Govt to ask for $1b assistance from ADB, World Bank
New Delhi: India is seeking assistance to the tune of $1 billion from the Asian Development Bank (ADB) and the World Bank for the proposed revamp of the short-term co-operative credit structure based on the Vaidyanathan panel recommendations, according to the Finance Minister, P. Chidambaram.

The total cost of the rehabilitation of the short-term cooperative credit structure is estimated to be about Rs 10,000 crore. "We would be happy to have ADB as one of the partner who puts resources for this critical programme linked to the agriculture sector," said Chidambaram at a press conference here.

He also asserted that borrowing from ADB and World Bank was a reflection of India's strength and not its weakness. He said India was a founder member of the ADB and the fourth largest shareholder after the US, Japan and China. India has a 6.38 per cent stake in ADB's paid-up capital and this translates into voting power of 5.4 per cent.

The Finance Minister said that the level of borrowing from ADB is likely to be ramped up from the current level of $1.2 billion a year to about $2 billion a year by 2009.
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Indian cos sign four MoUs with German cos
Hannover: Four MoUs were signed between Indian and German companies in the presence of Prime Minister, Dr Manmohan Singh, and the German Chancellor, Ms Angela Merkel. This included a $1-billion deal by Kingfisher Airlines with Airbus Industries for acquiring five A 340-500 long-haul aircraft. The aircraft would be used for non-stop service between India and the US. The fresh deal with Airbus is in addition to aircraft already purchased by Kingfisher Airlines.

The Kingfisher Airlines chairman and managing director, Vijay Mallya, and the Airbus President and CEO, Gustav Humbert, signed the agreement. Mallya said the aircraft are expected to be delivered in 2008 and would be deployed for non-stop flying to New York and San Francisco.
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Govt putting new retail FDI model in place
Hannover: The government is planning an alternative model to open the doors for retail FDI that would take care of domestic concerns and yet give foreign players a chance to set up shops here.

Commerce minister Kamal Nath said he would encourage foreign companies in the retail sector to develop their back-end operations, which would also help small producers and farmers to benefit from the opening up of these chains.
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Pakistan asks for more sugar from India
New Delhi: Pakistan wants one lakh tonnes of sugar from India to reduce the growing import cost of sugar from other sources, including Dubai.

The Minister of State for Commerce, Jairam Ramesh, said the Commerce Minister of Pakistan, Humayan Akter Khan, asked him to create congenial conditions for enabling Indian sugar exporters to bid for the sugar import tender Islamabad is to open this week for 50,000-one lakh tonnes.

The Indian Sugar Exim Corporation (ISEC) had exported 50,000 tonnes of sugar during the past four months.
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Government may waive off screening of Chinese firms
New Delhi: The government is planning to waive off a lengthy security clearance procedure imposed on Chinese firms by the home ministry. The background check on the promoters and key functionaries of Chinese companies wanting to invest in India may also be cast aside.

For companies from companies from other countries such background checks are conducted only if the investment proposal pertains to sensitive sectors. But with India trying to get more investment from China, the government is planning to treat Chinese companies on a par with companies from other countries.

As a part of the government strategy, the Chinese companies may even get fast-track clearances for investments in sectors in which the government allows 100 per cent foreign investment. For sectors with sectoral caps, the normal course of clearances will have to be taken. Till now, even in sectors in which foreign investment was allowed through the automatic route, Chinese companies had to wait long for approvals.
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