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Sunil Jain: Throwing money at the problem
India has a huge infrastructure problem and the solution so far appears to be to throw more money at the problem, without much effort to fix the core issues. A McKinsey analysis suggests India could lose up to around 10 per cent of GDP in the year 2017-18 due to shortage of infrastructure. While this is not a startling result, what is worrying is that the quality of expenditure has gone down with more money being spent. So, in the power sector, actual expenditures have fallen from 75 per cent of those planned in the 9th Plan period to a mere 58 per cent in the 10th one — roughly speaking, the 9th Plan was the NDA period and the 10th Plan the UPA’s first term.

SC issues notice to SET Satellite Singapore on tax issue
The Supreme Court has issued notice to Sony Entertainment Television Satellite (Singapore) Pvt Ltd on a petition seeking to tax profits of the Indian operations of the foreign entity through a dependent agent (SET India Pvt Ltd).

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About 74% investors prefer buying gold at current About 74% investors prefer buying gold at current Press Trust of India / New Delhi June 9, 2009, 11:39 IST
Among those who were willing to buy gold at current prices, the preference for purchasing jewellery was higher as compared to any other form of gold, a survey by brokerage firm India Infoline Ltd (IIFL) said.
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Changes likely soon in NREGS to address drought

Mukherjee, Pawar, Montek want it widened; announcement possible on Rajiv’s birthday. - Govt cuts minimum export price for basmati by $300/tn - Spending, borrowing to be within target: Govt - Govt not considering fresh farm loan waiver scheme: Pranab - Prices may go up due to erratic monsoon: RBI - FTP on August 27, to focus on job creation - Govt admits drought, but says no need to panic Scanty rainfall and drought in much of the country has got the Union government to mull the repackaging of its flagship National Rural Employment Guarantee Scheme. The government is likely to announce some changes in the scheme, to widen its scope, on Thursday, birthday anniversary of Rajiv Gandhi, the late prime minister. Finance Minister Pranab Mukherjee wants more water conservation projects to be taken up under this scheme, while Planning Commission deputy chairperson Montek Singh Ahluwalia and Agriculture Minister Sharad Pawar are batting for an increase in the number of guaranteed job days. Bihar chief Minister Nitish Kumar, who met Pawar today with a demand for a Rs 23,000-crore relief package for his state, also asked for removal of the 100-day cap in the NREGS. According to agriculture ministry sources, Pawar is also eager to see this happen. He is also in favour of inclusion of agricultural labour as NREGS work. Under the NREGS, the government is currently bound to provide a minimum of 100 days of employment in a year to a member of a family living below the poverty line (BPL). Interestingly, leaving aside its political battle against the Narendra Modi-run Gujarat government, the Congress and the UPA government have lauded the Gujarat model of utilising NREGS. In his meeting with the chief ministers on the drought situation on Monday, Pranab Mukherjee cited the work done by the Gujarat government on creation and restoration of water bodies. The government may fix a target for all states to spend on creation and restoration of water bodies. Gujarat had adopted a unique way of converging schemes under its water resource department with the NREGS, taking up projects on rain harvesting and group irrigation wells. In his Budget speech, Mukherjee also emphasised on convergence of various other schemes relating to agriculture, forests, water resources and rural development. The Expenditure Statement for Works for FY 2009-2010 of the NREGS shows the Gujarat government has earmarked 6,436 projects of water conservation and harvesting and 2,054 works of renovation of traditional water bodies out of the total of 17,992 works undertaken during this period. Meanwhile, one of the key players in the implementation of the NREGS, the Planning Commission, has also sought a raise in the number of job days under the scheme, to enable rural households get alternative employment for loss of income due to a poor monsoon. "We have to see whether the 100 days limit is adequate. If it is not adequate, we can increase it temporarily," Montek Singh Ahluwalia recently said. According to an agriculture ministry report, the total area under paddy has declined from 21.6 million hectares to 15.6 million hectares as of July 27. “Besides paddy, production of crops like bajra, coarse cereals and sugarcane have also declined.”


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