GDP growth of 8% achievable in 2-3 years following path of fiscal prudence: Chidambaram

GDP growth of 8% achievable in 2-3 years following path of fiscal prudence: Chidambaram

Sep 24,2014   10:30 Hrs IST

Former Finance Minister P Chidambaram said that India could achieve 8% growth in the next 2-3 years if it followed the path of fiscal prudence, which could be financed by domestic savings and some foreign direct investment. However, he underscored that growth beyond 8% would bring its own set of problems as it is bound to become inflationary, which will exacerbate fiscal deficit. It would lead to additional borrowing, which in turn would enlarge twin deficits, i.e. fiscal deficit and Current Account Deficit (CAD). Further, Chidambaram emphasized that if the government continued to remain on the path of fiscal prudence, promotes savings and investments, and be more diligent in implementing projects, it would be possible to get back to 8% growth. The Indian economy grew by 4.9% in 2013-14 fiscal. However, in the April-June quarter, the growth picked up to 5.7%. Notably, the country clocked an enviable 9% growth during pre- global financial crisis in 2008. Also, he highlighted that the key to control inflation was to contain fiscal deficit, which the government aims to bring down to 4.1% in the current fiscal from 4.5% in 2013-14. The minister pressed upon the need for financial sector reforms to achieve 8% growth. It added that FSLRC (Financial Sector Legislative Reforms Commission) had made far reaching recommendations, some are legislative, some are non-legislative in nature and the Non-legislative recommendations should be carried out over a period of next 2-3 years. The minister also lauded the Modi government's decision to do away with the Planning Commission and suggested to put in place a small body of not more than 100 people in its place, who could do prospective planning, and lay out the future roadmap.

Thermax soars as JV bags export order worth Rs 339 crore

Thermax soars as JV bags export order worth Rs 339 crore

Sep 24,2014   09:27 Hrs IST

Thermax is currently trading at Rs. 937.05, up by 48.40 points or 5.45% from its previous closing of Rs. 888.65 on the BSE. The scrip opened at Rs. 935.00 and has touched a high and low of Rs. 950.00 and Rs. 929.20 respectively. So far 6,069 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 989.70 on 02-Jul-2014 and a 52 week low of Rs. 578.00 on 01-Oct-2013. Last one week high and low of the scrip stood at Rs. 950.00 and Rs. 843.45 respectively. The current market cap of the company is Rs. 11,165.00 crore. The promoters holding in the company stood at 61.98% while Institutions and Non-Institutions held 22.99% and 15.03% respectively. Thermax’s joint venture (JV) - TBWES has received an export order from B&W PGG for detailed engineering, manufacturing and supply of selective items for two pulverized coal-fired boilers for an international project. The contract value is approximately Rs 339 crore. Thermax Babcock & Wilcox Energy Solutions (TBWES) is a JV between Thermax and US based Babcock & Wilcox Power Generation Group, Inc. (B&W PGG). The contract, booked in the second quarter of 2014, involves detailed engineering, manufacturing and supply of boiler pressure parts, critical piping, pulverisers, plate work for casing, ducts and hoppers. The contract also includes the supply of ancillary items, including valves, dampers, expansion joints and instrumentation items. Detailed engineering and supply of material are scheduled to be completed within 21 months for the first unit and 24 months for the second unit. Thermax, a leading energy and environment solutions provider, is one of the few companies in the world that offers integrated innovative solutions in the areas of heating, cooling, power, water and waste management, air pollution control and chemicals.