14.09.2007

• How much is our crude basket costing now?
• $74.97 per barrel.
• The oil marketing companies are making huge losses on the sale of fuels; but the government is in no mood to increase the oil prices.
• What are the core sectors in our economy?
• Cement, Steel, Coal, Power, Crude oil and petroleum refining.
• South Africa losing its title as the largest gold mining country?
• If reports are to be believed; yes that is what is happening.
• Its gold mines are very old, and ageing.
• It is Chinese mines that are picking up now. In the first six months of this year, Chinese mines produced 129 tonnes while South Africa’s production was at 134 tonnes. While China’s production is growing, South Africa’s is declining.
• NHAI being reorganized
• NHAI was constituted by an Act of Parliament to construct, maintain and manage the national highways in the country.
• Now it is seeking greater autonomy in awarding contracts to private firms and increasing the number of board members.
• When or how did the farm subsidies start in the US?
• Soon after the great depression of the 1930’s conditions were very dire. Farm income became a third of what it was in 1929; agricultural prices were down more than 50%. It was then the US government headed by Franklin D Roosevelt signed the AAA (Agricultural Adjustment Act) which empowered the government to control crop production and pay farmers to limit plantings. That is how subsidies were born.
• But today the US, in spite of being the largest food exporter of the world, still gives out farm subsidies. While in 1932, it had 6.7 mn farms, and the farmers numbered about 25% of the country’s population, today there are 2.1 mn farms but the farm population is a mere 2% of the total.
• What are white goods and what are brown goods?
• White goods: These are appliances such as washers, dryers and refrigerators. The term was originally derived from the white porcelain finish of the appliances.
• Brown goods: Items that are typically used for audio, video, telecommunications, or computing purposes, including any item that contains a picture tube or cathode ray tube, or electronic circuitry and circuit boards.
• In spite of the slowing IIP growth seen in the recent months, how can you say that the future industrial growth is likely to be good?
• If you are asked such a question, what could be your answer? The answer comes out of the opinion of an expert. It goes like this:
• The answer lies in capital formation which is actually picking up on a quarterly basis. Though the growth in the capital goods sector has seen a decline on y-o-y (year on year) basis in July 2007, on a quarterly basis this sector had shown a robust 21.8% growth in the first quarter of the year, which is marginally higher than the 21% growth seen last year. This is what signifies continuity in the sound capital formation to support future industrial growth.
• What is the mandate for Indian banks in regard to conformance with Basel Norms?
• Local commercial banks with overseas offices have to adopt the Basel II norms latest by March 2008.
• Those with only local presence have time until March 2009 to fulfil these norms.
• Old Age Pension Scheme -- expanded
• The Central government has expanded the scope of this scheme by including all senior citizens above 65 years of age and living below poverty line. At present the scheme is applicable only to destitutes above the age of 65 years.
• INS Jalashwa joins Eastern Fleet
• It is the first LPD – Landing Platform Dock, ship that is purchased from the US.
• In its earlier avatar it was the USS Trenton. It was commissioned by the US Navy in 1971.
• India purchased this ship for a little less than $50 mn.
• It can carry 1000 troups (apart from the ship’s crew) and about 110 medium sized vehicles.