Chidambaram projects seven per cent GDP growth in FY06
New Delhi: Finance Minister P Chidambaram has projected a seven per cent GDP growth this fiscal and has promised to keep inflation under control and ensure low interest rates.

"We have managed to contain inflation at moderate levels, interest rates are benign and the GDP is expected to grow by about 7 per cent this fiscal," he told a news conference.

"Government will attempt to keep inflation under control," he said.

While RBI and ADB have projected GDP to grow by 7 per cent in the current fiscal, the IMF expects it to be at 6.7 per cent. The United Nation's Escap and NCAER have pegged it at 7.2 per cent.

Chidambaram also said agriculture is expected to grow at three per cent while manufacturing and services will continue to do well.
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Govt. to divest ten per cent stake in BHEL
New Delhi: The Cabinet has given clearance to the Government to sell ten per cent stake in Bharat Heavy Electricals Ltd (BHEL) through the book-building route.

Finance Minister, P. Chidambaram, has said that the proceeds would not be reflected in the Budget and would go into the National Investment Fund (NIF), of which 75 per cent would be utilised for projects related to health and education and the remaining 25 per cent would be used for reviving sick public sector units.

Currently, the Government holds 67.72 per cent stake in BHEL, and with this investment it would come down to 57.72 per cent after the sale. The equity shares, with a present face value of Rs10 each, would be split to enable small investors to participate in the issue, the Minister said.

But the exact ratio of the split would be decided in consultation with the Department of Heavy Industries and the Department of Disinvestment, and the price would be fixed after the lead manager to the offer is appointed, Chidambaram said.

The Finance Minister stated that the Left parties had been consulted on the issue. However, the Left parties have opposed the Government decision to sell stake in a navaratna PSU and have asked it to reconsider, since it is against the principles laid down in the National Common Minimum Programme (NCMP).

The proposal okayed by the Cabinet today reserves 15 per cent of the offer for BHEL employees.
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