Jul

2

Indian Government shares Economic Survey of India 2008-2009

Filed Under Banking, India Business, Indian Government, Infrastructure, Insurance, Regulations, Training & Education | Leave a Comment

The Indian Government today presented the Economic Survey of India 2008-2009 in the Indian parliament. The FY 2009-2010 budget session commenced today with Finance Minister Pranab Mukherjee tabling the Economic Survey of India for the year 2008-09. The railway budget 2009 will be presented tomorrow by the railway minister Mamta Banerjee.

Here are some highlights:

* In the 11th “Five-Year Plan” period from 2007-12, the Govt is expecting to create 58 million jobs in the country. This is great news.

* The next phase of economic stimulus will include both govt expenditure and tax cuts, while keeping the macro economic fundamentals like interest rates, exchange rates and growth rates in mind.

* For the current fiscal 2009-10, the economic survey has projected a fiscal deficit of 5.5% of the GDP. The target for the Govt is to bring down the fiscal deficit to about 3% of the GDP.

* Recommends raising the FDI cap in Insurance sector from 26% to 49%

* Recommends raising the FDI limits in defence sector from 26% to 49%

* Suggests removing the cess, fringe benefit tax, different surcharges on taxes and bring in many different reforms in petrol pricing and the financial sector.

*  India could grow at an average rate of 7% in FY 2009-10, and achieve growth rates of 8-9% in medium term if all reforms being planned are implemented.

May

21

Reliance Industries Gets Govt Approval For Piped Gas Deal

Filed Under Energy, India Business, Indian Companies | Leave a Comment

Reliance Industries Ltd. (RIL) has received government approval to sign agreements with firms supplying gas to households and car owners in major cities.

RIL got Indian govt approval for the allocation of gas from RIL’s Krishna-Godavari basin to gas distribution firms (CGD) in Delhi as well as Mumbai, Ahmedabad, Gandhinagar, Agra, Indore and Ujjain.

This move is significant for the following reasons.

  • The natural gas used in a compressed form or supplied to homes through pipes is a far cheaper alternative than LPG, diesel or petrol. This move by the government will result the distribution firms in the form of adding more consumers and generate more revenue once the gas becomes available.
  • The cost of transport for the commuters will drop, who are using buses, taxis and auto rickshaws using CNG. This is expected to benefit RIL in a big way.
  • RIL is already selling natural gas to fertilizer and power firms and the addition of CGD firms will help increase its revenue and profitability. [source : Asian Cerc]

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