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PM
reviews economy
RBI may inject more
liquidity
New Delhi,
Nov 17 (PTI):
The Reserve Bank is likely to announce fresh measures to inject more
funds into the cash-starved banking system following a meeting of
the Prime Minister-chaired committee on tackling the global turmoil.
"The meeting considered certain steps and RBI will look at them...
Various methods of injecting liquidity through repo and reverse repo
(short-term) rates were discussed," Commerce and Industry Minister
Kamal Nath told reporters after the meeting. Asked how soon the
measures would be announced, Nath said, "This will happen in due
course...it will not take long. The government is conscious of the
fact that the Prime Minister himself is monitoring (the situation),
which means the action would be taken soon."
The meeting was
also attended by Finance Minister P Chidambaram, Planning Commission
Deputy Chairman Montek Singh Ahluwalia and RBI Governor D Subbarao.
To a question on the job cuts, he said the government would not
hesitate to raise tariffs sharply wherever cheap imports were
causing injury to the domestic industry. The meeting looked at
liquidity issues, especially in housing, construction and
non-banking financial sectors.
The RBI has
unlocked Rs 2.75 lakh crore during the last a few weeks through cuts
in various mandatory deposits that banks need to keep with the
central bank. It also allowed housing finance companies to borrow
short-term funds from overseas sources.
However, despite
the measures taken by RBI, the liquidity condition and high interest
rates continue to be a matter of concern for the industry. On
monetary measures, Nath said certain steps were considered at the
meeting, and the Reserve Bank would be looking at them, and
thereafter, decisions might follow. "It is recognised that liquidity
is an issue and liquidity issue should not become insolvency issue,"
Nath stressed. He further said that both fiscal and monetary issues
are needed to address the current economic situation. "Just one
alone is not adequate," he added. Asked about relaxations on
pre-shipment and post-shipment credits, he said, "Pre-shipment
credit has been relaxed, while in post-shipment, there is a question
of moving it from 30 to 60 days to 180 days, which is going to be
considered."
On Export Credit
Guarantee Corporation of India, he said, "Exim Bank is going to look
at having corresponding trade arrangements with other countries'
export-import banks, so that the lines of credit can be worked out."
'BJP won't
tolerate maligning of seers'
New Delhi,
Nov 17 :
Sangh Parivar on Sunday openly came out in support of the Malegaon
blast accused. According to agency reports, among those present at
the Panipat conclave was Uttarakhand chief minister B C Khanduri.
Khanduri, who retired from the Army as a Major General, has never
been seen as a favourite of the Sangh leadership who seemed to back
B S Koshiyari for the CM's job after the polls. The Panipat meeting
saw BJP chief Rajnath Singh competing with VHP leaders in expressing
solidarity with the Malegaon blast accused.
"Politics in
India has always had a deep relationship with religion. I, on behalf
of the BJP, want to assure the seers that maligning of their name by
the UPA will not be tolerated by the party," Singh was quoted as
saying. "These investigations are inspired by political motives,"
the BJP chief added. But VHP's Singhal was far more aggressive in
defending the alleged godmen who have been named by Maharashtra's
ATS as suspects in the Malegaon case. The international president
of VHP said the arrests were part of a larger conspiracy by UPA
under Sonia Gandhi to undermine the Hindu faith. "The harassment and
arrest of Kanchi Shankaracharya on murder charges was planned by
her," Singhal said.
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