — a subsidiary of UK-based Blenheim Chalcot — won RR franchise for $67 million.
The face of the company was its chairman Manoj Badale, who was running a cricket talent hunt with the Rajasthan Cricket Academy when Modi was its chief.
Badale was accused of taking care of Modi's interests.Soon, EM became part of another company registered in Mauritius. The new company was called Emerging Media Sporting Holdings Ltd, Mauritius.
However, in this company, Modi's brother-in-law Suresh Chellaram and his brother had majority stake.
Chellarams investments were routed through Tresco International, whose origins are ambiguous. On March 3, 2008, this Mauritius-based company formed another subsidiary called Jaipur IPL Cricket Pvt Ltd (JICPL), based in India, and signed the franchise for the IPL team.
I-T wants to find out why the investments took this meandering route and why the deal was signed with a company that was not even existent when the bid was won.
In August 2009, attempts were made to pass on majority stake to Badale. JICPL had approached the Foreign Exchange Promotion Board for issuing 50% shares to EM in lieu of the $5million he had paid as earnest money.
The company had offered Badale a heavy discount. While offering equity to Badale, JICPL valued the franchise at nearly $67million. A few months earlier, when actor Shilpa Shetty and husband Raj Kundra had bought shares in the firm, it was valued at nearly $140million.
The proposal to issue shares to Badale's company was, however, struck down by the FIPB. The government wanted to know how Badale paid $5million even before JICPL was formed.
Get charges against me investigated, Shashi Tharoor urges PM
New Delhi: Declaring that he had done "nothing improper or unethical", Shashi Tharoor today said he quit the Union council of ministers to avoid embarrassment to the government in view of the current controversy over the Indian Premier League (IPL) and wanted the charges against him to be "thoroughly investigated".
- Excise dept asks payment details from Yuvraj, 4 other Kings XI mates
- Breaking news: Injured Virender Sehwag to miss T20 World Cup
- IPL mess: Countdown begins for Lalit Modi's fall
- Section of Congress spreading slander against me on IPL: Praful Patel
- CPI(M) seeks probe into IPL; asks why no tax paid for 2 years
In a statement in the Lok Sabha, the MP from Trivandrum said he was "deeply wounded by the fanciful and malicious charges" against him.
"My conscience is clear and I know that I have done nothing improper or unethical, let alone illegal," Tharoor said, adding that his resignation was "in the highest moral traditions of ourdemocratic system".
He said, "I have led an unblemished life of personal integrity and probity and it is important to me that my name is cleared."
Tharoor's statement was heard with rapt attention by the entire House, including the opposition, which had earlier trained its guns on him.
The 54-year-old former diplomat, who joined politics just a year ago, said that though he is new to Indian politics, "I have a long record of public service unblemished by the slightest taint of financial irregularity."
Making the statement from his seat in the eighth row of the treasury benches, where Rahul Gandhi was sitting, he said thatin view of the political controversy surrounding his involvement in the IPL, "I have no desire to be an embarrassment to the government."
Tharoor said he had requested prime minister Manmohan Singh to have the charges against him "thoroughly investigated".
He maintained that his departure at this stage "will allow the prime minister and his cabinet colleagues to focus on the great challenges facing our nation".
Observing that it was a "great privilege" to serve the government and the Congress party, he said Singh and UPA chairperson and Congress president Sonia Gandhi, were "two of the finest public servants our country has ever had".
Both leaders were not present in the House. Leader of the Lok Sabha Pranab Mukherjee was present.
Several Union ministers, including P Chidambaram, Vilas Deshmukh, and Ambika Soni, and several other Congress MPs were seen greeting Tharoor after the statement.
"Today marks a new beginning for me," the former minister of state for external affairs said, adding that he was grateful for the support and encouragement given by the people of Kerala and his well-wishers for reposing faith in him.
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IPL Governing Council to decide Modi's fate on Monday
Economic Times - 34 minutes ago
Asked whether he is backing Modi to stay in IPL, Pawar, who gave a free hand ... and unanimous decision where everyone is party to it, including Lalit Modi. ...Lalit Modi says he won't quit as IPL chief - IBNLive.com
Three former captains hold the key to Modi's future - Times of India
Lalit Modi likely to resign after IPL 3 final on Sunday - NDTV.com
Rediff - Oneindia
all 711 news articles » -
Lalit Modi out soon, say BCCI sources
NDTV.com - 1 day ago
Modi will not go unscathed either. Sources have told NDTV that Lalit Modi will be sacked as Indian Premier League (IPL) chief and action against him is ... NewsX
My Twitter account was hacked, info wiped out: Modi - Times of India
Lalit Modi 1, Shashi Tharoor 0 - Sify
Economic Times - Times Now.tv
all 4028 news articles » -
brand valuations to take a hit
Economic Times - 11 hours ago
... has lost some of its appeal after investigations by government agencies point to major irregularities led by IPL commissioner Lalit Modi. ...Don't Witch Hunt - Times of India
India launches probe into IPL tax and financing - BBC News
IPL sponsors also in tax probe ambit - India Today
World News - Deepkraft (blog)
all 653 news articles » -
Heads roll over IPL imbroglio
domain-B - 3 hours ago
... all reports indicate that IPL commissioner and chairman Lalit Modi will resign ... rebut the charges leveled against him by IPL commissioner Lalit Modi.Govt lets hounds loose to track down IPL muck - Economic Times
Tharoor fails to rebut Modi's charges - Times Now.tv
Tharoor in Parliament: My conscience is clear - NDTV.com
Times of India - Hindustan Times
all 402 news articles » -
'Illegal bookmaking racket behind IPL bomb'
Times Online - 6 hours ago
"If this isn't the end of Lalit Modi, nothing can touch him," said ... figures are said to be unhappy at how Modi runs the IPL – a competition he conceived ... NewsX
Political overtones behind shifting IPL semis? - Express Buzz
Corruption and security alerts engulf India in escalating crisis - Independent
Bangalore Mirror - NDTV.com
all 458 news articles » -
BCCI to probe Lalit Modi, Akash Aurora links
Times of India - Shriniwas Rao - Indranil Basu - 17 hours ago
MUMBAI/NEW DELHI: What does Akash Aurora have to do with Lalit Modi? ... and ends up with Modi's son-in-law controlling IPL's digital and mobile rights, ...Akash Aurora: Who's he, what does he own? - Times of India
all 3 news articles » -
Shilpa backs Modi in IPL row
MyNews.in - 3 hours ago
... Royals co-owner Shilpa Shetty has come out in support of Lalit Modi, ... Shilpa said that Modi should be given credit for the success of IPL in overseas ...Rajasthan's land deals at the centre of IT probe on Modi - Economic Times
Modi's BJP ties now an embarrassment - Express Buzz
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Madhur Bhandarkar denies making film on IPL or Lalit Modi
Indian Express - 6 hours ago
... has slammed rumours making the rounds that he is going ahead and making a film on the life of Indian Premier League (IPL) Commissioner Lalit Modi. ...No film on Lalit Modi, says Madhur - Mid-Day
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Deccan Chargers' surge to semis has been story of IPL 3
Times of India - Solomon S Kumar - 16 hours ago
It has been a roller-coaster ride for Deccan Chargers thus far in IPL 3. ... Lalit Modi, who was not really enamored with the facilities, especially travel, ...'If betting charges prove, it would be a blot on IPL' - Press Trust of India
Gilchrist finds IPL controversy very confusing - Little About (blog)
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Chellaram's holding jumped 13 times in a year
Economic Times - 14 hours ago
IPL chairman and commissioner Lalit Modi's brother-in-law Suresh Chellaram, had his holdings of Rajasthan Royals team soar 13 times in just about a year ...No hidden stake in Rajasthan Royals, says Chairman - Press Trust of India
Bhujbal on radar after Shashi exit - India Today
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Top Stories
Some flights resume in Europe, ash cloud disruptsReuters - - 22 minutes ago LONDON, April 20 (Reuters) - European airports slowly started to return to life on Tuesday after five days cut off from the world due to a huge ash cloud, but some airspace stayed closed after reports a new plume from Iceland may be ... Flights ease Europe's air traffic crisis CNN International As Europe Reopens Skies, a New Cloud Looms New York Times Your home loan rates may not go up just yetMoneycontrol.com - 3 hours ago Earlier today, the Reserve Bank raised policy rates by 25 bps in an attempt to rein in inflation. This is the third time that the central bank has raised rates this year. RBI norms on bankers' pay by June Economic Times IPL Governing Council to decide Modi's fate on MondayEconomic Times - 8 minutes ago NEW DELHI/MUMBAI: The meeting of the Indian Premier League's (IPL) Governing Council on Monday is expected to serve a charge-sheet to its chairman and commissioner Lalit Modi and if his replies are unsatisfactory he will be asked to put in his papers. Three former captains hold the key to Modi's future Times of India Lalit Modi says he won't quit as IPL chief IBNLive.com The Guardian - The Press Association - Zee News - Cricketnext.com  Email this story |
| uesday April 20, 05:40 PM | |
European flight disruption hits Indian gold imports
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By Siddesh Mayenkar
MUMBAI (Reuters) - Disruption of flights in Europe has hit gold shipments to India, the world's top buyer of the precious metal, potentially pushing up local prices ahead of a gold-buying festival next month, traders and dealers said.
"Shipments are getting delayed as sizeable gold is being imported from that part of the world," said Pinakin Vyas, assistant vice-president with Mumbai-based IndusInd Bank (INDUSINDB.NS : 184.15 +2.05
), a large gold importer.
India buys gold mostly from the UK and Europe, Zurich in particular, but air traffic in the region remain disrupted following last week's volcanic eruption in Iceland which has thrown up plume of ash.
Flights were set to resume on Tuesday under a deal to free up airspace but strengthened eruptions from the volcano threatened to unravel the plans.
India's gold demand has soared since mid-April, an auspicious period for Hindu weddings, raising sales but depleting stocks.
"As of now, no one has kept big inventory," Vyas said.
This may lead to a scarcity as stocks are required to meet demand for the gold-buying local festival, Akshaya Tritiya, on May 16, dealers said.
"Shipments have been stopped and it will disrupt supplies at least for a week ahead of a good season," a senior executive with a large foreign bank, which supplies gold to India told Reuters.
"The shortfall could be of 6-10 tonnes because orders are already in process and have reached the airport," the executive said.
India imported 29.8 tonnes of gold in April last year.
"The scarcity will start and push up premiums if things persist. Meantime, we will be able to meet our needs from alternative channels," said Harmesh Arora, vice-president of Bombay Bullion Association.
Premiums were steady at $1 an ounce to the spot London prices in Singapore.
India accounts for 20 percent of the global demand for gold and jewellery is the most common gift during religious events. Local jewellers normally stock up weeks before key celebrations.
"Everyone is pricing in on the basis of shipments expected from overseas," said Vyas.
India's gold demand was at 480 tonnes in 2009, down 33 percent from a year ago, data from the World Gold Council showed.
(Editing by Himangshu Watts and Malini Menon)
(For more business news on Reuters Money visit http://www.reutersmoney.in)
ndia Business NewsIndia Business |
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EARLIER HEADLINES
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| Monday April 19, 01:50 AM | Source: Indian Express Finance |
PSUs need real autonomy
By KG NarendranathThe news that the responsibility to look into the allegations of misconduct by PSU chiefs has been shifted from the Central Vigilance Commission (CVC) to a Cabinet secretary-led committee must be welcomed. In a free market economy, PSU top brass should not be expected to function under the constant fear of one or the other external agency reviewing its decisions by impulse.
What is needed is a bolstering of the internal audit system of these companies and improving their corporate governance standards. The government as the owner of these companies would do well to cease to routinely interfere in their management, provided they offer reasonable dividends and don't customarily seek fresh funds infusion.
PSUs anyway are subject to a variety of external supervisions which the private sector companies do not have to bother about. The boardrooms of PSUs, especially of the larger ones that are listed and are required to function in an increasingly competitive setting, need more autonomy to react swiftly and adroitly to the commercial world.
For sure, honesty and competence are the two essential prerequisites for the right to autonomy, but imposing a sickeningly intransigent bureaucracy and a plethora of redundant compliance needs on the PSU top management is hardly the way to ensure either of these qualities.
CVC interference is just one of the many "externalities" that vex PSU boardrooms apart from the normal and unavoidable business-related ones like commodity price cycles, (change in) tax policies and the incertitude over the cost of finance. Senior-most functionaries of PSU are being selected through a political process. The Public Enterprises Selection Board can often delay key appointments, leaving the firms bereft of key managerial and technical leadership for months or even years. Political appointees to PSUs often would fail to meet the twin criteria of honesty and competence. Of course, listed PSUs and those which want to be listed are required to comply with the Sebi's listing agreement which inter alia stipulates the minimum number of independent directors on the board. Nearly half of the listed PSUs do not even have the minimum number of IDs (Sebi insists on compliance with this requirement at the time of IPOs/follow on offers, but is rather lenient thereafter). Inadequate quality of IDs is as much an issue for PSUs as it is for the private sector.
Another constraint is the meddlesomeness of the administrative ministries. Despite the enhanced freedom to the PSU boardrooms to take investment decisions (thanks to the navratna, miniratna and the proposed maharatna tags), the ministries in many cases continue to practically exercise their control. The government directors on the board of the PSUs are often more equal than others, including the chairman and managing director. It continues to be the practice in many PSUs that if the government nominee (usually a joint secretary or the financial advisor in the administrative ministry) is not able to turn up, the board meetings are postponed only for that reason. Many CMDs are guilty of willful underutilisation of their powers. The PSU boardrooms have over the years become wary of taking decisions that involve commercial risks. Alas, even those PSUs which no longer need any budgetary support are not fully liberated from the fear of the administrative ministry.
True, even in the private sector, it is largely the promoters who are in control. Even the mechanism of independent directors (IDs) are in many cases a sham. Most IDs are the promoters' relatives and friends who cannot be expected to stand up against any wrongs done by the promoter. With the lack of enough transparency in the audit mechanism, there is a limit to what a fair-minded and competent ID can do if the promoter is inclined to commit irregularities as was demonstrated in the Satyam (SATYAM.BO : 92.35 +0.65) case.
But in PSUs' case, there are many additional layers for oversight. The promoter (the government) can clearly refrain from virtually impeding the growth and progress of these companies by interfering in the most routine of affairs. The CVC has a role to play as a circumspect monitor, rather than a taskmaster.
In addition to their internal audit systems, PSUs are subject to a statutory external audit by the chartered accountants appointed by the CAG. These, along with a professional top-management team, should suffice to ensure efficiency and transparency. (Even the CAG exploratory audit should be a rare event to tackle exceptional circumstances, rather than a norm). As long as the PSUs have their own internal resources to plough back and can borrow at good prices on the strength of their own balance sheet, why should they be asked to take permits from the government for each and every decision?
| Friday April 16, 01:53 AM | Source: Indian Express Finance |
Improve credit guarantee scheme to boost credit flows
By Aruna BalamuruganThe medium and small enterprises (MSE) are major contributors to the Indian economy, both in terms of exports and employment. The main factors that limit their growth, more so when they are in start-up mode, is accessibility to institutional credit. Banks and other financial institutions shy away from extending credit as the perceived risk is high. To address these issues, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGFTMSE) was set up by the government of India and SIDBI in 2000-01 with a corpus of Rs 125 crore. The objective was to create an institutional mechanism to support banks and financial institutions to ensure availability of credit facility and easy access to institutional funds to the MSE sector. CGFTMSE covers registered member lending institutions (MLI) which include Regional Rural Banks, public and private sector banks, foreign banks and financial institutions.
At the inception of the scheme, the focus was primarily on the manufacturing sector and recently its extension to the services sector has been approved. The scheme was initially targeted at SSI units and in July 2007 it was extended to cover all new and existing micro and small enterprises. The eligible loan limit under the scheme has been raised to Rs 1 crore from the earlier limit of Rs 25 lakh. To encourage micro enterprises and women entrepreneurs, the credit guarantee was raised from 75% to 80%. Annual additions were made continuously and the corpus balance for the year 2008-09 stands at Rs 1,754 crore. The CGFTMSE charges on time guarantee fee at the time of disbursement of loan and annual service charges for the loans covered.
How does one assess the performance of CGFTMSE? The world over, three parameters are used to evaluate the success of a credit guarantee scheme: financial additionality (FA), economic additionality (EA) and sustainability of scheme. Financial additionality refers to availability of funds to an SME that would not have been available in the absence of the scheme. Economic additionality refers to economic spillovers that accrue both at the beneficiary firm level and sector, because of increased access and availability of capital. The net cost of the administration of the scheme and the levels of EA & FA achieved indicate whether a credit guarantee scheme is economically sustainable.
While no impact assessment of the scheme has been available, some interesting insights emerged from our survey of lending institutions and beneficiaries. The cumulative coverage for the year ending March, 2009 was 150,034 proposals with a total coverage of Rs 4,824 crore. Public sector banks, namely, the State Bank of India (SBIN.NS : 2098.35 +65.9) and Canara Bank have disbursed the highest amount of loans (around 30% of the cumulative coverage) while RRB's disbursed only 4.5% of the same. Around 53% of the proposals covered pertained to the category of credit up to Rs 1 lakh while only 0.24% of the proposals pertained to the upper band of Rs 50-100 lakh. It is interesting to note that the claims paid cumulatively is only Rs 18.77 crore (0.38%) towards 784 cases. The amount of claims settled cumulatively is very low, indicating that the guarantee scheme has been used cautiously and prudently by banking institutions.
Lending patterns across banks revealed some useful data. Only 5% of the loans were disbursed to start-ups (less than two years) and majority of the disbursements were for primarily existing clients whose risk profiles were very well known. Some had obtained the credit as a term loan raising questions on intended risk-behaviour changes in the lending institutions. From a principal-agent perspective, the major weakness was the principal (CGFTMSE) not asking the financial institutions (agents) to use a different scoring model for start-ups and established firms or even across various industrial sectors. The result: many a needy entrepreneur could not access credit since on several parameters such as DSCR, leverage, etc, their business plans fell short of the traditional lending norms. Most significantly affected were high technology and capital intensive sectors such as alternative energy projects. CGFTMSE needs to bring out new norms favourable to start-ups to improve financial availability.
What changes should be brought about to improve financial availability? The current coverage of credit guarantee may be raised from Rs 1 crore to Rs 3 crore for certain capital intensive industries and accordingly the norms for project appraisal should be revised industry-wise. While limited and partnership firms are eligible for CGFTMSE funds, self-help groups (SHG) are not covered. SHGs with their effective peer-pressure norms and history of repayments could be targeted to increase the reach of the scheme. Currently, trading, training institutes and educational organisations are excluded under CGFTMSE scheme. With a growing need for private institutions in the training and educational arena and a burgeoning population, these enterprises are less likely to fail. From a gender perspective, women-led enterprises accessing the scheme were few and far between. To ensure more women-led enterprise inclusion, CGFTMSE can reduce the upfront fee by 1% and annual service fee to 0.5%.
One major weakness that needs to be addressed is the awareness about the programme. Many in the industry perceive this to be a 'subsidy' or a government-scheme (with all its unintended message of get and shove). Awareness at industrial incubation centres, even at institutes of higher learning such as National Institutes of Technology, and other autonomous institutions, is pretty low. Industrial associations have been the primary channel used till now to inform and educate SMEs about the credit fund. Many members of these associations would otherwise be the target of other schemes and hence training institutes, colleges and other student bodies should be targeted to raise the awareness among the public.
To summarise, it is a great initiative by the government which is performing reasonably well even though the reach has not grown as expected. If the above suggestions are considered and the norms were fine-tuned accordingly, then the performance of the scheme would improve significantly and benefit many more entrepreneurs.
The writer is associate consultant (Financial Consulting Group) at Browne & Mohan. Email: baruna@browneandmohan.com.
All IPL franchise owners come under tax scanner
The investigation into the bonafides of the owners of the Kochi franchise, the latest team to hop on to the IPL bandwagon, got under way on Thursday after a high-profile 'visit' from IT officials to the IPL headquarters in Mumbai. Tax officials say that the probe will encompass the other nine IPL teams as well.
The Indian tax authorities plan to seek information from the tax regimes of other countries on the origin of the funds used for acquiring stakes in the various IPL teams invoking the provisions for mutual exchange of information which are part of the tax treaties India has signed with other countries. Many of the companies which have purchased stakes in IPL teams are residents of offshore locations.
On Friday tax officials paid a visit to the office of the Kings XI Punjab. SSN Moorthy, chairman, Central Board of Direct Taxes (CBDT), said, "At present, we are only making enquiries. We have not conducted any raid so far."
The tax department efforts have also unearthed the fact that the shareholding of Rendezvous, owner of the Kochi franchise, has been fashioned in such a way that Sunanda Pushkar, a close friend of Shashi Tharoor, minister of state for external affairs, is entitled to 25% of the profits of Rendezvous Sports World, even though her actual investment in the company is worth about Rs 25,000.
ET Lukose, director general investigation, Kochi, told ET, "We in Kochi are co-ordinating the investigations being carried out by the Mumbai I-T department". Mr Lukose said most of the stakeholders of Rendezvous, the company that owns Kochi IPL team, reside outside Kerala, limiting the role of the Kochi division of the department.
| Also Read |
| → Tharoor wants to take Kochi IPL team to Abu Dhabi: Modi |
| → Won't let hidden agendas derail IPL: Modi |
| → IPL dirt may cost BCCI dear |
| → IPL Row: Who is Rendezvous' Ravi Gaikwad |
Officials of the income-tax department emphasised that they were in for a long haul. "It will take a couple of months to complete this probe," BP Gaur, director general investigation, told ET. Another senior official said, "A cursory glance at the ownership of these teams is not likely to give a correct picture. The convoluted structures of the consortiums and the companies that form these consortia demand a thorough scrutiny before we conclude who actually own these teams".
The department has been treating the Board Of Control for Cricket in India (BCCI), which owns IPL, as a charitable organisation using the revenues earned from cricket for promotion of the game in the country. BCCI may have to pay tax on the profits of IPL from this year, following an amendment in the Union budget which stipulates that all commercial ventures undertaken by charitable organsiations are subject to tax.
BCCI has been deducting tax at source (TDS) on fees earned by IPL since its inception three years ago. In the inaugural year itself, BCCI had paid over Rs 100 crore as TDS. "The revenue stream, that includes gate collection, media rights and sponsorship were clear and transparent," a senior tax official said. However the high-profile spat between IPL's chairman and commissioner Lalit Modi and minister of state for External affairs Shashi Tharoor has provided the opportunity for a closer look at IPL's finances.
The I-T officials have copied about 2,000 documents from the Mumbai offices of BCCI and MR Modi after Thursday's visit. These documents are expected to contain details of the ownership of IPL teams. The I-T action lasted for over 10 hours and Mr Modi who was at IPL's office at Worli too was questioned till the early hours of the morning.
 Indian minister resigns over IPL cricket scandalTelegraph.co.uk - - 17 hours ago Shashi Tharoor pictured with Sunanda Pushkar Photo: PTI Shashi Tharoor was the public face of a small town's bid to win one of two IPL franchises being ... Indian cricket body in bribe scandalTimes LIVE - 14 hours ago Indian authorities have begun an investigation into the financing of the IPL, Finance Minister Pranab Mukherjee told Parliament yesterday. ... Notes on a scandalIndian Express - 14 hours ago And yet, the IPL is very much a product of the post-liberalisation era. It is an example of the spirit of entrepreneurship unleashed by liberalisation. ... India rocked by cricket scandalLos Angeles Times - - 14 hours ago The scandal underscores the cost of operating a business on steroids without creating adequate safeguards, analysts said. At issue is the questionable ... Govt will spare none in IPL scandal: FMCricketnext.com - Apr 19, 2010 "I can assure you that all aspects of IPL will be probed, inclusive of the sources of funding, how the funds were routed and invested," Finance Minister ... Cricket scandal topples Indian ministerAFP - Apr 18, 2010 The alleged deal was revealed by powerful IPL chief Lalit Modi, who leaked details on Twitter. Tharoor, 54 and a successful author of numerous books, ... Cricket scandal bowls politicianNew Zealand Herald - 22 hours ago An Indian minister resigned yesterday over allegations of corruption in winning a cricket league franchise. The row was over junior Foreign Minister Dr ... Behind and beyond TharoorThe Hindu - 20 hours ago The resignation of Minister of State for External Affairs Shashi Tharoor ends an unsavoury chapter in the politico-cricket scandal set off by his lobbying ... India to probe IPL corruption claimsAFP - Apr 19, 2010 ... UN undersecretary Shashi Tharoor quit Sunday after he became embroiled in a scandal over the ownership of a new Indian Premier League (IPL) franchise. ... India Loses Its Twittering Deputy MinisterTIME - - 21 hours ago That changed with Tharoor's involvement in the Indian Premier League (IPL), a new global professional cricket tournament that has leveraged India's huge fan ... India Starts Cricket League Probe After Minister Tharoor QuitsBusinessWeek - - 21 hours ago An investigation into the IPL issue by "the concerned department" has already begun, Mukherjee said in Parliament. "All aspects, including sources of ... IPL sponsors also in tax probe ambitIndia Today - - 10 hours ago All corporate sponsorship deals related to the IPL are being probed by the IT department. "The scandal is getting bigger now. All the corporate houses and ... Tharoor quits over cricket graft claimsThe Australian - - Apr 19, 2010 But the scandal threatens to backfire on the IPL tsar himself, with reports yesterday suggesting India's income tax department was taking a close look at ... India to probe IPL corruption claimsMail & Guardian Online - - Apr 19, 2010 ... Monday a full probe into the finances of the cash-rich Indian Premier League (IPL) after a high-profile minister quit amid a damaging ownership scandal. ... Greed and sleaze may taint IPL (Comment)Sify - Apr 17, 2010 It was apparently the huge success of IPLs I and II which might have prepared the ground for the scandals now surrounding IPL III. ... Why should fans care what happens off-field?Daily News & Analysis - Apr 17, 2010 The last time the credibility of the game came under such pressure was the match-fixing scandal in the late nineties. Once it became apparent that ... |
Minister fired over scandal
Axe hangs over cricket chief
India confronts cricket league over corruption
Of IPL Bombs and Bombshells: Banglore Blasts and Tharoor Resigns
Indian govt to probe IPL
Bubble set to burst as pressure mounts on Modi
Indian Cricket Chiefs to Meet Next Week on Franchise Scandal
IPL Under Investigation by Indian Government
The IPL Drama – are the Arc lights beginning to fade for Lalit Modi
Lalit-Shashi Aur Dhoka
Owners, franchises, players fear probe
Probe starts into fixing, betting scandal to exclude Pakistanis
IPL fire may burn Modi too
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Ipl 2010 match fixing report? - Yahoo! Answers India
2 Mar 2010 ... yes wait It will happen,as it happened last year. ... OOOOOOOOO NO.............,I knew this could happen!! if they sanctioned Paki players, ...
in.answers.yahoo.com/question/index?...20100302071902AAaDi56 - CachedIs this ipl seems to be match fixing? - 1 post - 16 Apr 2010
Match fixing is there in ipl? - 12 posts - 16 Apr 2010
Do you thik this IPL matches are pre-decided ? - 10 posts - 18 Dec 2006
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IPL to probe KKR match fixing controversy
14 May 2009 ... All IPL Match are fixing, so please give me all matches report on my email id. | 19 March 2010. Reply to Comment | New Comment | Report ...
www.merinews.com/.../ipl-to...match-fixing.../15769369.shtml - Cached - Similar -
There is a definite smell of match-fixing in IPL: Miandad ...
15 May 2009 ... The IPL and match fixing by Padam Singh on 15 May 2009 ... 2010 The Indian Express Limited. All rights reserved ...
www.expressindia.com/...matchfixing...IPL.../460004/ - Yemen - Cached - Similar -
IPL CRICKET - MATCH FIXING, ENTERTAINMENT NO CRICKET
4 min 4 sec - 30 Jan 2010 -
The days of cricket has gone.The days of entertainment and fixed matches bring lot of money to organisers.. so IPL CRICKET is more than MATCH ...
www.youtube.com/watch?v=iL7F3D1WhME - Related videosGet more video results -
Match Fixing in the IPL | Well Pitched - a cricket blog
14 May 2009 ... January 29, 2010 5:34 PM. I agree with you, IPL is beyond match fixing guys. IPL board are fixing the match results and bringing out the ...
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Match-fixing clouds hover over IPL?
The dark clouds of match-fixing seem to be hovering over the Indian Premier League matches as ... Updated on Sunday, April 18, 2010, 12:59 IST Tags:ipl news ...
www.zeenews.com/news620059.html - Cached -
Download IPL CRICKET - MATCH FIXING, ENTERTAINMENT NO CRICKET ...
Related videos. CheerLeader IPL 2010 Match Delhi DareDevils vs Kings XI ... Azmi manhandling incident a 'match fixing': Bal Thackeray ...
www.savevid.com/.../ipl-cricket-match-fixing-entertainment-no-cricket.html - United States - Cached -
Match-fixing clouds hover over IPL - IPL 2010 - Kolkata Knight ...
7 posts - 2 authorsMatch-fixing clouds hover over IPL. The dark clouds of match-fixing seem to be hovering over the Indian Premier League matches as many experts are ...
fanzone.kkr.in/service/displayDiscussionThreads.kickAction?... - CachedGet more discussion results -
It's absolute nonsense, Modi on charges of betting in IPL, Times ...
20 Apr 2010 ... Dhoni and Morkel after winning match against Punjab on April 18, 2010. (IPL/Getty Images). Anusha Dandekar with Shane Watson at the IPL ...
timesofindia.indiatimes.com/iplarticleshow/5831374.cms - 4 hours ago - CachedGet more results from the past 24 hours -
Now, Kamran Akmal Under Match Fixing Scanner « IPL 2010 By IPL T20 ...
The ghost of match-fixing has returned again to haunt the Pakistan cricket team, ... IPL 2010 – Kolkata Knight Riders vs Delhi Daredevils: Kolkata Clinch ...
iplt20cricketlive.com/2010/.../now-kamran-akmal-under-match-fixing-scanner/ - Cached
| kkr match fixing | cricket match fixing | premier league match fixing | tennis match fixing |
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Mallya throws weight behind IPL chief Modi: Rediff Sports
19 Apr 2010 ... Mallya throws weight behind IPL chief Modi. April 19, 2010 22:57 IST ... "Cross-border transaction is part and parcel of the growth and ...
cricket.rediff.com/.../2010/.../ipl-2010-mallya-throws-weight-behind-lalit-modi.htm - 20 hours agoGet more results from the past 24 hours -
FIU roped in to trace cross border IPL deals | SportzPower
FIU roped in to trace cross border IPL deals. Posted : Tue, 20/04/2010 - 9:19am ... FIU is used to monitor dubious money laundering transactions. ...
www.sportzpower.com/?q=content/fiu...cross-border-ipl... - 10 hours agoGet more results from the past 24 hours -
RCB owner Mallya backs beleagured IPL chief Lalit Modi
20 Apr 2010 ... "Cross-border transaction is part and parcel of the growth and ... April 17th, 2010 DHARAMSALA - Indian Premier League (IPL) chief Lalit ...
blog.taragana.com/.../2010/.../rcb-owner-mallya-backs-beleagured-ipl-chief-lalit-modi-95134/ - 5 hours agoGet more results from the past 24 hours -
RCB owner Mallya backs beleagured IPL chief Lalit Modi | TopNews ...
20 Apr 2010 ... Submitted by Rajiv Dhoot on Tue, 04/20/2010 - 08:25. ... "Cross-border transaction is part and parcel of the growth and development of ...
www.topnews.in/.../rcb-owner-mallya-backs-beleagured-ipl-chief-lalit-modi-210834 - 5 hours agoGet more results from the past 24 hours -
RCB owner Mallya backs beleagured IPL chief Lalit Modi - Oneindia News
20 Apr 2010 ... "Cross-border transaction is part and parcel of the growth and development of Indian ... Read other articles published on April 20, 2010 ...
news.oneindia.in/2010/.../rcbowner-mallya-backs-beleagured-ipl-chief-lalitmodi.html - 3 hours agoGet more results from the past 24 hours -
RCB owner Mallya backs beleagured IPL chief Lalit Modi
20 Apr 2010 ... Mallya said IPL owes its success to Modi and said that he was perplexed and amused ... "Cross-border transaction is part and parcel of the growth and ... Apr 20, 2010 Mukherjee, Chidambaram and Pawar; Apr 19, 2010 Centre ...
www.talkncafe.com/.../rcb-owner-mallya-backs-beleagured-ipl-chief-lalit-modi.html - United States - 5 hours agoGet more results from the past 24 hours -
IPL 3 2010 - POINTS TABLE | Reviews & Articles | Buzzintown United ...
2010 IPL 3 : POINTS TABLE AS ON APRIL 19, 2010 ... includes betting, outcome fixing, money laundering and shady cross-border deals. "There are far too many shady benami transactions that seem to have happened," said one of them, ...
www.buzzintown.com/.../article-review_ipl-3-2010-points-table--id_1336.html - Cached -
kolkataObserver » RCB owner Mallya backs beleagured IPL chief ...
20 Apr 2010 ... "Cross-border transaction is part and parcel of the growth and ... Mahaboob Ali S on IPL 2010 Live: KKR vs. RR Live Score Update; ...
kolkataobserver.com/?p=12117 - 6 hours agoGet more results from the past 24 hours -
Yahoo! Cricket - Yahoo! Cricket
20 Apr 2010 ... "Cross-border transaction is part and parcel of the growth and ... the whole source of funding/income for IPL 2008/2009/2010. m.shanmugham ...
cricket.yahoo.com/cricket/.../article?id...20100420/ - 19 minutes agoGet more results from the past 24 hours -
RCB owner Mallya backs beleagured IPL chief Lalit Modi
20 Apr 2010 ... Mallya said IPL owes its success to Modi and said that he was perplexed ... "Cross-border transaction is part and parcel of the growth and ...
sify.com/.../rcb-owner-mallya-backs-beleagured-ipl-chief-lalit-modi-news-news-keuo4cahfbd.html - 4 hours agoGet more results from the past 24 hours
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IPL scandal - Sreesanth Slapped - Video | NowPublic News Coverage
25 Apr 2008 ... IPL scandal - Sreesanth Slapped - Video. ... The IPL was thrown into turmoil today as Harbajhan Singh slapped Sreesanth for allegedly ...
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DAWN.COM | Cricket | Shashi Tharoor denies wrongdoing in IPL scandal
19 Apr 2010 ... Shashi Tharoor denies wrongdoing in IPL scandal. Friday, 16 Apr, 2010. font-size small font-size large font-size print email share ...
www.dawn.com/.../07-shashi-tharoor-denies-wrongdoing-in-ipl-scandal-ha-03 - Pakistan - 8 hours ago - CachedGet more results from the past 24 hours -
Dubai socialite caught in THE IPL scandal
It's a huge controversy involving big money, and Sunanda Pushkar is at the centre of it.
www.masala.com/20682-dubai-socialite-caught-in-ipl-scandal -
'Gujarat CM behind Kochi IPL Scandal' - Yahoo! India News
16 Apr 2010 ... The Kochi IPL controversy is getting murkier by the day.
in.news.yahoo.com/.../tnl-gujarat-cm-behind-kochi-ipl-scandal.html - Cached -
Indian minister denies wrongdoing in IPL scandal - Dreamcricket News
16 Apr 2010 ... An Indian minister Friday denied any wrongdoing in a scandal over the ownership of an Indian Premier League cricket team as the government ...
www.dreamcricket.com/dreamcricket/news.hspl?nid=13654...6 - Cached -
Tharoor under pressure to quit over IPL scandal - Arab News
Tharoor under pressure to quit over IPL scandal. By AGENCIES. Published: Apr 15, 2010 00:49 Updated: Apr 15, 2010 00:49 ...
arabnews.com/world/article43393.ece - Cached -
Indian minister denies wrongdoing in IPL scandal | cmdn.com
16 Apr 2010 ... Indian minister denies wrongdoing in IPL scandal, Cricket News Updates with live scores – cmdn.com.
www.cmdn.com/.../Indian-minister-denies-wrongdoing-in-IPL-scandal - Cached -
The Phoenix: The Kochi IPL Scandal for Dummies
18 Apr 2010 ... Could you have pulled in the PM and BCCI into this too? Or are they reserved for the conclusion of this Kochi IPL scandal? ...
phoenix2100.blogspot.com/.../kochi-ipl-scandal-for-dummies.html - Cached -
Govt will spare none in IPL scandal: FM: Cricket Next
19 Apr 2010 ... Finance Minister Pranab Mukherjhee on Monday said a thorough probe had been ordered on the source and uses of funds by the franchises of IPL ...
cricketnext.in.com/news/govt-will...in-ipl-scandal.../47946-13.html - Cached
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