Airbus makes first plane in China

Airbus has officially delivered its first Chinese-made plane.

The aircraft, one of the firm's A320 mid-range models, was unveiled at a ceremony at the firm's factory outside the northern Chinese city of Tianjin.

The plane has been delivered to leasing firm Dragon Aviation, and will be used by Chinese carrier Sichuan Airlines.

BBC Beijing correspondent Quentin Sommerville said Airbus hopes its Chinese factory will give it a big advantage over US rival Boeing.

While Boeing makes components in China, Airbus is the first of the world's big-two aircraft-makers to have a full production facility in the country, as it aims to meet fast-growing Chinese demand for commercial aircraft.

Intel and Nokia band together

The world's largest chip maker has teamed up with the world's largest mobile phone maker to create what they say will be a "new exciting industry".

Intel and Nokia said their "technology collaboration" would deliver new mobile computing products - beyond existing smartphones, netbooks and notebooks.

But both companies added it was still too early to talk about product plans.

The deal gives Intel its first real breakthrough in the multi-billion dollar mobile-phone market.

"This collaboration will drive exciting new revenue opportunities for both companies and shape the next era of mobile computing," said Anand Chandrasekher, Intel's senior vice president of its ultra-mobility group.

Nokia's executive vice president for devices, Kai Oistamo said: "It will be compelling not only for our companies, but also for our industries, our partners and, of course, for customers."

India attracts USD 2.34 bn FDI in first month of 2009-10

India attracted USD 2.34 billion of foreign investments in April, a rise of 19.3 percent over the previous month, signalling confidence in the country's economy by foreign investors amid the global financial crisis.

However, as compared to April last year, foreign direct investment (FDI) in the first month of the fiscal 2009-10, was much lower.

"In April 2009, foreign inflows were USD 2.34 billion, about 19 per cent higher than March," an official told a news agency.

The inflows in April and March last fiscal were USD 3.74 billion and USD 1.96 billion, respectively.

Thanks to robust trends in the first six months of the last fiscal, total FDI in 2008-09 was USD 27.30 billion, against USD 24.5 billion in 2007-08.

Rating agency CRISIL Principal Economist D K Joshi said the current year would be difficult in the wake of the global economic downturn.

"Given the poor global economic scenario, the figures are not too discouraging but the year 2009-10 will be more challenging," Joshi said.

India had scaled down the FDI target by USD five billion from USD 35 billion last fiscal. Cumulative FDI from April 2000 to March 2009 stands close to about USD 90 billion.

World Bank raises China forecast

The World Bank has raised its forecast for growth in China this year from 6.5% to 7.2% amid signs that the economy is doing better than expected.

Bank analysts say the government's four trillion yuan ($585bn, £358bn) stimulus package has helped the economy.

But it says the country's exports are still down, as the rest of the world struggles with the global recession.

The World Bank believes the global economy, excluding China, will shrink by about 3% this year.

"Developments in the real economy [in China] have been somewhat better than expected three months ago," says a report published by the bank.

'No meaningful increase'

It predicted in March that the Chinese economy would grow by 6.5% in 2009, several percentage points down on last year's growth.

But the government stimulus package, and increased bank lending, has protected the economy from the worst effects of the global recession, leading the bank to raise its growth forecast.

"Growth in China should remain respectable this year and next, although it is too early to say a robust, sustained recovery is on the way," said Ardo Hansson, the bank's leading economist in China.

But it is not all good news. China's export sector has been one of the hardest hit parts of the economy and has still not recovered.

This has led to millions of migrant workers - farmers who leave their villages to find work in China's factories - losing their jobs.

"We have not had a meaningful increase in exports since last year's plunge," said World Bank economist Louis Kuijis, speaking at a press briefing to launch the bank's latest China predictions.

Some migrant workers who lost their jobs late last year told the BBC they had still not been able to find new jobs.

Tripura thermal power project gets CCEA nod

The Cabinet Committee on Economic Affairs (CCEA) has approved a 100 MW gas-based thermal power project at Monarchak in West Tripura district, official sources said.

The decision was taken on Friday by the CCEA in New Delhi, sources said.


According to officials of North East Electric Power Corporation (NEEPCO), the estimated cost of the power project is Rs 421 crore.


NEEPCO has spent Rs 27.47 crore on infrastructure of the project. The corporation would make 30 per cent contribution to launch the project while 70 per cent of the funds would be borne by selling equity.


The project would be operational in 30 months and Tripura would procure the entire production of 100 MW.



NEEPCO has inked a deal with the state government and also signed an agreement with ONGC to get natural gas to feed the power project.


Sources in ONGC said they would soon begin exploration of gas in the state for the project as there is a huge recoverable gas stock in Tripura.

Stanford charged with fraud in US

Texan billionaire Sir Allen Stanford has been charged in the US with fraud and obstruction.

Announcing the indictment, the justice department said it related to a $7bn ($4.2bn) scheme to defraud investors.

Soon after, the 59-year-old appeared in court in Virginia and was remanded in custody pending a full detention hearing to be held in Texas.

He already faces civil charges over an alleged fraud worth $8bn - charges he denies.

Sir Allen turned himself in to the FBI on Thursday after a warrant was issued for his arrest.

Govt role in gas dispute crucial; can't lose revenue: Deora

Asserting that nothing could be done on the K-G gas dispute without the active involvement of the govt, Petroleum Minister Murli Deora said that warring Ambani brothers had met him after the Bombay High Court ruling on the row on 15th June.

The government wants early solution to the gas dispute as it cannot afford to lose revenues, Deora told reporters in Mumbai on Friday



"I am in touch with them (Ambanis), the brothers are "not very friendly, unfortunately," he added.


The Bombay High Court on Monday asked Mukesh Ambani-led Reliance Industries (RIL) to supply gas from the K-G basin at USD 2.34 mmBtu to younger brother Anil Ambani group firm Reliance Natural Resources (RNRL).


A division bench of Justices J N Patel and K K Tated asked the two companies to enter into a fresh "suitable agreement" within a month.


Meanwhile, RNRL has filed a caveat before the Supreme Court to preclude the chances of an ex parte (in the interest of one party only) being passed against it on the gas sharing deal it had signed with Mukesh Ambani-led RIL.



"We are trying our best to find a solution to the gas dispute. In no way can the government afford to lose the money. We need the revenues from K-G gas for development of the country," Deora said.


He, however, declined to divulge details of his meetings with Ambanis.

More optimism from Japan

The Bank of Japan (BOJ) has said the Japanese economy has begun to stop deteriorating, but it has still kept interest rates unchanged at 0.1%.

The assessment was more optimistic than at last month's meeting, when it said the economy was continuing to worsen.

It made no change to policies such as buying corporate bonds, the current programme of which ends in September.

The improved view of the economy had been expected given the recent rises in factory output.

Conditions 'still terrible'

"We may be seeing a return to growth in Japan later this year so it is reasonable for the BOJ to upgrade its assessment now," said Shane Oliver, chief economist at AMP Capital Investors in Sydney.

"However, conditions are still terrible. Japan and other economies are still in the midst of a severe recession."

The key question is what will happen to the central bank's programme of buying bonds later in the year.

In common with many other central banks, the BOJ has been buying corporate bonds as part of a programme of quantitative easing, to get more money flowing through the economy.

"As for measures on credit markets, the issuance of corporate bonds is rising and the bank may start scaling back those steps if conditions allows after September," said Junko Nishioka, chief economist at RBS Securities in Tokyo.

But he warned that "although there has been some optimism on the economy after strong industrial output data, the BOJ is maintaining a very pessimistic view".

"It said the economy has begun to stop worsening, but it didn't say it has stopped worsening."

GM agrees Saab sale to Koenigsegg

General Motors has reached a tentative agreement to sell Saab to the Swedish sports car manufacturer Koenigsegg.

GM said that as part of the deal there would be $600m (£367m) of funding from the European Investment Bank (EIB), guaranteed by the Swedish government.

It is the latest part of GM's reorganisation, which is also set to see the Opel and Vauxhall brands going to Canada's Magna.

Saab filed for reorganisation under Swedish law on 20 February.

Koenigsegg produces 18 cars a year and employs 45 people, and there has been some doubt as to whether it has the expertise to run Saab, which sold 93,000 cars in 2008.

Saab employs about 3,400 people in Sweden and about 12,000 other jobs in the country are dependent on Saab and its suppliers.

But GM Europe's president Carl-Peter Forster said: "Koenigsegg Group's unique combination of innovation, entrepreneurial spirit and financial strength... made it the right choice for Saab as well as for General Motors

Kingfisher Airlines hikes fuel surcharge by Rs 400

Air carrier Kingfisher Airlines on Wednesday increased fuel surcharge by Rs 400 on all domestic sectors with immediate effect.

"Consequent upon successive increases in the price of ATF, the fuel surcharge for travel on all domestic sectors of Kingfisher Airlines will be increased by Rs 400 with effect from Wednesday," a Kingfisher Airlines spokesperson said.


The hike would apply uniformly for travel across all distances and all classes of travel including Kingfisher Red, the spokesperson said.


The increase in fuel surcharge comes following an over 12 per cent rise in ATF prices by state-run oil firms on 15th June.

India, US agree to increase civil aviation cooperation

India and the United States have agreed to increase their level of cooperation in theaviation sector, including its modernization, and to meet the challenges in view of its rapid expansion.

The decision in this regard was taken following a series of meetings of visiting Indian delegation led by the Civil Aviation Secretary Madhavan Nambiar with members of the Obama

Administration.



During the meetings, the two sides discussed the future direction of the bilateral cooperation, said the Indian

Embassy in a statement.



The two countries agreed to work towards making Aviation Cooperation Program (ACP), signed in June 2007, more productive for India in its efforts to modernise the sector and meet challenges of rapid expansion in terms of safety, technology and communication support and air space management, the statement said.



It was agreed that the next Indo-US Aviation Summit would be held in the US in December 2009.



An agreement was also signed between the US Trade & Development Agency and Directorate General of Civil Aviation of India to fund projects under the US-India ACP, besides reviewing the progress of the Open Skies Agreement, 2005.



Over 2004-07, India imported more than USD 11 billion worth of aviation-related products from the US.

'India to work for developing nations in tackling recession'

President Pratibha Patil said that India will work towards ensuring representation of developing countries in global financial institutions while dealing with the economic crisis.

In an interaction with envoys from Maldives, Gambia and Sudan, Patil said on Friday while dealing with the current global financial crises, the long-pending issue of representation for developing countries in global financial institutions would be addressed.


Three High Commissioners Abdul Azeez Yoosuf (Maldives), Felix Badji (Gambia), and Khider Haroun Ahmed Abdulrazig (Sudan) presented their credentials to the President at a ceremony in Rashtrapati Bhavan in New Delhi on Friday.


This was the first Credentials Presentation Ceremony since the formation of the new government.


The President also talked about the recently held general elections in the country and massive mobilization of polling personnel for the conduct of the polls, a Rashtrapati Bhavan spokesperson said.


Patil said India would continue to work for peace, stability and development in its region and the world.


She also told the envoys that India wants to improve its bilateral relations with their countries.


The ceremony was attended by senior members of the missions and officials of the External Affairs Ministry.

Japanese stocks on a rise

The Nikkei index of leading Japanese shares has closed above 10,000 points for the first time in eight months.

The Nikkei-225 stock average closed up 154.49 points at 10,135.82 points, as global recovery hopes grew.

Investors were encouraged by a revised 5.9% rise in industrial output in April, the biggest gain in half a century.

Better-than-expected US sales and jobs data on Thursday also spurred hopes of a recovery.

The April data was revised up from 5.2% and was the biggest monthly gain since 1953.

The Nikkei has risen 44% since it reached a low of 7,000 on March 10 and 3.8% in the past week.

Among the gainers on Friday were CSK Holdings, up 19.05% at 500 yen, Nippon Soda, up 11.48% at 476 yen and Yahoo Japan, up 8.29% at 30,550 yen.

Industry grows 1.4% in April; solid show power generation

Giving early signs of economic recovery, industrial production grew 1.4 per cent in April after contraction for months together since September when global financial crisis deepened.

However, certain crucial sectors like consumer non-durables, including processed food products and capital goods posted negative growth.



Processed food items declined by a whopping 34 per cent.



Also, 1.4 per cent growth in factory output is no match for the 6.2 per cent expansion it clocked in the same month last year.



Nonetheless, slowdown in industrial growth, as measured by the Index of Industrial Production (IIP), appears to be bottoming out.



Provisional figures showed industrial contraction for almost every month since Lehman Brothers filed for bankruptcy in mid-September last year which deepened the global financial meltdown.



"We have bottomed up and we are on a path of recovery," economic think-tank National Institute for Public Finance and Policy's Director Govinda Rao said.



However, the good news on industrial production failed to enthuse the stock markets with benchmark equity index Sensex shedding nearly 153 points at 15,355 points at mid-session.



The biggest surprise in IIP data was the electricity generation which grew by 7.1 per cent in April against 1.4 per

cent in the same month a year ago.

Oil above USD 72 as traders eye economic recovery

Oil prices hovered above USD 72 a barrel on Friday in Asia near an 8-month high as investors eyed signs that the global recession may be easing.

Benchmark crude for July delivery fell 31 cents to USD 72.37 a barrel by midday Singapore time in electronic trading on the New York Mercantile Exchange.



On Thursday, it rose USD 1.35 to settle at USD 72.68, the highest since October.



An improving crude demand outlook helped bolster prices. yesterday, the International Energy Agency in Paris said in its monthly survey that global oil demand would fall by 2.9 percent this year, better than its May forecast of a 3 percent annual fall.



It was the organisation's first upward estimate of demand in 10 months.



"Oil prices are discounting positive economic growth by around the end of the third quarter," said Christoffer Molke-Leth, head of sales trading for Saxo Capital Markets in Singapore. "If that doesn't happen, prices at this level are overbought."



Prices have more than doubled since March as investor optimism grew that the worst of a severe US recession was over.



The Labor Department on Thursday reported that the number of newly laid-off Americans filing for jobless benefits fell last week by 24,000 to 601,000 - better than economists had forecast.

Is it wise to spent 100 million euros on a player ?????

Real Madrid in a span of days spent 56 million pounds on Kaka and agreed a deal worth 80 million pounds for Christiano Ronaldo . Is it worth to pay such high amounts for a single player ? That too on time of recession when the number of unemployment is on rise and people are spending with strings tied around their wallet ..

Whatever be the reason that the Spanish outfit is paying such heavy sums on players is ridiculous and their shopping list is not complete yet . Some new players will find a place on their hit list and they will publicly go for the player like what happened to United


It is the time for Michael Platini to act rather than accusing English clubs . For the last one year Madrid was after Ronaldo and Platini was trying to regulate the transfer activities of English clubs . With the amount they are spending on a single player is more than the budget of many nations it is time for somebody to act

Pound hits 2009 high against euro

Sterling has reached its highest level against the euro since the start of the year after data suggested the UK recession may be over.

One pound was worth 1.1758 euros in early afternoon trading, having closed the previous day at 1.1672 euros.

On Wednesday the National Institute of Economic and Social Research estimated that the economy grew in April and May.

The pound was also boosted by data showing industrial output rose in April - the first monthly rise in 14 months.

In addition, the pound's rise was aided by a survey on attitudes to inflation by the Bank of England, which showed inflation expectations for the coming year rose to 2.4% in May from 2.1% in February, the first rise since August.

Sterling was also up against the dollar, rising one cent to $1.6429.

The pound had fallen against both the euro and the dollar last week and at the beginning of this week amid concerns about possible challenges to the leadership of Gordon Brown.

However, in the past couple of days the political situation appears to have stabilised.

Industry asks Govt to decontrol fuel price, restore tax holiday

Freeing petrol and diesel prices from official control, restoring tax breaks on natural gas production and tax holiday for private oil refiners should be part of the government's agenda in the first 100 days, industry wished.

The Petroleum Federation of India, the apex body of public and private oil firms has submitted to the Oil Ministry a 100-day agenda for the new Government.


On top of its list is decontrol of petrol and diesel prices. Currently, public sector retailers sell auto fuel at Government-dictated rates which the private sector competition is unable to match in times of high input cost (crude oil prices).


Petrofed has asked the Government to operationalise the 28th March 2002, resolution that freed petrol and diesel price from administrative control. State retailers fixed retail selling price every fortnight based on international rates till 2004 when the UPA came into power for the first time and brought back administrative controls.


The Federation also wanted the Government to gradually phase out subsidy on domestic LPG through provision of subsidy to families through coupons/smart cards.

Also, it wanted the Government to provide targeted direct subsidy administered through a smart card system for distribution of kerosene.


It wanted the tax holiday on natural gas to be restored and the same extended to private oil refiners.



The Finance Minister P Chidambaram had in 2008 denied natural gas production of seven year break from payment of income tax like the one enjoyed by producers of crude oil and Petrofed wanted this to be restored. The tax holiday should be enhanced to 10 years from 7 years currently.


"Provide flexibility to claim tax holiday for oil as well as gas production in any 10 years during the first 15 years after the commencement of commercial production under section 80IB(9) of Income Tax Act," its memorandum said.


Petrofed also wanted the seven-year income tax holiday on setting up of refineries to be extended to the private sector.


Currently, this is available only to public sector firms setting up units by March 2012. It also suggested granting 'declared goods' status to natural gas and raising price of gas sold under administered price regime.


Further, it asked the Government to unburden the exploration and production sector of sticking Service Tax since it cannot be set-off, include petroleum products under the Goods and Services Tax (GST) regime, and waive fully the custom duty on import of materials used in transmission projects and removal of anomaly in Naphtha taxation.



Petrofed wanted the Finance Ministry to enlarge the list of goods that could be imported duty-free while also simplifying custom procedures for drilling tools and equipments imported under duty concessions.


"Provide single window clearance for the upstream companies to expedite the process of clearance related to exploration blocks and reduce time and cost overruns," it said.


It recommended developing Petroleum Economic Zone for developing a world-class global upstream services hub in India.

India's economy to grow by 7.2 per cent in 2009-10: Assocham

Indian economy may grow at 7.2 this fiscal on the back of improvement in consumer sentiment, policy reforms and projected growth in agriculture and industrial sector, Assocham survey said.

In a survey of 300 businessmen, about 42 per cent of the respondents said that policy reforms would cast large impact on the GDP growth.


"Indian economy is expected to register a GDP growth rate of 7.2 per cent in 2009-10 on account of improvement in consumer sentiment, rural India and policy reforms," the chamber said.


Majority of the respondents said that the government would be able to bring about significant reforms this year, and about 91 per cent believed that there are good chances of improvement in consumer sentiments in the following months.


About 40 per cent respondents felt that isolation of the rural India from the impact of recession has a huge impact on the GDP growth rate, it said.


"The agriculture sector is expected to record the growth rate of 3.5 per cent as good monsoons, better crop prices and upward revision of the crop forecast has ensured a healthy growth rate for the agriculture sector," it said.


The industry sector which was reeling under pressure due to high interest rates, reduced demand and global recession is expected to record the growth rate close to 4.6 per cent in the fiscal.



With the improvement in consumer sentiment, increased government spending and anticipated reforms, the services sector is estimated to chart 9.7 per cent growth in 2009-10, Assocham said.


About 75 per cent of the respondents believed that government would use further fiscal incentives to stimulate the economy, it said.


However, the factors which continue to inhibit the economic growth rate from pacing up include poor state of the world economy and money market conditions, it added.

Iceland near to Icesave debt deal

Iceland's Prime Minister Johanna Sigurdardottir says a deal, with the UK and Netherlands, is near over savings accounts frozen when its banks failed.

She said agreement is being negotiated on the Icesave accounts of Landsbanki, which collapsed with other main Icelandic banks in October.

The deal would give Iceland seven years to reimburse the frozen savings.

The total debt owed on the accounts is estimated at about 640bn Icelandic crowns ($5.28bn: £3.2bn).

The money would be repaid at 5.5% interest, Ms Sigurdardottir said.

"This is a much more agreeable solution than we were looking at in the winter," she said.

"The interest rates are lower, we'll have longer time to pay out and last, but not least, it means the assets of Landsbanki in the UK will cover most of the debt."

Tech Mahindra makes changes in Satyam open offer

IT firm Tech Mahindra has extended the date for approaching the shareholders of Satyam Computer regarding its Rs 1,154-crore open offer for the purchase of a 20 per cent stake in the scam-hit firm, a move which comes days after market regulator SEBI cleared the open offer.

In a filing to the Bombay Stock Exchange, Satyam Computer said the last date by which letter of offer will be dispatched to the shareholders has been revised to 9th June, from the earlier scheduled date of 3rd June.



Further, the last date of withdrawal by shareholders has also been revised to 26th June, from the earlier 27th June.



"Dates for all other activities of the schedule remains unchanged," the filing added.



The Securities and Exchange Board of India (SEBI) had received the open offer for its consideration on May 6, and issued its 'observations' on May 27.



Through Venturbay Consultant, its acquisition vehicle for the Satyam Computer purchase, Tech Mahindra had announced an open offer on April 22 for buying an additional 20 per cent

from the shareholders of the IT firm.



The open offer was made pursuant to Tech Mahindra buying a 31 per cent stake in Satyam for Rs 1,756 crore through the issue of preferential shares after an auction process conducted by the government-appointed board of Satyam.

Sensex, Nifty hit 10-month highs as bourses progress rapidly

Indian bourses progressed rapidly with key indices Sensex and Nifty hitting nearly ten-month highs as investors were heartened by new UPA Government's economic agenda, unveiled by President Pratibha Patil in the week under review.

The markets achieved new highs in sustained volatility and the Sensex closed past the 15,000-psychological level for the first time since 2nd September, 2008.


Accentuated interest of investors in second-line stocks pushed up the Smallcap and Midcap indices by a whopping 7.88 per cent and 6.98 per cent, respectively, outperforming the bellwether Sensex.


In the week to 6th June, the 30-stock BSE barometer ended the week at 15,103.55, a net rise of 478.30 points, or 3.27 per cent, over the week.


Investors were virtually confident that the economic reforms will get a strong push in the first year in the light of a political stability in the country.


Addressing Parliament on 4th June, Patil disclosed that the Government would focus on revival in economy which has already showed signs of recovery with a good expansion in the manufacturing activity in May 2009.



Patil said the government will focus on reforms in financial and infrastructure sectors as also disinvestment of public sector undertakings while sticking to fiscal prudence.


India's infrastructure sector output grew 4.3 per cent in April, indicating a gradual economic recovery.


Inflation, too, remained low at 0.48 per cent for the week ended 23rd May.


The broader 50-share Nifty of the National Stock Exchange advanced by 137.95 points, or 3.10 per cent, to end the week at 4,586.90 from its previous weekend's close.


Foreign Institutional Investors, the principal market moving factor, remained consistent net buyers in equity.



Hence, the capital inflows in equity stood at USD 427 million in the initial four days of the week.


Analysts said the market is strongly bullish and may witness a pre-Budget rally.



The full Budget is likely to be presented on 3rd July by Finance Minister Pranab Mukherjee.


Sectorial indices such as the BSE Consumet Durables Index soared by about ten per cent and the BSE Capital Goods index by 8.40 per cent.


The trading volume for the week was high at Rs 1,30,005 crore on the NSE and Rs 45,288 crore on the BSE compared to Rs 1,11,845 crore and Rs 36,674 crore respectively.

Oil price rally comes to a halt

Oil prices have fallen back with investors growing more cautious as oil approaches the $70-a-barrel mark.

US light, sweet crude oil was down 86 cents at $67.69 a barrel, while Brent crude fell 61 cents to $67.56.

US President Barack Obama has begun a tour of the Middle East, where he will raise the issue of volatile oil prices with Saudi Arabia's King Abdullah.

He is also expected to reassure Saudi that demand for oil will not dry up. Earlier, oil prices had reached $68.64.

"The Saudis want to be assured that there will be a future for oil consumption. They want security of demand," said Simon Wardell, senior oil analyst at Global Insight.

"Obama for his part will be persuading them to continue investing in new production, which is not likely to have too much impact on spot prices in the near term, but will come five or 10 years down the road."

Weaker dollar

The price of oil had initially risen in early trading on Wednesday.

The weakening dollar had pushed up oil prices, which tend to rise when the US currency falls.

In recent weeks, the dollar has declined against a range of currencies, hitting a seven-month low against sterling on Wednesday.

"The continuing softening of the dollar will go on adding strength to oil and equities," said Peter McGuire of Commodity Warrants Australia.

"I think $70 is possible by the end of the week and $74 to $75 by the end of the month."

Oil had briefly touched $69 a barrel on Tuesday, a new seven-month high, before closing at $68.55.

Although the oil price has more than doubled since January, when it was trading at $32.70 a barrel, it is still well below the record $147 a barrel seen in July last year.

Rs 150 cr spent to buy speed boats by Maharashtra Govt

In the aftermath of 26/11 terror attacks, Maharashtra government has set aside Rs 150 crore to buy 28 hi-tech speed boats for patrolling the sea.

The first boat, equipped with bullet-proof jackets and sophisticated communication systems, was provided to the Thane (rural) police and was tested at the Versova creek on Ghodbunder Road in neighbouring Thane on Monday.


Thane Superintendent of police said, "We are expecting to get one more such boat and it would be used for coastal patrolling. Coastal belts like Utan and Pali fall under our jurisdiction."


The government has made a proposal for acquiring 28 such boats after the November 26 terror attacks, carried out by a group of ten terrorists who entered the city via the sea.


The boats, manufactured by Goa Shipyard Ltd, have a 550 horsepower capacity and will be equipped with bullet-proof jackets along with weapons.



The boats will have ultra-modern navigation tools and Global Positioning System (GPS) for constant communication with the police control room, Pandey said.

India need not import LWR after 2050: Kakodkar

India need not import light water reactors (LWRs) after 2050 as it would by then have a matured fast breeder technology and be ready to use Thorium technology, said Atomic Energy Commission chairman Anil Kakodkar.

Indian nuclear community should not have any confusion regarding this as there are talks going around about using Thorium even before the fast breeder technology is matured, Kakodkar said, delivering Tata Institute of Fundamental Research Foundation day lecture.

Although country has large amount of Thorium and would be a priority for long time in the future, India has to follow the well thought out plan of three-stage programme of Homi J Bhabha as Thorium does not provide fast growth.

India needs fast growth and such growth can be sustained by fast breeder reactors (FBRs) with a multiplier effect.

"If you deploy thorium out of turn (before stage II maturity), which does not support growth out of turn, then you will not get large generating capacity," he said, talking on 'Developing Nuclear Technology for our energy independence: the grand challenge', in Mumbai on Monday.

Sensex down 182 pts in early trade

The Bombay Stock Exchange benchmark Sensex opened 182 points down on Thursday, tracking a weak global trend, on profit-selling by funds at prevailing higher levels after the recent hefty gains.

The 30-share barometer, which touched the 15,000 mark in intra-day trade yesterday after nine months, fell 181.86 points to 14,689.04 in the first five minutes of the day's trade.



The wide-based National Stock Exchange index Nifty was also down 54.35 points at 4,476.35.



Marketmen said selling pressure picked up on the domestic bourses, in line with a weak trend in the global markets, with investors locking in cash after a strong rally.

Rupee weakens by 17 paise against USD

The Indian rupee depreciated by 17paise to 47.24 against the dollar in early trade on Thursday as banks bought the currency (dollar) on behalf of importers and after the USD stabilised against a basket of currencies in Asian markets.

At the Interbank Foreign Exchange (Forex) market, the local unit, which had ended six paise costlier at 47.07/08 on Wednesday, fell further to quote at 47.24.



Besides the greenback strengthening against other Asian currencies, expectations of a weak opening in the equity markets, in tandem with other Asian bourses, affected the rupee sentiment, forex dealers said.



The Asian markets are trading low by 1.5 per cent in early trade on Thursday.

Indian growth unexpectedly strong

India's economy grew 5.8% in the first three months of the year compared with the same period last year, which was better than had been expected.

The official gross domestic product figure was down from 8.6% annual growth seen in the first quarter of 2008.

Although growth has slowed from last year, the economy is still expanding faster than most other countries.

It grew 6.7% in the full financial year, which was down from a rate of 9% in the year to the end of March 2008.

'Growth bottomed out'

"The GDP growth number justifies the claim that India is dealing with the global crisis from a position of strength," said Rupa Rege Nitsure, chief economist at Bank of Baroda in Mumbai.

"This means that growth has bottomed out, or at least the deceleration has stopped."

The figures are good news for the newly-elected Congress-led government, which has made reviving growth its top priority.

Among the sectors showing an improvement was farm output, which grew at an annualised rate of 2.7% in the first three months of 2009 having contracted 0.8% in the previous quarter.

Construction grew 6.8% in the period compared with 4.2% in the previous quarter.

But the manufacturing sector contracted an annual 1.4%, having grown 0.9% in the previous three months.

Obama 'helped' Opel rescue deal

German Chancellor Angela Merkel has revealed the US president helped swing a deal to save carmaker Opel from the imminent bankruptcy of its parent firm.

She said Barack Obama helped clear some hurdles threatening the transaction during a phone conversation.

Earlier, Germany agreed the deal with Magna International, a Canadian car parts maker, to take over Opel, part of the European wing of US carmaker GM.

It should protect Opel if GM files for bankruptcy protection in the US.

GM is expected to do this as early as Monday.

Marathon talks

"I spoke on the phone with the American president yesterday [Friday] and we were in agreement that we had to do everything possible to come up with a good results for this complicated task," Mrs Merkel told reporters in Berlin. "That conversation clearly influenced the negotiations last night," she said, adding that Mr Obama helped clear some hurdles over the financing of the rescue deal.

The deal was announced early on Saturday by German Finance Minister Peer Steinbrueck, following marathon talks between German politicians, US government officials and executives from General Motors and Magna.

"A solution has been found to keep Opel running," Mr Steinbrueck said.

He said that although it was impossible to exclude all risk, the deal agreed would safeguard Opel's sites in Germany and preserve "the highest possible numbers of jobs" there.

Berlin is expected to provide an immediate loan facility of 1.5bn euros ($2.1bn, £1.3bn).

The Canadian company has said it will put more than 500m euros ($700m; £435m) into Opel, which employs more than 25,000 people in Germany.

Significant numbers of workers are also spread around Spain, Belgium, Poland and the UK, where Opel cars are branded as Vauxhall for British customers.

Magna's bid was backed by Russia's state-run bank Sberbank and Russian magnate Oleg Deripaska's truck firm Gaz. The consortium hopes to see GM expand its reach into the Russian market.

Before the announcement of the deal, Magna said it planned to cut 2,500 jobs in Germany, about 10% of Opel's workforce in that country. Italy's Fiat, a former potential bidder, had said it would cut 10,000 jobs.

GM operations in Europe will now be placed under the care of a trustee to shield them from the parent company's filing for bankruptcy protection in the US.

GM ready to file for bankruptcy

Car giant General Motors is expected to file for bankruptcy protection later on Monday, marking the biggest failure of an industrial company in US history.

The stricken firm had until 1 June to present a viable revival plan in return for emergency government funding.

Reports say a majority of bondholders have now agreed to a deal giving them at least a 10% stake in what is likely to emerge as a much smaller company.

President Barack Obama is due to give full details at a news conference.

The BBC's Jonathan Beale, in Detroit, says Mr Obama is expected to announce $30bn (£18.5bn) in new funding for GM.

GM's sales have been hit hard by the financial crisis and the firm has received $20bn in state aid.

In return for more cash the federal government is reported to be receiving a stake of 60% in a new, leaner company due to be re-launched within 90 days.

Senior executives at General Motors have been making final preparations for completely restructuring what was once the world's largest car company, under judicial supervision.

A Chapter 11 bankruptcy filing by GM would rank as the third largest bankruptcy in US history following Lehman Brothers' collapse and the failure of telecoms giant WorldCom.

European deal

The restructuring is likely to drastically change General Motors, with some 20,000 workers thought likely to lose their jobs.Our correspondent says long-established subsidiaries Pontiac, Saturn and Hummer, as well as Saab, the remaining GM brand in Europe, are under threat as production plants are expected to close across the country.

GM's European arm is likely to be spared bankruptcy following a proposed deal by Canadian car parts maker Magna International to buy GM Europe's Vauxhall and Opel brands.

However, unions fear that jobs may be lost at Vauxhall plants in Luton and Ellesmere Port, which employ 5,500 people.

UK Business Secretary Lord Mandelson said he had received further assurance from GM Europe that Vauxhall production would remain in the UK.

Jobs may also go in Belgium, Poland and Spain.

GM, once the largest company in the world, has been losing market share since the early 1980s.It has been driven to bankruptcy because of high production costs and by the collapse in credit markets and consumer spending. It made losses of $30bn last year.

GM was also slow to move away from producing gas-guzzling SUVs when consumers were looking for more fuel-efficient vehicles.

Toyota sold more vehicles than GM in 2008, putting an end to the American company's 77-year reign as the world's biggest carmaker.

FM to hold pre-budget consultations today

Finance Minister Pranab Mukherjee will start the customary pre-budget consultations with different interest groups on Monday for preparation of the budget, likely to be presented in the first week of July.

Mukherjee will hold consultations with trade and industry bodies, economists, agriculturists, bankers and corporate honchos in the run up to the budget, which industry hopes will be growth-oriented.

"We will meet the FM for the pre-budget consultations on Monday," FICCI President Harsh Pati Singhania said as he plans to ask the government for steps to restore economic growth, ensure national security and improve governance.

Apart from industry bodies as FICCI, CII, ASSOCHAM and FIEO, industry sources say the Finance Minister will hold discussions with corporate honchos like Ratan Tata, Mukesh Ambani, Anil Ambani, Kumarmangalam Birla and Sunil Bharti Mittal.

"The regular budget 2009-10 exercises are underway in full swing," Mukherjee had said on Thursday pointing out that the Congress in its manifesto had promised to come out with the Budget within 45 days of the government formation.



Faced with the challenge of reviving the economy, impacted by the global financial meltdown and demand contraction, Mukherjee started consultations with the top Ministry officials on budget soon after taking charge last Monday.

He said the focus of the government would be "Aam Admi" (common man) and that the budget would address the problems of sectors like textiles, leather and gems and jewellery hit hard by the financial crisis.

With inflation at low levels, the industry bodies see no reason for interest rates not falling to single digit levels.



CII President Venu Srinivasan had earlier said that interest rates in India remain high compared to many other economies.

Industry bodies like CII, FICCI, ASSOCHAM and American Chamber of Commerce in India have already presented their pre-budget memorandum to Revenue Secretary P V Bhide even before the formation of the new government.

The Prime Minister Office has also started work on the 100-day action plan for the new government and at the same time different ministries are also finalising priority programmes for the first three months.

Oil prices rise towards USD 67 in Asian trade

Oil prices rose in Asian trade on Monday to near seven-month highs, fuelled by a rise in regional equities markets and a weakening US dollar, dealers said.

New York's main futures contract, light sweet crude for July delivery, rose 56 cents to USD 66.87 a barrel.

Brent North Sea crude for delivery in July advanced 54 cents to USD 66.06.


"Oil is heading up this morning. It's actually moving in sync with stock markets in Asia.... What's really supporting oil is primarily investors buying commodities as the US dollar weakens," said Victor Shum, an analyst with Purvin and Gertz energy consultancy in Singapore.


A weak US currency makes dollar-priced oil cheaper for holders of stronger currencies and in turn, tends to stimulate demand and push prices higher.



The US dollar is losing allure among investors amid growing signs of a recovery in the global economy as they seek higher yields from other foreign currencies, analysts said.


Investors usually favour the US dollar because of its safe haven status in times of economic uncertainty despite the low returns compared with other units.


However, Shum cautioned that the rally was "very fragile" as global energy demand remained weak.


"The reality is that there is a big contradiction confronting oil markets today. Fundamentals are very weak but oil prices have increased by 50 per cent since last December amid a glut of oil," he said on Monday.