Sunday, July 28, 2002, Chandigarh, India






National Capital Region--Delhi

B U S I N E S S

Punjab targets 50,000 jobs in IT enabled services
Chandigarh, July 27
Punjab may have missed the first phase of IT revolution, but the state government now seems to be making serious efforts to attract the giants as well as small players in the information technology and other enabled services.

British universities attracting Indian talent
38 pc increase in immigration over last three years
Chandigarh, July 27
Thanks to the vast educational network being created by the British Council in India, more and more Indian students are now looking for greener pastures in Britain.

Misuse of ST rules hits industry
Rule 28-A of the Haryana General Sales Tax Rules, 1975 which otherwise is intended to promote industrialisation in the State has become the source of undue harassment to the industry because of its frequent abuse by the sales tax authorities functioning in the state.

Industry pays tributes to Krishan Kant
New Delhi, July 27
Industry representatives have expressed deep shock over the sudden demise of Mr Krishan Kant, Vice-President of India. Mr Krishan Kant was a great supporter of the industry and the CII would particularly remember him as a leader who advocated entry and participation of young people in politics, said Mr Ashok Soota, President, CII.



EARLIER STORIES

THE TRIBUNE SPECIALS
50 YEARS OF INDEPENDENCE

TERCENTENARY CELEBRATIONS

Unemployment rate falls in Haryana
New Delhi, July 27
The number of unemployed in the country has increased to 26.58 million in 1999-2000 from 20.13 million in 1993-94. The mismatch between the State Domestic Product and employment elasticity has led to rising unemployment rate in various states, with Kerala recording the highest unemployment of 20.97 per cent of the labour force, followed by West Bengal- 14.99 per cent and Tamil Nadu- 11.78 per cent between 1993 and 2000, revealed an analysis of inter-state employment scenario undertaken by the Assocham.

CM opens warehouse godowns
Shahabad, July 27
The Chief Minister, Mr Om Parkash Chautala inaugurated 25,000 metric ton capacity warehouse godowns in the campus of the Haryana Agro Fertilizers and Chemicals Plant on the G.T. Road here on Friday evening.

IDBI net down 79.12 pc
Mumbai, July 27
Industrial Development Bank of India’s net profit fell sharply by 79.12 per cent at Rs 38 crore for the first quarter ended June 30, 2002, compared to Rs 182 crore in same period of previous year.

Allahabad Bank revises rates
Kolkata, July 27
Taking a cue from SBI’s reduction in interest rates on deposits, Allahabad Bank today said it will revise interest rates on domestic term deposits by 25 to 50 basis points from August 1.

AVIATION NOTES

Air-India needs pruning of staff
In the chequered existence, Air India has once again hit a turbulent air pocket. The forgery case that seemed closed has been reopened. On a petition, filed by the former Chief Vigilance Officer, Mr S.P.S. Yadav, the Bombay High Court has directed the CID police to investigate the forgery allegations made against airline’s Commercial Director V.K. Verma.

LABOUR LAWS





 

Punjab targets 50,000 jobs in IT enabled services
Manoj Kumar
Tribune News Service

Chandigarh, July 27
Punjab may have missed the first phase of IT revolution, but the state government now seems to be making serious efforts to attract the giants as well as small players in the information technology and other enabled services. The Electronic Corporation, Punjab, now renamed as Punjab State Electronics Dev. & Production Corporation Ltd. has prepared a draft policy of IT Enabled Services ( ITES). It aims to create 50,000 jobs in the next two years through labour intensive projects in the ITES sector and an investment of at least Rs 500 crore.

Mr Nirmaljeet Singh Kalsi, one of the architects of this blue print, and Director-cum-Secretary, Information Technology, Punjab claims, “We have come to the conclusion that what the companies in this sector need, is not small amount of subsidy, but supportive environment, high quality infrastructure, manpower, flexible rules and freedom from infrastructure.”

The new policy, he says, will ensure single window system to clear all the projects, special packages for mega-projects of more than Rs 25 crore, built to suit office space, exemption from stamp duty and registration fee on property transactions, sales tax, entry tax and octroi on all types of materials and equipment required for construction for the IT and ITES infrastructure projects.

To attract the NRI and foreign investments in this sector, the state is also promising to exempt the units from all the labour laws. However, special incentives would be given to those units that would invest up to Rs 100 crore or so, provide employment to at least 300 persons at a gross salary of Rs 5000 per month for a minimum period of at least for two years. The government also plans to provide investment subsidy of 20 per cent of fixed capital investment up to a limit of Rs 20 lakh and an additional subsidy of 5 per cent on fixed capital cost.

Regarding to the response to the policy, Mr Mukul Joshi, Principal Secretary, Department of Industries, says, “The Quark has already shown interest to invest up to Rs 400 crore in the IT enabled services, besides others. Our aim is to facilitate the investment through right signals and provision of world class infrastructure.” The state officials claim that till today investments worth Rs 685 crore has been made in Mohali, and other towns have failed to attract any share in this area. But the new policy would try to attract investments in Patiala, Ludhiana, Bathinda and other towns

The IT experts agree that the government may succeed in attracting the IT players provided it is able to implement the policy. Mr Bal.V. Sehgal, Executive Director, Quark India Pvt. Ltd., says, “Since most of the stake holders have been involved in preparing the document. However, the whole IT sector is passing through bad times. The government should concentrate not only on pull factor— small incentives to attract investment, but also on push factors — nurturing of existing units.” He admits that the company is considering to invest in a big way in the IT-cum-Bio-informatics park at Mohali.

Mr Kalsi claims that the policy has been well taken by the industry. He says, “We have received response from Nascom, Microsoft, IBM, Oracle, Glide and Cyber India Online. Final touches are being given to the policy, and it would be announced by mid-August.”
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British universities attracting Indian talent
38 pc increase in immigration over last three years
Aditi Tandon
Tribune News Service

Chandigarh, July 27
Thanks to the vast educational network being created by the British Council in India, more and more Indian students are now looking for greener pastures in Britain. According to the latest information available from the highest sources in the British Council, as many as 8,000 Indian students have been mobilized to go and study in the various universities in Britain over the past five years.

From 1999 onwards there has been a record 38 per cent increase in the number of Indian students immigrating to the UK for further studies in various fields. Giving away information in this regard to the Tribune today, Ms Jacqui Allan, Education Promotion Manager for the British Council in India, said, “Ever since 1999, when the British Prime Minister Mr Tony Blair personally involved himself in the work of attracting Indian students to the UK for studies, there has been a heartening increase in the number of immigrating students. The idea here is to strengthen bonds on an intellectual level.”

The officer also talked about the most favoured academic fields among the Indian students. “Most of the Indian students are interested in pursuing business management, information technology and engineering courses. There is also a clear shift towards the various fields of mass media, art and design courses. In the area of science and technology, biotechnology is the current favourite. Most of our centres receive maximum queries in this area.”

Earlier posted in Scotland, Ms Allan is currently personally involved in overseeing the activities of the various British Libraries in India, which happen to be the main source of information to Indian students. “We have full-fledged education sections in each library, wherein we store information on all the vocational, undergraduate, graduate and postgraduate courses being offered in the various British universities,” she said.

Apart from the educational network available through the British Libraries in various cities, the British Council is also out to promote educational fairs on Britain. A rather fresh concept, the fair summarizes the entire information for the convenience of students, who can pick and choose anything they want. In Chandigarh the educational fair for this year will start from November 25. Ms Allan further added: “For further information the British Council is planning to expand its existing website on education in Britain. The site, called www.educationuk-in.org has comprehensive information on all aspects of education in Britain.”

Interestingly, whenever the British Library of a particular centre sends a request to the British Council to hold orientation courses for Indian students selected for admission to British Universities, the Council sends its experts to hold pre-departure briefing. Ms Allan today held a briefing for 40 city students who are leaving for the UK. During the short time, she answered to all their problems — right from those related to Indian food, visa, lodging to weather problems, employment opportunities and so on.
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Misuse of ST rules hits industry
A.K. Sachdeva

Rule 28-A of the Haryana General Sales Tax Rules, 1975 which otherwise is intended to promote industrialisation in the State has become the source of undue harassment to the industry because of its frequent abuse by the sales tax authorities functioning in the state. It was way back in 1989 that this rule came to be introduced by the state government in exercise with the powers conferred by sections 13-B and 25-A of the Haryana General Sales Tax Act, 1973 with a providing the new industrial units and the units undertaking expansion and diversification with the facility of exemption from payment of tax and deferment.

Accepting the offer of the State Government of giving incentives, several units came to be set up with heavy investments in the State to which the benefits of exemption and deferment were granted. The period of exemption and deferment ranged between seven to nine years.

Shockingly this rule now widely comes to be known in the trade circles as much abused provision of law as the sales tax authorities dressed with the powers of withdrawing the benefits under certain circumstances have started effecting cancellation of the certificate of exemption with retrospective effect on even legally untenable grounds. Sub-clause (b) of clause (a) of sub-rule (11) of rule 28-A of the Haryana General Sales Tax Rules, 1975 gives powers to the Deputy Excise and Taxation Commissioner of the District located to withdraw back the benefit of tax exemption or deferment in the event of loss in production as compared to the one obtaining during last five years of exemption.

However, if the loss so occurring flows out of the situation beyond the control of the unit a statutory protection has been provided to such units under proviso to the aforesaid sub-clause (b). It is plain from the language of this proviso that no unit shall be called upon to pay back the benefit of exemption or deferment availed of where the loss in production is explained to the satisfaction of the Deputy Excise and Taxation Commissioner as being due to the reasons beyond the control of the unit.

The grievance of the entrepreneurs in the state is that despite plausible explanation offered to the taxing authorities correctly explaining away the fall in the required production, they have not been provided with the right to the protection embodied in law. Overall slow-down in economy leading to general recession, irrational tax and central excise policies of the Government of India formulated from time to time and exorbitant interest rates charged by the financial institutions on borrowed capital primarily are the causes putting negative impact on the industrial growth.

The loss production in such a situation is bound to occur and, therefore, how far is it fair to view this event as being within the control of the unit so as to invoke the powers of withdrawing the benefits of exemption or deferment to the unit?

What really has happened in the recent past is that the sales tax authorities have issued notices to several units raising demand including tax, interest and penalty running into crores of rupees by recalling totally in illegal manner the facility of tax exemption and deferment.

Another significant question that naturally comes to one’s mind in this context is that the units granted with exemption certificate do not realise during exemption sales tax on the sales of manufactured goods as the benefit is eventually passed on to the consumers. There is, therefore, no justification in demanding the tax at the subsequent point of time from the unit when the same has not been realised from the consumers and that the unit has not virtually enjoyed the benefit of tax exemption.

Representing to the Government on this issue, several associations have requested for immediate intervention so that the industry could be saved from being collapsed.
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Industry pays tributes to Krishan Kant
Tribune News Service

New Delhi, July 27
Industry representatives have expressed deep shock over the sudden demise of Mr Krishan Kant, Vice-President of India.

Mr Krishan Kant was a great supporter of the industry and the CII would particularly remember him as a leader who advocated entry and participation of young people in politics, said Mr Ashok Soota, President, CII.

“A true patriot, Gandhian and able parliamentarian, the void created by Mr Kant’s death would be hard to fill”, said Mr K.K. Nohria, President, Assocham. He said homage to the great leader would be to follow his footsteps and dedicate ourselves to the task of nation building.
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Unemployment rate falls in Haryana
Tribune News Service

New Delhi, July 27
The number of unemployed in the country has increased to 26.58 million in 1999-2000 from 20.13 million in 1993-94. The mismatch between the State Domestic Product (SDP) and employment elasticity has led to rising unemployment rate in various states, with Kerala recording the highest unemployment of 20.97 per cent of the labour force, followed by West Bengal- 14.99 per cent and Tamil Nadu- 11.78 per cent between 1993 and 2000, revealed an analysis of inter-state employment scenario undertaken by the Assocham.

Other states that have registered an increase in the unemployment rate during the six year period are: Andhra Pradesh (from 6.69 per cent to 8.03 per cent), Bihar (6.34 per cent to 7.32 per cent), Maharashtra (5.09 per cent to 7.16 per cent), Rajasthan and Uttar Pradesh.

Gujarat, Haryana and Karnataka were the states which recorded a decline in the unemployment rate.

The Chamber pointed out that there was a marked decline in the labour intensity in production in almost all the sectors, declining from 0.52 to 0.16- measured as an employment elasticity. Due to this, in spite of a higher growth in GDP over the second period (1999-2002), employment growth declined from 2.7 per cent to 1.07 per cent per annum.
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CM opens warehouse godowns

Shahabad, July 27
The Chief Minister, Mr Om Parkash Chautala inaugurated 25,000 metric ton capacity warehouse godowns in the campus of the Haryana Agro Fertilizers and Chemicals Plant on the G.T. Road here on Friday evening.

The Agriculture Minister, Mr Jaswinder Singh Sandhu, presided over the ceremony which was attended among others by Mrs. Kailasho Saini, M.P. Transport Mr Ashok Arora, Local Bodies Minister, Mr Subash Goyal, Principal Secretary to C.M. Mr M.K. Miglani, Chairman Haryana warehousing Corporation, Mr Niranjan Dass Bansal and Local M.L.A. Mr Kapoor Chand Sharma. OC
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IDBI net down 79.12 pc

Mumbai, July 27
Industrial Development Bank of India’s net profit fell sharply by 79.12 per cent at Rs 38 crore for the first quarter ended June 30, 2002, compared to Rs 182 crore in same period of previous year.

Income from operations in the reporting period also decreased by 22.8 per cent at Rs 1,665 crore as against Rs 2,157 crore in Q1 of FY-02, an IDBI release said here today.

Other income stood at Rs 19 crore (Rs 44 crore in same quarter of last fiscal).

Bad and doubtful debts/investments written off or provided for were lower at Rs 97 crore (Rs 264 crore).

Earnings per share of IDBI in the reporting quarter also declined to Rs 0.57 (Rs 2.79). PTI
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Allahabad Bank revises rates

Kolkata, July 27
Taking a cue from SBI’s reduction in interest rates on deposits, Allahabad Bank today said it will revise interest rates on domestic term deposits by 25 to 50 basis points from August 1.

The revised rates which will apply only on fresh deposits and on renewal of maturing deposits will be five and 5.25 per cent for deposits of 15 days to 29 days and 30 days to 45 days respectively.

The highest interest rate of 8 per cent will be offered on deposit of three years and above - upto ten years. PTI
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AVIATION NOTES

by K.R. Wadhwaney

Air-India needs pruning of staff

In the chequered existence, Air India (AI) has once again hit a turbulent air pocket. The forgery case that seemed closed has been reopened. On a petition, filed by the former Chief Vigilance Officer (CVO), Mr S.P.S. Yadav, the Bombay High Court has directed the CID police to investigate the forgery allegations made against airline’s Commercial Director V.K. Verma.

Mr Justice S.S. Parkar was categorical in his order emphasising that the complaint must be looked into since the investigations thus far seemed to had been handled in a callous manner. In his petition, Mr Yadav had also alleged that the major cause for his premature repatriation from Air India to the present cadre was because of the “wrongful, undue protection” to Mr Verma.

When Mr Verma was transferred from Planning to Corporate Affairs, he proceeded on a long leave and had submitted an AIIMS medical certificate in its support in October 2000.

Mr Yadav has alleged that the certificate was ‘forged’ and demanded that his charges should be thoroughly examined. Mr Verma remains unfazed by these allegations. He, accompanied by Chairman and Secretary of the Civil Aviation Ministry K. Roy Paul, reportedly told the New York-based staff that the services of some could be terminated unless they chase voluntary retirement. This caused further anguish and tension among staff members stationed in New York and other places abroad.

Indeed, AI has had the maximum staff per plane. The national carrier’s over-all strength is 16,000 when in should be about 8,000. As against British Airways’ strength of 239 workers per aircraft, Air India’s strength is 588. This complex situation has been existing for decades as bulk of its key officials, at home and abroad, have been recruited at the behest of politicians and bureaucrats.

According to foreign-based staff, pruning and reducing of the overhead expenses should be done at all stations. Three senior officials, who had tenures abroad, are of the view that certain departments in Delhi for example, are heavily over-staffed. Officials are placed in different offices, like at Hans Plaza, Himalaya House and reservation unit is placed in yet another building. Scindia House office remains closed because of litigation. The rental for these offices is enormous. A lot of saving can be effected with proper management.

Similar is the situation at the Indira Gandhi International Airport (IGIA) where Air India’s staff is at least four times more than any other foreign carrier.

Amidst this vex situation arising out of internal bickerings, the expansion plans, including acquisition of new aircraft, have received a set-back.

As against Air India which is passing through a critical stage, Indian Airlines has been flying serenely. At least, it has not been getting any bad publicity. Its low-profile Chairman Sunil Arora has been managing the affairs professionally.
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LABOUR LAWS

by Praful R. Desai

Implead parties

Q: Has the Labour Court power to implead parties which would virtually annual terms of reference?

Ans: Bombay H.C. was considering this point in the case of Alfa Lavel (India) Ltd. v.K.D. Waghmare [2002-II-LLJ-490]:

After hearing the parties, the H.C. opined that the order of the Labour Court was liable to be set aside, as in fact by directing joinder of parties, what in fact the Labour Court has done is to amend the terms of Reference itself.

In the instant case, the dispute as referred is on the allegation that he was in service of the petitioner employer. The workman had, at no point of time, contended that his employer was the Chairman or M.D. of the company. What the Labour Court has done by summoning and directing joinder of M.D. and Director virtually amounts to amending the terms for the reference.

Can the Labour Court, if arrives at the conclusion that in fact that there was relation of workman and employer between the workman and the parties who are added, grant any relief in the reference, presently made? The answer clearly would be no. The relief in the reference can be granted only in the event the Labour Court arrives at the conclusion that there is relationship of workman between the petitioner and Respondent No. 1.

In the instant case, from the pleadings, all that can be seen is that the persons summoned to be joined at the best would be witnesses of the petitioner. True, the Court U/s. 18(3) of the I.D. Act permits to summon parties who are not parties to the Reference. But that is limited purpose of making effective the award which may be passed.

In fact that was what really was in issue in the case of Hochtief Gammons v Industrial Tribunal, Bhubaneshwar, Orissa [1964-II-LLJ.460]. In that case, Hindustan Steel Limited was sought to be joined as a party. The issue was regarding payment of bonus. In that case, Hochtief Gammons were doing contract work for Hindustan Steel Ltd. which was the principal employer. It is settled law that in the event the contractor does not pay the legal dues of the workman, it can be recovered from the principal employer. For that limited purpose summons were issued against Hindustan Steel Ltd.

That is not the case in the present petition is concerned. if the workman succeeds in the reference, the award has to be inforced against the Company-Employer and not against the persons holding any post in the company whether Chairman or Members of the Board of Directors.

Wit the above observations, the petition was made absolute in terms of Prayer Clause (a). The H.C. observed that the said order the Labour Court had in fact amended the terms of the Reference itself and it was therefore liable to be set aside.

That way the rule was made absolute.
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BIZ BRIEFS

IBM India
Chandigarh, July 27
IBM India Ltd today announced the setting up of it’s ‘e-government Centre’ in Gurgaon, near New Delhi. This centre will offer technology, support and infrastructure to help governments and Total Service Providers to design, develop, test and port ‘Proof-of-Concept’ and prototypes of e-government applications. The centre which is a part of IBM e-business software centre will also be equipped to handle subsequent development, implementation, training and support for the applications. TNS

Hero Honda
Jalandhar, July 27
Mr Kamal Karamchandani, Area Manager of Hero Honda Limited handed over a cash prize of Rs 40,000 to Mr Lakhvir Singh of Hoshiarpur under its All-India passport programme during a special function organised at Jaswant Motors here today. OC

Eicher Motors
New Delhi, July 27
Eicher Motors Ltd (EML) has more than doubled its net profit to Rs 5.37 crore in the first quarter of the current fiscal compared to Rs 2.54 crore in the corresponding quarter last year. EML has registered sustained growth in sales and effected tight control on costs, said Group Chairman and CEO, Eicher S. Sandilya. UNI
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