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Reining in broadcasters may
Kyoto pact to boost investments
Damodaran is new Sebi chief |
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SSI units to get ratings
Govt nod must for industry closure: SC
Raymond to form JV with Italian firm
Vegetable oil industry calls for tax sops
Dutch hydel firm interested in HP
HCL acquires whole of Aquila
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Reining in broadcasters may generate Rs 4,000 cr
New Delhi, February 17 At present, close to 100 channels are being beamed in the country, mostly by foreign broadcasters, who are operating without any universal service obligation (USO) being imposed on their services. Like in the telecom services, where a licence operator pays 5 per cent of revenue, which is used for conducive development works, revenue generated through the USO would contribute an additional Rs 1,000 to Rs 1,500 crore through proposed broadcasting regulator. The content being transmitted through satellite transmission can either be controlled at the point of up-linking or after down-linking. At present, signals are being down-linked without any restriction, provided they conform to programme and advertising codes which is only applicable on cable network services under the Cable Act, with absolutely no attention on programme providers. While in most developed and developing countries, content regulations are normally prescribed and enforced by statutory regulators or authorities, in India there is no comprehensive broadcasting law or regulator to regulate content. This means that commercial interest of programme providers blatantly overrides societal concerns. The proposed down-linking policy through the regulatory authority would mean the channels having to adhere to stringent norms, rather than free-for all that it is at present, besides revenue generated through corporate taxes on huge advertisement revenue, amounting to more than Rs 15,000 crore , and the USO. A countrywide licence, given to those down-linking in India, will ensure regulations on those doing business here. The programme providers, mostly operating from outside India, barring a few, are bypassing the Indian economy with no part of their advertisement revenue being subjected to the Indian taxation system, says General Secretary of the Cable Network Association Rakesh Dutta. Mr Dutta, who was part of workshop organised by the Ministry of Information and Broadcasting on content issues on television channels, where broad consensus on a statuary regulatory body was arrived at, says it is free-for all for everyone at present. “Large network operators have creating a vertical monopoly by creating their own cable networks. They are controlling everything from the cradle to grave, including what the nation is watching right from the inception to delivery. Besides this, they are completely bypassing the Indian taxation system and making lot of money without contributing to the economy. With the creation of this new regulatory body, signal has emerged from the top that there is a mandate to stop all those who had been draining the country.” In 1997, efforts were made to check malpractices in the system by enactment of a broadcasting law, which broadcasters had reportedly successfully lobbied against.
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Kyoto pact to boost investments
New Delhi, February 17 Inaugurating a seminar on “Clear Skies,” organised by the Indian Carbon Market Group
(ICMG) and the Union Environment Ministry, to mark the first day of the Kyoto Protocol, Environment and Forest Minister A. Raja said the framework, provided by the Protocol to the Convention on Climate Change, would result in an active and vigorous market for greenhouse gas reductions. This, he said, would further promote investments in renewable energy and energy efficiency in the country and support sustainable development while conserving the global environment. A national CDM authority has been created for according host country approvals. Besides this, a number of state-level institutions have been identified for helping developers in project preparation. Mr Raja said India was currently at the top in terms of the number of projects accorded the host country approval and under consideration by the CDM executive board, of which India was a member. Lauding the formation of the
ICMG, an association of corporates, NGOs and individuals to get together CDM stakeholders in India to share experiences and promote best practices, he said through the Protocol’s impact on technology innovation, efficiency standards, and behavioural changes, especially in the energy and transport sectors, it could contribute in reshaping the world economy in the 21st century.
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Damodaran is new Sebi chief
New Delhi, February 17 Damodaran takes over as Security Exchange Board of India chief from G. N. Bajpai who retires tomorrow. Damodaran, who was instrumnental in turning around the beleaguered Unit Trust of India which was split into two organisations after the 2001 muddle in the country’s biggest mutual fund. Damodaran was made UTI Chairman, succeeding P. Subramanian in 2002 after the muddle in the mutual fund came to light. He was also asked to look after IDBI and recently took over as its full-time Chairman-cum-Managing Director after the bank was corporatised. Damodaran takes over as Security Exchange Board of India chief at a time when the stock market has been booming but at the same time there are concerns over unregulated hedge funds brought in by foreign institutional investors who had pumped in an estimated $ 9 billion till December 2004. The government is yet to choose a successor to Damodaran as IDBI Chairman. Earlier in the day, Bajpai had a meeting with Finance Minister P Chidambaram at his North Block office. — PTI
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SSI units to get ratings
Ludhiana, February 17 Introduction of a rating scheme for the SSI sector assumes immense significance in the present day fast-changing global economic scenario where, with the opening up of opportunities, SSI industries are also facing various challenges that have necessitated upgrading their competence. The rating scheme, which has been approved by the government, was formulated in consultation with various small industry associations, Indian Banks Association and credit rating agencies ICRA, Crisil, Dun and Bradstreet (D&B) and Onicra. “Proof of a company’s credit worthiness or credibility is required almost everywhere, be it while seeking a loan or procuring orders. Rating would make things easier for SSIs,” said Mr Ravi Kant, joint manager, NSIC. He said a good rating would enhance a company’s acceptability in the market apart from making access to credit quicker and cheaper, thereby helping in economising cost of credit. Besides, rating would also infuse a sense of confidence among buyers while making decisions regarding sourcing of material from small-scale units, he said. “While on one hand, the changing economic scenario is providing SSIs with opportunities to enhance productivity and look for new markets in other countries, it has also made it imperative for them to upgrade their competence in terms of technology, managerial and financial strength so as to meet global competition.” The performance and credit rating scheme would consider performance factors like operational, financial, business and management risks and credit worthiness of a unit. A unit would be at liberty to select any of the rating agencies that are empanelled with NSIC. After receiving request for rating from an SSI unit, information would be collected from the unit which would be followed by a meeting with the SSI management after which analysis of the information would be done based on which rating would be assigned. Fee structure of rating agencies would vary as agencies have their own fee structure and also their own evaluation criterion. Though the rating fee may vary for the purpose of subsidising the fee, a ceiling has been prescribed by the government. This ceiling would be based on the turnover of an SSI unit, which has been categorised into three slabs. In case of a turnover up to Rs 50 lakh, 75 per cent of the fee charged by rating agency (subject to a ceiling of Rs 25,000) shall be reimbursed by the Ministry of SSI. For turnover above Rs 50 lakh up to Rs 200 lakh, 75 per cent shall be reimbursed subject to a ceiling of Rs 30,000, whereas in case of turnover exceeding Rs 200 crore the ceiling is Rs 40,000. The balance amount of the fee shall have to be borne by the small-scale unit.
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Govt nod must for industry closure: SC
New Delhi, February 17 Elaborating further the effect of the Industrial Dispute Act (IDA), 1947 in this regard, a Bench of Mr Justice N. Santosh Hegde and Mr Justice S.B. Sinha said closure of the industry without prior approval of the government would be against the public policy of protecting the interests of workers as laid down by Parliament in the legislation. The court said the provisions of Sections 25-N and 25-O of the Act, which deal with closure issue, did not contain anything, whereby the employer and the employees could arrive at a settlement for closure without the government’s prior permission. Any such agreement between the employer and employees, which was opposed to the public policy laid down by Parliament in the Act, would be “void and of no effect”, the court ruled. “The government before granting or refusing such permission is not only required to comply with the principles of natural justice by giving an opportunity of hearing to both the employer and workmen but also is required to assign reasons in support thereof and is also required to pass an order having regard to several other factors laid down in the Act... specially the interests of the workers,” the court held. A contract between the management and the workers, which might be legally valid, must conform to the public policy otherwise such agreement had no effect even under Section 25 of the Indian Contract Act, it said.
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Raymond to form JV with Italian firm
New Delhi, February 17 The Raymond Board of Directors has approved a joint venture with Cotonificio Honegger
SpA, part of Gruppo Zambaiti for the manufacture and marketing of high value-added cotton shirting fabrics, and the expansion of the company’s worsted fabric capacity. The 50:50 joint venture with the Italian shirt maker will entail an investment of Rs 180 crore in setting up a shirt fabric plant with an annual capacity of 10.5 million metres, Raymond Managing Director Gautam Singhania said, adding that half the output will be sold in the domestic market, and half exported to US and European markets. The new facility will cater to the international markets at the higher end and the company’s own requirements of fine shirting fabrics for its premium brands
Manzoni, Park Avenue and ColorPlus. Pointing out that the proposed joint venture is part of Raymond’s strategy to expand its product portfolio by entering into cotton fabrics, India’s key strength in the textiles and clothing world, Mr Singhania said, “Honegger is looking to source a part of its requirement from low-cost manufacturing centres which will also offer high quality products.” “The textile scenario internationally is looking extremely positive for Indian companies. There are significant opportunities for Indian companies to partner with global firms to exploit the opportunities across the globe. “Our equal joint venture with the Italian company is the first step towards creating partnerships which can establish Raymond strongly in the international arena,” he added. Raymond, the world’s biggest worsted fabric manufacturer, will also invest Rs 100 crore to augment its fabric capacity by 3 million metres per annum. It currently makes 24 million metres of fabric. — UNI
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Vegetable oil industry calls for tax sops
Chandigarh, February 17 The president of the Solvent Extractors Association, Punjab, Mr A.R. Sharma, said prices of vegetable oils in the country are ruled by imported oils as about 45 per cent of our total requirement is being met through imports. Of the total requirement of 10 million tonnes, 4.5 million tonnes is being imported and the burden of these taxes travels back to the oilseed growers. While the import of these oils was only 3 per cent in 1992-93, it has gone up to 45 per cent and is next only to petroleum imports in terms of money, he said. Sources in the industry maintain that the apathy of the Central and state governments has also led to a decrease in the oilseed production in the state. Mr Sharma pointed out that the oilseed sector was burdened with multiple taxes and levies, unlike most other states. The effective rate on the refined oil and vanaspati produced locally works out to be about 1.5 per cent only as against 5 per cent sales tax charged on the refined oils and vanaspati entering the state from outside states. Since there is 2 per cent central sales tax in Punjab on both crude vegetable and refined vegetable oils, more crude vegetable oil is flowing to UP, resulting in an acute shortage of raw materials for the local refining industry, they add. In a communication sent to the Punjab Finance Minister, Mr Surinder Singla, they have suggested that refined vegetable oils and vanaspati be given preferential treatment over crude vegetable oil in respect of Central sales tax and the same be reduced to 1 per cent in case of refined oils. This would ensure more exports of the finished product than the raw material and help the local industry to utilise their installed capacities. Mr Sanjeev Nagpal, convener of the agri-reforms committee of the CII (Northern Region), said to save the vegetable oil extracting units, they have also urged the state government to impose 2 per cent entry tax on the oil arriving from other states. They have also demanded that the government should reduce purchase tax/sales tax to 1.5 per cent on all kinds of oil seeds, including rice bran and exempt vegetable oils produced from the local raw material from the levy of sales tax. This rationalisation of taxes will also ensure better realisation to the oil seed growers and encourage farmers to diversify into oil seeds, he said. Besides this, it would also safeguard the interests of the local vegetable industry. The association has urged the government to look into the woes of the solvent extractors sympathetically and help the industry come out of the present impasse being faced by them due to double taxation. Of the 80 units in the state, nearly 50 per cent will be forced to close if corrective measures were not taken at the earliest. They have also drawn the attention of the minister towards the policy being adopted by other states like UP which has continued with its lump sum tax scheme for the current year in respect of vegetable oil refining industry and vanaspati. Similarly, Madhya Pradesh has reduced the purchase tax on
soybean, which is a major oilseed crop of the state from 4 per cent to 1.5 per cent and has exempted
soybean oil produced out of the locally purchased raw material from any sales tax. Even Haryana has rationalised the incidence of tax by ensuring vatability of tax paid on raw materials under the newly introduced Vat.
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Dutch hydel firm interested in HP
Shimla, February 17 He said all pre-qualifications for the allotment of the project would be fulfilled and a detailed project report submitted within a fortnight to the state government. He said the projects would be completed within the minimum possible time. Mr Virbhadra Singh said state government would welcome foreign investments to exploit the hydel potential of the state expeditiously.
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HCL acquires whole of Aquila
New Delhi, February 17 The acquisition has been made through Shipara Technologies — a 100 per cent subsidiary of HCL Technologies. HCL Technologies had made a strategic investment to acquire 35.5 per cent stake in Aquila in May 2002, followed by the acquisition of another 21.5 per cent in July 2004. The existing shareholders have now agreed to exit the JV and HCL Technologies has accordingly acquired the balance 43 per cent stake in Aquila, the company said in a statement. Aquila is a Bangalore-based software solutions provider in the areas of engineering software and services like CAD/CAE PDM/CPC, virtual engineering frameworks, visualisation, image processing and computer game development. Commenting on the acquisition, HCL Technologies President and COO S Raman, said: “This consolidation of engineering services between Aquila and HCL Technologies, makes us, currently, the only IT company in India to offer the complete range of product development services in the truest sense.” As full product engineering moves from the West to India, HCL Technologies is ready for this next outsourcing trend, he added. For the 12- month period ended December 31, 2004, HCL Technologies along with its subsidiaries had revenues of $ 664 million.
— UNI
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Auto scene
New Delhi, February 17 “We are setting up our own cab tractors, with features like AC, heater, personal stereo and even a sun-roof, for the Canadian market and hope the project will kick off by June-July,” Mahindra USA President Derek Johannes said. He said the company decided to foray into Canada because this market has huge demand for specialised agri-vehicles. The cab tractor will have an enclosed cabin for the driver in view of the extreme cold climate in Canada. Besides, Mahindra USA (Musa) will also source cab tractors from Japan’s Mitsubishi and Tong Yang of South Korea, and market them in Canada under the Mahindra badge, Mr Johannes said, adding that all these tractors will be in the 0-100hp segment, which accounts for a chunk of US and Canadian markets. Angad launched A farmer can now buy a tractor for less than the cost of a car. Chinese tractor Angad, launched today for the Punjab and Haryana markets, is priced at Rs 99,000. The 22 HP sleek tractor is not only cost effective but an efficient tractor which can be used for multipurpose activities. The Managing Director of Delhi-based SAS Motors Ltd, Mr Ravinder Kumar, said new low cost is introduced with the initiative towards rural prosperity as even small farmers, who cannot dream of buying big brands can afford this. All its secondary spares are indigenous and cheap, besides its engine can be upgraded as per the requirements of the farmer, he said. The multi-functional tractor can be used for tilling, tubewell operation, generating electricity and threshing, besides transportation of goods. It provides fuel savings up to 25 per cent as compared to any other tractors in the market. “Hence, they are effective on land holdings less than eight acres and can also find usage as a second tractor in bigger farms,” said Mr Kumar.
— UNI, TNS
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