Property Slows In India

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Sales of plush apartments have slowed and Indian Property investors are now targeting lower to mid-end house owners in the booming economy now that

Number of families earning more than Rs 2 lakh a year is set to double to around 20 million in the next two years, demand for small and simple apartments is set to mushroom.

The property market has boomed since India eased rules on inward investment in the construction industry in early 2005, partly fuelled by pledges by foreign investors that they will pump up to $2 billion into the country. But government figures shows only about $2 billion has actually been spent in the last three years.

Real estate prices have cooled in the last six months. Read more

Popularity: 29% [?]

The Prices Refuse To Come Down Despite Measures

India’s inflation rate has shot up to a three-and-a-half-year peak of 7.57 percent. The inflation has been primarily driven by higher food prices and some metals. the government has assured that the prices would come down very soon.

The wheat procurement by government agencies this season have crossed 150 lakh tones. Read more

Popularity: 25% [?]

Reliance Power Buys 3 Coal Mines in Indonesia

Anil Ambani controlled Reliance Power Ltd has acquired three coal mines in Indonesia in an attempt to produce power at a cheaper cost. Coal from Indonesian mines will be used for power generation in Maharashtra and Andhra Pradesh.

The company, however, has not disclosed the valuation for the acquisitions. A Reliance Power release said the company plans to invest $1 billion (Rs. 4,100 crore) for the expansion of these mines.

The announcement had little impact on the company’s share price, which closed at Rs. 396.75, up 0.62 percent, on the Bombay Stock Exchange on Friday when the benchmark Sensex was up 323.96 points to close at 17611.27. Read more

Popularity: 30% [?]

Car Prices About To Rise

Cars are going to be expensive from next month. Manufactures are set to raise prices as increasing input costs, especially that of steel, has begun to impact their profitability.

Maruti Suzuki would hike prices of its cars “in next few weeks”.

General Motors India planned to increase its car prices by Rs. 3,000 to Rs. 15,000 soon. Read more

Popularity: 21% [?]

Pay Panel Announces Bonanza For Govt Employees

Sixth Pay Commission on Monday recommended 20-40 percent hikes for central government employees at various levels, with effect from January 1, 2006.

It has also proposed liberal increases in assorted allowances.

Tuition fees can be reimbursed up to Rs. 1,000 per month per child. Transport allowance has quadrupled to RS. 3,200 and a more generous pension scheme. Read more

Popularity: 27% [?]

84 Percent Of Indian Business Pay Bribes

A new report on fraud has now confirmed what we all knew. More than 84 percent of the respondents in a survey have said that business in India pay bribes or facilitation payments to get their work done.

More than 60 percent of the executives who replied said that their companies experienced fraud in the last two years.

This figure has risen significantly from just 39 percent in its last survey in 2006. Read more

Popularity: 18% [?]

Inflation Goes Up, Hits 9 Months High

Finance minister says it’s a cause of worry

Chances of any immediate cut in interest rates faded Friday with the government reporting a further spike in prices that have driven the inflation rate to a new none-month high.

Official data showed that wholesale price index rose by a worrisome 5.11 percent in the week ended March 1 from a year ago, up from the previous week’s 5.02 percent. Read more

Popularity: 17% [?]

A Look Into Union Budget of India 2008-2009

Finance minister P Chidambaram presented union budget 2008-2009 today. Here the main highlights of the budget

Total Expenditure

• Total plan spending in 2008/09 - 2.4 trillion rupees ($60.3 billion).
• Non-plan spending seen at 5.07 trillion rupees.

Farmer Loan Waived

Government to waive debts of small farmers. The total cost of the farm debt waiver scheme will be 600 billion rupees.

Fiscal Deficit

• Fiscal deficit in 2008/09 seen at 2.5 percent of GDP compared to 3.1 percent of GDP in the previous year.

• Revenue deficit seen at 1 percent of GDP in 2008/09 compared to 1.4 percent of GDP the previous year.

Expected Growth

Government confident of GDP growth of 8.8 percent in 2007/08. Read more

Popularity: 47% [?]

No New Taxes in 5200 crore Budget of Municipal Corporation of Delhi

The Municipal Corporation of Delhi’s budget for 2008-09 was passed on Monday, amid loud protest by opposition members. The budget is for a whopping Rs. 5,200 crore and does not carry any new taxes,

MCD plans to earn Rs. 300 crore from civic centers and Rs. 100 crore from car parking sites charges, among other heads.

The highlight of the budget is creation of a ‘Special Project Fund Escrow Account’ for about Rs 503 crore, envisaging a dedicated fund for development works.
Read more

Popularity: 13% [?]

State Bank To Release Rights Issue On February 18

The State Bank of Indian (SBI) would open the Rs. 16,000 Crore rights issue of Indian’s largest bank, on February 18.

A rights issue is an invitation to existing shareholders to acquire additional shares at a price that is normally lower than the current market price of the old shares. It is issued in a set ratio to those shares that are already held. Read more

Popularity: 11% [?]

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