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Govt staff pay hike to cost $3 bn this yr.................New Delhi, March 24: The Sixth Pay Commission recommended a hefty increase in salaries of over four million central Government employees, a move that would cost the exchequer Rs 12,561 crore in 2008-09.

The Commission, headed by Justice B N Srikrishna, submitted its report to Finance Minister P Chidambaram recommending implementation of the revised pay from January 1, 2006, which would impose an arrear payout burden of Rs 18,060 crore on the Government.

The revised pays fixed the salary of Cabinet Secretary at Rs 90,000 a month and Secretary at Rs 80,000 per month, while making Rs 6,660 as the minimum entry level salary.

Recommending a substantial increase in allowances and other benefits, the Commission also suggested a 40 per cent increase in pension and family pension.

The bonanza to employees would take effect once the Cabinet considers the recommendations of the Sixth Pay Commission that was set up in 2006.

While the Finance Minister did not announce any provision in the Budget for the increased wage bill in 2008-09, he had maintained that there was enough head-room to meet the additional expenditure.

Recommending a 40 per cent hike for fitment in pre-revised basic pay, the report said: "The Commission is recommending a new structure of running pay bands and grade pay. In the structure, grade pay has been normally taken as 40 per cent of the maximum of the pre-revised pay scales."

"I have recommended something which is good for the nation", Justice Srikrishna told reporters after submitting the report to the Finance Minister.

The panel recommended the annual increment of pay at the rate of two-and-half per cent and the date for it as July 1.

Seeking a substantial hike in different allowances, the Commission recommended payment of arrears in two installments and said that out of the total one-time expenditure of Rs 18,060 crore, as much as Rs 12,642 crore will have to be borne in the union budget and the balance of Rs 5,418 crore in the Railway budget.

Recognising the hardships faced by the defence personnel, the panel put the military services' pay on par with those recommended for civilians, while suggesting an allowance of Rs 6,000 per month for officers till the rank of Brigadier and equivalent.

"A scheme of PRIS (performance related incentive scheme) has been recommended... PRIS should also work as a substitute for bonus, honorarium and overtime allowances," the report said.

Salary hike may dent India's fiscal gain.
Posted online: Monday , March 24, 2008 at 1310 hrs IST

Mumbai, March 24: A much-anticipated increase in salaries for government employees will threaten India's drive to consolidate its public finances and make a near-term cut in interest rates difficult, Morgan Stanley said on Monday.

The Sixth Pay Commission for federal government workers submitted its report to the finance minister on Monday but details are yet to be announced.

Morgan Stanley economists said in a research note they expected central government salaries and pension costs to rise by 300 billion rupees ($7.4 billion or 0.4 percent of gross domestic product) to 1.307 trillion rupees (2.5 percent of GDP) in the 2008/09 year.

Chetan Ahya, Tanvee Gupta and Sumeet Kariwala said this would be a 30 percent year-on-year increase in salary and pension costs for some 2.9 million central government workers.

They said the increase was likely to make state governments, with 7.2 million employees, and quasi-government agencies follow suit.

They estimated the combined wage and pension cost increase for central and state governments and quasi-government organisations would be 1.4-1.5 trillion rupees spread over the next three years.

"The combined effect of the pay hike and the recent farm loan relief spending of 600 billion rupees or 1.2 percent of GDP will decidedly reverse the six-year trend of reduction in government deficit," they said.

Such an expansionary fiscal policy would affect the central bank's ability to cut rates in the near term and a higher fiscal burden would come at a time when capital inflows may slow, potentially pushing up longer-term bond yields and steepening the yield curve.

On the positive side, the pay hike was likely to result in more discretionary and staple consumption, they wrote.

But discretionary spending was likely to face headwinds from tight monetary policy and public sector earnings could be negatively affected due to rising long bond yields and losses in treasury portfolios, they said.

IT stocks in demand
Capital Market
Monday, March 24, 2008 (New Delhi)
Infosys Technologies (up 1.52% to Rs 1362.25), Satyam Computer Services (up 0.60% to Rs 392.30), Wipro (up 4.43% to Rs 393.30), and TCS (up 1.85% to Rs 824.45), edged higher. The BSE IT index was up 1.29% to 3,413.03.

Infosys Technologies saw volumes of 1.59 lakh shares, Satyam Computer Services clocked volumes of 1.89 lakh shares), Wipro notched volumes of 1.06 lakh shares while 90,068 shares were traded on the TCS counter on BSE.

The BSE Sensex was up 96.04 points or 0.64% to 15,090.87 on positive cues from the global markets. On Thursday, 20 March 2008, US stocks closed their best week in nearly two months and are seen extending the solid rally this week, bolstered by the Federal Reserve's aggressive liquidity action.

The BSE IT index outperformed the market over the past one month to 19 March 2008, declining 12.47% as against the Sensex's 17.04% decline. It underperformed the market in the past three months, sliding 22.01% against the Sensex's fall of 21.75%.

Meanwhile, the Indian rupee was trading at 40.35/36 per dollar, stronger than Wednesday's close of 40.43/44. The currency market was shut on Thursday and Friday for religious holidays.

IT firms derive over 50% of their revenues from exports to US markets.

Hemen Kapadia , CEO , chartpunditcom Analyst Disclosure
MAHINDRA & MAHINDRA LTD Current: Rs 664.15 0.87% Open: Rs 655High: Rs 682Low: Rs 653.05
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HINDUSTAN UNILEVER LTD Current: Rs 235 4.31% Open: Rs 234.95High: Rs 236.6Low: Rs 226.25
0 Stop Loss: Rs 227 Sell: Rs 225.30 Target: Rs 221
BIOCON Current: Rs 389.9 -1.73% Open: Rs 400High: Rs 412Low: Rs 386
0 Stop Loss: Rs 400 Sell: Rs 396.75 Target: Rs 391
Simi Bhaumik , Tech Analyst , simibhaumik.com Analyst Disclosure
ANDHRA BANK LTD Current: Rs 68.65 -0.65% Open: Rs 69.1High: Rs 70.7Low: Rs 67.35
0 Stop Loss: Rs 72 Sell: Rs 69.20 Target: Rs 66
BHARTI AIRTEL Current: Rs 800.5 2.93% Open: Rs 790High: Rs 806Low: Rs 777
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TATA MOTORS LTD Current: Rs 662.35 1.83% Open: Rs 660High: Rs 667.5Low: Rs 651.1
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Ashu Kakkar , Tech Analyst , skypowerfinancialservices.com Analyst Disclosure
SATYAM COMPUTER SERVICES LTD Current: Rs 391.1 0.29% Open: Rs 393High: Rs 398.9Low: Rs 382.05
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NATIONAL ALUMINIUM CO LTD Current: Rs 478.25 7.32% Open: Rs 453High: Rs 484Low: Rs 440
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Buy: Rs 378 Stop Loss: Rs 375 0 Target: Rs 385

RIL TO SHUT DOWN ALL PETROL PUMPS.24-033-2008..........reliance has decided to close its all petrol pumps with in three months because government not granting subsidery.

Delhi Police’s `encounter specialist` Rajbir Singh shot dead

New Delhi, March 25: Delhi Police Special Operations Squad ACP Rajbir Singh, known as the "encounter specialist", was gunned down allegedly by a property dealer on the city outskirts late Monday night.

The ACP, who was shunted out of Delhi Police Crime Branch and returned in November last year to head its special anti-terror cell, was allegedly shot dead by Vijay Bharadwaj, a property dealer near Sukhrali village in Gurgaon.

Delhi Police spokesman Rajan Bhagat said that the shooting is believed to have taken place around 10:30 pm and they were informed about the incident by their counterparts in Gurgaon around midnight.

A Delhi Police team had been sent there to verify details and a statement on what exactly happened could only be made after it returns, he said.

Gurgaon Police Commissioner Mahendra Lal independently confirmed the incident.

Reports said the property dealer shot dead Singh over some monetary dispute.

The Assistant Commissioner of Police was transferred from the Crime Branch to Delhi Armed Police after allegations of his involvement in an illegal land deal last year.

The vigilance probe however gave him a clean chit and he returned to head the Special Operations Squad in November last year.

Meanwhile, Gurgaon Police said Vijay Bharadwaj had "confessed" before them that he killed the police officer over a monetary dispute.

"The accused has surrendered and confessed to the crime. It appears that the dispute was over the profit both of them got in a property deal," Gurgaon Police Commissioner Mohinder Lal said.

"He also said that he was trying to arrange the money to give to Singh for a long time and he could not," he said.

Lal said the accused had claimed that he even went to the extent of committing suicide.

The Delhi Police team which went to verify details about the incident has identified the body of the ACP, a senior police official said.

The body has been sent to the civic hospital in Gurgoan for postmortem.

Saudi Arabia assures world oil market of adequate supply

Dubai, March 24: Saudi Arabia, the world's largest oil exporter, has reiterated its commitment to stabilize the international market by ensuring adequate supply.

The assurance came after a meeting of the Saudi Arabia's Supreme Council for Petroleum and Mineral Affairs, which was chaired by King Abdullah.

The meeting, which reviewed world oil market developments, referred to the resolution taken by the last OPEC summit in Riyadh in which leaders said they would manage petroleum resources to ensure sustained development.

"The summit also emphasized OPEC's role in stabilizing the world energy market and realizing global progress and prosperity," the Saudi press agency quoted State Minister Dr Matlab al-Nafeesa, Secretary-General of the council, as saying.

"The council also emphasized the kingdom's desire for oil market stability, and ensuring supplies to different regions at all times to maintain world economic growth," he said.

The summit expressed its satisfaction over the progress of work at new investment projects in order to expand oil production and refine capacity.

"The kingdom will work with OPEC countries, other producers and consuming countries toward oil market stability and to avoid the effect of harmful speculation," the statement said.

US Vice President Dick Cheney this week visited the kingdom and discussed oil prices and other major issues with Saudi leaders.

BOB restarts Bahrain operation

Dubai, March 24: India's leading public sector bank, Bank of Baroda, has opened a wholesale branch in Bahrain, making the Gulf state the 25th country where it has international presence.

Bank of Baroda, the fifth largest bank in India, first established an offshore banking unit in Bahrain in 1980, which was closed in 1993 due to a forex crisis in India.

The new license, granted by the CBB, marks the return of Bank of Baroda to Bahrain.

Indian ambassador Balkrishna Shetty opened the new branch along with Central Bank of Bahrain (CBB) deputy governor Dr Anwar al Sadah in Manama yesterday.

"The CBB welcomes the return of Bank of Baroda to Bahrain. This reflects the bank's confidence in Bahrain and the resilience of our financial market," Sadah said.

The wholesale banking industry represents 80.5 percent of the consolidated assets of Bahrain's banking system, which stood at USD 220 billion in august last year, an increase of 32 percent over the same period in 2006.

India may impose restrictions on cotton exports: Report
Mumbai - The Central government may impose restrictions on cotton exports to ensure adequate availability for Indian weavers and to boost exports of value-added cotton goods,

Sensex closes 928 pts up; records second-biggest gain ever

The Bombay Stock Exchange benchmark Sensex closed 928 points up on Tuesday to record its biggest gain in two months, as market participants indulged in brisk buying in heavy-weight stocks including ICICI Bank and Reliance industries. The Sensex spurted to record a gain of 928.09 points at 16,217.49. The National Stock Exchange index Nifty too closed up 267.65 points to 4877.50.