The Tribune, Chandigarh, India

	NTPC to set up N-plant soon New Delhi, January 17 The NTPC's proposed joint venture with the Nuclear Power Corporation of India for setting up a 2,000-mw atomic power plant is likely to be formalised in the next 2-3 months, sources said. The NTPC and the NPCIL signed a memorandum of understanding (MoU) to form a joint venture for setting up nuke power projects in the country last month. Both companies are awaiting approval from the Department of Atomic Energy for formalising the agreement. "The NPCIL has forwarded the agreement to the DAE for the approval, the formal joint venture agreement can be expected in 2-3 months," sources close to the development said. The NTPC plans to add 2,000 mw of nuclear power by 2017. To achieve this objective, the company is in the process of setting up a joint venture company with the NPCIL, where the latter will hold a majority stake of 51 per cent, while the rest will be with the power PSU. On formation of the company, the JV would decide the sites to be pursued and technologies to be adopted. The NTPC has formed a nuclear power cell headed by officers trained at the Bhabha Atomic Research Centre (BARC) for building capacity in this field. The NTPC, which has a current installed capacity of over 30,000 mw from all sources of energy, plans to raise this capacity to 75,000 mw by 2017 through a mix of thermal, hydel and nuclear power. The NTPC is also gearing up for its follow-on public offer, which opens on February 3 next month. The government plans to divest 5 per cent of its stake in the power utility. After disinvestment, the government's holding in the NTPC will come down to 84.5 per cent from 89.5 per cent at present. It plans to mop up about Rs 11,000 crore at current market rates. The nuclear power generation contributes a meagre 2.9 per cent (4,120 mw) to the total installed capacity of 1,55,000 mw. After the Nuclear Suppliers Group's (NSG) waiver in September, 2008, India has signed civil nuclear pacts with seven countries -- the US, France, Russia, Kazakhstan, Namibia, Argentina and Mongolia. The government plans to take atomic power generation in the country to 20,000 mw by 2020. — PTI
	Things look up for IT sector New Delhi, January 17 With demand improving and new deals flowing in, IT companies have started the third quarter earning season on a good note, indicating that the sector is coming out of woods after being hit hard by the global financial meltdown last year. TCS, which posted a better-than-expected profit during the October-December quarter, said it saw continued demand for outsourcing services from the US, the key offshore market. "While the US continues to lead demand recovery, the UK and European firms are increasingly beginning to invest for the upturn. The Asia-Pacific and India are also seeing strong demand driven by growth in sectors like energy, utilities and banking, financial services and insurance (BFSI)," TCS chief executive officer and managing director N Chandrasekaran had said. TCS on January 15 clocked 33 per cent jump in consolidated net profit at Rs 1,823.90 crore for the third quarter of 2009-10 compared to Rs 1,362.06 in the same period last year. Indicating a recovery, Infosys had also raised its annual sales forecast after announcing its quarterly results last week. "We are seeing the benefit of recovery and the worst seems to be behind us.... Even though IT budgets are expected to be flat in 2010, offshore outsourcing is expected to benefit from this recovery," Infosys chief executive officer Kris Gopalakrishnan said after announcing its results. Infosys Technologies had reported 3.6 per cent decline in consolidated net profit at Rs 1,582 crore for the third quarter ended December 31, 2009. Analysts feel things are better this year. The numbers posted by the IT firms indicate that deals are back and the overall business environment has eased. NIIT Technologies, which has more than doubled its net profit at Rs 35.3 crore during the quarter ended December 31, 2009, said the business environment has improved compared to the same period last year when the meltdown had started. — PTI
	Reliance Infra net inches up Mumbai, January 17 Mukesh Ambani group firm Reliance Industrial Infrastructure yesterday said its net profit rose by 3.52 per cent to Rs 5.87 crore for the third quarter ended December 31, over the same period previous fiscal. Income from operations decreased to Rs 13.21 crore for the latest quarter against Rs 18.24 crore for the same period corresponding year, Reliance Industrial Infrastructure (RIIL) said. For the nine-month period ended December 31, the company said its net rose by 3.24 per cent to Rs 16.53 crore against Rs 16.01 crore for the same period previous fiscal. Ultratech Cement net dips Ultratech Cement has said its net profit declined by 17.64 per cent to Rs 196 crore for the quarter ended December 31, 2009, over the same period last year. Net sales rose to Rs 1,652 crore for the third quarter ended December, 09, against Rs 1,631 crore in the same quarter the previous fiscal, Ultratech Cement said in a filing to the Bombay Stock Exchange. "The results have to be viewed keeping in mind the slowdown in demand growth in the markets of Southern India, which constitutes around 30 per cent of the company's sale," the release added. The company produced 4.40 million metric tonnes (MMT) of cement in the third quarter of the fiscal year 2010, registering a growth of 10 per cent year-on-year. — PTI
	Market Update Better results fail to enthuse investors by Lalit Batra Better than expected and strong index of industrial production (IIP) readings failed to enthuse investors and the Sensex ended the last week 14 points higher though continuing its gaining streak into fourth week straight. Nifty closed at 5252, seven points higher than its previous week closing. During the early part of the last week, the market witnessed some selling pressure over anxiety over the RBI’s next move. Uncertainty over the central bank’s monetary policy review is likely to be the reason for the same. However, as the week progressed, results of some index heavyweights (announced during the week) helped prop up the markets during the later half. We expect the market to remain volatile ahead of the third quarterly monetary policy 2009-10 review by the RBI on January 29. And the trend in the coming weeks will be set, to a good extent, by earnings declaration by some of the big names like Reliance, Wipro, SBI and ICICI Bank. The market will also start to take direction from the expectation of the Budget slated for the end of February. Jubilant Foodworks Jubilant Foodworks Limited (JFL) is a food services company operating Domino’s pizza stores in India and through DP Lanka, a sub-franchisee, in Sri Lanka. The company, which is a quick service restaurant (QSR), is the leader in the pizza home delivery segment with 65 per cent market share. JFL was founded in 1995 and as of 30th November 2009, operated 286 stores across India with presence in 56 cities. It also operates 5 stores in Sri Lanka. Aside from the 286 stores in India, the company operates 4 regional supply chain centres. The company has opened 60 stores in fiscal 2009 and it plans to open between 65 and 70 stores in fiscal 2010, of which it had opened 45 stores as of November 30, 2009. The company on an average sold 18.1 lakh pizzas, including add-ons such as garlic bread and cheese dip each month throughout Domino’s pizza stores in financial year 2009 and for the half-year ended September 30, 2009, 24.6 lacs pizzas (including add-ons) were sold each month. Recently, the company also began offering pasta and choco lava cake to its customers as a side item. Strengths The Indian food service industry is on a high growth trajectory. With changing demographics and higher income, the number of people opting for eating out is increasing. Furthermore, the frequency of eating out is also on the rise. JFL’s association with Domino’s international has paid it rich dividends. JFL is able to draw upon Domino’s International’s global experience in terms of operational support, food technologies, logistic support and vendor management. With the rise in the number of stores, the cost of operation per stores for the company is shrinking. With the addition of 45 new stores in 2009-10 and stabilisation of operations of the remaining stores resulting in 16 per cent same store growth, the operating margins for the company grew by 4 per cent to stand at 16 per cent. Concerns A slowdown in economy has a direct impact on food services. It is seen that in case of a slowdown, one of the first expenses to be cut is eating out. This make the food services industry very venerable in a slowdown. With the rising food prices, consumers generally avoid eating out to save on expenses. Furthermore, the margins of companies operating in the food services industry come under pressure as a result of rising raw material costs. JFL operates in a very competitive industry and faces competition from not only other QSR like Pizza Hut, KFC and Subway but also from other restaurants and even dhabas. With good prospects for the food services industry and high growth rates, the segment is an exciting place to be in. JFL, meanwhile, is growing even faster than the industry albeit on a small base. While this makes it a compelling reason to invest in, we are concerned about the high offer price which leaves little for investors on the table on listing.
	Tax Advice Dividend from equity MF tax free by S.C. Vasudeva Q. I have been informed that income from mutual funds is exempt from tax. Has the investment in mutual fund to be equity based or debt based for the purposes of allowing the exemption of dividend from mutual fund? — Ashu A. The dividend from equity based mutual fund is exempt from tax under Section 10(38) of the Act. In case income from a debt-based mutual fund, the exemption is not available. Mediclaim Q. I have been receiving Rs 15,000 as reimbursement of medical expenses from my employer. The reimbursement is taxed provided we are not able to support the same with the bills. In case the supportive are submitted no tax is levied. I have been advised by an insurance broker that I can also claim a deduction of Rs 15,000 in case I take a mediclaim policy and I will be entitled to a deduction from my total income of Rs 15,000 towards the payment of such premium. Is it possible to avail both deductions? — R.K. Bhalla A. The deduction for the amount of mediclaim premium paid in accordance with the provisions of Section 80D of the Income-tax Act 1961 (the Act) is over and above the amount of reimbursement of medical expenses made to you by your employer. You will thus be entitled to claim the deduction of the premium paid towards your mediclaim insurance policy without any difficulty. Will execution Q Please clarify: A Will for right to property can be executed in favour of any person irrespective of relation. Then what is the necessity of sale/purchase? — Sita Ram A. A person has a right to execute a will in favour of any person of his choice. Such a person need not be a relation of the person who is executing a will. A will takes effect after the death of a person. A sale/purchase is executed during the life time of a person. Form 15H Q. I am 67 and filing my Income Tax return every year. For the financial year 2009-10, my total taxable income without taking into account my savings under Section 80C is likely to be below Rs 1,85,000. Can I submit Form 15H to a bank from whom I will receive interest income of just more than Rs.50,000 during the year to get TDS exemption? — A.K. Chauhan A. In accordance with the provisions of the Act, an individual, who is more than 65 years of age, can file declaration in duplicate in Form 15H, if his total income of the previous year in which such income is to be included in computing his total income will be nil. You can make the prescribed declaration in Form 15H that tax on your estimated total income for the previous year in which such income is to be included, would be Nil as your total income without claiming deduction under section 80C of the Act is less than the maximum amount not chargeable to tax for assessment year 2010-2011 as applicable to a senior citizen. Tax in the USA Q. My son is employed in an IT company and has been posted in the USA in November, 2009, on work permit. In addition to the emoluments he would receive in the USA on which he would be paying income tax as per the rules in that country, he would also receive his basic pay in India. Is he again liable to pay income tax on the income earned in the USA or not. — Ish Kumar A. I presume that your son is a resident and ordinary resident. He will, therefore, be required to pay tax on the total world income. It will thus include even the income earned in the USA. However, in accordance with the Double Taxable Avoidance Agreement entered into with the US, the amount of tax paid by your son in the USA would be adjusted against the tax payable in India. The claim for such adjustment should be supported by an evidence for the tax paid in USA. House building loan Q. I am a govt employee and want to avail rebate of Rs.1 lakh saving and Rs 22,000 interest rebate against house building loan of Rs 8 lakh, from ICICI Bank sanctioned in 2008. Please let me know which ITR-I or ITR-2 to be filled for Assessment Year 2009-10. Under which column of ITR-2/ITR-1 to be filled. I also have interest on FDR. Will it be included in the return? — D.D. Gupta A. The deduction allowable in respect of the repayment towards house building loan is covered within the overall limit of Rs 1 lakh specified in section 80C of the Act. The total deduction allowable to you towards the savings and repayment of the loan would therefore be Rs 1 lakh. In your case Form ITR-1 can be used for declaring the salary income. The deduction under section 80C of the Act can be claimed in such return. The interest received on FD receipts with bank can also be declared in ITR-1. The interest, if any paid on the amount borrowed for construction/acquisition of a house, is allowable as deduction against the income from house property in case you have an income from house property in addition to salary income, the applicable form would be ITR-2.