The Finance Ministry is of the view that the Ninth Plan (1997-2002) GDP growth rate of seven per cent average per annum is not “unrealistic”, though it is a difficult task. Highly placed sources in the Ministry said that there are a lot of things “we have to do even to maintain 6.5 per cent growth” postulated for the current year, though this does not preclude targeting for a “seven per cent growth in the next quinquennium”. Asked about the reported differences between the Finance Ministry and the Plan panel at the recent full meeting of the Planning Commission, the sources firmly ruled out any such clashes, stating that “every time the Planning Commission argues for the size of the Plan, the Finance Ministry explains the resources available”.

FIs set terms to finance cellular telecom projects Financial institutions have told the promoters of cellular telecom projects in the State circles, including corporate houses such as the Birlas and the Tatas, that they will not finance their projects unless the sponsors agree to bear the cash losses beyond the base case projections. The FIs have also written to the Department of Telecommunications saying that in the event of DoT changing an operator, the institutional lenders should be allowed to select a new operator after calling for bids and completing the process of due diligence.

Additional norms will have to be met: RBI The RBI has said that proposals from financial companies for setting up ventures or subsidiaries abroad will be cleared only after they meet additional norms including a minimum net worth of Rs. 15 crores. These firms should also have a good track record of a minimum of three years.

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