Economic Survey Proposes Cut in Subsidy and Interest Rates
-by Prithviraj Roy

          NEW DELHI:  Rating the deteriorating fiscal situation as an area of major challenge, the Economic Survey for 2002-2003 has recommended a cut in subsidies and interest rates to deal with the growing deficit. The Survey, tabled in Parliament on Thursday by finance minister Jaswant Singh, noted the falling 4.4 per cent growth this fiscal and listed labour reforms, disinvestment and removal of infrastructural bottlenecks as other priority areas to ... (Contd)

Panel for Higher FDI in Telecom, Aviation, Petroleum Refinery

          NEW DELHI: The ministerial committee set up to decide on the quantum of foreign investment in critical sectors has recommended permission for higher share of foreign investment in telecommunication, civil aviation, petroleum refinery and non-news print media.

           The break-up is: 100 per cent for petroleum refinery, airport infrastructure and non-news print media like technical and scientific journals, 74 per cent for telecommunications and 49 per cent for airlines. Currently the FDI cap in telecom is 49per cent and civil aviation 40 per cent. The Cabinet is expected to announce approval to the recommendations on Friday along with the presentation of the annual budget in Parliament.

Swiss Court Indicts Benazir, Zardari(Go To Top)

          ISLAMABAD: A Swiss court has indicted former prime minister Benazir Bhutto and her spouse Asif Ali Zardari for using off-shore companies to receive kickbacks and commissions in the frame of entering into a governmental contract with the SGS and Cotecna and accepted the State of Pakistan as damaged party. Announcing this, National Accountability Bureau chairman Munir Hafiez described the verdict of the Swiss court as a landmark in NAB's efforts to repatriate the assets collected by disloyal public officials and concealed in Swiss bank accounts.

           The order of the judge was conveyed to Benazir, Zardari and their accomplice Jens Schlegelmilch through their attorneys. Benazir and Zardari have not appealed against the court decision. The court observed that Pakistan was, therefore, the victim of passive corruption or mismanagement of its public interest. Consequently, Pakistan was also a victim of money-laundering committed in Switzerland.

Nepal Maoists Produced in Patna Court (Go To Top)

          PATNA: Five of the eight Nepali Maoists arrested earlier in Patna were produced in a city civil court on Thursday. The special task force arrested eight Nepali Maoists on Wednesday. The three Maoists could not be produced as they were admitted to a private hospital after they had been injured in an encounter. Sources said that a large number of documents connected with their activities, Indian currency worth 50,000 rupees and Nepali currency worth 8,000 rupees were found in their possession. The court postponed its verdict to Friday.

          Both India and Nepal say the open 1,800 km border between the two countries is being misused by criminals. Nepal's Maoists have links with India's People's War Group (PWG) and Maoist Coordination Centre (MCC), which are active in Andhra Pradesh, Madhya Pradesh and Bihar.

Supreme Court Allows Three Hinduja Brothers To Go Abroad (Go To Top)

          NEW DELHI: The Supreme Court on Thursday allowed the three billionaire Hinduja brothers who face arms kickback charges to leave the country at the same time, reversing an earlier order. The court ruled last year only two of the three India-born brothers could go abroad at one time and said the one who stayed as guarantor would be arrested if the others failed to return.

           The court said the brothers, two of whom are British and the third a Swiss national, could be outside the country until May 2, when they must report to a lower court. The order came after the brothers' lawyer, Ram Jethmalani, promised the court the three would return to India.

           The brothers, whose corporate empire spans media, banking and oil, are accused of taking illegal payments from Sweden's Bofors in a 1.2 billion dollar arms sale to the Indian army in 1986. The Bofors scandal contributed to the downfall in 1989 of late prime minister Rajiv Gandhi, who was assassinated two years later campaigning for re-election.

Hindus, Muslims Allowed to Worship at Bhojshala(Go To Top)

          NEW DELHI: The Centre has agreed to the proposal of the Madhya Pradesh Government to resolve the Dhar Bhojshala issue by allowing both Hindus and Muslims access to the premises, claimed to be an ancient Saraswati temple. Accepting the proposal, the Centre is understood to have advised the State Government to allow access to Hindus between 9 am and 5 pm on all Tuesdays. Muslims already have the facility to offer namaz every Friday. For Hindus the permisssion was for once in a year.

First Godhra Anniversary Observed (Go To Top)

          GODHRA: The Vishwa Hindu Parishad (VHP) on Thursday organised a prayer meeting in Godhra town to mark the first anniversary of the arson attack on a train in which 59 Hindus were killed. The train attack led to the worst religious riots in a decade in which more than 1,000 people, most of them Muslims, were killed across Gujarat.

           VHP general secretary Praveen Togadia said his organisation would not allow such incidents to recur. "Sole purpose of my visit to Godhra is just this that I have to fulfil the wishes of those 59 people who were torched to death. Not only India but every country is facing the threat of terrorism. Not a single country is safe whether it is Chechnya, Indonesia or Malaysia."

           Security forces patrolled the streets on Thursday to prevent any outbreak of communal clashes. Almost all the shops remained shut and people did not venture out into the streets.

Economic Survey Proposes Cut in Subsidy and Interest Rates (Go To Top)

          (Contd) ... achieve a robust 8 per cent growth. The Survey stated that tax administration should be modernised, tax base broadened and exemptions restricted to boost revenue earnings. In a way, it seemed to echo Kelkar panel's prescriptions on tax reforms. Admitting that drought would pull down overall growth rate to 4.4 per cent this fiscal as against 5.6 per cent in 2001-02, the Survey said revenues from recovery of user charges have to be tapped besides phasing out tax exemptions and plugging evasions.

          There was no growth projections for the next financial year but it said signs of recovery was already visible. But fiscal consolidation remained a supreme requirement. About expenditure, the Survey said the growth of wages, salaries and pensions must be contained. According to it, "there is a need to revise the rate of interest on small savings mobilised by the Government in line with movements in market related interest rates."

           India's forex reserves are estimated at 74 billion dollars (up by 20 billion in 10 months) and this makes it capable of financing higher bills just in case of a flare-up in international oil prices. But, it was mentioned that nevertheless, infrastructure, regulatory and tax reform and fiscal consolidation needed immediate attention.

           The Survey pointed out that inflation stayed at a moderate level. In terms of consumer price index for industrial workers, it dropped from 4.7 per cent at the start of 2002-03 to just above 3 per cent in December 2002. This was due to FCI's abundant food stock.

           Among some plus points in the economy were rise in gross domestic savings, 68 per cent rise in automobile exports, 17 per cent growth in telecom sector, record surplus in balance of payments and recoveries in steel and cement sectors. The Survey also called for further capital account convertibility, de-reservation of the SSI sector, speeding up of disinvestment and improved exit policy. Customs duties, according to it, should be reduced because a liberalised import regime will improve the efficiency of the economy.

Rushdie Denies Split With Padma (Go To Top)

          WASHINGTON: Nobel laureate novelist Salman Rushdie has rejected rumours that he has broken off with model Padma Lakshmi. It was earlier reported that the duo had parted ways as Salman no longer found her company intellectually stimulating, according to reports in the People News.

           During a party to launch Ali G's American series, when the novelist was asked if things had gone off the boil with the Indian beauty, he said, "Not true, not true," adding: "all kinds of stuff gets written up." Questioned about his rumoured wooing of model Sophie Dahl, Rushdie was aghast. "Oh! not true!", he again denied. However, cunningly manoeuvring the conversation round to safer matters he did expand on his love of comedian Ali G. "I'm a long-time fan", he beamed.

Give Me Beckam, Give Me Beckam! Dannii Minogue Blurts Her Dream (Go To Top)

          SYDNEY: What could be sexy Minogue sisters' fantasy? Well, now it has been disclosed. In an explicit interview pop star Dannii Minogue has revealed her ultimate dream, which involves soccer star David Beckham and Hollywood heart-throb Brad Pitt. The interview is sure to infuriate David's wife Victoria and Pitt's spouse Jennifer Aniston. The singer said both she and sister Kylie had a huge crush on the two dashing men, according to a report in the Sydney Morning Herald.

           The 31-year-old Australian singer said she would love to get Victoria and Aniston out of the picture so she could have her wicked way with their husbands. The Minogue sisters were linked to singer Justin Timberlake following the recent Brit awards but Dannii said they have very different tastes in men - until it comes to Beckham and Arsenal star Freddie Ljungberg. "I'm really into footballers at the moment. I'd love to have David Beckham delivered to my door with a bow on. I still really fancy Brad Pitt - without the beard. I could definitely go one night with Brad," she told B magazine.

           Actress Tamzin Outhwaite was the last star to admit that she fancied Beckham and it provoked a furious reaction from Posh, who declared it "disrespectful". Elsewhere in the interview, Dannii - whose previous lovers include Formula One driver Jacques Villeneuve and ex-Bros drummer Craig Logan - gave a long list of celebrity men she would love to date.

Smell Good With Agassi! (Go To Top)

          NEW YORK: Tennis star Andre Agassi has stepped into the world of aroma. The 32-year-old player has been appointed as the spokesperson for a new fragrance that Estee Lauder is releasing through its Aramis unit in a five-year, multimillion-dollar deal. The perfume will be available world-wide in September. However, details about the scent, like the name and how it will smell, have not been announced yet, according to a report.

TV Station Aired Porn Scenes During NAM Summit (Go To Top)

          KUALA LUMPUR: It sounds erratic, but a Government-owned television station has allegedly aired pornographic scenes during the Non-aligned Movement (NAM) summit which concluded here on Tuesday. The station is being investigated for airing indecent scenes twice over 48 hours. The alleged screening took place at a time when Malaysia was playing host to foreign leaders during the NAM summit. Information minister Khalil Yaakob has said that the ministry has lodged a police report on the matter and was probing the extent of such transmission.

Britney's Reply to Ex-boyfriend's 'Attack' (Go To Top)

          WASHINGTON: By dropping three songs written by ex- flame Fred Durst from her album, Britney Spears seems to have taken her revenge. Limp Bizkit frontman Fred, 31, launched a thinly-veiled attack on her in a song called Just Drop Dead, branding her a "bitch" and a "whore". He penned the tunes after she was caught cheating with old flame Justin Timberlake and bad boy actor Colin Farrell. A friend was quoted by the Sun saying: "Fred wrote three songs for her and she's dumped them all. She doesn't want anything to do with him."

-ANI