Reliance Ind tumbles 3.7 per cent on reports of output fall news

Reliance Industries

Reliance Industries Ltd (RIL) saw its scrip fall 3.71 per cent on the BSE and by 3.92 per cent on the NSE, after news agency reports on Friday morning about lower gas production from its Krishna-Godavari basin fields.

The reports said production of gas at the D-6 block would decrease by 13 per cent and that the company hoped that UK's BP would help fix it. BP, last month, bought 30 per cent stake in RIL's exploration business for $ 7.2 billion (Rs32,400 crore).

Union Budget 2011 highlights on Black Money in India

BLACK MONEY

    * Five fold strategy to be put into operation to deal with the problem of generation and circulation of black money.

    * Membership of various international fora engaged in anti money laundering, Financial integrity and Economic development, Exchange of information for tax purposes and transparency, secured.

Various Tax Information Exchange Agreements (TIEA) and Double Taxation

    * Avoidance Agreements (DTAA) concluded. Foreign Tax Division of CBDT has been strengthened to effectively handle increase in tax information exchange and transfer pricing issues.

    * Enforcement Directorate strengthened three fold to handle increased number of cases registered under amended Money Laundering Legislation.

    * Finance Ministry has commissioned study on unaccounted income and wealth held within and outside the country.

    * Comprehensive national policy to be announced in near future to strengthen controls over prevention of trafficking on narcotic drugs.

India’s Union Budget 2011 about Agriculture Of INDIA

AGRICULTURE

    * Removal of production and distribution bottlenecks for items like fruits and vegetables, milk, meat, poultry and fish to be the focus of attention this year.

    * Allocation under Rashtriya Krishi Vikas Yojana (RKVY) increased from Rs. 6,755 crore to Rs. 7,860 crore.

Bringing Green Revolution to Eastern Region

    * To improve rice based cropping system in this region, allocation of Rs. 400 crore has been made.

Integrated Development of 60,000 pulses villages in rainfed areas

    * Allocation of Rs. 300 crore to promote 60,000 pulses villages in rainfed areas.

Promotion of Oil Palm

    * Allocation of Rs. 300 crore to bring 60,000 hectares under oil palm plantations.

    * Initiative to yield about 3 lakh Metric tonnes of palm oil annually in five years.

Initiative on Vegetable Clusters

    * Allocation of Rs. 300 crore for implementation of vegetable initiative to provide quality vegetable at competitive prices.

Nutri-cereals

    * Allocation of Rs. 300 crore to promote higher production of Bajra, Jowar, Ragi and other millets, which are highly nutritious and have several medicinal properties.

National Mission for Protein Supplement

    * Allocation of Rs. 300 crore to promote animal based protein production through livestock development, dairy farming, piggery, goat rearing and fisheries.

Accelerated Fodder Development Programme

    * Allocation of Rs. 300 crore for Accelerated Fodder Development Programme to benefit farmers in 25,000 villages.

National Mission for Sustainable Agriculture

    * Government to promote organic farming methods, combining modern technology with traditional farming practices.

Agriculture Credit

    * Credit flow for farmers raised from Rs. 3,75,000 crore to Rs. 4,75,000 crore in 2011-12.

    * Interest subvention proposed to be enhanced from 2 per cent to 3 per cent for providing short-term crop loans to farmers who repay their crop loan on time.

    * In view of enhanced target for flow of agriculture credit, capital base of NABARD to be strengthened by Rs. 3,000 crore in phased manner.

    * Rs. 10,000 crore to be contributed to NABARD’s Short-term Rural Credit fund for 2011-12.

Mega Food Parks

    * Approval being given to set up 15 more Mega Food Parks during 2011-12.

Storage Capacity and Cold Chains

    * Augmentation of storage capacity through private entrepreneurs and warehousing corporations has been fast tracked.

    * Capital investment in creation of modern storage capacity will be eligible for viability gap funding of the Finance Ministry.

Agriculture Produce Marketing Act

    * In view of recent episode of inflation, need for State Governments to review and enforce a reformed Agriculture Produce Marketing Act.

Infrastructure and Industry

    * Allocation of Rs. 2,14,000 crore for infrastructure in 2011-12. This is an increase of 23.3 per cent over 2010-11. This also amounts to 48.5 per cent of total plan allocation.

    * Government to come up with a comprehensive policy for further developing PPP projects.

    * IIFCL to achieve cummulative disbursement target of Rs. 20,000 crore by March 31, 2011 and Rs.

25,000 crore by March 31, 2012.

    * Under take out financing scheme, seven projects sanctioned with debt of  Rs. 1,500 crore. Another Rs. 5,000 crore will be sanctioned during 2011-12.

    * To boost infrastructure development, tax free bonds of Rs. 30,000 crore proposed to be issued by Government undertakings during 2011-12.

National Manufacturing Policy

    * Share of manufacturing in GDP expected to grow from about 16 per cent to 25 per cent over a period of 10 years. Government will come out with a manufacturing policy.

    * Two Committees set up for greater transparency and accountability in procurement policy; and for allocation, pricing and utilisation of natural resources.

    * Issues relating to reconciliation of environmental concern from various departmental activities

including those related to infrastructure and mining to be considered by a Group of Ministers.

    * National Mission for hybrid and electric vehicle to be launched.

    * Financial Assistance to be made available for metro projects in Delhi, Mumbai, Bengaluru, Kolkata and Chennai.

    * Capital investment in fertiliser production proposed to be included as an infrastructure sub-sector.

Exports

    * Of 23 suggestions made by Task Force on Transaction Cost, constituted by the Department of Commerce, 21 suggestions already implemented. Action to be taken on the remaining two suggestions.

Transaction Cost of Rs. 2,100 crore will thus be mitigated.

    * Self assessment to be introduced in Customs to modernize the Customs administration.

    * Proposal to introduce scheme for refund of taxes paid on services used for export of goods.

    * Mega Cluster Scheme to be extended for leather products. Seven mega leather clusters to be set up during 2011-12.

    * Jodhpur to be included for the development of a handicraft mega cluster.

India’s Union Budget 2011 about Invest Policies

INVESTMENT ENVIRONMENT

Foreign Direct Investment

    * Discussions underway to further liberalise the FDI policy.

Foreign Institutional Investors

    * SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirements for equity schemes.

    * To enhance flow of funds to infrastructure sector, the FII limit for investment in corporate bonds issued in infrastructure sector being raised.

Financial Sector Legislative Initiatives

    * To take the process of financial sector reforms further, various legislations proposed in 2011-12.

    * Amendments proposed to the Banking Regulation Act in the context of additional banking licences to private sector players.

Public Sector Bank Capitalisation

·        Rs. 6,000 crore to be provided during 2011-12 to enable public sector banks to maintain a minimum of

Tier I CRAR of 8 per cent.

Recapitalisation of Regional Rural Banks

    * Rs. 500 crore to be provided to enable Regional Rural Banks to maintain a CRAR of at least 9 per

cent as on March 31, 2012.

Micro Finance Institutions

    * “India Microfinance Equity Fund” of Rs. 100 crore to be created with SIDBI

    * Government considering putting in place appropriate regulatory framework to protect the interest of small borrowers.

    * “Women’s SHG’s Development Fund” to be created with a corpus of Rs. 500 crore

Rural Infrastructure Development Fund

    * Corpus of RIDF XVII to be raised from Rs. 16,000 crore to Rs. 18,000 crore.

Micro Small and Medium Enterprises

    * Rs. 5,000 crore to be provided to SIDBI for refinancing incremental lending by banks to these enterprises.

    * Rs3,000 crore to be provided to NABARD to provide support to handloom weaver co-operative societies which have become financially unviable due to non-repayment of debt by handloom weavers facing economic stress.

    * Public sector banks to achieve a target of 15 per cent as outstanding loans to minority communities under priority sector lending at the earliest.

Housing Sector Finance

    * Existing scheme of interest subvention of 1 per cent on housing loan further liberalised.

    * Existing housing loan limit enhanced to Rs. 25 lakh for dwelling units under priority sector lending.

    * Provision under Rural Housing Fund enhanced to Rs. 3,000 crore.

    * To enhance credit worthiness of economically weaker sections and LIG households, a Mortgage Risk

Guarantee Fund to be created under Rajiv Awas Yojana.

    * Central Electronic Registry to prevent frauds involving multiple lending on the same immovable property to become operational by March 31, 2011.

Financial Sector Legislative Reforms Commission

    * Financial Sector Legislative Reforms Commission set up to rewrite and streamline the financial sector laws, rules and regulations.

    * Companies Bill to be introduced in the Lok Sabha during current session.

India’s Union Budget 2011 Highlights

OPPORTUNITIES

    * Swift and broad based growth in 2010-11 has put the economy back to its pre-crisis growth trajectory.

Fiscal consolidation has been impressive.

    * Significant progress in critical institutional reforms that would set the pace for double-digit growth in the near future.

    * Dynamism in the rural economy due to scaled up flow of resources to the rural areas.

CHALLENGES

    * Structural concerns on inflation management to be addressed by improving supply response of agriculture to the expanding domestic demand and through stronger fiscal consolidation.

    * Implementation gaps, leakages from public programmes and the quality of outcomes pose a serious challenge.

    * Impression of drift in governance and gap in public accountability is misplaced.

    * Corruption as a problem to be fought collectively. Government to improve the regulatory standards and administrative practices.

    * Inputs from colleagues on both sides of House are important in the wider national interest.

    * Budget 2011-12 to serve as a transition towards a more transparent and result oriented economic management system in India.

OVERVIEW OF THE ECONOMY

    * Gross Domestic Product (GDP) estimated to have grown at 8.6 per cent in 2010-11 in real terms.

Economy has shown remarkable resilience

    * Continued high food prices have been principal concern this year.

    * Consumers denied the benefit of seasonal fall in prices despite improved availability of food items, revealing shortcomings in distribution and marketing systems.

    * Monetary policy measures taken expected to further moderate inflation in coming months.

    * Exports have grown by 29.4 per cent, while imports have recorded a growth of 17.6 per cent during

April to January 2010-11 over the corresponding period last year

    * Indian economy expected to grow at 9 per cent with an outside band of +/- 0.25 per cent in 2011-12.

    * Average inflation expected lower next year and current account deficit smaller.

SUSTAINING GROWTH

Fiscal consolidation

    * Fiscal consolidation targets at Centre and States have shown positive effect on macro economic management of the economy.

    * Amendment to Centre’s FRBM Act, 2003 laying down the fiscal road map for the next five years to be introduced in the course of the year.

    * Proposal to introduce the Public Debt Management Agency of India Bill in the next financial year.

Tax Reforms

    * Direct Taxes Code (DTC) to be finalised for enactment during 2011-12. DTC proposed to be effective from April 1, 2012.

    * Areas of divergence with States on proposed Goods and Services Tax (GST) have been narrowed. As a step towards roll out of GST, Constitution Amendment Bill proposed to be introduced in this session of Parliament.

    * Significant progress in establishing GST Network (GSTN), which will serve as IT infrastructure for introduction of GST.

Expenditure Reforms

    * A Committee already set up by Planning Commission to look into the extant classification of public expenditure between plan, non-plan, revenue and capital.

Subsidies

    * Nutrient Based Subsidy (NBS) has improved the availability of fertiliser; Government actively considering extension of the NBS regime to cover urea.

    * Government to move towards direct transfer of cash subsidy to people living below poverty line in a phased manner for better delivery of kerosene, LPG and fertilisers. Task force set up to work out the modalities for the proposed system.

People’s ownership of PSUs

    * Overwhelming response to public issues of Central Public Sector Undertakings during current year.

    * Higher than anticipated non-tax revenue has led to reschedulement of some disinvestment issues planned for current year.

    * Rs. 40,000 crore to be raised through disinvestment in 2011-12.

    * Government committed to retain at least 51 per cent ownership and management control of the Central Public Sector Undertakings.

Japan’s Panasonic plans to invest Rs1,000 crore in Jhajjar

According to recent reports, the Japan-based electronics major company Panasonic has expressed its desire to set-up its first “Eco Idea factory” in India at Dadritoi village of Haryana’s Jhajjar district with the total investment plan of around Rs1,000 crore.

Further, the new plant will be spread in a total area of almost 76 acers and its foundation stone will be laid on February 23.

The declaration was made by an official here.

While talking to media, a company official said, “The Factory will start production within one year.”

Rohtak MP Deepender Singh Hooda said, “The new Industrial and Investment policy 2011 of the state government has been implemented to make sure holistic industrial development.”

According to him, the region will b developing as a power hub, a world level medical institute, AIIMA-II, was being established at Badsa village in the same district.

Silver aims record high, crosses Rs 50,000 per kg level

Continuing its record-breaking spree on the back of firming trend overseas, silver futures prices increased by over 2% to hit a new high of Rs 50,699 per kg.

Record levels in the spot market on rising demand, driven by the ongoing marriage season too influenced the white metal prices at futures trade here.

At the Multi Commodity Exchange counter, silver for delivery in September contract climbed Rs 1,043, or 2.10 per cent to trade at Rs 50,699 per kg-- a level never seen before--with a turnover of four lots.

The silver for delivery in March contract also rallied by Rs 982, or 1.82 per cent, to trade at a record high of Rs 49,420 per kg, with a turnover of one lot.

Internationally, silver in the Asian region, gained 1.4 per cent, to trade at USD 33.10, the fresh high since 1980.

Experts told media that the firming trend in precious metals in global markets as spreading unrest in the Middle East boosted their appeal as a safe-haven asset, buoyed the trading sentiment at futures trade here.

In the meantime, at Chennai bullion market, silver prices rallied by Rs 400 to trade at record high of Rs 50,065 per kg in the opening trade.

Huge crowd at the opening of Taipei Games Fair

During the opening of the Taipei Games Fair, around tens of thousands of game lovers crowded the cold as well as rain to scheme to the 2011 Taipei Game Show and check out the latest video as well as other online games.

Guests to the fair at the Taipei World Trade Center lined up to try number of games presented by the 50 designers from home and abroad exhibiting at this year's show.

During the show's main draws has been Microsoft, which is showcasing game consoles that have face-, voice- and gesture-recognizing sensors and are available for visitors to try.

While talking to media, a 27-year-old Kuo Cheng-yen, as he stood in line for a crack at Sony's 3D games said,  “I've played four (different games). I sweat a lot but it was a lot of fun.”

He said, “My monitors at home aren't as big, so the visual effect was better here.”

On the other hand, the basic highlight of the game show has been Sony Ericsson's latest smartphone model on which users can play PlayStation games.

On its opening day on Friday, the show attracted more than 50,000 visitors, and organizers said bigger crowds were anticipated on the weekend.

Companies from Japan plans to invest in Taiwan

As per the data released by a senior economics from Taiwan, after touring Japan said that number of Japanese firms are planning to invest in production facilities in the island, in part as of a bettering investment nature.

While talking to media, Vice Economic Affairs Minister Lin Sheng-chung said, “My visit to Japan Feb. 14-16 at the head of a delegation to solicit investment, he received commitments from Japanese businesses to invest a possible NT$8 billion (US$272.14 million) in Taiwan.”

The minister then told media, that number of firms from Japan reveals that Taiwan’s investment nature had turned for the better as well as expressed that they were planning to modify their offices or boost investment in the country.

Liu said, some of the companies anticipated their desire of working with island’s firms to jointly tap into China’s market, targeting potential policies stemming from the Economic Cooperation Framework Agreement (ECFA) inked by the two nations in June last year.

Liu said, “This shows that Taiwan has become a springboard for foreign companies to tap into Chinese or Southeast Asian markets.”

Central Taiwan opens shipping farm products to China

According to latest news, around 5 containers packed with agricultural products which cost around NT$13 million were delivered to Taichung Port for shipment to Laioning region. This is the very first time that the central Taiwan city will sell farm products to Northeast China.

In the meantime, the containers, packed with honey murcotts, a type of tangerine, mushrooms, honey, plum wines, and Lishan tea, were sent to the city's port after a deal on the sale of the agricultural goods was inked by officials from Taichung and the Chinese province.

While talking to media, Taichung Mayor Jason Hu said, “It was the first time a province in northeastern China has bought agricultural goods from Taichung, and I anticipated that Liaoning would make an additional NT$27.5 million in purchases.”

According to him, “We described Taichung and Liaoning as highly complementary, and we target to see friendly interaction take place between the two sides from now on.”

Japanese Economy fell to 3rd place behind China

According to some recent reports, Japanese flag Japan's "lost decade" has left a lasting impact.

The country has lost its place as the world's second-biggest economy to China, figures out later is expected to show.

During the period of last three months of the last year and the complete year gross domestic product figures will be revealed by Japan at 0850 in Tokyo on Monday (2350 GMT Sunday).

However, the country's economy has been tasted a drop in exports as well as consumer demand, while China has enjoyed a manufacturing boom.

At its present rate of growth, analysts see China is all set to over take the United States as the world's top economy in about a decade.

While talking to media, Tom Miller of GK Dragonomics, a Beijing-based economic consultancy said, “It's realistic to say that within 10 years China will be roughly the same size as the US economy.”