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Sunday,
March 16, 2003, Chandigarh, India  
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Proposals
to yield quick returns: FM Farmers
throng Kisan Mela Oil prices
slump Murthy
criticises techies harassment
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Forex
reserves grow by $ 863m Haryana
first to adopt VAT
Suggestions
for aviation growth
Reappreciating
evidence
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Proposals to yield quick returns: FM New Delhi, March 15 Addressing the Central Board of the Reserve Bank of India (RBI) at the customary post-Budget meeting, Mr Singh said that the budget focussed on certain sectors that were likely to provide quick returns for growth and employment. “These (the sectors) were infrastructure, textiles, tourism, pharmaceuticals and other knowledge-based industries and information technology”, Mr Singh while addressing the RBI Board. In recognition of the existing fiscal constraints, the Budget has emphasised public-private partnership in infrastructure by leveraging public funds of Rs 2,000 crore for catalysing much larger investment in infrastructure benefitting all aspects of economic activity, he said. The Finance Minister expressed concern over the rigidity in the expenditure structure where debt service payments, essential defence expenditure and subsidies accounted for a large portion of available resources. Therefore the Budget has concentrated on reduction of interest payments through the pre-payment of external debt, restructuring the state debt burden and revamping some financial institutions. On the revenue side, Mr Singh said that tax revenues must be mobilised in a green channel system based on trust rather than mistrust. Governor of RBI Dr Bimal Jalan projected that the rate of inflation in the country will come down further after the hovering war clouds start receding from the middle-east. “We hope that once the war clouds disappear over a period of them and the monsoon is normal, we will be back to low inflation levels”, Dr Jalan said. Expressing concern over the fiscal deficit, the RBI Governor, however, said that the overall macroeconomic conditions at present were extremely favourable for acceleration in growth in environment of price stability. While there was some adverse effect on inflation because of drought and increase in oil prices, the average rate of inflation in general continuted to be satisfactory. Dr Jalan said, the external position was very strong with foreign exchange reserve at the highest level and forex markets were generally stable and orderly. The RBI Governor, however, refused to make any projections on the growth rate but only said “we will revise it in the April credit policy”. He said that the present external position of the economy was strong enough to take care of any eventuality that may arise out of adverse international developments. Assuming normal monsoon in 2003-04, circumstances were compatible for a substantial increase in growth rate provided the Budget proposals were implemented by the government, the RBI Governor said. On the interest rate, Dr Jalan said that “as of now interest rates are soft”.
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Farmers throng Kisan Mela Rakhra (Patiala), March 15 Presiding over the festival Dr S. Nagarajan, Director of Indian Agriculture Research Institute, said the green revolution had not come to an end. It was still growing, but at a slower pace. He said a variety of paddy was in pipeline which would yield up to 8 tonnes per hectare. The existing varieties gave an average yield of up to 6 tonnes. He said after Thailand, India was the largest exporter of Basmati. Punjab could play a big role in taking it to the first place. He suggested identifying of zones for producing Basmati in Punjab. He revealed that the Pusa Sugandh-2 variety of rice had been released by the Central Committee on crop standards notification. He said agriculture produce from Punjab was being sent to other states for value-addition which was benefiting those states more than Punjab. There was scope for growing Durum wheats in Patiala, Sangrur, Bathinda, Muktsar and Ferozepore districts. The south-west belt was more suitable for raising Durums compared to the Khanna and Ludhiana areas. He said there was a strong need to take computer technology to farms. Inaugurating the festival Mr BS, Minhas, Additional Secretary, Ministry of Agriculture and Cooperation, said the government would increase the procurement prices of wheat and paddy in future but the increase would be sharper in the support prices of oilseeds and pulses. There was a proposal to remit old cooperative debts. This was needed to strengthen the cooperative structure. He said the Ministry had decided to give three months training to agriculture graduates. A loan of Rs 5 lakh would be given for starting the self enterprises. Mr Minhas said a proposal to give subsidy to these agriculture graduates had been sent to the Planning Commission and the Finance Ministry for clearance. An MoU between the Punjab Young Farmers’ Association, (Dr Amrik Singh Cheema Foundation Trust) and Naandan, Israel and RS Products (P) Ltd., New Delhi, was signed for launching a project on water management. Mr Cheema said Punjab farmers should concentrate on producing seeds to meet the needs of other states. In his welcome address he commended the efforts of Chief Minister Amarinder Singh for setting up a farmers’ confederation and strengthening the agriculture base in the state. The association honoured Dr RK Rampal, Director of Agriculture, for his outstanding contribution in agriculture extension. He was presented a silver plaque, a shawl and a citation. In his keynote address he revealed the Punjab Government’s strategy for the Kharif season and his department’s plan for ensuring pure and standard inputs to the farmers by enforcing strict quality control measures. Former Agriculture Director Mewa Singh Sonar, PYFA Vice-President HS Chahal, Chairman women’s cell Mrs Surinder Kaur Grewal, CAO BS Sohal and Mr Surjit Singh Rakhra, MLA, also spoke. PYFA Secretary-General-cum-Director Bhagwan Dass highlighted the achievements of the association and its contribution in educating farmers particularly in the seed and rice production technologies.
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Oil prices slump
New York, March 15 Speculation also was mounting that President George W. Bush would release supplies from the 599.3-million-barrel strategic petroleum reserve (SPR) if a war broke out, he said. "Price could drop by as much $ 10 when war starts," Gheit forecast. "If we secure the oil fields and there is no disruption in supplies and Bush releases oil from the SPR, within two weeks we could see $ 25 oil." New York’s reference light sweet crude contract for April delivery skidded 63 cents to $ 35.38 a barrel, after having plunged by $ 1.82 a day earlier. The price of benchmark Brent North Sea crude oil for April delivery fell $ 1.05 to $ 31.38 a barrel. The contract had already lost $ 1.48 on Thursday. The
USA, UK and Spain will hold an emergency summit in the Azores islands tomorrow to plot strategy in their uphill battle to win UN backing for war against Iraq, the White House announced. Bush believed he did not need UN approval to wage war but would seek it in solidarity with embattled British Prime Minister and Spanish Prime Minister his spokesman said.
AFP
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Murthy criticises techies harassment
New Delhi, March 15 "There is no doubt at all that IT professionals should not be mistreated and for that matter any foreigner who is on a legitimate reason should not be mistreated," Murthy said when asked to comment on the recent incident of ill-treatment meted out to 270 Indians, mostly IT professionals in Malaysia. "That issue is being taken up by the government by our Ambassador. I am sure that the government will see to it," he told reporters after the RBI Board meeting here. Nasscom has taken up the issue with the government and it should be sorted out fast. The Malaysian police on Sunday raided an apartment building in Brickfields and rounded up about 270 Indian nationals, mainly IT professionals, suspecting them to be illegal immigrants. In a damage-control exercise, Malaysia yesterday expressed regret over the incident and said the allegations made against the police were "serious" that could impair bilateral relations.
PTI
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Forex reserves grow by $ 863m
Mumbai, March 15 The country’s foreign currency assets swelled by $ 863 million at $ 70,011 million, according to the RBI’s weekly statistical supplement released here today. For the week ended February 28, foreign exchange reserves had decreased by $ 2,477 million at $ 72,877 million due to purchases of $ 3,035 million by the government from the RBI for prepayment of foreign currency loans taken from the ADB and World Bank. Gold reserves and special drawing rights remained static at $ 3,725 million and at $ 4 million in the reporting week, the RBI said.
PTI
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Haryana first to adopt VAT With the passage of the legislation called the Haryana Value Added Tax Bill, 2003, the Haryana perhaps acquires the status of becoming the first state to adopt the new system of taxation governing levy of tax on the sale or purchase of goods. This legislation will be called as the Haryana Value Added Tax Act, 2003 the moment it comes to be assented to by the Governor of Haryana. The life of thirty-year old enactment known as the Haryana General Sales Tax Act, 1973 thus comes to an end on March 31, 2003 setting at rest the controversy as to whether the state would be going in from the commencement of coming financial year for introduction of VAT or not? Given the manner, in which the VAT Bill drafted by the State Excise and Taxation Department as such was okayed by the Legislative Assembly, constitutes another example of how casually and unmindful of their constitutional duty do our political representatives perform their roles? Our lawmakers did simply no more than putting their seal of approval on the VAT Bill as more than a dozen of legislations dealing with different important subjects came to be passed in just one hour with no deliberations or application of mind. This really is unfortunate. As far as difference between the existing tax policy and the new system of taxing the commercial transactions under the VAT is concerned, the state curtails the scope of tax immunity from eighty items that earlier were enlisted under Schedule ‘B’ appended to the Haryana General Sales Tax Act, 1973 to just thirty one under the provisions of the VAT. Some of the important items such as textiles, sugar, tobacco, fertilizer, cattle feed, poultry feed, footwear of the value upto Rs 100 per pair, exercise books, bakery goods, agricultural implements and on which tax exemption earlier used to be admissible under the old law become taxable under the provisions of the Value Added Tax Act, 2003. The system of selling goods by one registered dealer to another on the strength of prescribed declarations without charging tax and shifting the tax liability to the ultimate registered dealers stands altogether replaced under the provisions of the Haryana Value Added Tax Act 2003. Also the policy of levying single point tax attracting tax liability either at the hands of an importer or a manufacturer in the State and granting exemption from tax on successive stage(s) comes to be replaced by multi-point levy of tax, though with the facility of input tax credit only in the event of purchases made from within the state from VAT dealers, as far as the important provisions incorporated in the Haryana Value Tax Bill are concerned. The manufacturers who earlier could buy most of the capital goods from within the State without payment of tax would now under the VAT have to pay tax at the time of their purchase. One of the genuine grievances expressed by the trade and industry is that substantial portion of their capital would get involved in tax that becomes leviable at every stage of sale or purchase of goods. What will be the fate of the small dealers operating with limited finances in the market if major portion of their working capital comes to be used in taxes introduced under the VAT system?, asks Mr Rajinder Bajaj, Secretary, the Jagadhri Metal Traders Association. What really is disturbing under the VAT system is that the State proposes to bring all kinds of utensils and wares made up of brass, copper and kanse under the list of 12.5 per cent tax as against the decades old policy of levying concessional tax rate on these goods. The introduction of VAT in the State is bound to cause a severe blow to the metal industry that already has been passing through a critical time because of trade recession and diversion of metal industry from oldest city of Jagadhri to other states, told this writer lamenting Mr Raj Kishan Saluja and Mr Batra another executives of the Jagadhri Metal Manufacturers Association. The metal trade and industry rather needed more support from the State but the provisions introduced in the VAT do not take into consideration the legitimate interests of this industry. The state, though dispenses with the several penalty provisions in the event of default by a VAT in payment of tax as per the returns, has introduced the provisions providing for 3 per cent interest per month under the VAT laws as against 18 per cent per month under existing provisions of the Haryana General Sales Tax Act, 1973 on delayed payments. Another important question that comes to one’s mind is what effect this new VAT system introduced will have on the future of trade and industry in Haryana, if other States defer the introduction of similar system in their respective territories. Will the trade and industry in Haryana burdened with additional taxes under the VAT laws be able to stand in the fiercely competitive markets?
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by K.R. Wadhwaney Suggestions for aviation growth Aviation and tourism are the world’s largest twin-industries. Their contribution in the gross output, capital investment, employment generation, value addition and foreign exchange earnings are very high. No wonder, some countries are prospering by concentrating on promoting these sectors domestically and internationally. Aware of importance of these twin industries, the Foundation for Aviation and Sustainable Tourism (FAST) has made far-reaching and realistic recommendations for the quick growth of aviation and tourism. FAST firmly believes that the government should provide much greater emphasis to these sectors than has been the case during the past 55 years. Important recommendations are: 1. Introduction of no-frill airlines for short-haul operations, 2. Developing appropriate and cost-effective methods to enhance efficiency of airlines, 3. Imaginative interventions for long haul destinations, 4. Emphasis on promoting aviation/tourism in the Asia-Pacific region, 5. As “blocklaterals” are expected to take over from “bilaterals”, there should be in-depth review so that there is all-round progress instead of depending upon the Europe and US sectors, which have become seamless, 6. Airlines should concentrate on their “core” activities instead of other activities like catering, ground handling of airports to outsource and enhance airlines operational efficiency. FAST has also suggested several measures for enhancing the security of aircraft and safety of passengers. Increased safety training, pro-active accident or incident provision approach and maximising the use of advance technology are some of the measures advocated by FAST, which is doing a pioneering work for these twin industries. Additional Facilities The Airports Authority of India (AAI) has taken several measures for passengers at Indira Gandhi International Airport (IGIA). “We have installed six 42-inch plasma display panels along with 15 colour television sets in different halls so that waiting passengers can pass their time,” said airport official, adding that: “Many other facilities are being added to make passengers’ wait enjoyable”. The airport is currently undergoing face lift.
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by Praful R. Desai Reappreciating evidence Q:
Whether issue of a writ of certiorari is a supervisory jurisdiction and court exercising it, is entitled to act as an appellate court? Ans: SC in Mohd. Shahnawaz Akhtar v Ist ADJ Varanasi (2003-(I) RCJ.3) expressed the view thus: The landlord filed a suit for eviction of respondent No. 4 from shop on the ground of sub-letting. The trial court decreed the suit. Revision was also dismissed. However, the HC set aside the judgement and hence the present appeal. The trial court, as well as the revisional court, had on appreciation of evidence came to the conclusion that the 4th respondent had sub-let the premises. In coming to this conclusion, they had relied on a report of a commissioner appointed by the trial court to visit the premises. The commissioner had found tat somebody else was carrying on business of selling ready-made garments inside and around the premises. Admittedly the 4th respondent was not carrying on this business. The 4th respondent had also not produced any licence to carry on any business nor produced any documents like bills, vouchers, sale receipts etc. to show that he had been carrying on any business in the suit premises. It is on appreciation of this evidence that the suit had been decreed and the revision dismissed. The HC, however, reversed the findings of the trial court and the revisional court on the reasoning that even if the entire evidence is accepted, this would still not amount to a case of sub-letting. The HC held that at the most it would be a case of casual licence allowing persons to temporarily store their goods inside or to do some business outside the shop by using the patra and also on a chowk. On this reasoning, the HC had allowed the writ petition. In the view of the SC, the HC had transgressed the limits of the jurisdiction U/A, 226 by purporting to re-appreciate the evidence and coming to its own conclusion. The HC has no where stated or concluded that the lower courts had committed an error of jurisdiction or that they had acted illegally and improperly. Further, the HC failed to notice that a case of casual licence was not even pleaded or proved by respondent 4. Therefore, in the opinion of the SC, it was not open to the HC to make out a new case on behalf of the party in its writ jurisdiction U/A 226 of the Constitution. SC consequently held that the judgement of the HC therefore car not be sustained and set aside with an order that the decrees passed by the trial court and the Revisional court be restored. The appeal in that way was allowed. |
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