Survey stresses review of labour laws and market regulations...........

Tata, JLR deal to be finalised by next week: Report........

NIIT Tech acquires 100% stake in Softec ........

Raise FDI in insurance, retail; divest 10% in PSUs: Survey....

Prices of wheat dara dip further on increased supply

NEW DELHI, Feb 28: Prices of wheat dara closed down by Rs 5 per quintal in the wholesale grains market today due to sluggish demand against increased supply.

Prices of wheat flour (atta) also declined by Rs 5 per bag of 90 kg.

Prices of other grains, however, settled around last levels due to scattered deals.

Marketmen said poor offtake by rolling flour mills along with increased supply, largely pulled down wheat dara prices.

Wheat dara prices eased from Rs 1,125-1,130 to close at Rs 1,120-1,125 a quintal on increased supply, while wheat MP desi continued to be asked on previous levels at Rs 1,300- 1,575 a quintal.

Prices of 'atta chakki delivery' and 'rolling flour' price too ended lower at Rs 1,118-1,120 and Rs 1,115-1,118 a 90 kilo bag from Rs 1,120-1,125 and Rs 1,115-1,120 respectively.

Following were today's quotations per quintal (in Rs): Wheat MP (desi) 1300-1575, wheat dara (for mills) 1120-1125, chakki atta (delivery) 1118-1120, Chakki atta Rajdhani (10 kgs) 145, shakti bhog (10 kgs) 155, roller flour mill 1115-1118, maida 1195-1215 (90 kilos) and sooji 1215-1230 (90 kgs).

Rice basmati (lal quila) 6800, Shri Lal Mahal 7000, Basmati common 5700-5850, Permal raw 1250-1350, permal wand 1425-1475, sela 1725-1775 and rice IR-8 1125-1175, Bajra 610-620, Jowar yellow 615-660, white 1110-1200, Maize 800-825 Barley (UP) 1170-1185 and Rajasthan 1180-1185. (PTI)

Survey stresses review of labour laws
and market regulations

NEW DELHI, Feb 28: Amidst a slowdown in industrial growth and concerns of a downturn in specific sectors like consumer durables and automobiles, the Economic Survey has called for a review of labour laws and labour market rules.

"There is an imperative need to facilitate the growth of labour-intensive industries, especially by reviewing labour laws and labour market regulations," the report card on the economy said.

The Survey, tabled in Parliament, said that industrial sector recorded a growth of 9.2 per cent in the April-November period of the this fiscal as against 10.9 per cent in the same period in 2006-07. Overall, last fiscal there was a growth of 11.6 per cent.

This is particularly important in reversing the current, not-so-encouraging manufacturing employment trends, it added.

The Survey said sectors like non-metallic mineral products, cotton textiles and textile products, automobiles, paper products and metal products have suffered from a significant slackening in growth during the current fiscal.

Making a special mention of the downslide in consumer durables sector, it said if the sector had grown at a pace at which it had grown in 2006-07, the overall industrial growth till November in the current year would have been close to that of the previous year, it said.

It, however, pointed out that the slowdown in the sector may not be a cause for serious concern in the long run based on available data.

The Survey attributed slackening of growth in certain sectors to constrained demand arising from adjustments in policy variables like interest rates.

Pointing out the challenges of the industrial sector, the Survey said removing infrastructural impediments in road-both rural and urban-rail, air and sea transport and power remain a major hurdle.

Another issue in industrial growth is the swiftness and efficacy with which the skill deficit in many areas of manufacturing is bridged, it said, adding that research and development and technological innovations were urgently called for in important industries like chemicals, automotives and pharmaceuticals.

Yet, sounding optimistic about future, it said high investment plans made for infrastructure during the 11^{th Five Year Plan were expected to gradually alleviate the infrastructural constraints to industrial development.}

^{"Moreover, the burgeoning direct investment inflows in the liberalised investment regime supplements the domestic investment to a great extent," the Survey said.}

^{Already sectors like the capital goods grew at an accelerated pace of 20.8 per cent for April-November this fiscal compared to 10.9 per cent in the same period in 2006-07.}

^{While industrial groups like food products (6.8 per cent vs 2.5 per cent last year), jute textiles (0.38 per cent vs 0.06 per cent), wood products (6.62 per cent vs 0.20 per cent), leather products (0.94 per cent as against a negative growth of 0.25 per cent last year), chemicals and chemical products (17.28 per cent vs 14.56 per cent) grew at an accelerated pace, it said. (PTI)}

Tata, JLR deal to be finalised by next week: Report

LONDON, Feb 28: American car-maker Ford is expected to finalise the deal with Indian conglomerate Tata for the sale of luxury brands-Jaguar and Land Rover, by next week, media report here said.

"The two sides, which have been in exclusive talks since the beginning of the year, are expected to sign a deal worth up to two billion dollars (one billion pound) next Wednesday or shortly afterwards," The Times said in a report on its online edition today.

According to the report, Ford is expected to seal the sale of Jaguar and Land Rover to Tata, next week after the American car-maker recently agreed to pump hundreds of millions of pounds into the pension fund to smooth the process.

The deal is expected to be welcomed by unions, who believe that there is no immediate threat to British jobs or manufacturing, it added.

On January 3, Ford had named Tata as the preferred bidder for Jaguar and Land Rover.

The Times also said that Ford has pledged to pump in 300 million pounds into the pension fund to clear its deficit. "It has also given assurances over the long-term supply of engines and some other components to the two marques to ease union fears about their future...," it pointed out.

"The two marques had to be sold together because Ford had merged a number of their operations and supplies. The official announcement is being timed for after the Geneva Motor Show, so that the two companies can try to promote their products at the key European showcase," the report added. (PTI)

NIIT Tech acquires 100% stake in Softec

NEW DELHI, Feb 28: NIIT Technologies Ltd today said it has signed a Share Purchase Agreement with the shareholders of Softec GmbH, Germany for acquisition of 100 per cent of share capital of Softec for an undisclosed sum.

Softec is a company focusing on providing IT solutions and services worldwide in the airline revenue accounting and operations space, said a statement.

They have a major market share of about 40 small to medium airlines within Europe, Africa and Asia, it added. (UNI)

Raise FDI in insurance, retail; divest 10% in PSUs: Survey

NEW DELHI, Feb 27: Facing a possible slowdown in the face of a sluggish growth in developed economies, especially in the US, the Economic Survey today suggested a series of reforms including hiking FDI in insurance and retail sector to sustain the 9 per cent rate of economic expansion.

Raising growth to the double digit will require additional reforms in the backdrop of appreciating rupee, slowdown in the consumer goods segment of industry and infrastructure, said the Survey tabled in Parliament.

"Raise foreign equity in insurance to 49 per cent," it said, while also prescribing 51 per cent foreign equity in insurance companies providing all types of insurance like health and weather in rural areas.

The UPA regime had proposed raising the FDI cap in its first budget in 2004-05, however, opposition from the Left parties eluded consensus on the issue and has been referred to a GoM headed by External Affairs Minister Pranab Mukherjee.

The Survey also asked the Government to complete divestment of 5-10 per cent stake in previously identified profit making non-Navratna PSUs.

On the banking sector, the Survey suggested a 100 per cent FDI in greenfield private rural-agriculture banks.

Such a bank would be free to set up any number of branches in any rural or semi-rural area, the Survey said, adding that it would be free to lend agriculture and allied sectors anywhere in the country and to any industry located in non-urban area.

While advocating FDI in all retail trade, it said allow 100 per cent foreign equity in foreign branded, specialised retail chains like luxury brands, consumer durables and semi durable.

The Survey asked the Government to auction all loss- incurring PSUs that cannot be revived and list all unlisted PSUs by selling a minimum 10 per cent equity to the public.

Besides, it also suggested amendment of Coal Mines Nationalisation Act to allow regulated private entry into coal mining. Privatise old coal mines to improve recovery of ‘in-place’ reserves by 5-10 per cent, it said.

The pre-Budget document called for selling old oil fields to private firms to raise output, while also prescribing a new bankruptcy law to facilitate exit of old/failed management.

The Survey is all for the phasing out control on sugar, fertiliser and drugs.

In a bid to increase manpower efficiency, it suggested increasing work week to 60 hours from existing 48 hours and daily limit to 12 hours to meet seasonal demands through overtime.

On the transportation system, the Survey said public transport systems like bus in metros and large cities must be run by private companies that can use modern logistics and back office systems for planning routes and timings.

Public sector rail track company should be allowed to own new tracks and signals, while permitting free entry of private and public-private partnership in rail freight firms, it said.

Talking about power sector reform, the Survey said, State Electricity Regulatory Commissions should notify rational, credible, cross-subsidy for open access. (PTI)