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July 14, 2002, Chandigarh, India   
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Fertiliser policy soon: Dhindsa
Export calf meat, report asks Punjab
Ambala shortlisted as industrial cluster In the
wonderland of investment |
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Airports’ selloff to bring more revenue
Escorts suffers 29.65 cr net loss
General Electric books $4.4b profit
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Fertiliser policy soon: Dhindsa Chandigarh, July 13 This was disclosed by Mr Sukhdev Singh Dhindsa, Minister for Chemical and Fertiliser, here today. He was here on a private visit to inaugurate an IT solutions unit. Talking to The Tribune, he said the Group of Ministers had already held a number of meetings, and was now giving final touches to the policy. Unlike short term policies of the past, this time the government was trying to work out a long term plan that would take care of the interests of the domestic industry, farmers and the diversification needs in the
country. He admitted that the long term objective of the policy was to decontrol the prices, end of subsidy, promotion of gas-based plants and restructuring of inefficient naphtha-based plants. The state Chief Ministers had also recommended to provide subsidy keeping in view the efficiency of the plants. Mr Dhindsa admitted that the government had earlier decided to withdraw all the subsidies on fertiliser, currently about Rs 13,000 crore annually, by 2006. Under that policy, the government had to withdraw 7 per cent subsidies every year. However, under the pressure of the industry and farmers, only 5 per cent subsidy could be withdrawn last year. It was unfortunate that the subsidy was misused by some of the plants. Mr Dhingra disclosed, “The government will sign a contract with the Oman government to establish a gas-based plant in that country. The Oman government would have a share of 50 per cent in the investment and Iffco and Kribhco will contribute 25 per cent each. The government has given a guarantee to procure fertiliser for the next 15 years from that plant.” Condemning the Punjab Government’s decision announced yesterday to impose a 4 per cent sales tax on fertiliser and pesticides, Mr Dhingra lamented, “The Punjab farmers are already getting fertiliser at a higher price than their counterparts in other states due to over-expenses of state co-operative societies, which are surviving on fertiliser business. The government’s latest decision will overburden the farming community by crores of rupees. The government should understand that the state agriculture is passing through a critical stage and is not in a position to sustain the new taxes.”
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Export calf meat, report asks Punjab Chandigarh, July 13 Even as the first part is being processed to be forwarded to union ministries concerned, besides the Planning Commission, the state department of Animal Husbandry, Dairy and Fisheries, presented a Vision Paper to the Chief Minister on July 10. The Chief Minister wants the Dairy Development Board to be restructured to give impetus to dairy development, which has a vast potential for the employment and has desired legislation for the enactment of Punjab Herd Registration Act. Punjab has the potential to focus on raising milk production though dairy sector is beset with a string of problems. One of the main problems is multiplicity of agencies doing the same work. There is no integration of functions and responsibilities, hence, no accountability. Even as the Vision Paper is being further fine-tuned, the Johl Committee’s interim report has clearly identified the problems and listed appropriate solutions. One common denominator in the Vision Paper and the Johl report is a reference to the presence of a large number of ‘’unproductive and useless’’ animals. Punjab has a vast population of 63 lakh buffaloes. There are 35 lakh breedable buffaloes, producing 9 lakh male buffalo calves every year. Of these 33 per cent die pre-mature. These should be saved, fed, fattened and sent to abattoirs for export of meat to middle east. Dr P.N. Bhatt, an eminent veterinary scientist and member of the working group on animal husbandry in the Planning Commission, was forthright in telling Capt Amarinder Singh at the presentation of the Vision Paper on July 10 to get rid of these unproductive and useless animals that were a drain on feed, fodder and economy. He suggested that Punjab should export meat of male buffalo calves. His calculation was that with this Punjab could earn at least Rs 3,000 crore annually. The Johl committee also suggested to get rid of these calves and opening of abattoirs in the state. The main problems identified by the committee are, low productivity and high cost of milk production, poor quality of milk and defective procurement system. The solutions solely are in improving breeds, giving good health cover, introducing culling to take care of unproductive animals, new milk product development, price support to milk plants and form policies commensurate with WTO. Punjab produces close to 8 million tonnes of milk per annum, mostly from buffaloes, which are uneconomical milch animals compared to high quality cross-bred cows. The milch animals and buffaloes are underfed, kept in unhygienic conditions and have poor milk yields. Fodder is both inadequate and of poor quality. Only 10 per cent area is under fodder. The Johl Committee has also suggested
setting up of a herd registration authority and breeders’ associations and improved management techniques. Punjab milk is full of bacteria because there is a lapse of considerable time between milking and chilling and production and marketing is also done under unhygienic conditions. The committee believes some dairy farmers earn Rs 16,000 to Rs 17,000 per acre from milk production against farmers getting Rs 5,000 to Rs 6,000 per acre returns from wheat and paddy. If the suggested solutions are put into practice, there is a possibility of raising per acre dairy income even up to Rs 25,000 to Rs 30,000 per acre, it asserts.
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Ambala shortlisted as industrial cluster Ambala, July 13 The Department of Industrial Policy and Promotion has formulated a scheme for development of industrial clusters in the country. The grant for the scheme is to the extent of Rs 50 crore for each cluster. The Haryana Government is believed to have shortlisted three clusters, tentatively, to be forwarded to the Union Government. The three shortlisted industrial clusters are scientific instruments industry of Ambala, the engineering and automobile component industry of Faridabad and Gurgaon and the aluminium, brass, stainless steel rolling, utensil industry of Jagadhri. The other industrial clusters are likely to be taken up under the scheme at a later date. Activities which will become eligible for funding includes technology upgradation, quality improvement/common testing facilities, skill upgradation, adoption of best
management practices, upgradation of road, water, power and communication, upgradation of the local R & D institution and IT support for information sharing. The primary objectives of the Industrial Clusters Development Scheme is to improve international competitiveness of the domestic industry. “Since more than 60 per cent of clusters in India are horizontal and single produce, the scheme makes it possible to have intervention for each cluster to be need based and specifically designed,” the scheme report states. The schemes aims to pick up the industrial clusters with high growth potential. The main emphasis of the scheme would be on the making strategic interventions to convert static local efficiency into dynamic competitiveness.
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In the
wonderland of investment Q: I am a coparcener (member) in the HUF of my father. Kindly inform whether I can have a HUF in my own name with myself as the Karta and also remain a member in the HUF of my father. My own family consist of myself, my wife, a son and a daughter (both minors). My father in law is giving my family a gift of Rs 21,000. Can I take it in my HUF. 2) Can I buy NSC in my name from the funds of my own HUF and claim exemption u/s 88 in the tax returns of HUF?
Sunil Kapoor A: Yes, an individual can belong to more than one HUF. However, HUF has lost its erstwhile charm in slashing taxes. Now, the same advantage is available to an individual, thanks to the emergence of growth-based MF schemes. 1. An HUF is not born because of some specific actions taken by an assessee. It always exists but may not be assessed to tax if it has no joint assets and even if it does, the income
there from is below the taxable limit. Assessment can be made for the first time as an HUF upon: Inheritance by a person on succession of property from a male ancestor when the legatee has male issues. A Hindu impressing his self-acquired property with the character of joint family property. It is not necessary that there should exist, prior to such impressing some nucleus of ancestral or joint family property. In other words, the hotchpot may be empty before a Hindu male throws a part of his self-acquired property therein. In that case, the entire income from the property shall be included in the income of the individual. Where the income from converted property is clubbed with that of the individual, it is to be excluded from the income of the family. Same rule is applicable to wealth. An HUF can also receive a gift or bequest from an outsider clearly indicating that the donee should hold the gifted property not as an absolute owner but as his HUF. 2. Yes. You can buy NSC in your name from your HUF funds and claim rebate for HUF u/s 88 Q: Our co-operative society was allotted a flat at MHADA in 1992 and it commenced the construction on the land in February 2000. The Building will be ready for possession in June’02. The cost of acquisition of my flat will be around Rs 10 lakhs. Now I wish to sell the flat. Expected market price is at Rs 20 lakh. What difference does it makes in capital gains tax if I sell the flat before or after taking possession? You requested to advice on the following points:- 1. If I sell before taking possession, whether it will be a short-term gain or long-term gain. 2. If I sell after six months from taking possession, whether it will be short terms gain or long-term gain? If long term, indexation benefits will be available to me? 3. If I purchase some other residential flat immediately after sale of the above mentioned flat, whether I will be entitled for exemption u/s 54. Please note that I want to purchase immediately other residential flat on sale of this flat. Kindly advise through your column in Business Standard. S.B.
Rasania, A: You have earned a right to own a flat in FY 93-94. The cost of acquisition of this right is Rs 10 lakh. If you sell the house before taking possession, you have earned a long-term gain. The tax on this can be saved only u/s 54F by investing the full amount of the consideration of Rs 20 lakh in purchasing another residential property. If you sell the house after taking possession, you are not selling the right of possession but the residential flat itself. The cost of acquisition remains at Rs 10 lakh and since you have not held this new asset for over 3 years, you will have earned a short-term capital gain!! This will be charged to tax at normal rates. Strange, how a small action can make a big difference to the tax liability. This is illogical and inequitable. I strongly feel that the legislation should permit the assessee to take the date of the booking of the flat and not the date of its possession as its date of acquisition. Only the tax on long term capital gains can be saved by investing in a house. The short term capital gains will be added to your income and taxed at the applicable rate. Q: Can the current as well as brought forward long term capital loss be adjusted either fully or in part against long term capital gains without indexation? DRJ, A: LT gains are always computed after indexation. The assessee has the option to pay tax @ 10% on the difference between the sale price and cost of acquisition (without indexation) in the case of gains arising out of sale of listed securities and units. The LTCG balance after setting off the losses can be recalculated for payment of tax either @ 10% without indexation or at 20 per cent with indexation to pay the lower of the two.
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Airports’ selloff to bring more revenue ALL hurdles have been crossed for leasing out four metro airports in Delhi, Mumbai, Kolkata and Chennai. The change-over from as government’s control to privatisation is expected to bring in further revenue and increase efficiency. Successful bidders will have to work in harmony with the authorities and adhere to development plans within the specified time-limit. Each of the four airports will have different guidelines. At the IGIA, for example, a new international terminal building will be a part of the 30-year lease agreement. The new terminal at Delhi has been long overdue as the existing one is too small to handle the increasing traffic. Air traffic control and security will, however, stay in the hands of the government. Both these vital and crucial areas need modernisation. ATC, for example is equipped with a lot of equipment but they often function abnormally when under pressure of fog and rain. Only when gadgets are working in total harmony can commanders operate their flights with confidence. Similarly, security at the four airports has got to be toned up. There are several agencies involved in maintaining security at the four airports. But these agencies are not working as efficiently as they ought to. The expression of interest for four airports will be called by August. Experts opine that privatisation will provide the much-needed thrust. New IGIA Director Rolling stone, it is said, never gathers mass. But it is not so for P.S. Nair who, after handling in cargo operations, has graduated to handle passenger traffic. An Executive Director in corporate office, he has given the job of IGIA Director which, because of VVIP movement, is one of the demanding airports to manage and control. For Nair, this assignment is not new because he had earlier functioned as director, Thiruvananthapuram and Mumbai. Lufthansa on top Lufthansa is new fliers’ choice. It is expected to end British Airways dominance in passenger-transportation. It is said the German carrier will transport more than 32 million passengers on international flights this year. BA’s share of traffic is 31 million. |
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Poultry park in J&K GIC schemes Award for Irani Nabard loan Air Sahara scheme National Housing SBI business card Vijaya Bank net Bank of Rajasthan |
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