Business

Finance Minister Pranab Mukherjee, Friday, expressed confidence that the policy road map prescribed in the Union Budget 2012-13 will steer the course of the economy and will provide a breather to the aam aadmi by containing inflation.

In his interactions with the press after presenting the Budget in the Lok Sabha earlier today, Mukherjee stressed that the fiscal consolidation is the need of the hour and the government is geared up to meet that objective. He said “We aim to get back to the path of fiscal consolidation as soon as possible.”

Most services will become costlier as Finance Minister Pranab Mukherjee Friday proposed to raise the service tax to 12 percent from the existing 10 percent.

“I propose to raise the service tax from 10 percent to 12 percent,” Mukherjee said while presenting Union Budget for 2012-13.

The finance minister said a few essential services such as education will be exempted from the service tax.

“I propose to tax all the services except those in the negative list,” he said.

IANS

Giving some relief to tax payers, finance minister Pranab Mukherjee today proposed raising the income tax exemption limit for individuals to Rs 2 lakh per annum from Rs 1.80 lakh.

Unveiling the Budget proposals for 2012-13 in the Lok Sabha, he also increased the limit to Rs 10 lakh under the 20 per cent tax slab. The current limit is Rs 8 lakh.

“My proposals on direct taxes are estimated to result in a net revenue loss of Rs 4,500 crore for the year,” Mukherjee said.

The Budget also exempt up to Rs 10,000 of interest income from tax.

With an increase in the excise duty on all products in the Budget for 2012-13, car makers like Maruti Suzuki, Mahindra & Mahindra and Honda Siel Cars India will hike prices of their vehicles by up to Rs. 70,000.

“We are going to raise the prices of all our products and will pass on the entire additional excise duty. Currently we are working on the exact amount of the hike,” Maruti Suzuki India Managing Executive Officer (Marketing and Sales) Mayank Pareek told PTI.

Auto major Mahindra & Mahindra also said it will increase the prices of its entire range of products.

Embraer’s large-sized Legacy 650 executive jet has received Type Certification (TC) from the Directorate General of Civil Aviation (DGCA) in India, paving the way for Legacy 650 customers to register and operate the aircraft in India.

Business Aircraft Operator’s Association (BAOA), a recognised and unified voice for the business aviation industry in India, today envisaged a growth in the general aviation sector with investments of 4 billion dollars and an addition of 1000 aircraft to the current fleet by 2020. To continue the growth story would require better infrastructure facilities and reforms in systems and policy, BAOA President Rohit Kapur told reporters on the sidelines of the 3rd International India aviation 2012 here.

International Air Transport Association (IATA) Director General and CEO Tony Tyler today said it was needed a coordinated effort among all Ministries – at National and state levels to restore competitiveness in Indian aviation.

International Air Transport Association (IATA), the apex body for the global airline industry, is in talks with cash-strapped Kingfisher Airlines to revoke its suspension from the apex body. Talking to the media persons on the sidelines of India aviation 2012 here, IATA head tony Tyler expressed hope that the discussions with Kingfishser on the terms on which the carrier can be be reistanted into its clearing house. The Geneva-based body had earlier this month suspended the carrier from its billing and settlement plans over non-payment of dues.

India is likely to emerge as the third largest aviation market by 2029.

Speaking in a business session on ‘Roadmap for Civil Aviation: Turbulence and Recovery’ during India Aviation 2012 at Begumpet Airport here on Thursday, Airports Council International’s Economic and Programme Development director Dr Rafael Echevarne that the India aviation market was moving on the right path.

Reliance Communications and Reliance Power will move out of the National Stock Exchange’s 50-share Nifty index with effect from April 27, and would be replaced by Asian Paints and Bank of Baroda.

The decision for these changes was announced by the India Index Services & Products Ltd, a joint venture of NSE and Crisil, which manages the various indices at the exchange.

Earlier last year, RCOM (Reliance Communications) and Reliance Infra, another company from Anil Ambani-led Reliance group, were excluded from the BSE’s Sensex index with effect from August 8.

After having already cut CRR by 0.75 percentage points last week, Reserve Bank of India kept its policy rates unchanged on Thursday.

Repo or the short term lending rate of the RBI now stands at 8.5 percent. Consequently, the reverse repo rate under the LAF will remain unchanged at 7.5 percent, and the marginal standing facility (MSF) rate and the Bank Rate at 9.5 percent.

The RBI also decided to keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.75 percent.

The government tabled the Economic Survey 2011-12 in Parliament on Thursday, stating the Gross Domestic Product (GDP) is likely to grow 7.6 percent in FY’13.

India’s economic growth slowed to its weakest annual pace in almost three years in the three months to December, as high interest rates and rising input costs constrained investment and manufacturing, government data released earlier showed.

After having already cut CRR by 0.75 percentage points last week, bankers feel the Reserve Bank may not do much, especially with regard to reducing the interest rate, in its mid-quarterly review of monetary policy on Thursday.

The possibility of key policy rate cut is not bright as industrial output grew by 6.8 percent in January against just 2.5 percent in the previous month.

Even inflation has firmed up to 6.95 percent in February from 6.55 percent in January. Besides, the rising crude oil prices to USD 125 a barrel indicates towards latent inflation.

Air Works India Engineering Pirvate Limited, India’s leading third party MRO, today unveiled the prototype of a mid size business jet’s interior at the third International India Aviation 2012 here. Designed exclusively for Air Works by the icon of the Indian automobile industry – Dilip Chhabria (DC), the prototype is a true depiction of the refurbishment excellence that Air Works together with Dilip Chhabria Design can offer to its customers.

Railway Minister Dinesh Trivedi on Wednesday faced criticism over his maiden Rail Budget from the most unlikely quarter – his own party, the Trinamool Congress.

Posting on Twitter, TMC MP Derek O’Brien opposed across the board hike in passenger fares.

“Railway Budget…what was all that about increasing fares across the board? Upper class…maybe ok…but all? Sorry,cannot agree (sic),” Derek wrote.

“You… asked me if I disagree with the Union Minister. Yes, our party has issues on content,” he added.

Announcing the first hike in passenger fares in 10 years, Railway Minister Dinesh Trivedi in his first Rail Budget speech said that fares will go up nominally.

Fare hike

2 paise per km in ordinary second class and suburban services

3 paise in mail/express second class

5 paise per km in sleeper class

10 paise per km in AC 3-tier, AC chair car, and non-AC First Class

15 paise per km in AC two-tier; and 30 paise per km in AC first class

Concessions:

50% concession to patients suffering from sickle cell anemia

As part of the Rail Budget 2012-13, Union Railway Minister Dinesh Trivedi announced 75 new express trains, 21 new Passenger Services, 9 DEMU and 8 MEMU services.

Moreover run of 39 trains will be extended, besides an increase in frequency of 23 trains.

List of New Express Trains

1. Kamakhya-Lokmanya Tilak (T) AC Express (Weekly) via Katihar, Mughalsarai, Itarsi
2. Secunderabad-Shalimar AC Express (Weekly) via Vijayawada
3. Bandra (T)-Bhuj AC Express (Tri-Weekly)
4. Delhi Sarai Rohilla-Udhampur AC Express (Tri-Weekly) via Ambala, Jalandhar

Gold on Wednesday hit a seven-week low by losing Rs 280 to Rs 27,890 per 10 grams, due to lack of buying support from stockists in tandem with a weak trend overseas.

After losing Rs 95 in the previous session, gold tumbled to a level last seen on January 25 on lower offtake on expectations of more correction in prices.

Silver followed suit and declined for the third straight session day by losing Rs 500 to Rs 57,000 per kg on reduced offtake by industrial units amid a weak global cues.

Beleaguered Kingfisher Airlines on Wednesday announced further reduction in its flight schedule and said its promoter Vijay Mallya will on Thursday meet pilots agitating over delayed salary.

Last month the company had informed the authorities that they will be operating 140 flights daily.

However, Kingfisher said that ‘despite the shortage of crew’ it operated 101 flights on Tuesday and will operate 101 flights on Wednesday.

An apex body of jewellers Tuesday urged the government to do away with gold units in Exchange Traded Funds or impose 25 percent commodity transaction tax on them to safeguard interest of jewellers.

“This was needed to stop the losses suffered by the jewellers with people buying gold from the ETFs,” All India Gems and Jewellery Trade Federation (AIGJTF) chairman Bachhraj Bamalwa told a media meet here.

A person investing in Gold ETFs can hold gold units in dematerialise form. Such transactions are more cost effective and provides liquidity on stock exchanges.

A benchmark index for Indian markets rose to a two-week high Tuesday, closing 225 points higher as traders were enthused by indications of higher advance tax payments by corporates suggesting improved earnings. Cues from global bourses too were positive.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,680.23 points, closed at 17,813.62, up 225.95 points or 1.28 percent compared to its previous close at 17,587.67 points.

The government is likely to bring in the budget session a white paper on black money stashed abroad, Minister of State for Finance S.S. Palanimanickam said Tuesday.

“The white paper is likely to be brought during the budget session,” Palanimanickam said in a written reply to a question in Rajya Sabha.

He said the government has commissioned a study to access the quantum of black money stashed abroad. “The study is expected to be completed by September 2012,” he said.

State Bank of India (SBI) has no plan to provide fresh loan to the cash-strapped Kingfisher Airlines, Finance Minister Pranab Mukherjee said on Tuesday.

“SBI has informed that currently there is no such plan to provide additional loan to Kingfisher Airlines,” he said in the Rajya Sabha to a question as to whether the SBI had initiated a proposal to bail out the airline by sanctioning fresh loan of Rs 1,500 crore.

Kingfisher airlines has a debt of Rs 7,057.08 crore and the financial crunch has hit its operations with dozens of flights being either cancelled or clubbed.

Biocon and US drug major Pfizer on Tuesday called off USD 350 million global alliance to commercialise the Bangalore-based firm’s biosimilar versions of insulin and insulin analog products.

“The companies have agreed that due to the individual priorities for their respective biosimilars businesses, it is in their best interest to move forward independently,” the two said in a joint statement.

Pitching for simplification of investment procedures for NRIs, the UK-based conglomerate Hinduja Group’s Chairman S P Hinduja has said that the Indians settled abroad should also be allowed to invest in the country through overseas corporate entities.

In the upcoming Union Budget, the government should also consider bringing NRIs at par with the resident Indians in terms of their investments and taxation, said the Chairman of Hinduja group, an estimated USD 25 billion conglomerate with presence across automobile, banking and energy sectors among others across 50 nations, including India.