Manmohan lets the money do the talking - Statesman Manmohan lets the money do the talking - Statesman

Tuesday, May 29, 2012

Manmohan lets the money do the talking - Statesman

Manmohan lets the money do the talking - Statesman

Manmohan lets the money do the talking

28 May 2012

India extends $ 500-mILLION line of credit to Myanmar

manash ghosh
NAY PYI TAW, 28 MAY: On the second day of Prime Minister Manmohan Singh's visit to Myanmar  both India and Myanmar today in an unprecedented move signed a slew of agreements and MOUs covering almost all aspects of their bilateral ties which promise to bring these two neighbouring countries closer than ever before and to not allow their territories to be used by terrorists. But one of the most significant MOUs concerned the granting of $500 million line of credit by India to Myanmar which this country will utilise for upgrading its agriculture, irrigation, rail  transportation and electric power system. After the signing ceremony Prime Minister Manmohan Singh said the MOU and  agreements will usher in a new era of cooperation for mutual development. He said India's economic growth was there to help Myanmar to march further on its path of progress.. The captains of the Indian industry like Mr Sunil Mittal  and Mr Navin Jindal, who are part of the Indian  delegation, called the signing of the MOUs a historic event. Both said that this was the right time for the Indian industry to come and invest in Myanmar in a big way. Indian industry should not miss this opportunity to make its contribution to Myanmar's economic and all round growth possible."For Indian investment in Myanmar this is the most opportune time. It's now or never", they said.  
But a more significant MOU signed by both sides concerned the socio-economic development of India-Myanmar border areas. It proposes to bring this geographically strategic isolated area of India's North-east  into sharp development focus and significantly improve its connectivity. The most ambitious project to be undertaken jointly by the two countries along with Thailand involves the construction of a road from Moreh to Mae Sot in Thailand via Myanmar.  .A land customs station will be opened at Zorinpui in Mizoram to promote border trade between Mizoram and Myanmar. The border trade points on the Indian side will have banking facilities. Border haats like those on the India-Bangladesh border too will be set up along North-east's border with Myanmar. A host of other projects will be taken up on both sides of the India-Myanmar border which will upgrade roads and highways, construct schools and health centres, bridges and promote agriculture related training activities. India has offered assistance for the production of large cardamom in the Naga Self Administered zone in the Naga inhabited areas in Myanmar bordering India's North-east. Both sides have agreed to ensure border  security through cooperation and exchanging intelligence inputs.  India has decided to help Myanmar in higher education and has offered scholarships and fellowships to Myamarese researchers.
The agreements signed by both the countries have attracted snide comments from Beijing.

Indian firms start moving in

NAY PYI TAW, 28 MAY: Private Indian companies have started moving in but the volume of their investment is negligible compared even to those of Thailand and Singapore. India is the fourth largest trade partner of Myanmar (second largest export destination and seventh largest import source) next to Thailand, China and Singapore though it has the potential to be the first. As one Myanmar official put it aptly " We are like long forgotten friends of India which suddenly has discovered that we still exist." The official said it would have made a lot of sense if the Indian Prime Minister had brought with him here some of the North-eastern chief ministers which would have made the outcome of his visit more meaningful and spectacular. After all he had made this unique experiment during his visit to Dhaka last year. A repeat of that would have contributed significantly to the visit's substance and outcome. Because a large part of the last two days’ talks between the leaders of the two countries centred around the improvement of infrastructure,
connectivity and trade between the North-eastern states and the adjoining provinces of Myanmar. mg



Forex: NZD/USD down as risk appetite remains subdued - FXStreet.com
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Money for miles: More states looking to tolls to pay for highways - News and Tribune.com

WASHINGTON — Driving onto an Interstate highway? Crossing a bridge on the way into work? Taking a tunnel under a river or bay? Get ready to pay.

With Congress unwilling to contemplate an increase in the federal gas tax, motorists are likely to be paying ever more tolls as the government searches for ways to repair and expand the nation’s congested highways.

Tolling is less efficient and sometimes can seem less fair than the main alternative, gasoline taxes. It can increase traffic on side roads as motorists seek to evade paying. Some tolling authorities — often quasi-governmental agencies operating outside the public eye — have been plagued by mismanagement. And some public-private partnerships to build toll roads have drowned in debt because of too-rosy revenue predictions.

Tolls are hardly a perfect solution. But to many states and communities, they’re the best option available.

“It’s very hard in this environment for states to add capacity without charging a toll because they can’t afford to do it,” said Joshua Schank, president of the Eno Center for Transportation, a Washington think tank. “They’re barely able to maintain what they’ve got, and there is an urgent need for capacity.”

Some changes are already under way

WHAT’S NEW

In addition to the tolls allowed on Interstates in 15 states, mostly in the Northeast and Midwest, the U.S. has agreed to pilot toll projects on Interstate 95 in Virginia and North Carolina and on Interstate 70 in Missouri.

A commission created by Congress to recommend ways to pay for upkeep of the nation’s transportation system predicted in 2009 that the U.S. will face nightmarish congestion unless it spends more. The commission estimated all levels of government were spending a cumulative $137 billion less each year than is necessary to maintain and expand the current system. Without action, there will be a $2 trillion-plus backlog by 2035, it said.

It’s been nearly two decades since Congress last increased the federal gas and diesel taxes that have historically paid for highways. Meanwhile, the cost of road and bridge construction has gone up and the purchasing power of fuel taxes has declined by more than a third. Revenue is also down because people have been driving less due to the uncertain economy and because cars are becoming more fuel-efficient.

Federal and state fuel tax revenues peaked in 2007 at $72.4 billion, then dropped to $68.6 billion in 2010, the most recent year for which data are available. Meanwhile, state toll collections rose from $4.9 billion in 2000 to $8.9 billion in 2010, and locally administered tolls rose from $1.6 billion in 2000 to $2.5 billion in 2009.

The trust fund that pays for federal highway programs is forecast to go broke sometime next year, though the House and Senate are trying to negotiate a bill to shore up the funding and overhaul transportation programs. It’s unclear whether they’ll reach a deal, but if they do, it’s likely to contain only a short-term financial fix. That means lawmakers will be back again, scratching for more.

EASY WAY OUT?

Tolling is the easiest near-term way to pay the bills, says Robert Atkinson, who chaired the financing commission.

“If you could allow modest tolling on Interstates, you could raise a lot of money,” he said.

Fifteen states, mostly in the Northeast and Midwest, that had turnpikes before the 1956 advent of the Interstate system have grandfathered permission to collect tolls on 2,900 miles of the 47,000-mile system. But federal restrictions prevent other states from placing tolls on federal-aid highways except in limited circumstances.

States want Congress to increase their ability to charge tolls and to allow them to use the money for a variety of transportation needs — not just upkeep of the roads where tolls are collected, said Eugene Conti, North Carolina’s transportation secretary, at a Senate hearing last month.

But states also have a history of slapping tolls on roads traveled by a large share of out-of-state motorists. When Pennsylvania applied to put tolls on Interstate 80, a route favored by truckers, the federal government rejected the plan partly because some of the money raised would have gone to support public transit in Philadelphia, even though the highway doesn’t touch the city’s metro area. In 2004, Chicago leased its Skyway, an eight-mile road and bridge, to a private toll operator for 99 years in exchange for $1.8 billion that was used to pay off city debt. The resulting toll increases fell heavily on Indiana commuters who use the road to get to jobs in Chicago.

Sen. Frank Lautenberg, D-N.J., has introduced a bill to give the secretary of transportation oversight of tolling practices. The financing commission made a similar recommendation.

What to do about tolling isn’t addressed in the highway bill now before Congress because of a standoff earlier this year between senators who favor and oppose easing tolling on Interstate highways. The issue is expected to be revived next year after the retirement of Sen. Kay Bailey Hutchison, R-Texas, who has led the opposition to greater tolling.

One concern is that the Interstate system is aging, which means money must be found to repair and replace the roads.

“The roads are out there and we’ve paid off the mortgage, but that doesn’t mean the system is paid for. ... Now the roads are crumbling and we have to upgrade them,” said Patrick Jones, executive director of the International Bridge, Tunnel and Turnpike Association, which represents toll facilities.

ON THE HORIZON

Some relaxation of the ban is in the works. The Transportation Department has selected the three states — Virginia, North Carolina and Missouri — for pilot toll projects.

Under another program, a $2 billion project now under way would add High Occupancy Toll lanes on Interstate 495 in the Virginia suburbs of Washington. The state can’t afford to build the lanes on its own, but money raised by a private investment partnership and a $586 million federal loan made the project possible.

Motorists who buy an E-ZPass that can be read electronically will be able use the lanes. Toll prices will fluctuate depending on traffic density. If toll lanes are crowded, prices will keep rising until enough motorists decide to remain in the slower lanes. The aim is to give motorists a way to travel quickly, but only if they are willing to pay for it — an idea that has stirred controversy. Cars with three or more passengers will be able to use the lanes without paying.

The administrative costs of tolling are far greater than the gas tax, even when using electronic tolling, said Phineas Baxandall, a senior analyst with the private, consumer-oriented U.S. PIRG.

Some tolling agencies could also use “a dose of sunshine,” Baxandall said. Because many are quasi-governmental, public disclosure, open meeting and other transparency rules don’t always apply, he said. As a result, they frequently operate out of public sight, creating opportunities for corruption or manipulation by industry, he said.

According to a report by the New Jersey comptroller in March, cronyism and mismanagement at the Delaware River Port Authority had wasted millions of dollars. The authority operates four bridges, a ferry and a rail line across the Delaware River between New Jersey and Pennsylvania.

The Port Authority of New York and New Jersey recently raised cash fares on six Interstate bridges and tunnels to $12 for cars. By 2015, it will cost a five-axle truck paying cash $105 to cross between New York and New Jersey, three times as much as for any other bridge or tunnel in the country, according to the American Trucking Association. Bill Baroni, the authority’s deputy executive director, told a Senate hearing the fare hikes are necessary to make up for years of neglect and mismanagement.

Despite concerns about more and higher tolls, it’s difficult for lawmakers to tell state and local governments not to pursue greater tolling when Congress isn’t providing a comparable alternative source of funds.

Jones, of the tolling industry association, predicted that as traffic congestion worsens, people “are going to demand, ‘We need better roads, we need more efficiency,’ and they are going to ask for tolling and direct user fees to build the transportation that they need.”



Franchitti earns big money for 500 win - WISH-TV

INDIANAPOLIS (AP) - Dario Franchitti's first win at Indianapolis, in 2007, made him more than just Ashley Judd's husband.

His second win, in 2010, was about pure dominance — he led 155 of the 200 laps.

This year's victory was about standing among the all-time greats. He earned $2,474,280 from an overall purse of $13,285,815 for Sunday's win. The four-time series champion from Scotland became just the 10th driver to win IndyCar's signature event at least three times.

Helio Castroneves, the only other current driver with three wins at Indy, already was promoting next year's race.

"Dario, well done, man," Castroneves said Monday during the victory awards celebration at the Indianapolis Motor Speedway. "Three times. Now, we're going to be racing, so who gets four? That'll be cool, huh? That'll be really cool."

Now that Franchitti has basically done it all, there's only one thing left.

Dancing.

Castroneves won 'Dancing with the Stars,' so a few of the drivers had a little fun with Franchitti now that he's joined Castroneves as a three-time winner.

"Three times," Alex Tagliani said. "I think the drivers think you need to step it up. We think if you come and try to do it four times, you should try 'Dancing with the Stars.' I think that's the only thing you can try to do to step it up."

Castroneves continued the joke.

"You want to do it? I know the people. I have people," he said as Judd gave the cutoff sign.

Franchitti prefers to let his car do the dancing. He started 16th, took the lead for good in the No. 50 Target Chip Ganassi Racing Honda car from his teammate, Scott Dixon, on lap 199. He overcame a spirited passing attempt by Takuma Sato in turn 1 on the final lap. Sato spun and hit the SAFER Barrier while Franchitti hung on to win the race under caution.

Sato explained the reasoning behind his aggressive inside move.

"There's only one podium, which is the winner," Sato said matter-of-factly.

Sato joked that Franchitti wouldn't want to see the No. 15 car next to him in the future.

"I'm small, but I need a little bit more room," Sato said, drawing laughter from Franchitti and a thumbs-up from Judd.

When asked if everything was OK between himself and Franchitti, Sato said "I think so. I hope,'" as Franchitti nodded affirmatively.

Justin Wilson recalled getting hopeful for a moment when he saw that Franchitti and Sato nearly connected.

Then again, it was Franchitti.

"Dario's a wily old cat," Wilson said. "He had something up his sleeve."

Dixon, who won the race in 2008, earned $1,102,280 for finishing second. It was his seventh consecutive top-six finish at Indianapolis.

Franchitti expects a tougher Dixon the rest of the year.

"I'm a little upset here," Franchitti said to Dixon. "I know you're going to come back stronger."

Franchitti's move to elite status nearly didn't happen. E.J. Viso, who rear ended him in the pits early in the race, acknowledged that he was a bit too close.

"Well, it didn't cost him much," Viso said. "Happy, man, that you won the race. You deserve it."

Unfortunately for Franchitti, he learned Monday that three-time winning status often comes with jokes about your age.

"Dario, you are a legend," Ryan Briscoe, the polesitter who finished fifth, said. "You were a legend to me when I was racing go carts."

James Hinchcliffe wouldn't mind if Franchitti opted for early retirement.

"I hope someday, you get sick of all this winning and let the rest of us do it," he joked.

All kidding aside, the theme of the night was the acknowledgement of Franchitti's new place in Indy history.

"You're a legend, in my opinion," fellow driver Ed Carpenter said. "You're up there with the all-time best, and it's an honor to work with you."



Finance workers, pensions and death - Director of Finance online

Research shows linkage between pension amounts received and mortality.
 

Pensions specialist Mercer is advising smaller pension schemes to review their mortality data in light of new figures published by a research group of the Actuarial Profession, the Continuous Mortality Investigation (CMI).

The CMI has published research highlighting the wide variation of mortality experience among members of different pension schemes in the UK.
 
The CMI pensioner data is based on the experience of the UK’s occupational pension schemes and is used to estimate mortality rates.

The lower the mortality rates, the longer people are expected to live.

This means pension payments are likely to have to be made for a longer time and schemes have to hold more assets to cover this longer period.
 
The research shows a wide fluctuation in mortality rates both between industry sectors and within each industry sector.

For example, overall mortality rates in the financial sector are around 20% less than the rates calculated by schemes in basic industries, such as mining and paper.

However, within the financial sector, members receiving pensions of less than £1,500 a year were almost twice as likely to die earlier than pensioners receiving over £25,000 each year.

The data suggests that working in the same industry could be less relevant to life expectancy than the level of pension received, which itself is likely to be just a proxy for the socio-economic group an individual belongs to.
 
Glyn Bradley, Associate at Mercer, explained:

"The CMI research highlights the wide variation in life expectancies between different pension schemes. While it is common knowledge that employees in different sectors have different life expectancies overall, there are also variations within an individual sector. In our mortality assessments for clients, we find that it's not unusual for senior managerial employees to live 2-3 years longer than employees with more routine work in the same company.

"This means that thesepension schemes need to hold about 10% more assets, per pound of pension being paid to the retired higher paid workers, relative to the amount they need to hold to provide a lower paid worker's pension. What is likely to be happening is that, on average, higher paid workers have healthier lifestyles – in the sense that they smoke less, drink less, take more exercise an d have access to better healthcare and diets– than lower-paid employees.

"Of course, some highly paid people lead less healthy lives, and many low paid people lead healthy lives, so these are very broad generalisations but in short: working with your hands won’t kill you, but the booze and fags might."
 
Bradley adds that pension schemes need to carefully consider their own membership.

A decade ago, it was difficult to set mortality assumptions on a scheme-specific basis.

Bradley goes on to say:

"Nowadays, even small schemes can’t afford to ignore the available information and need to take advantage of the modern actuarial techniques available to get a scheme-specific result.

"Postcode profiling, for example, is now routine for many schemes and easy for them to do, without needing to issue detailed lifestyle and medical questionnaires to members. Medium sized schemes now have access to the kinds of sophisticated modelling that were once the preserve of large insurers. How mortality rates will change in future is still very uncertain, but it is now easier than ever for schemes to get a good idea of where they stand today."
 

 


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