Make stronger reforms, slash subsidies for economic recovery: Rangarajan

 
Underlining the necessitate for pump-priming the wealth by increasing reforms and decoration subsidies, Prime Minister's Economic consultative committee Chairman C Rangarajan on Monday said if India grew at 8 to 9 per cent every year, per capita GDP would rise to $10,000 by 2025.

He said that if this expansion rate was achieved "then India will also shipment from life form a squat profits to a focal point profits realm".

The renowned economist and previous RBI governor was talking on the topic "Indian Economy: instantaneous Challenges and middle Term Concerns" while delivering a sermon on NALCO's institution day.

Emphasising the need to conquer the present low expansion phase as rapidly as probable, Rangarajan said increase was the reply to many of the country's socio-monetary problems and more than a few schemes meant at expansion the pedestal of increase had been launched lately.

Stating that raising reserves and asset might take India back to the extremely elevated levels of expansion seen previous, he said calming price rises, containing present explanation shortage and ensuring economic consolidation were the main tasks requiring abrupt awareness.

While pains must be complete to hoist returns-GDP proportion, it is vital to check expenditures, above all subsidies which need to be pruned, well focussed and prioritised," Rangarajan says adding up "it is up to the government to choose which subsidies must take partiality over others."

What is wanted is to have a fasten on the quantum of subsidies to be provided as a quantity of GDP or of government returns, he said referring to government's hint at dipping subsidies from 2.6 per cent of GDP in 2012-13 to 1.6 per cent of GDP in 2015-16.

HC asks ONGC to pay royalty dues worth Rs 5,000-6,000 crore to Gujarat govt

 
Gujarat High Court has directed Oil and Natural Gas Corporation (ONGC) to pay dues worth Rs 5,000 crore to Rs 6,000 crore to the state government towards differences in royalty of crude the PSU has extracted since 2008.

A division bench headed by Chief Justice Bhaskar Bhattacharya and Justice JB Pardiwala on Saturday directed ONGC to pay differences in royalty of crude within two months and also pay royalty, henceforth, to state government at market rate.

According to the Oil Field Act, ONGC is required to pay 20 per cent royalty of the market value of crude oil it extracts from oil blocks to the state government.

ONGC used to pay such royalty to the Gujarat government but, in 2004, the Union government asked it to provide crude to Indian Oil Corporation (IOC) as burden-sharing mechanism, at a discounted rate because IOC was offering subsidies on diesel, kerosene and Liquefied Petroleum Gas (LPG) to consumers, resulting in huge losses to the latter.

Since ONGC started providing crude to IOC at a discounted rate, it started paying royalty to the state government at post-discount rate, resulting in drastic reduction in royalty to Gujarat.

The state also complained to the Centre in this regard.

In 2011, the state government filed a petition before the High Court, stating that it should be paid royalty at market rate and the difference in royalty payment since 2008 at pre-discount rate (in comparison to market rate) was computed at Rs 5,000 crore to 6,000 crore.

State government counsel Aspi Kapadia informed the court that ONGC, at times, provided crude to IOC at a huge discount of 96 per cent, which resulted in huge downfall in royalty payment to the state. The state, he argued, must be paid royalty at market price.

Directing ONGC to make payment of differences of royalty to the state within two months, the court also asked it to pay royalty, in future, at market rate.