India’s GDP to grow to 9.4 pc after 2007

NEW DELHI, Oct 3: Although India slipped the 6.5 per cent annual growth target during 1997-2002, the Planning Commission is adhering to its projection of 8.0 per cent growth during 2002-07, which would further go up to 9.4 per cent thereafter.

The projections, which are part of the draft tenth plan document to be presented before the full Planning Commission chaired by the Prime Minister on October five, also envisage that investment rate is pegged at 36.14 per cent after 2007 while domestic savings would escalate to 33 per cent which would push up GDP growth to 9.4 per cent.

The higher growth projections are despite the fact that India failed to achieve the targeted 6.5 per cent annual growth during the ninth plan and ended up with 5.35 per cent.

The country achieved higher growth rates in the previous three plan periods — 6.68 per cent during eighth plan (1992-97), 6.02 per cent in seventh plan (1985-90) and 5.54 per cent in sixth plan (1980-85).

The plan panel pitched for higher growth during the tenth plan and thereafter on the assumption that investment rate would go up to 28.41 per cent in tenth plan period and further to 36.14 per cent.

The savings rate is also assumed to go up to 26.84 per cent in 2002-07 and further to 33.01 per cent in the post tenth plan period.

According to the commission’s approach paper, India’s current account deficit is estimated to increase to 3.13 per cent after 2007 from 1.57 per cent during tenth plan and 0.91 per cent in the ninth plan. (PTI)

Investment decision by 2004 on AHWR using Thorium

KALPAKKAM, Oct 3: An investment decision on India’s plans for fabrication of advanced heavy water reactors, using thorium as fuel, could be taken by the year 2004, Atomic Energy Commission (AEC) Chairman Dr Anil Kakodkar said today.

"This ambitious project proposal, which holds the key to the country’s future nuclear energy plans, is presently being considered by a core group of 100 scientists", he said addressing a press conference here.

He said that a two-year review period had been given for these scientists to consider the advanced heavy water reactor project proposal.

Answering questions, he said that by the year 2020, India could go in for a total of five or more Prototype Fast Breeder Reactors (PFBR) of 500 mw each.

Kakodkar said pre-project activities for the 500 mw first PFBR being set up at Kalpakkam had already commenced. The project, costing Rs 3,440 crore, would take at least seven years to be commissioned after final approval, which was being awaited. (PTI)

Pant downplays differences with ministry
on state finances

NEW DELHI, Oct 3: Planning Commission Deputy Chairman K C Pant today downplayed differences with the Finance Ministry on the issue of improving fiscal health of States, even though experts say a confrontation is possible at the full Planning Commission meeting scheduled to be held on October five.

"Both Finance Ministry and Planning Commission are working to improve the fiscal situation of the Centre and State Governments. The Finance Ministry representative is involved in annual plan finalisation of the State Governments," Mr Pant told UNI in an interview.

The Finance Ministry is trying to sell the idea that plan support needs to be cut as a preliminary step for solving the fiscal problem of the states.

Mr Pant, however, said investment flows towards social sectors and infrastructure had to be increased to take the country out of the recessionary trend and improve the quality of life.

Experts point out that state borrowings are fixed by the Finance Ministry and not by the Planning Commission and so the blame for financial mess of the State Governments because of over borrowings rests on the Finance Ministry and not on the Planning Commission.

In a paper prepared for the recent State Finance Ministers’ meeting, the Finance Ministry has stated that one of the major causes of the debt trap that States find themselves in "lies with the planning process in general and the Planning Commission in particular." It States that incremental plan outlay has done serious damage to States’ finances. Mr Pant said too much importance should not be given to any particular paper as the plan panel as well ministry are engaged in preparing papers on various subjects.

Asked what would his reaction be if the ministry, during the meeting of the full Planning Commission, suggested cut in plan size, Mr Pant said the question was hypothetical and he was committed not to discuss any details of the coming meeting.

The agenda paper circulated by the ministry at the meeting, chaired by Union Finance Minister Jaswant Singh, says that as States’ balance from current revenues went from bad to worse, the imperative to let States have a larger plan size on a year-to-year basis meant that States could only fill the shortfall in their resources through borrowings.

It has suggested that there has to be a plan cut if the debt overhang is to correct itself, adding that incremental plans have done serious damage to state finances.

"In any case when over 60 per cent of all borrowings go to feed current revenue expenditure and a large part of the remaining 40 per cent to repay loans, the analogy between larger plans funded by larger borrowings and capital investments remain a mere fig leaf."

The ministry has further recommended that the plan size has to be circumscribed by the prudential debt limits set in the State medium -term fiscal reform programme.

Sources say the Planning Commission had taken up the matter about the agenda paper with the Finance Ministry.

Experts state that the stand taken by the Finance Ministry does indicate laying the foundation stone for recasting the growth rate and central plan support by the ministry.

The Planning Commission, on the other hand, is likely to insist on GDP growth rate size of the tenth plan agreed at the last National Development Council (NDC), called to approve the approach paper to the tenth plan. (UNI)

Ukraine offers to participate in turn-key projects

NEW DELHI, Oct 3: Ukraine today offered to participate in turn-key power projects in India and said there was vast potential for cooperation in investments, joint ventures and privatisation.

"We can offer the participation of our enterprises in turn-key projects on the construction of hydro and thermal power plants and assistance in reconstruction of the existing energy-generation facilities," Ukrainian President Leonid D Kuchma said here at a meeting jointly organised by FICCI and CII.

There is a huge potential for development of trade and economic cooperation between the two countries, especially in investments, establishment of joint ventures and privatisation, Kuchma said adding markets of both the countries too had huge potential.

"We can offer the latest products of Ukrainian enterprises, in particular the modern cargo aircraft AN-70, environment-friendly coke and chemical technologies that have proved to be safe at metallurgical enterprises of Ukraine and Confederation of Independent States (CIS), unique turbines and power generation equipment," he said. (PTI)

SBI plans to interlink 3000 branches

SHIMLA, Oct 3: The State Bank of India plans to interlink its 3000 branches in major cities and go online from April 1, 2003 to provide ‘anytime anywhere’ banking facilities to its customers, a top bank official said today.

Services like ATM, cash card, tele-banking and e-banking had already been provided and log-in facility was being offered to major corporate houses, Deputy General Manager of SBI, Himachal region, K K Saxena told reporters here.

He said once the online facility was introduced, the demand drafts and cheques would be credited on the same day and money could be drawn without visiting any bank branch.

Sexena said the SBI was spending about Rs 500 crore on computerisation which would be recovered in the next 18 months by effecting cost-cuts.

He admitted that computerisation would have some effect on the present manpower but it would be deployed for other market operations and the bank would shift its focus of operation from ‘wholesale banking to retail banking’ and reach out to each customer.

He said housing and educational loans were the new thrust areas and these loans were available on both floating and fixed interest rates.

Sexena said the Non-Performing Assets (NPA) of SBI had come down to 7.5 per cent in Himachal region.

He said at present 3111 bank branches had been fully computerised in 1012 centres, accounting for 82 per cent of business.

He said the total deposits and advances of the bank in Himachal stood at Rs 2401 crore and Rs 407 crore respectively with market share of 21.33 and 20.13 per cent. (PTI)

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