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| Sunday, February 27, 2000, Chandigarh, India  
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HP
signs MoU for power project HCL
Infosys to set up Internet subsidiary Special
counters for Income Tax returns 12
PSUs under BIFR to get 619 cr: Joshi New
textile policy before session ends |
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HP signs MoU for power
project NEW DELHI, Feb 26 — Himachal Pradesh Government and National Thermal Power Corporation today signed a memorandum of understanding on 5000 crore cost 800 MW capacity Kol Dam project to be constructed on Satluj river in Bilaspur district of Himachal Pradesh. The agreement was signed by Mr Ajay Tyagi, Secretary Power H.P. Government and Mr Rajinder Singh, Chairman-cum-MD, NTPC on behalf of Himachal Pradesh Government and NTPC respectively in presence of Chief Minister, Prof Prem Kumar Dhumal and Union Energy Minister, Mr P.R. Kumaramangalam and Union Minister of State for Power Mrs Jaywanti Mehta at Himachal Bhavan here today. The State Chief Secretary, Mr A.K. Goswami and senior officials of Power Ministry were also present on this occasion. Prof Prem Kumar Dhumal disclosed that State Government would get 400 million units free electricity and generate an annual income of Rs 150 crore per annum on completion of the project. He said that this will be first ever hydel project to be executed by National Thermal Power Corporation in India. Which will be constructed about 6 km upstream of Dehar Power Plant in Bilaspur district of the state. He said that the Government would allocate 8 mini hydro electric projects of 254 MW capacity to private sector shortly. He said that 3073 million unit electricity will be generated annually on completion of the project and will help in meeting electricity shortage in northern States. Prof Dhumal said that State has an identified hydropower potential of about 21000 MW, falling in five river basins vis. Satluj, Beas, Ravi, Chenab and Yamuna. Out of this, a potential of 3831 MW has been harnessed so far. Projects with total capacity of about 320 MW are under various stages of execution, DPRs for projects with 3660 MW capacity are ready, preliminary investigation for projects of 2583 MW capacity has been completed and survey and investigation is yet to be conducted for projects with total capacity of about 7000 MW. Prof Dhumal disclosed that Centre has agreed to waive off Rs 35.68 crore Baira Siul surcharge and the amount deducted would be released to the State Government. He said that State Government has decided to provide incentives to the industrialists for early commissioning of projects to discourage and cost over runs. Power regulatory panel Himachal will soon set
up an Electricity Regulatory Commission as the State is
planning to involve the private sector in a big way to
exploit the vast hydel potential, Prem Kumar Dhumal said. |
HCL Infosys to set up
Internet subsidiary NEW DELHI, Feb 26 — HCL Infosystems, has decided to set up Internet subsidiary to exploit high growth opportunities. “The new economy of e-commerce and dot coms is the third IT revolution — the first being hardware and the second, software. Our proficiency in creation of new markets will make a success of the new internet subsidiary, which will address emerging needs of organisations to be globally competitive in the Internet economy,” Mr Ajai Chowdhry, Chairman of HCL Infosys, said in a release. The new Internet subsidiary will exploit new growth opportunities like access, networking and e-commerce and raise funds for expansion in ISP infrastructure, e-commerce and value-added network services. It would also engage in B2B e-commerce to assist organisations and individuals in the highly competitive Internet economy. “For this, the parent company is raising Rs 125 crore through a preferential allotment of shares/warrants/FCDs/PCDs or other financial instruments,” Mr Choudhry said. Asset International For the first time in the country, Asset International today introduced knowledge management course in association with Microsoft. The course would train students to the needs of the next generation knowledge management technologies and enable them to conceptualise, create, build and maintain knowledge management systems, a release said. The six month course integrates all the four core technologies — customised user interface, business intelligence, collaboration and content management — that create a knowledge management. Broadcastlndia Broadcastlndia.com,
India’s first multilingual media portal that
webcasts audio and video content, proposes to give the
coverage of the South African tour to India. The site
offers audio video pitch reports, live audio session
analysis by Maninder Singh, ex India test player. |
Special counters for Income Tax
returns CHANDIGARH, Feb 26 — In order to cope with the heavy rush of Income Tax returns in Form 2C being filed immediately before the deadline of February 29, special facilitation counters have been opened in four cities of the region. This was revealed here by Mrs Surinder Paul Kaur, the Chief Commissioner of Income Tax, North Western Region, Chandigarh. Mrs Kaur said that the scheme had been launched in the last Budget by the Finance Minister. Popularly referred to as the 1/6 scheme, it was aimed at widening the overall tax base. Presently, only the cities of Chandigarh, Amritsar, Ludhiana and Jalandhar had been notified under the scheme under the proviso to Section 139. The residents of SAS Nagar and Panchkula were not, however, covered, she explained. Highlighting the salient features of the scheme, Mrs Kaur stated that anyone covered under any one or more of the following criteria were compulsorily required to file their return of Income in the simplified Form 2C. These criteria are: — Occupying a residential houses of 110 sq foot or more (800 sq foot in Ludhiana), or commercial property of 175 sq foot or more (125 sq foot for Chandigarh and Ludhiana) — Owning/leasing a motor vehicle. — Having incurred expenditure on travel abroad for self or any one else in the last year. — Being a telephone subscriber. — Holding a credit card, issued by a bank or a financial institution (except add-on cards) — Membership of club, with entrance of Rs. 25,000 or more. The Chief Commissioner,
stated that Form 2C were available free of cost to the
members of the public in all four cities notified in the
scheme in the local Income Tax offices. It could also be
downloaded from the NWR web-site at
http://www.ccit-nwr.org. |
12 PSUs under BIFR to get 619 cr: Joshi NEW DELHI, Feb 26 (PTI) — The Government has agreed to provide fresh infusion of funds to the tune of Rs 619 crore in 12 Public Sector Undertakings under the Board for Industrial and Financial Reconstruction (BIFR), Minister for Heavy Industries and Public Enterprises Manohar Joshi said today. Addressing a Parliamentary Consultative Committee attached to the Ministry, Joshi said the Government has also decided to introduce Voluntary Separation Scheme in some of the 48 PSUs under the ministry. The Minister said 48 PSUs together posted an aggregate loss of Rs 411 crore during 1998-99. He said the the total investment in these 48 units, which have an employee strength of 1.77 lakh, stood at Rs 7,595 crore as on March 31, 1999. Of the 48 PSUs under the
Ministry, 26 have been referred to BIFR, he said. |
New textile policy before session ends NEW DELHI, Feb 26 (PTI) — The new textile policy aimed at preparing Indian industry for a quota free regime after 2004 will be announced by the Government before the end of Budget session, a top Government official said today. “Textile Ministry is at present considering the recommendations made by high-powered Sathyam Committee and a new policy will be formulated soon”, Anil Kumar, Textile Secretary, said inaugurating a seminar organised by National Institute of Fashion Technology and Apparel Export Promotion Council. The Budget session will end on May 17. Kumar said the sector should target $ 50 billion through exports by the year 2010 against around $ 15 billion now. Richard Hughes, Counsellor, WTO textile division, said there was a possibility of countries resorting to more non-tariff barriers after the phase-out of the Multi-Fibre Agreement to protect their markets. He said a number of countries have expressed concern over the way the anti-dumping mechanism was used, adding the dispute settlement body of the WTO had played a key role in redressing the problems of member countries. Hughes said the
developed countries had met with their technical
obligations with regard to quota elimination but were not
generous enough to remove quotas. |
rc
By AN Shanbhag Q: As I had made long-term capital gains on the sale of an asset, I invested the full sale value of Rs 1,50,000 in the Sun F&C value scheme under Section 54EA and opted for the dividend reinvestment plan to save on taxes. I find now that the dividend of Rs 2.50 that was declared recently has been reinvested and the dividend amount is also subjected to three-year lock in. I fail to under-stand why the dividend is subjected to the lock-in. I had opted for dividend reinvestment thinking that I could withdraw it when I needed it. I was not in need of the money then, and I was happy with the fund’s performance. My only instruction was to reinvest, but not to subject it to a lock-in. — Anupama Goel, New Delhi A: I was a little surprised when I received your complaint. I had received similar complaints about a couple of other mutual funds also. Though attending to personal difficulties of the readers is not the objective of this forum, I decided to make an exception in your case, since I have great respect for the management capabilities and investor friendliness of Sun F&C Mutual Fund. Therefore, I approached them for a solution and as expected, the organisation took instant action. Following is the communications I received from them. All I hope and wish for is that the Unit Trust of India and other MFs inculcate a similar attitude towards investor grievances. Dear Mr Shanbhag, Kindly refer to your telecom with Nikhil Khattau (CEO, Sun F&C) on the captioned subject. There was some misunderstanding about the subject of reinvestment of dividend. But we hereby clarify that dividends declared and reinvested under a 54 EA/EB account can be redeemed. No lock-in period is applicable. Only the original investment will be locked in. We had issued clear instructions to Karvy to permit redemption. Now CAMS has been appointed as the new registrar and transfer agents for Sun F&C Mutual Fund, and they are not resorting to lock-up in the case of dividend. Please refer the investor compliant to me and I will personally resolve the issue. In case of any clarifications, please contact the undersigned. Regards, All that I have to say is thank you Mr Khariwala. All other mutual funds should also make it clear to their department concerned or to their registral and transfer agent. Q: I am a resident Indian housewife, but I have a son who is an NRI. I would like to know the legal and tax implications if I were to invest in high-return offshore mutual funds with dollar-funding from my NRI son. — A housewife, New Delhi A: Let me make it clear at the outset. You are a resident Indian and therefore cannot invest in foreign exchange assets. Your son can give you gifts in dollars, but you will have to get them converted into Indian rupees within seven days. Q: I hold some shares of a few companies jointly with my wife. Now, If for some reasons, I decide to transfer these shares solely in the name of my wife, will such transfer lead to any problem? What about the gift tax? — RD Sharma, Shimla A: God! Why would you like to take such uncouth action? There are two things wrong. Firstly and more
importantly let us think the worst. If and when the wife
dies, her legal heirs (possibly the same husband whose
name she deleted) will have to obtain a probate or a
letter of succession from a court of law. This is not
only riddled with hassles (read it as corruption), but is
a time-consuming process. Secondly, it will not attract
gift tax, but stamp duty cannot be avoided. I don’t
understand the purpose behind such a thinking. If you
make me privy to this plot, I may be able to suggest a
better alternative. |
ll
by
Praful R. Desai Q: Whether an inference of theft from arrest and FIR registered against workman can be sustained? Ans: Madras H.C. was dealing with this question in Chief Engineer, T.N. Electricity Board v Govindraj M. (1999-II-L.L.J. 1485). It is not disputed that there is no specific finding by the Enquiry Officer with respect to the charge of theft against the workman on the basis of any evidence on record. He was acquitted by the Criminal Court from the charge of theft. The only finding returned by the Enquiry Officer with respect to the charge of theft was an inference drawn by him from the fact that the workman was arrested and an FIR was registered against him. It cannot be disputed, observed the H.C., that mere arrest or launching of an FIR by itself cannot either constitute an evidence or proof of a circumstance, based on which a person can be found to be guilty of the charge. It was accepted at the Bar that the finding returned by the Enquiry Officer, on the charge of theft attributed to the delinquent — workman cannot be sustained in any circumstance or on facts on record much less by a quasi-judicial authority even administratively. The other charge against the workman was that he was absent from duty unauthorisedly for about ten days. It is admitted that the workman did apply for leave on the next day. The workman served the Board with unblemished record of service, for about 19 years with no prior misconduct attributed to him. There is no gainsaying that the punishment of dismissal from service awarded is not only disproportionate to the charge attributed or proved on the basis of the enquiry report but is unconscionable. It is submitted that in the meantime, the workman has superannuated. The respondent fairly accepted 75 per cent of the back-wages with an order of reinstatement and all other retirement benefits. The H.C. therefore made
an order reinstating the workman with 75% of the
back-wages and with all other retirement benefits. The
amount shall be paid to the workman within eight weeks,
if not it will carry an interest at 12 per cent per annum
from the date the amount is due any payable till the date
of payment. |
sti
by A.K. Sachdeva Q: We are registered as a dealer under the provisions of the Haryana General Sales Tax Act, 1973 and the Central Sales Tax Act, 1956. We are given to under-stand that the Haryana Government has recently introduced a Self-Assessment Scheme under which no declaration is required to be submitted to the assessing authority and that the tax liability as disclosed in the periodical returns will be accepted as correct by the department. Kindly advise us in detail regarding this scheme. — Anurag Gupta Ans: In accordance with the provisions of section 28-C of the Haryana General Sales Tax Act, 1973, the Excise and Taxation Commissioner, Haryana, Chandigarh has issued a notification of December 31, 1999 called Self-Assessment Scheme, 1999. All pending cases involving assessments under the Haryana General Salex Tax Act, 1973 and the Central Sales Tax Act, 1956 where the turnover of a registered dealer does not exceed Rs 50 lakh in a year will be governed by the self-assessment scheme. It has been further laid down in the notification that if a dealer registered under the provisions of sales tax law exclusively deals in tax paid goods, sales to registered dealers, tax free goods involving zero tax liability the restriction relating to turnover of Rs 50 lakh will not apply and his assessment will be covered by this scheme. However, in case of exempted units or the units availing of the benefit of deferment under sections 13B and 15A read with rule 28A of HGST Rules, 1975 are not eligible for the self-assessment facility. What is required under clause (4) of this scheme precisely is that a registered dealer desirous of availing of the scheme will have to submit a copy of trading account or manufacturing account, as the case may be along with a prescribed declaration to the effect that the trading or manufacturing account has been drawn out on the basis of the account books which are true and correct. Also where the registered dealers have not submitted his statutory lists or purchase or sale will be required to file the same within a period of sixty days from the publication of the scheme. In case of Companies and co-operative societies, the dealer will have to submit audited copies of trading account or manufacturing account, as the case may be. All pending cases of assessment upto 1998-99 are covered under this scheme. For the years after 1998-99 also, the dealers will be eligible for the benefit of self-assessment scheme if the conditions as discussed hereinbefore are satisfied. The assessing authority has been obliged under this scheme to immediately issue acknowledgement in form SAS-I to the dealers applying for this benefit within the stipulated period. Q: Last week a consignment of goods on our behalf was being transported from a place situated outside the State of Haryana to our place of business which was admittedly found covered by the prescribed documents. While the goods were en route, these were intercepted and a notice initiating proceedings under sub-section (6) of section 37 of the Haryana General Sales Tax Act, 1973 was issued on the ground that CST number of our firm was wrong. No other defect has been pointed out in the documents. Kindly advise if the initiation of proceedings is fair and legal under the provisions of law? — Sushil Mehta Ans: No order under sub-section (5) of section 37 of the Haryana General Sales Tax Act, 1973 seizing the goods under transport can be passed by a checking officer unless it is proved on record that either the goods have been sent without proper and genuine documents or that the transportation of consignment is taking place with an intention to evade the tax due under the Haryana General Sales Tax Act, 1973. Simply because CST number of the buyer has been wrongly mentioned in the invoice, it does not really lead to either impropriety in the documents or evasion of sales tax. The mistake is simply of
technical nature for which recourse to sub-section (5) of
section 37 cannot legally be taken by the sales tax
authorities. The initiation of proceedings is equally
unjustified for the reasons no evasion of tax has been
conclusively proved by the department. You can file an
objection before the checking officer. |
co
by Pushpa Girimaji THANKS to inefficiency of the power sector and the poor power supply in most towns and cities in the country, inverters and generators have become a necessity. However, considering that these products are not cheap, one really needs to deliberate over the quality of the product, its performance, price and after-sales service, before buying. Choosing the right brand among a variety available in the market is certainly not easy these days. With a little effort, one can probably compare the price and also the after-sales service available. But determining the quality is the most difficult and at best, a consumer can only study the literature provided by the companies. This is where comparative grading of different brands on the basis of tests conducted by an independent agency like a consumer group helps. A Delhi-based consumer group, Voluntary Organisation in Interest of Consumer Education (VOICE), recently tested ten different brands of inverters manufactured in Calcutta, Mumbai, Bangalore, Faridabad and New Delhi. The results of these tests conducted at the Electronic Regional Test Laboratory of the Department of Electronics, Government of India, not only provide an invaluable guide for buyers, but also reveal an interesting factor. The inverter that scored the highest point in the overall grading was one of the cheapest of the ten brands tested and cost Rs 5940. The price of the 500 VA inverters tested ranged from Rs 5,300 to Rs 10,580. An inverter inverts Direct Current voltage of a lead-acid battery into Alternate Current voltage that is similar in most respects to the one coming from the power supply distribution system. One of the important factors that determine quality of the output — the wave form. To put it simply, an inverter not only has to provide a 230-volt alternate current, but it should also be as close as possible to the domestic power supply in that the wave form of the power supply should be sinusoidal. Says VOICE: if the supply is not sinusoidal, then it produces undesirable heating in domestic appliances like fans, motors of room coolers, etc, which in turn reduces their working life. In fact if the wave form is very different from the sinewave, a humming noise can be heard, specially when fans and tube lights are used. But unfortunately, a consumer has no way of assessing the purity of the wave form, except in a laboratory. Of the ten brands of inverters tested by VOICE for this quality, only one got ‘very good’ grade. Three got ‘good’ and the rest got ‘average’ grading. Says VOICE: While the
choice of an inverter is very important, one must
remember that in order to get the best service out of it,
we must use the right battery and maintain it properly.
Hopefully, VOICE will now take up comparative testing of
these batteries too, so that consumers can make an
informed choice. A survey on the after-sales service
available for these products would also help
considerably. Meanwhile, for more details on the test
results, you can contact VOICE at F-71, Lajpatnagar II,
New Delhi-110024. |
an
by K.R. Wadhwaney THE Government has been forced to defer the decision on privatisation of Air India following protests by several MPs and other experts on civil aviation. Analysts opine that time is not yet ripe to go in for privatisation. The MPs impressed upon Minister of Civil Aviation Sharad Yadav at the Consultative Committee meeting that it was not prudent for the Government to privatise Air India. “Air India may be passing through a lean financial health for several factors but its assets are enormous” they said. Mr Yadav assured them that the Government would reconsider the proposal after undertaking further study. The proposal will come up for discussion before the Consultative Committee next month. Capt Satish Sharma (retd) and other MPs provided sufficient data about equity to convince all present that the situation in Air India was not such that it warranted privatisation at this juncture. To Air India’s Rs 4,000 crore equity, the Government’s contribution was just Rs 154 crore. Capt Sharma provided many other relevant details to the minister and others compelling them to defer the decision for going private at this point of time. Similar is the situation in Indian Airlines. There is already heart-burning among staff members for rolling back the retirement age from 60 to 58. IA has also got a lot of equity. There is no need for privatisation. What is essential is that both national carriers should be allowed to augment their fleet and restructure their routes to gain further profit. This is the need of the hour before private operators snatch decisive march over the two national carriers. The analysts are firmly
convinced that both national carriers should be left
alone to manage their own affairs with no interference
from the Government. |
gv
Nimbus Com ONE has heard that the grey market is again alive and kicking, but this surely should take the cake — Nimbus Communications which is expected to tap the market soon with an IPO priced around Rs 400 is already quoting in the grey market at Rs 750. Expected listing — well, don’t even bother asking — not a rupee less than Rs 2500. Any takers? DSQ Software The grapevine has it that one of India’s biggest private sector corporate houses is one on the verge of acquiring controlling interest in DSQ Software. The acquisition, it is rumoured will be done through the group’s finance company. At what price did you ask? Well, if the grapevine is to be believed — at least 50 per cent over the prevalent market price! ITC It required the launch of a portal to salvage the sinking share price of this cigarette manufacturing company. It seems a veteran Calcutta bear operator sees an excellent opportunity at this counter which is reacting euphorically with a sharp price upswing. Watch out for the bear hug! Emerck The grapevine has it
that this MNC pharma major could be planning a Y2K gift
for its shareholders in the form of a bonus issue
announcement later in the year. Quite possible, given the
healthy reserves position of the company Emerck. Anyone
listening? |
cr
Wockhardt posts 105 cr net profit MUMBAI, Feb 26 (PTI) — Wockhardt Limited today reported a net profit of Rs 105.6 crore and sales of Rs 862.5 crore during the 18-month period ending December 31, 1999. On an annualised basis, net profit showed a net margin of 12.2 per cent while sales registered a 43 per cent growth over the period ended June 30, 1998. During the period, its
gross profit before interest, depreciation and taxes
increased to Rs 156 crore, posting an annualised growth
of 33 per cent over the previous accounting year, the
company statement said and added that exports in the
calendar year crossed Rs 100 crore. |
bb
LSE opens membership LUDHIANA, Feb 26 — The Ludhiana Stock Exchange (LSE) has opened its membership to around 20-50 applicants at the fixed price of Rs 8 lakh as floor price of the membership card for individual and corporate applicants, Mr Vishwa Nath Dhiri, President of the exchange, said in a press release today. This decision was taken to expand the membership and thus give representation to regional locations falling under the LSE’s jurisdiction. PSB
opens branches CHANDIGARH, Feb 26 — Punjab & Sind Bank has opened its 15th fully computerised branch here in Sector-41. The bank has also opened Assets and Recovery branch in Sector-26, with the special focus to make effective recoveries to reduce NPAs which is one of the top priorities of the bank. The bank is considering to open two more branches in Sector-42, a personalised branch Phase-X, Mohali, and an ATM facilities counter in Sector-17C shortly. Bullion Gold Std. Rs 4620 Gold 22-Ct Rs 4470 Silver Ready Rs 7875 Silver delivery Rs 7875 Manager
killed CHANDIGARH, Feb 26 — Mr Puneet Kaul, Branch Manager Godrej GE Appliances, Chandigarh branch, and Mr Amit Malik, Executive died in a road accident on the night of February 23. Both were on their way back from Pathankot to Chandigarh on a company tour. Power
project CHANDIGARH, Feb 26 — The Cogeneration Power Project installed at the Faridkot Cooperative Sugar Mill has started generation of power by using the bagasse as raw material. Power generated at the project will be enough to cater to the needs of at least 20 villages. Over 20,000 units a day will be supplied to PSEB to earn Rs 1 crore per season from this project. Currency MUMBAI, Feb 26 (PTI) — Foreign currency assets of the country have gone up by $ 129 million to $ 32,244 million during the week ending February 18, 2000. Total reserves during this period rose to $ 35,193 million, according to RBI’s weekly statistical supplement. Award
for IOC CHANDIGARH, Feb 26 — The Panipat establishments of IOC have been awarded “Samman Patra” by the Ministry of Finance for their contribution to the Central Excise Revenue during the financial year 1999-2000. At a function held recently at Delhi, Mr R. Venkataraman, Adviser (Excise & Customs), Corporate Office, New Delhi, received the award on behalf of IOC from Dhananjaya Kumar, Minister of State for Finance. Debit card HYDERABAD, Feb 26 (PTI)
— Global Trust Bank (GTB) would launch its debit
card in three to six months time, according to the
bank’s Chairman, Ramesh Gelli. |
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