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Centre asks states to sign pacts for coop revival
Economy bullish, says FM
Hafed to launch kisan choupal
Petroleum economic zone on the anvil |
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Investor
guidance
Aviation
Notes
Temasek bags 80 pc stake in Dove Finance
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Centre asks states to sign pacts for coop revival
New Delhi, January 7 In a letter written to state chief ministers, Finance Minister P. Chidambaram said: “ The government has accorded in-principle approval for implementation of the report of the Task Force on Revival of Short-Term Rural Cooperative Credit Structure (CCB) chaired by A.Vaidyanathan. It is sincerely hoped that your states would agree to implement the package.” States will now have to confirm the same to the Union government at the earliest. The Vaidyanathan panel had recommended a Rs 15,000-crore package for revamping the cooperative sector, which plays an important role in pushing up farm credit. “Pursuant to the advice of the Indian Banks Association (IBA) to the PSU banks to charge a rate of interest of not more than 9 per cent per annum on crop loans upto Rs 50,000, Nabard has advised cooperative banks to charge a low rate of interest on crop loans,” Mr Chidambaram said. Mr Chidambaram said Nabard is providing refinance to the state co-operative banks at 5.5-5.75 per cent interest for short-term seasonal agricultural operations and at 5.5-6.75 per cent in the case of long-term operations. The package also envisages legal and institutional reforms necessary for their democratic, self-reliant and efficient functioning. It also outlines measures to improve the quality of management. “It is to be emphasised that all three components are equally important and should be treated and implemented as an integrated package,” Mr Chidambaram said. The proposed financial assistance is a one-time measure only and states would have the option to participate or not to participate in the package. Those choosing to participate will be entitled for financial assistance under the package, if they agree, through the mechanism of a formal MoU or exchange of letters with the Central Government, to implement within a period of three years, the legal and institutional reforms envisaged. Financial restructuring will start by first bringing the Primary Agricultural Cooperative Societies (PACS) to an acceptable level of financial health through cleansing of their balance sheets and strengthening their capital base, and then move on to the upper tiers. This step will enable PACS to clear their dues to upper tiers and thereby reduce the accumulated losses of District Central Cooperative Banks (DCCBs). The same process would apply to cooperative banks. The magnitude of the accumulated losses would be determined by special audits.
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Mumbai: Union Finance Minister P. Chidambaram said here today that the country’s economy would continue to grow at the rate of 7.5 to 8 per cent this year as a result of new investments coming in. “I expect a burst of investment which take the economy to a 7.5 to 8 per cent growth,” Mr Chidambaram said. Exhorting industrialists to invest more, the minister said foreign investors would be bringing in more funds for the country’s development. “My job is to boost investments both in private and public sectors,” he said. According to the minister, mergers and acquisitions would happen in a big way this year. “A lot of M&As will happen this year and this must happen. Indian companies should acquire those abroad and vice versa. The year will experience a burst of investment. Bankers must be kept busy throughout the year,” he said. At another function, Chidambaram called for systemic changes to ensure that fiascos like the Yes Bank IPO were avoided. “I am told that it was a systemic failure. But I don’t accept a system that allows single entities to operate multiple accounts. I have made it clear to the Sebi, the RBI and the bank management concerned that I don’t favour such a system. The system should be able to detect such practices and stringent action should be taken against such people,” he said. — TNS
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Hafed to launch kisan choupal
Chandigarh, January 7 Stating this here today, Mr Tarun Bajaj, Managing Director, Hafed, said the kiosk would display the current and futures prices listed on the National Commodities and Derivatives Exchange (NCDEX) on an electronic board. He said kisan choupal, a joint effort of Hafed and Iffco, was a step in the direction of modernising and empowering farmers. The MD said most of the information in the portal was in Hindi. The portal will also provide an effective medium for different institutions involved in extension services for the farmers. Mr Tarun Bajaj said similar kiosks would be set up in all district headquarters of Haryana. He said societies availing grant would appoint an employee to operate the portals and ensure its maintenance. He added that expenses to be incurred on the Net connectivity, running and use of the equipment, would be borne by Hafed.
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Petroleum economic zone on the anvil
New Delhi, January 7 "We have received interesting suggestions for the setting up of petroleum economic zone where service providers from all over the world would be invited to set up shop," he told reporters after a day- long brain-storming session on oil and gas sector here. He said the petroleum economic zone would operate on lines of SEZ where service providers for upstream exploration and production and downstream refining technology would be given certain concessions to provide the world specialised services. "These will contribute not only to domestic E&P, but become a global sourcing hub like one in China," he said. He said the government was also trying to set up an industry-wise knowledge base which can be accessed by everyone. This would be in addition to the National Tata Repository and National Technology Bank being set up for the oil and gas industry. An integrated technology forum and joint working group of Ministries of Coal, Mines, Science and Technology and Petroleum would be set up to network the domestic knowledge base available with public and private sector companies and academic institutions, he said. — PTI
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Investor guidance by A.N. Shanbhag Q: I am Indian citizen by birth, who has been granted permanent immigration by Canada. I have been residing in Canada for the last two and half years and am on a short visit to India 1. Can I invest in small savings schemes like NSC, PPF RD of post office etc.? Or banks savings accounts? If so what are the formalities to the completed. If not can I invest my earnings while I was in India? 2. How can I invest in India by sending money from Canada? — Debraj A: Post office investments are not available for NRIs. Accounts opened by an individual when he was a resident can be continued up to their maturity. All other avenues are available to you except a few specifically barred such as agricultural property. Job abroad
Q: I am a Group C employee in Punjab but have keen interest in matters relating to investment and taxation. In a recent issue of The Tribune, I had read a query regarding NRI status. You had informed that a person got NRI status if he spent more than 180 days abroad. In such case he is bound to inform his bankers and depository participants etc. regarding change of his status. In need your valuable advice concerning to this issue. My son, an architect by profession, was offered a job in Dubai in October, 2004. The firm initially called him on probation for six months and sent a visitor visa. He remained there on visiting entry permit from October 2004 to April 2005. After successful completion of probation period, his employer sent him back to India and later called him in June 2005 with a three year contract as well as an employment work permit valid up to June 2008. He is likely to visit India in February 2005 for a short duration only. Thus, during the FY 2005-06, his status has been changed, as informed by you in reply to a query of somebody else. My son had used his savings account for transfer of his savings from Dubai. No other alternative has ever been used. As suggested by you I desire to do everything in legalised manner. I want to invest the savings of my son in mutual funds, shares etc. in India by adopting legal routes only. So I want to know: 1. Can I open and operate an NRO or NRE & demat accounts of my son after procuring a general power of attorney from him? 2. Can I apply in mutual funds/IPOs on his behalf by using a general power of attorney? Further can I operate his trading account in secondary market by virtue of ‘power of attorney’? 3. Can his NRO/NRE accounts be opened with myself as joint holder on ‘either or survivor’ basis? 4. Can I make applications to government agencies for allotment of a plot in his name and/or can I make an agreement for purchase of plot/house etc. from private parties? I had visited my bank, but they refused to open bank account jointly with an NRI and also they had not given their assent regarding opening NRO account under power of attorney. My son has no time, means, intelligence and capacity to look after his money at his own level and insisted me to look after his affair. I shall be grateful if you will suggest me my course of action to be adopted in this regard, in most legalised manner. — Subhash Mehta A: Opening bank account has to be done by the person himself. As regards NRO, his existing savings account can be (and should be) redesignated as NRO. A resident can be a joint holder in this account i.e. the NRO but not of an NRE account. Investments in any avenues in India can be made by a PA holder if the power of attorney specifically allows the holder to do so. Please note that I have never written that: “a person got NRI status if he spent more than 180 days abroad”. A person whose stay in India is less than 182 days during the financial year if he has gone abroad for employment abroad can be NRI.
Capital gains bonds
Q: I have (own) two houses, one built in 1973, and the second one built in 1988. If I sell the house built in 1973, and invest the money in capital gain bonds, do I have to invest the entire sale proceeds or only the capital gain, for how many years and under which section? — O. P. Bhatia A: The tax on all long-term capital gains, which are chargeable to tax, can be saved by investing within six months the amount of capital gains in infrastructure-related bonds of Nabard, NHAI, NHB, REC or Sidbi u/s 54 EC. The lock-in period is three years.
The author may be contacted at wonderlandconsultants@yahoo.com
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Aviation Notes by K.R. Wadhwaney Open skies, lax rules, wavering politicians, smart operators and razor-sharp competition are some of the important reasons that have rendered the international travel from murky to murkier. Aware that travel corridor has limited space and in a tricky play-field, only a few fit and clever operators can survive, the airline barons, crafty in figure manipulations, continue to float schemes, which are impressive only on paper. In order to cut losses and keep afloat in turbulent weather, a number of private airlines have initiated schemes to woo gullible persons. The latest scheme, for instance, is highly attractive to an average passenger. But it is full of ‘catches’. The round-trip (Delhi-London-Delhi) is priced at Rs 10,000 plus taxes Rs 7,962 (most of the taxes go in the kitty of airlines). The aircraft B-767-300 EB has conguration of only 84 in economy class and remaining 107 seats in other classes. Only 2006 tickets are on sale. The validity of the ticket is one year. On each flight, however, only 10-20 Rs 10,000 tickets will be sold on ‘first come first served basis’. The scheme has several other dos and don’ts. An amount of Rs 2,200 will be charged for every pre-ponement and postponement. There will be heavier penalty or even forfeiture of amount in the event of ‘no show’. The analysts predict that ‘no shows’ will be sizable as obtaining visa for the United Kingdom (UK) is a nightmare. Only one seat can be booked at a time. The calculations show that the airline will have to operate between 100 and 200 flights before 2006 passengers are airborne until validity of the ticket, that is December 24, 2006. The scheme does not specify whether this facility is available to passengers starting their trip from London to Delhi and back. The analysts with vast experience of airlines trade are divided on usefulness of these schemes on international sectors. One school of thought says it is a grand marketing strategy to woo passengers and promote travel; the other says it is nothing but a gimmick. Whatever may be the market evaluation, the concerned airline will collect Rs 2 crore from passengers in a fortnight. Also, every thing is fine when the going is normal. But when the emergency occurs, like it happens in foggy season, the poor cheap-ticket-holders are left to fend for themselves in this wintry time. Renewed effort
The Punjabi Parvasi Divas, in its two-day international convention at Chandigarh on January 14 and 15, will make a renewed endeavour for Chandigarh to be upgraded to the international airport. Chandigarh, a throbbing hub for entire northern India, deserves top-class airport so that more than eight million enterprising Punjabis, settled abroad, to have direct entry into their home instead of arriving via Delhi. Such a timely upgradation of the airport will not only reduce congestion at the Indira Gandhi International Airport (IGIA), but will widen the scope for ever willing non-resident Indians (NRIs) to contribute their resources for further advancement of this fertile region. For prosperous NRIs, ‘time is money’. The upgradation of Chandigarh airport will improve their in-flow and also of tourists. The convention will discuss an array of service industry segment from infrastructure development to airlines to tourism and to human resource untapped areas.
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Temasek bags 80 pc stake in Dove Finance
Singapore, January 7 “We believe in India’s growth potential,” the Temasek spokesman was quoted as saying and confirming the investment through Temasek subsidiary Asia Financial Holdings. The investment amount was not disclosed.
— UNI
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