Monday, June 1, 1998
Sinha walks tightrope between economy, politics
Nuclear clouds will overshadow the first regular budget to be presented by the BJP-led coalition government today which has to take care of the impact of economic sanctions and deteriorating security environment on one hand and increased aspirations of the people from new government on the other. Amid conflicting political compulsions and fiscal pressures, finance minister Yashwant Sinha will unveil his economic agenda to take the country to the 7-8% growth path with overall fiscal deficit not exceeding 5.5% of the GDP.
Foreign stake in power projects to be cleared through automatic window
All power-sector proposals inviting foreign equity will from now be cleared under the automatic route and not through the Foreign Investment Promotion Board. The FIPB, in a meeting held on Saturday, noted this in the context of two major proposals in the power sector: GVK Power (Krishnapatnam) Ltd and GVK Industries. Both the proposals will now be taken up under the proposed guidelines.
Bailout for cooperative banks in offing
The Union agriculture ministry has proposed injection of Rs 6,687.40 crore for recapitalisation and revamping of cooperative banks in the country over a period of five years. To begin with this programme, the ministry has asked for an allocation of Rs 1,337.48 crore in the ensuing Budget. The scheme is designed to improve the health of cooperative banks in the wake of the proposed commissioning of the National Cooperative Bank of India.
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