Resolve KG ,3G and CMIE Reports

Resolution of problems related to natural gas production at the Krishna-Godavari basin and re- farming of telecom spectrum are necessary to revive India's economic growth, industry body chamber said.

Power plants and fertilizer units are not able to operate because of the shortage of natural gas, it said, adding that gas pricing and production issues related to the KG basin must be tackled quickly to address fuel shortages facing these crucial sectors.

Refarming (or reallocation) of airwaves has been recommended by telecom regulator Trai. It has said that existing operators give up the spectrum in 900 MHz band when their permits come up for renewal starting November, 2014.

The operators will be given the option to buy replacement airwaves in the 1800 MHz band, believed to be less efficient.

"For tackling issues like high inflation, the monetary and fiscal authorities must also work in tandem," it said, adding that handling inflation in the middle of slowdown remains one of the biggest challenges for regaining the growth momentum.

It has suggested free movement of agriculture commodities and support to various industries in augmenting the supply of goods and services for reducing the inflation.

Besides, it said that in the forthcoming Budget 2013-14, the government should aim at spurring growth rather than enhancing revenues.

"The forthcoming Budget should primarily aim at growth and not on revenue generation to the exchequer," it said, adding that the growth of the economy will naturally result in higher revenue for the government, thus bridging the fiscal gap considerably.Centre for Monitoring Indian Economy (CMIE) has said.

Net investment announcements by the private sector at Rs 35,368 crore and by the government at Rs 23,126 crore were the lowest since September 2004 quarter, CMIE said in a monthly review.

Barring Kerala, Punjab and Himachal Pradesh, investment announcements during the April-September period this year remained substantially lower than the average in the last four quarters, CMIE said.

All industries with the exception of steel, electricity distribution and road transport saw a sharp fall in new investment announcements.

New investment announcements have been falling for the past three years. The prime reason was huge pipeline of projects since 2004-05 when the capex boom started.

From Rs 3 lakh crore in 2003-04, new announcements peaked at Rs 22.6 lakh crore in 2008-09.

Promoters went slow there onwards, and announcement fell gradually to Rs 16.6 lakh crore in 2009-10, Rs 15.08 lakh crore in 2010-11, Rs 10.3 lakh crore in 2011-12 and further to Rs 3 lakh crore in the first half of 2012-13, according to CMIE.