New Delhi, March 23
Despite the immense potential in India, Chinese companies are reluctant to invest here due to bureaucratic hurdles, limited visa period and procedural delays in comparison to other countries.

“The Chinese companies feel discouraged when their representatives get visas for limited period and face unnecessary delays in the sanctioning of the project,” said Mr Wang Jinzhen, Assistant Chairman, China Council for Promotion of International Trade, a semi-official trade and investment body of China.

Talking to The Tribune on the sidelines of a two-day “The China Miracle” conference here today, he said, “both countries can work together in the energy field, including the oil and hydel power sector. China has expertise in hydel power and they are ready to invest here.”

He said though India had trade surplus with China, both countries have knowledge deficit about each other. There was a need to promote visits of industrialists, trade representatives to each other’s country to enhance mutual trade.

Appreciating the role of Indian companies in China, he said, “ Indian IT companies like Aptech and NIIT have already over 25 per cent share in vocational IT training in China. We are willing to explore new fields for investment and trade.”

Chinese representatives also complained of strict labour laws, regressive indirect taxes and higher interest rates as major hurdles in attracting FDI in the country.

Prof Tan Kong Yam of the World Bank, said, “fragmented vested interests of regional political parties, labour unions, bureaucratic power and control besides regional diversity are some of the constraints in India.”

Earlier, speaking at the conference, Union Petroleum Minister Mani Shankar Aiyar said, “Market forces dictate that India and China will compete in acquiring hydrocarbon properties across the world. Both India and China should work together in this field as they are the world’s largest developing countries and can get the best prices. ”

India and China have agreed to explore jointly the potential in energy sector in each others’ countries and in third countries. The mutual cooperation in the field, including hydrocarbon, can lead to a rise in bilateral trade manifold, currently prevailing at $ 13.7 billion annually.

The conference was jointly organised by the CII and Department of Industrial Policy and Promotion, Ministry of Commerce and Industry.

“In Sudan, both India and China have been working together for years in perfect harmony. In Khartoum, China has built a refinery while India has built a pipeline to transport oil. This model of cooperation can be replicated in Iran, Sub-Saharan Africa, Central Africa, Latin America and North and Central Asia,” said Mr. Aiyar.

He claimed that India would soon possibly receive Foreign Direct Investment (FDI) worth over $ 8 billion in the energy sector in oil and gas exploration fields.

Supporting his views, Mr Jinzhen said, “It is the right time for India and China to expand business opportunities. Better information exchange will be the basis for this expansion.”

Solan, March 23
With Himachal Pradesh opening the door for IT-based industries, as many as 29 biotech companies, including UK-based Biosys, and several international units have come forward to invest in the state. The state which has received the principal approval for Rs 9 crore grant from the Biotechnology Department, Government of India, would soon emerge as a key area of biotechnology industry.

Mr Sanjeev Gupta, Secretary, IT, Biotechnology, Science and Technology, told The Tribune here today that the government would invite the private players to invest in the field. Financial bids, followed by technical bids, would be invited to assess the financial position of these companies. This would ensure the entry of genuine entrepreneurs in the state. Various established names like Saak India, Ayush Herbals, Beckons Industries, Bioveda, Sugandhim International, etc., had shown keen interest in the field.

Earlier, addressing a one-day workshop on Intellectual Property Rights and Biotechnology conducted by the Small Industries Service Institute (Sisi) here, he emphasised the importance of state’s biodiversity and said as much as 25 per cent of the drugs were manufactured from the herbal wealth of the hills. Having a pure gene pool the state had another advantage in the form of a sales tax holiday extending up to 2012.

Dr S.V. Bhardwaj from the Dr Y.S Parmar University of Horticulture and Forestry highlighted the significance of intellectual property rights and the process of filing patents. Dr R.C Sobti, Head of Biotechnology Department, Panjab University, gave a detailed presentation on the scope of biotechnology-based industry in Himachal. The programme was coordinated by Mr Ravinder Kumar, director, Sisi, Solan. 

Lucknow, March 23
To expedite proposals from potential investors, the Uttar Pradesh Development Council (UPDC) decided to constitute a high-powered Capital Investment Board with the Chief Minister as Chairman and UPDC head Amar Singh as its Deputy Chairman.

Addressing the press after the 8th UPDC meeting last evening, Mr Amar Singh said it has been decided to hand over the Anpara C to the private sector for which many companies have shown interest, including a China-based one. He said these companies included the Tatas, the Essar Group, Aditya Birla Group, and Reliance. Mr Amar Singh also clarified that the Anpara A and B would, however, not be handed over the private sector.

Another significant step towards power sufficiency in the state, is UPDC member Kumaramangalam Birla’s interest to set up a 1,000-MW power plant in Sonebhadra district of eastern UP. Mr Amar Singh made known Kumaramangalam Birla’s keenness to revive the 600-MW Roza power plant in Shahjehanpur for which he was ready to provide Rs 2,400 crore.

Responding to the UPDC members’ deep concern over massive power theft and line losses, UPDC member and the state’s brand ambassador Amitabh Bachchan offered to make spots like his well-received pulse polio campaign to appeal to the people to help check power theft. Reliance vice-chairman Anil Ambani recommended learning from the West Bengal experience by setting up special power police stations to check the power theft menace.

Taking a serious view of line losses, Chief Minister Mulayam Singh Yadav has directed the Uttar Pradesh Power Corporation (UPPCL) to fix responsibility and take action against officers found lax in monitoring and curbing power theft.

In view of a bumper potato crop and farmers not getting adequate returns, the UPDC has decided to encourage distilleries based on potato, rice and wheat, informed Mr Amar Singh. In addition, a policy for setting up a procurement centre for perishable vegetables would be formulated under the guidance of Agricultural Produce Commissioner Neera Yadav that will look into aspects like post-harvesting technologies.

According to Mr Amar Singh, following UP Film Development Council Chairperson Jaya Bachchan’s concern of video and audio piracy in the state, it has been decided to frame a law curbing it. A decision to set up a sub-committee under Amitabh Bachchan, including people like Yash Chopra and Karan Johar, was taken to boost the multiplex culture in the state.

New Delhi, March 23
The nine-day old country-wide strike by executives of Bharat Sanchar Nigam Limited was called off today after Communications and IT Minister Dayanidhi Maran assured the agitating workers that their demands would be looked into.

“This morning we had a meeting with the United Forum of BSNL executives along with CPM leader Nilotpal Basu. An agreement has been reached and the employees’ union has decided to call off the strike. There issues would be heard by the BSNL management”, Mr Maran told newspersons here.

Chairman and Managing Director of BSNL A. K. Sinha said the management will look into the demand of the executives. For this purpose, a special committee of senior officers would be constituted which would submit a report.

The executives have been on work-to-rule agitation since March 15. Among other things they have demanded time-bound promotions.

Bangalore, March 23
India’s largest car maker Maruti today said the diesel engine plant being set up jointly with Japanese parent Suzuki Motors at Manesar in Haryana will be operational by the first quarter of 2007.

Launching Maruti’s first driving school here, Maruti Managing Director Jagdish Khattar told reporters that engines produced at the new plant will be fitted to Maruti’s bigger cars, besides catering to global requirements of Suzuki.

“It (diesel engine) can’t be for a small car. Not in Maruti 800 or Alto, this engine needs a heavier platform,” he said, adding, the capacity and investment plans for the new engine plant were yet to be worked out.

Khattar said preliminary work for building a second car plant on 600 acres in Manesar along with the diesel engine unit had begun.

He was evasive on the possible price increase due to the hike in steel and petrol prices. — PTI

Panchkula, March 23
Corporate houses or families looking for a holiday with a dash of nostalgia? The Indian Railways Tourism Corporation (IRTC) now offers exclusive chartered rail services on three vintage hill rail sections in the country.

And in order to bring chartered services for hill railways on organised footing, the Railway Board has now fixed prices for enjoying joy rides — in chartered trains pulled by either steam or diesel engines.

Railway officials inform that rates have been fixed for chartered rail service on three heritage rail sections — Kalka- Shimla, Nilgiri Mountain Railway and Netal — Matharan section. The rates — ranging from Rs 22, 202 to Rs 92, 706 — were fixed by a special committee appointed by the Ministry of Railways and later approved by the Railway Board, and will come into effect from April 1 (see box). This committee was appointed in order to give reasonable rates for value added services in hill railways of India.

Two first-class coaches will be attached with the engine (steam or diesel - depending on the consumers choice). While one steam engine each is commissioned on the Kalka- Shimla section in Himachal Pradesh and Netal-Matharan hill rail section in Maharashtra, two steam engines are available on the Nilgiri Mountain Railways from Coonor to Mettupallayam.

Mr Rakesh Saksena, Tourism Director, Railways, when contacted, said this committee was later assigned the task for fixing rates for the other vintage hill rail sections. “The chartered service for coaches run on steam engine are not for the entire distance of the section, rather a small distance on the section. Steam engines are slow and cannot run long distances, so consumers going in for these chartered rail services can choose the part of the journey they want to go in steam engines,” he said.

It may be noted that the steam engine service on the Kalka - Shimla section is available from Shimla to Katleeghat and back — mainly because the picturesque journey was much preferred. Though the journey was earlier available for over Rs 1 lakh, the same distance will now cost Rs 58,808. The single way journey from Shimla to Katleeghat will cost Rs 27, 848. For a chartered service with a diesel engine, the one-way journey on this 100 year old heritage section would cost Rs 34,580 and both ways journey would cost Rs 73,998. There are five hill railways in the country, and one of these rail sections — the Darjeeling section has already been granted a world heritage status. The original committee was set up by the Railways Ministry for recommending rates for the Darjeeling heritage rail section, and the rates for chartered service were notified by the Railway Board in November 2003. The Jogindernagar- Palampur hill railway has not been considered for the rate revision, as it is not a preferred by tourists.

Geneva, March 23
Germany’s flag carrier Lufthansa has taken over Swiss International Airlines for about 310 million euros ($409 million), Xinhua reported.

The deal was signed late yesterday in Zurich after being endorsed the boards of both companies, the Swiss Government and other major shareholders of the Swiss national carrier.

The merger will help Lufthansa with 50.9 million passengers to bridge the gap with Europe’s number one airline Air France-KLM with 64.8 million passengers.

According to the takeover plan, Lufthansa will make an offer to buy out smaller investors starting May based on Swiss’ stock average price in the 30 days ending Thursday, the registration date of the takeover. The buyout is expected to cost 45 million euros ($60 million).

Swiss International Airlines is jointly owned by the Swiss Government which has a 20.4 pe rcent stake, Swiss banks UBS with 10.4 per cent, Credit Suisse 10 per cent, regional authorities of Zurich 10.2 per cent and free-float shareholders 15 per cent.

Lufthansa said large shareholders would get an earn-out option, for which it would pay an aggregate 265 million euros ($347 million).

The takeover will be in two phases. Lufthansa said it would initially put Swiss shares into a new company called AirTrust, in which it would hold 11 per cent stake, due to air traffic regulations and antitrust rules.

Once antitrust approval is gained, the stake would be raised to 49 per cent and after aviation regulatory approval, to 100 per cent, the company said.

Under the agreement, Swiss will retain its independent brand and maintain its fleet scale of 80 liners. The headquarters and executive body will also remain in Switzerland. — IANS

New Delhi, March 23
The Empowered Committee of State Finance Ministers will meet tomorrow to discuss ways and means for implementing the proposed Value Added Taxation (Vat) regime from April 1.

The proposed Vat regime has run into rough weather with some states expressing reservation on implementing the new taxation structure.

Finance Minister P. Chidambaram, who has billed the proposed regime as the biggest ever tax reform ever to be undertaken in independent India, is expected to attend the meeting.

Under the proposed Vat system covering about 550 goods, there would be only two basic Vat rates of 4 per cent and 12.5 per cent, plus a specific category of tax-exempted goods and a special Vat rate of 1 per cent only for gold and silver ornaments. This would do away with the multiplicity of rates in the existing structure.

There would be also a list of 46 commodities under the exempted category comprising natural and unprocessed products in unorganised sector, items, which were legally barred from taxation, and items that had social implications.

However, the proposed system has come across strong opposition, particularly from the trading community. The Confederation of All India Traders (CAIT), which is spearheading the movement against the introduction of a countrywide Vat, pointed out that the goods are not clearly defined in the rate schedule.

The Centre has already assured that it would fully compensate any resultant revenue loss accruing to state governments arising out of migrating to the new regime.

Uttar Pradesh and the BJP-ruled states — Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh and Jharkhand — have expressed reservations on implementing Vat unless the Centre announces a clear roadmap to phase out Central Sales Tax (CST).

Melbourne, March 23
Oil prices deepened losses toward $55 a barrel on Wednesday as Opec deliberated a second supply increase to cool spiralling prices and a recovering dollar lured some fund money out of commodities.

The US dollar held near a one-month high against the euro on Wednesday, boosted by the Federal Reserve’s decision to raise interest rates. US light crude traded down 58 cents to $55.45 a barrel in midday Asian activity, slipping further away from the record $57.60 struck last week after a 2.5 percent drop on Tuesday amid speculative profit-taking. — Reuters