17 August, 2013

PM Manmohan Singh: No question of going back to 1991 crisis

Prime Minister Manmohan Singh on Saturday ruled out the possibility of India witnessing a repeat of the 1991 balance of payments crisis and also reversing the path to globalisation of the economy.

"There is no question of going back to 1991 ( balance of payment crisis). At that time foreign exchange in India was a fixed rate. Now it is linked to market. We only correct the volatility of the rupee," he said.

In 1991, Singh said, the country had only foreign exchange reserves for 15 days. "Now we have reserves of six to seven months. So there is no comparison. And no go question of going back to 1991 crisis."

Prime Minister steps in to clear Mylan's $1.6 billion deal

PM Manmohan Singh on Friday paved the way for clearing pending foreign investment proposals, including Mylan's deal to acquire Strides Acrolab for $1.6 billion (around Rs 10,000 crore), and overruled the stiff opposition put up by the department of industrial policy and promotion (DIPP).

"There are some concerns particularly in regard to oncology injectibles, some of the vaccines where we feel that critical needs must be met at all costs... The present proposals before the FIPB, or as approved by it, will go through under the existing policy. And if there are safeguards required, that will be discussed," commerce and industry minister Anand Sharma said after a meeting convened by the Prime Minister.FIPB's clearance to 12 proposals, involving investments of around Rs 350 crore had been put on hold as DIPP insisted that the FDI policy be reviewed. On the department's insistence, the government had for the first time reduced the flexibility offered to investors in the pharma sector and mandated that all transactions in existing Indian drug companies should be vetted by FIPB, if the acquisition involved transfer of over 49% stake. The change took place after promoters of Indian companies such as Ranbaxy and Piramal Healthcare sold their shares to global pharmaceutical companies. DIPP has argued that such deals would impact availability of affordable drugs in the country.

Petrol, diesel to cost more as rupee falls

Be ready for another round of fuel price hike as oil firms are considering a proposal to increase prices of petrol for the seventh consecutive time and diesel for the eighth consecutive time. Petrol price is likely to cost Re 1 more per litre and diesel price is likely to go up by 50 paise a litre later this month as the global crude price increased to 108.5 per barrel and the Indian rupee closed higher at 61.71 on Friday, making imports costlier.

"Yes, we have started making losses on petrol due to falling Indian rupee and there is a case for revision. For diesel, the government has allowed an increase of 50 paise every month till we reach the market prices, but it is not helping as rupee has depreciated very strongly in the last few months and we need a lump sum revision to the tune of Rs 2-3 per litre in diesel ," said director of an oil firm. "There is a need to revise fuel prices. We have proposed to the ministry to allow a lump sum increase in diesel price and the proposal is in consideration ," said R S Butola, chairman , IndianOil.

In rupee terms, the crude price increased to Rs 6680.5 per barrel on August 15 as compared to 6588 per barrel on August 13, making a strong case for a fuel price hike. This was mainly due to a sharp price increase in dollar terms, besides rupee depreciation.

Handicrafts exports grow 10% in July

India's handicrafts exports grew 10 per cent year-on-year to about USD 205 million in July 2013 owing to rising demand from markets like the US, China and Latin America.

In July last year, these exports stood at USD 185.88 million, according to the data provided by the Export Promotion Council for Handicrafts (EPCH).

"There has been an increase in the number of orders from emerging markets like China, Latin America and Africa," EPCH executive director Rakesh Kumar said.

Senior IPS officer Dilip Trivedi is new CRPF chief

Dilip Trivedi was on Friday named the CRPF chief. An IPS officer of the 1978 batch from UP cadre, Trivedi is currently special DG of the BSF. He was conducting the inquiry into BSF's firing at Ramban in Jammu & Kashmir where four people were killed last month.

England's Bresnan ruled out of final Ashes Test and ODIs

England pace bowler Tim Bresnan has been ruled out for the remainder of the English season, including the final Ashes test, with a stress fracture in his lower back.

Spinner Fawad Ahmed in Australia's ODI squad

Pakistan-born leg-spinner Fawad Ahmed was Thursday included in an 18-man Australia squad for this month's one-day international and Twenty20 series against England.

Ahmed, 31, a former refugee who became an Australian citizen last month, replaces Xavier Doherty, who played in the ICC Champions Trophy in England last June.