NEW DELHI: In his first multilateral summit meeting since assuming office on May 26, Prime Minister Narendra Modi on Sunday left to attend the five-nation BRICS summit in Brazil, where he will have his first interaction with leaders of China and Russia among others.

The Sixth BRICS Summit, being held in Fortaleza and capital Brasilia from July 15-16, is expected to see finalisation of setting up of the long-discussed BRICS bank — a major initiative of the grouping that together represents 18 per cent of the world trade. 

The BRICS New Development Bank and the Contingent Reserve Arrangement are seen as a counterweight to the Western-dominated financial organisations, the World Bank and the International Monetary Fund.

The bloc, comprising Brazil, Russia, India, China and South Africa, accounts for over 40 percent of the global population and has a combined GDP of $24 trillion.

The summit will be held July 15 in Fortaleza, one of the host cities for the 2014 FIFA World Cup and one of Brazil's largest cities.

Modi will hold bilateral meetings with Presidents Vladimir Putin of Russia, Xi Jinping of China, Dilma Rousseff of Brazil and Jacob Zuma of South Africa on the sidelines of the summit. He will also meet the heads of governments of 11 South American countries including Argentina, Bolivia and Venezuela who have been invited by President Rousseff to Brazil.

Modi is accompanied by Minister of State for Commerce and Industry Nirmala Sitharaman, National Security Advisor Ajit Doval and Foreign Secretary Sujatha Singh.

In a pre-departure statement, Modi said he looks at the BRICS summit as an opportunity to discuss with his BRICS partners "how we can contribute to international efforts to address regional crises, address security threats and restore a climate of peace and stability in the world.

"I also look forward to our discussions to further advance intra-BRICS economic cooperation and our collective efforts to advance global economic stability and prosperity. 

"In particular, I look forward to the successful conclusion of major BRICS initiatives, like the New Development Bank and Contingent Reserve Arrangement, which have seen significant progress since their launch in New Delhi in 2012. These initiatives will support growth and stability in BRICS and also benefit other developing countries," he said.

Modi said the summit theme, "Inclusive Growth; Sustainable Development", will enable us to shape the post-2015 development agenda being discussed in the UN.

He said the summit "will also be an occasion for my first meetings as prime minister with the leaders of our important global partners — Brazil, China, Russia and South Africa. I look forward to meaningful meetings with them to intensify bilateral relations and exchange views on global and regional developments".

The Prime Minister said he also looks forward to meeting the heads of the South American countries. 

"India has traditionally enjoyed close, cordial and mutually beneficial ties with these countries. We share common aspirations and challenges. The Indian diaspora in these countries also serves as the continent's enduring link with India. 

"South America's all round progress makes it a potentially important pole of the global economy and a land of enormous opportunities for us. My interactions would enable us to explore new ideas on further consolidating and expanding our ties with South America."

The proposed BRICS bank, called New Development Bank, is expected to foster greater financial and development cooperation among the five emerging markets. 

The bank will have an initial capital of $50 billion, with China contributing $41 billion, Brazil, Russia and India giving $18 billion each, and South Africa contributing $5 billion. 

The New Development Bank would help finance infrastructure and sustainability projects while the reserve fund is aimed to help fend off currency and balance of payments crises.— IANS

CHANDIGARH: Ahead of the Punjab Budget 2014-15 to be presented on July 16, the state industry has pitched for speeding up tax refund process, reduction in taxes, power sector reforms and upgradation of industrial zones to boost the state's industrial growth.

"We want the state government to give top priority to speed up VAT refunds to the state industry as the long delay in receiving refunds is hurting the state's industrial sector," Managing Director of Jalandhar-based Nivia Sports, said Rajesh Kharbanda.

Punjab Finance Minister Parminder Singh Dhindsa will present the state Budget for 2014-15 on July 16. The state government had presented a Vote-on-Account in March this year.

The industry feels that despite the state government setting up a separate refund account, there has been an inordinate delay in tax refunds.

"As per our assessment, VAT refund to the tune of Rs 250 crore to Rs 300 crore is still pending with the department for disbursement," said Federation of Associations of Small Industries of India president Badish Jindal.

"The supply of our cotton to other states has come to a standstill as the state government is not refunding the difference between VAT (4.95 per cent) and Central Sales Tax (2 per cent) on account of inter-state sales," Punjab Cotton Ginners Association President Bhagwan Bansal alleged.

With sluggish demand hitting the bottomline of manufacturers, the state industry has also sought reduction in VAT on auto and bicycle parts to provide impetus to these key industrial verticals in the state.

"The state government should bring VAT on auto parts from 12 per cent to 4 per cent and on bicycle parts from 6 per cent to 2.5 per cent. This move will give fresh lease of life to these sectors," Jindal added.

The industry also wants the state government to bring down the cost of energy for industrial sector to reduce its input cost.

"Power sector reforms should be initiated by the state government whereby electricity duty on power and cross subsidy should be brought down while free power needs to be rationalised," said D L Sharma, Director, Vardhman Textiles Limited.

The level of cross subsidisation of agriculture stands at over 22 per cent which is more than the limit of 20 per cent set under National Tariff policy.

The textile sector has sought bringing motor vehicle tax on buses for transporting women workers from rural areas to factory premises on par with school and college buses.

Describing poor infrastructure at industrial zones as a hindrance for growth, the industry has demanded more funds to be earmarked for the upkeep and maintenance of focal points and industrial areas.

"There is an urgent need to maintain and upgrade industrial areas and focal points and the state government should address this issue," said R S Sachdeva, Co-Chairman, PHD Chamber of Commerce.

The iron and steel sector, which was put in negative list of industries in the industrial policy, has sought a review of this decision so as to enable the sector attract new investments.

Among others, iron & steel furnace and rolling mills were also put in negative list of industries which means they would not be eligible for fiscal incentives. — PTI

LUDHIANA: Two scooter-borne miscreants allegedly looted Rs 7.5 lakh from a petrol pump located on the Ludhiana-Ferozepur road here, the police said today.

The accused reached the petrol pump at Aggar Nagar last night and attacked its manager, Bhagwan Singh, with sticks as he was on his way to deliver the day's earnings to the owner, they said.

After attacking Singh, the miscreants snatched the bag and fled the spot, the police said.

Singh has been admitted to a hospital, where he is undergoing treatment.

A case of robbery has been registered against the unidentified persons, the police said, adding that efforts are on to nab the culprits. — PTI

Gaza City: Thousands of Palestinians were fleeing northern Gaza on Sunday after a night of intense Israeli strikes and an explicit warning from the army that the raids were set to intensify.

Israeli strikes on Gaza killed a teenage boy and a woman on Sunday, medics said, with the overall death toll reaching 165 as the punishing air campaign entered its sixth day.

In Beit Lahiya, whole streets were emptying, with residents fleeing with all the belongings they could carry — by car, by donkey — and horse-drawn carts, and on foot.

"Last night there was so much shelling that no one could sleep, it was terrifying," said one man, who gave his name only as Farid.

He was fleeing with six family members, riding alongside them on a motorbike piled high with blankets.

"I'm going to try to go to a school, anywhere that is safe," he told AFP.

Mohammed Sultan packed his family's belongings onto a horse-drawn cart, with five children sitting among the hastily assembled items.

He walked alongside the cart, with other adult relatives, heading for a school run by the United Nations Relief and Works Agency for Palestine refugees (UNRWA).

Earlier on Sunday, the Israeli army said it would drop leaflets over the north warning residents to leave their homes "immediately" ahead of a fresh wave of attacks it said would begin at midday.

It even specified the areas that it would hit most heavily.

"This is a real threat, it's not a psychological threat," military spokesman General Moti Almoz told army radio.

"We are asking the Palestinian population to leave the place because they could really get hurt."

But Sultan said he had not received any warning.

"We didn't get any warning, but there was firing all around us all night," he told AFP.

"We were terrified and so afraid for our children," he said. "It was total war."

Overnight, the Palestinian death toll from five days of an intensive Israeli air campaign rose to 165, among them a large number of civilians.

During the night, Samari al-Atar, who lives in the Atatra neighbourhood — one of the areas Israel said it would hit hard — fled to an UNRWA school in Gaza City.

"We tried to shelter inside the house but we heard the sounds of people screaming and when we looked outside there were many people fleeing their homes," she said.

"It was the middle of the night, and I gathered the children, they were so afraid," she added, her voice breaking as she started to cry.

"Even as we were fleeing, there was firing all around us ... we couldn't take anything with us, the children were barefoot."

Inside the school compound, the displaced children draw on a blackboard, sketching images of war in pink and yellow chalk — Israeli helicopters and tanks firing, and Palestinian rockets.

One boy seemed almost catatonic as he spoke in a long, monotone about fleeing his home, his eyes downcast and fixed on the floor.

Maani al-Ataar described the terror of fleeing by night, as Israeli planes circled overhead.

"People were screaming and there were old men who couldn't walk properly, the younger men had to support them," she said.

"There was no electricity, so the road was pitch black."

Robert Turner, director of UNRWA operations said thousands of displaced people were already sheltering in its schools across Gaza.

"UNRWA now has eight schools sheltering about 4,000 displaced Gazans. More are arriving by the minute. They are mostly fleeing areas in the north, Beit Lahiya and Beit Hanun," he told reporters.

In Beit Lahiya, Farida Zayed was packing up her belongings and preparing to flee, without knowing where she would go.

"People say they are going to the schools, but Israel has bombed schools before. Even the hospitals have been bombed," she said.

"We've lost everything, our future and the future of our children," she said.

"The Israelis don't want to let us live." — AFP

NEW DELHI: Brushing aside criticism of not having done enough reforms in the Budget, Finance Minister Arun Jaitley has said this was the beginning of the journey and he did all he could do under the given circumstances.

“This is the beginning of our journey, not the end. Abhi hum jitna kar sakte the, humne utna kiya hai (Whatever I could do now, I have done). And all the decisions are not taken on day one,” Jaitley told PTI.

Jaitley, who presented his maiden Budget on July 10, is being criticised, especially by rating agencies, for not repealing the retrospective tax amendment and not providing enough sops for the industry.

The minister, however, has provided relief to the salary earners by sacrificing Rs 22,200 crore in direct taxes.

Refuting the criticism, he said the government has taken important steps which are necessary but not taken in the past 10 years.

“Each one of those major issues, whether it is insurance or real estate, defence, retrospective tax, simplification of tax administration, transfer pricing (were important). So in 45 days, we have tried to address each one of them and then we have given impetus to the manufacturing sector.

“These are important decisions. Our government is very clear in some sector you got to give more relief. Aam aadmi par aap kitna bojh denge? (How much can we burden the common man?). So, that is why we tried to rationalise individual taxation. We have also removed inverted duty structures,” Jaitley said.

The Budget has proposed increasing the income tax exemption limit to Rs 2.50 lakh from Rs 2 lakh and raised the ceiling on investment in saving instruments to Rs 1.5 lakh from Rs 1 lakh per annum.

On criticism of Budget not having a detailed roadmap for fiscal consolidation, Jaitley said: “I have not spelt it out in details because I have provided for Expenditure Management Commission and if anybody feels that in 45 days you can come out with the scheme of rationalisation of subsidies to which people in the last 66 years have not found an answer, we must rate the agencies then.”

He said that there are two ways of reducing fiscal deficit — either you spend less or you earn more.

“The ideal situation is that you should earn more because if you spend less, then you are contracting expenditure and you may end up contracting some parts of the economy ... I have looked at unresolved issues that they (UPA government) left behind or the problems they have left behind,” he said, adding that in the period of 45 days he has tried to address most of these problems.

The Budget proposed restricting fiscal deficit this year to 4.1 per cent of GDP and bring it down to 3 per cent by 2016-17. This is in line with the roadmap laid out by the UPA government.— PTI