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Chinese currency revaluation: Rupee may strengthen
Mumbai: According to analysts, the revaluation of the Chinese renminmbi is expected to strengthen the rupee and other Asian currencies though the appreciation of the rupee is unlikely to affect Indian exports.

On Thursday, the rupee gained 30 paise in the last hour of trading post the revaluation announcement. Other Asian currencies such as yen gained against the dollar and euro after China said it has given up the US dollar peg.

Following media enquiries, after the Chinese revaluation of its currency, the RBI issued a press release saying, "On a careful review RBI reiterates the continuation of the current exchange policy which has been enunciated in the Annual Policy for 2005-06."

Analysts said that the rupee is going to appreciate a little more and RBI will not intervene because of the high oil prices and the fact that all South-East Asian currencies are likely to appreciate as well.
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West Bengal and Jharkhand propose council of four eastern states
Kolkata: Jharkhand and West Bengal propose to rope in two other mineral-rich states in eastern India, Orissa and Chattisgarh, in order to form a council that would look after their "collective interest", Chief Minister Buddhadeb Bhattacharjee has announced here after a meeting with his counterpart from Jharkhand, Arjun Munda.

"There is a proposal to set up a council with four states, Orissa, West Bengal, Jharkhand and Chhattisgarh, to ensure the best possible use of mineral resources on the basis of collective interest," Bhattacharjee said. He said Naveen Patnaik, Orissa's CM, had agreed to the proposal.

The four states together control 70% of India's coal reserves. Jharkhand alone has 23% of the country's untapped iron ore reserves.

West Bengal and Jharkhand had experienced soured relations after Sajjan Jindal, chairman and managing director of Jindal Iron & Steel Co, announced plans last November for a Rs12,000-crore steel project in West Bengal, with the iron ore to be brought from Jharkhand. Jharkhand had objected to supplying ore for a project elsewhere. Orissa has also said it would give priority supplies to projects that come up in its territory.

The two chief ministers also agreed to work together on economic issues while protecting the interests of each state. "We will then go to Delhi together and meet the Prime Minister to finalise the framework," Bhattacharjee said. Munda told reporters that Jharkhand is ready to meet West Bengal's requirements once its own needs are covered.

Mittal Steel Co of London-based Lakshmi Mittal, the world's largest steelmaker, has been in talks with Jharkhand for a Rs30,000 crore steel plant and mine. Munda is scheduled to leave for a tour of European cities next week to hard sell his state's mineral resources.
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Patel calls for GoM to look into IA-Airbus deal
New Delhi: With the finance ministry stalling on the clearance of the purchase of 43 Airbus aircraft for Indian airlines, civil aviation minister Praful Patel has asked the Prime Minister to constitute a group of ministers (GoM) or committee of secretaries to look into the IA deal, and has even suggested that the Air India deal for the purchase of Boeing aircraft should undergo the same procedures.

Air India has decided to procure 50 Boeing aircraft at around $7 billion.

Patel said he had agreed with the suggestion of finance minister P. Chidambaram that IA should carry out a final round of price negotiations with European aircraft manufacturer, Airbus Industrie, to get a better deal for 43 planes. ''In this process, there could be some delay, but it will be in the long-term interest to get a better deal. One last attempt should be made to get a better price,'' he said.

The Civil Aviation Minister said he was in favour of the A-I purchase also following a similar process so that ''collective decision'' is taken on the two aircraft deals which together amount to over Rs40,000 crore. The PM's response is awaited as he left for the US around the time Patel sent the letter.

With allegations that other airlines like Air Asia (a south-east Asian low cost carrier) could have got their Airbus aircraft at cheaper rates, the finance ministry suggested another attempt before approaching the Cabinet Committee on Economic Affairs for a final nod.
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NDA to oppose FDI in retail sector
New Delhi: The National Democratic Alliance convener, George Fernandes, has said that the alliance would oppose the Congress-led Government's plans to allow foreign direct investment (FDI) in the retail sector.

"The NDA will raise the issue in the forthcoming monsoon session of Parliament and strongly oppose any such initiative. We will take to the streets and organise protests across India against it," he said.

Addressing a day-long all-India convention on retail trade, he said over four-crore families were involved in retail trade in the country and allowing FDI in this sector would not only render them jobless but also cause starvation.
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