Relief for 6 fertiliser units
The Centre has finally decided to grant deemed export benefits to supplies made to six major fertiliser projects, including those of Madras Fertilisers and Indo-Gulf. which are expansion projects. This move has come as a major relief to the fertiliser industry as non-availability of this Concession was pushing up project costs. After prolonged consultations with the Ministry of Finance, the Commerce Ministry has stated that the Gadepan project of Chambat Fertilisers & Chemicals Ltd, the Aonla and PhuJpur expansion projects of IFFCO and the Vijaipur expansion project of NFL are eligible for the deemed exports benefit
The rupee touched a fresh low of Rs. 36.72 against the dollar today. Intervention by the RBI, which was reported to be on a limited scale, failed to stem the rupee’s slide to its new low. Opening at Rs. 36.11/14 to the dollar, the Indian currency lost way on sustained demand for dollars to plumb new depths. Forex market dealers said by midday the rupee had reached Rs. 36.67/69 on heavy demand for the greenback. Intervention by the RBI, which sold dollars, at the stage temporarily reversed downward trend.
Trade deficit widens
The country’s trade deficit during the first nine months of the current financial year has registered a 75 per cent increase over the deficit of $ 2.011 billions registered during the corresponding period of the previous year. Official trade data for April-December 1995 indicates a deficit of $3.53 billions. $1.52 billions higher than the deficit during the corresponding period of-1994. This is despite a drop in the monthly deficit to $199.82 millions during December 1995, compared to $516.35 millions in November 1995.