Sunday, September 20, 1998
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B U S I N E S S | Sunday, September 20, 1998 |
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Punjab to spend Rs |
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Plan to set up hi-tech |
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Punjab to spend Rs 100 crore on
IT NEW DELHI, Sept 19 — The Punjab Chief Minister, Mr Parkash Singh Badal, today chaired the first meeting of the Information Technology Vision Group and called for a strategy that would herald a computer revolution in the state. He said the state government would spend about Rs 100 crore in the next two to three years for introducing information technology (IT) in all areas of the government. The 35-member Information Technology Group, comprising representatives of top IT companies, Government experts from the Centre and states, and technocrats, has been entrusted with the drawing up a vision paper for how Punjab could effectively harness IT for helping the State’s economy and improving the working of the government. The other terms of reference of the group include finalisation of an IT strategy and policy for the state to convert the vision paper and IT strategy into a mission statement and draw up an action plan indicating priorities. The Group, which has been asked to finalise the vision paper, the strategy and the action plan within two months would also provide guidance for financial planning and mobilisation of funds for the implementation of the IT action plan. Mr Badal told the group that 10 departments had been identified for the introduction of IT and a separate Department of Information Technology was being set up by the government to spearhead all aspects of IT. Mr Badal said every government department would draw up a five year IT action plan and 1 to 3 per cent budget of every department would be spent on IT to ensure efficiency, transparency, accountability and objectivity in the government’s functioning. For specifically helping the IT industry a venture capital fund of Rs 20 crore was being set up in collaboration with the Small Industrial Development Bank of India (SIDBI). A privatisation Bill for tapping the market resources for infrastructure development and providing quality services would be introduced in the State Assembly, he said. He informed the group that IT, including Internet connectivity, and E-mail facility, had been introduced as one of the compulsory subjects in all branches of engineering and there were plans to install high class computing facilities in every engineering college, diploma level institution and selected colleges over the next three years. Mr Badal said the Electronic Corporation of Punjab was in an advanced stage of setting up a software town of Punjab (SOFTOP) in Mohali with plug and play facilities for IT companies. SOFTOP is being set up in partnership with the private sector and land for the first phase of the project had been earmarked. He said the state government would soon announce an attractive bundle of fiscal and monetary incentives for IT industry for setting up operations, including software, service and content development facilities in Punjab. The Principal Secretary to the Chief Minister, Mr Ramesh Inder Singh, said the software technology park at Mohali included a “smart” building and the project was expected to cost around Rs 500 crore. Dr N. Seshagiri, Director
General of National Informatics Centre and a member of
the group, said NIC had installed a high-speed network in
Punjab under which high speed linkages had been provided
to all districts. |
Plan to set up hi-tech centre
at Mohali NEW DELHI, Sept 19 — The National Task Force on Information Technology has decided to set up a hi-tech habitat at Mohali where large scale production and export of computer hardware and software will be undertaken. The decision of the National Task Force on IT was conveyed to the Punjab Chief Minister, Mr Parkash Singh Badal, at a meeting of the State’s Information Technology Vision Group here today. Dr N. Seshagiri, Director General of the National Informatics Centre, who is also part of the 35-member IT Vision Group set up by the Punjab Government to introduce information technology in the State in a big way, handed over a letter in this regard from the Task Force Chairman, Mr Jaswant Singh, to the Punjab Chief Minister. A beaming Mr Badal said he felt honoured as the Centre’s decision would supplement the ambitious plans envisaged by the State Government to herald a computer revolution in the State. It may be recalled that the Union Minister of State for Industry, Mr Sukhbir Badal, in an interview to The Tribune last week had talked about his plans to make Mohali the “Silicon Valley” of India. Dr Seshagiri said the National Task Force on IT would call a meeting in Chandigarh in the next 15 days for discussing the details of the project. He pointed out that
another advantage in Mohali was the presence of a large
number of small scale units in the electronic field.
Large companies never produced everything on their own
and they depend to a large extent on ancilliary units. |
FIPB approves projects worth Rs
2,000 crore NEW DELHI, Sept 19 — The Foreign Investment Promotion Board (FIPB) today cleared projects worth Rs 2,000 crore which include a global mobile personal communication systems (GMPCS) project by the Reliance Group. The Board cleared Rs 660 crore of foreign direct investment for the $ 950 million Reliance GMPCS project. Actual work would, however, start only after the inter-ministerial committee issues the necessary approval. The inter-ministerial committee, comprising of the Ministries of Telecommunication, Home, Defence and Space would look into all the aspects of the proposal including security considerations. The proposed project would be implemented by group company Reliance Communications Private Limited a joint venture in which the Ambanis will hold a 51 per cent equity. The remaining equity is proposed to be offered to foreign investors, including multilateral agencies, foreign financial agencies and overseas equipment suppliers. A project of the Australia based BHP petroleum, involving Rs 1050 crore FDI was also cleared by FIPB. A holding company of BHP Petroleum would enter into agreements would enter into agreements with Indian companies in field of laying and supplying pipelines. The Board has also approved a proposal from the Indonesia based ACFS to set up a Rs 120 crore GMPCS project. FIPB sources, however, said that the Board has given its nod only for Rs 30 crore FDI. The grant of licence is subject to approval by the inter-ministerial committee. Unlike, the Reliance project, ACFS would hire the satellite and hence the cost of the project is much lower than that of the Reliance project. The Board has deferred by one week a proposal by Balmer Lawrie to divest its equity in a JV in favour of Swiss company Fusch Limited. At present, each company holds 50 per cent equity in the joint venture. Five proposals of software companies and four from power companies were also approved by the Board. The Rs 29 crore proposal by the UK based Babcock and Willcose for a project in the field of providing maintenance services in the power sector was also approved. The proposal by Japan based Itochu for a similar project has also been approved. FIPB has, however, deferred all proposals in the field of information and broadcasting as the I&B Ministry is finalising a policy regarding advertising consultancy and permissible limit of FDI in TV software industry. Meanwhile, Towers Insurance has withdrawn its proposal to set up a non-banking finance company due to some disagreements with its collaborators, FIPB sources said. The Board has also
deferred proposals by Kargil Asia Pacific and the
US-based Goldman Sachs to set up non-banking finance
companies. Another proposal by HSBC securities to set up
an NBFC in collaboration with UK-based by James Capell
has also been deferred. |
Bank of
Punjab CHANDIGARH, Sept 19 — The Bank of Punjab, with a deposit base of over Rs 1,400 crore and 41 banking offices, plans to open 16 branches during the current financial year. The bank plans to open its sixth branch at Rohini in Delhi tomorrow. The branch will be open on all seven days of the week. The transactions will be undertaken from 10 a.m. to 5 p.m. The bank has launched cash management services, under which credit is provided within five days of lodging of outstation instruments. The service, at present, exists at 17 cash management locations. The bank also has a website on the Internet. The bank has a rapidly
increasing customer base, which is presently more than
2.32 lakh — the highest among all new private sector
banks. |
SBI officers
withdraw September 24 strike CHANDIGARH, Sept 19 —
The proposed nation-wide strike by the State Bank
officers on September 24 has been withdrawn following an
agreement between the management and the federation in
Mumbai.Earlier, the All-India State Bank of India
Officers’ Federation had given a call for one
day’s token strike throughout the country on
September 24 in protest against the ‘negative
attitude’ of the bank management.Mr Amar Pal General
Secretary of the Circle Association and Vice-President of
the Federation asked the SBI Management to settle the
issues amicably. |
Task Force CHANDIGARH, Sept 19 – The Institute of Chartered Accountants of India has constituted Haryana State Task Force under the Chairmanship of Mr J.K. Jain, FCA The action plan assigned to the Task Force is to arrange meetings with Chief Minister, other ministers and leading bureaucrats in the state of Haryana on regular basis and ensure a close co-operation and co-ordination with them. It shall provide adequate
advisory support to the Government of Haryana on various
professional issues like taxation, audit of Government
organisations, financial matter etc. |
Q: Simply because the landlady was accepting rents at irregular intervals, does it mean that the tenant has no responsibility and duty to payments regularly? Ans: The question came up before the Andhra Pradesh H.C. in the case of M. Sadiq Vali v Smt. P. Lakshmamma (1998(1)RCJ 508). The petitioner continued his act of irregular payment upto 5.4.84. Even after service of notice, the rents payable for the months of April and May, 1984, were paid in the month of June. Thereafter, there is no payment by the petitioner-tenant towards rents till the date of filing of the rent control petition. In such circumstances, the H.C. said, there is no other go except to hold that the petitioner had committed wilful default in payment of rents. It is true, observed the H.C., as contended by the petitioner, that every default cannot be treated as wilful default. But, the H.C. asked: “What are the reasons assigned by the petitioner for non-payment of rents regularly?” The answer is that the landlord is in the habit of accepting the rents at irregular intervals. Does it mean that the tenant has no responsibility and duty to pay rents to the landlord at regular intervals? If the landlord is not accepting the rents regularly and failed to issue receipts, as contended by the petitioner, nothing prevented him to avail the remedy provided U/s. 8 of the Rent Act. No such course is adopted by the petitioner, noted the H.C. The H.C. held that mere assertion that the landlady was accepting the rents at irregular intervals, assuming even if it is true, the H.C. held that it does not absolve the petitioner of his duty and responsibility to tender rent regularly every month, unless it is established that he was prevented by sufficient cause, for the reasons beyond his control, in not paying the rents. It certainly is a good
ground for ordering eviction by the tenant. Consequently,
the petition was dismissed. |
Q: I am a Punjab Government pensioner. My total income during the A.Y. 1997-98 (relevant to the Income year 1996-97) was as under: 1) Pension 52,150 2. I am a Senior Citizen:
my date of birth is 28.11.1911. Kindly let me know whether I am required to file IT return in Form 2C u/s 139 (1) of IT Act 1961- Reg. if so, what shall be (1) the standard deduction from pension, (2) exemption in the case of income from interest. — R.S. Dutta, Chandigarh. Ans: On the facts stated by you, you will not be required to file Income-tax return. Firstly, because your taxable income will be below exemption limit and secondly because you will be fulfilling the economic criteria for filing Income-tax return with reference to residential property being used by you. For Chandigarh, the property used for residential purpose should be 1100 sq. ft. As you are ½ owner of the house property and occupying less than 1100 sq. ft. of the property you will not be fulfilling the conditions necessary for filing Income-tax return. Hence, you need not file your Income-tax return. Q: I am a bank employee and has availed housing loan from the bank. I pay Rs. 18000 towards repayment of principal amount. The interest for the year comes to Rs. 31000 which is being accrued. Please guide me if tax rebate is applicable to me on interest component. — Gopal Sharma, Jammu Ans: The interest paid by you in respect of housing loan taken by you will be eligible for tax deduction while computing your income from House Property. The maximum amount which is allowed as a deduction in respect of loan for house is to the extent of Rs 15,000 in one financial year. Limit increased to Rs 30,000 for A.Y. 1999-2000. Q: If an assessee has shown agricultural income in his Income-tax return and the Income Tax Department asks for its proof, which necessary documents are required for the same? — Ripdaman Singh, Mohali Ans: In respect of agricultural income, please remember that the agricultural income is completely exempt from income-tax but the Income-tax Officer can ask for the proof of the agricultural income. For the purposes of showing necessary documentary proof in respect of agricultural income you should possess with you the sale bills of agricultural produce sold by you. Likewise, the revenue record from the Patwari which will prove the existence of a particular produce on your land should also be produced before the Assessing Officer as and when demanded by you. Q: I am a Central Government Class I employee. I was getting Rs 100 p.m. as Conveyance Allowance since 1990 being 40 per cent permanent physical handicapped employee. In the Fifth Pay Commission report the Handicapped Conveyance Allowance has been increased by Rs 400 PM w.e.f. 1.8.97. Transport Allowance of Rs 400 PM for commuting between the place of residence and the place of duty has also been granted w.e.f. 1.8.97. In view of the above, it is requested to kindly clarify whether the above said allowances are exempted from Income-tax or not. If yes, the tax rebate shall be given at the source or we have to apply to Income Tax Authorities for tax rebate — Iqbal Singh, Chandigarh Ans: On the facts stated by you, the conveyance allowance received by you will be exempted from Income-tax. The transport allowance of Rs 400 per month which has been given to you for commuting between the place of residence and the place of duty will be exempted from Income-tax. This view has been clarified recently by the Central Board of Direct Taxes. Q: I am a retired government servant aged 70 years. My total income during the A.Y. 1998-99 would be as follows:- Pension ... 43,001 I have contributed Rs 60,000 towards P.P.F. and tax deducted at source by HUDA is Rs 14,371. — Kailash Chand Jain, Hisar Ans: On
the facts stated by you there will be no liability of
Income-tax on you. This is because the standard deduction
from the pension income is to the tune of 33 1/3 of the
pension amount. Similarly, the interest income received
by you from UTI would also be completely exempt u/s 80L.
Moreover, you have contributed Rs 60,000 to the PPF A/c
which means rebate u/s 88 would be available to you @ 20%
on Rs 60,000. Finally, the tax deducted by HUDA on the
Interest paid by them to you is Rs 14,371. Coupled with
all these details you are also eligible to a tax rebate
u/s 88B because you are a senior citizen. Hence the net
effect of all these exemptions and deductions would be
that you would be entitled to Income Tax refund. You are,
therefore, advised to file your Income-tax return and
thereby claim refund of Income-tax. |
Hero Honda A LEADING player in the two-wheeler segment, Hero Honda has been a spectacular performer on the financial front. Hero Honda’s USP is its 14-stroke, fuel efficient motorcycles which has ensured that its profit margins rank among the best in the industry. Ancillarisation is a key success factor for Hero Honda as the company purchases over 95 per cent of its components from its ancillary units besides holding a substantial equity stake in some of these units, most of which are located in close proximity to Hero Honda’s manufacturing plants, thereby ensuring reliable and timely delivery of components. Honda’s equity stake in Hero Honda ensures its long-term financial, managerial and technical support to the Indian company. Little wonder then that a domestic FI is reportedly accumulating shares of this company. Carrier Aircon THIS Indian subsidiary of the US based Carrier Corp., Carrier Aircon Ltd (CAL) has established itself as a major player in the airconditioner industry. The company has an distinct edge over its competitors on account of its association with a world class facility which not only attends to its technical needs but also provides a steady stream of products from its product portfolio. Just when it seemed that the CSE based bear cartel had added this scrip to its list of top notch scalps, a young BSE bull operator moved in and bought its shares aggressively which is reflected in its current share price. Vasishti Detergents EVER since the news that HLL had picked up a stake in this company was known is market circles, discerning investors have begun to accumulate its shares expecting it to go the Hindustan Lever Chemicals way. Even at the current price level, there seems to be a lot of buying interest at this counter and the most interesting rumour doing the rounds is that HLL will further increase its stake in this company shortly. If this were to become true then the share should cross the three figure mark earlier than expected. Castrol AFTER a young BSE operator
led the hammering of the share price of this company by
200 odd points following the non-announcement of a bonus
issue, domestic FI’s started picking up this scrip
which has boosted its share price sharply over the past
couple of weeks. But the most interesting rumour doing
the round is that yet another big BSE operator has also
begun accumulating this scrip. Sources close to him
whisper that he seems to know that a bonus issue
announcement is in the offing later this year. Any
takers? |
MANDI-based Himachal Gramin Bank has devised a scheme for taking banking to schools. Bank managers will deliver lectures to plus two students about the fundamentals of banking once in a quarter with prior arrangement. The principal of the chosen school branch will select a batch of students for “on the counter” exposure at the bank’s branch for a half-day working. Each student will be given the feel of banking transactions. Adequate representation will be given to girls. “Banking awareness awards” will be given to three youngsters every year from the districts of Mandi, Kulu and Kangra falling in the operational area of Himachal Gramin Bank, says Dr S.C Anand, the bank’s Chairman. — TNS Perfect? “A mountain was long in labour and produced a proverbial mouse”, it is said. This is precisely what happened at the workshop-cum-press conference of Reebok called by Perfect Relations in Delhi earlier this week. The vehicle for mediapersons got delayed. The conference started at Bijwasan (Gurgaon) 30 minutes behind schedule at 5 p.m. “I am in this country and in that country and I do not know where I am”, said Fred Hoffman, Reebok master trainer, respiratory therapist and health education specialist. Hoffman’s demonstration was average. There was nothing to enthuse over aerobics, techniques, injury prevention, fitness training, fitness gear and sportswear. Reebok has established a “university without walls” to popularise scientific fitness techniques. Reebok Instructor Alliance (RIA) Launched in Delhi in 1995, imparts fitness education to professionals. — FOC Chastity belts A Singapore firm is marketing US-made rust-poof steel chastity belts at a price of Singapore $ 1,350 (US $ 788) each. Singapore’s Sunday Times quoted Creatif Marketing sole proprietor Eudora Ong as saying she was targeting husbands who suspect their wives of being unfaithful, parents with teenage daughters and women who fear being raped. “I wanted to be the first to introduce them to Singapore. Perhaps there are people who have been hunting for them and don’t know how or where to get them,” the daily quoted her as saying. Singaporeans interviewed by the paper were incensed while a doctor warned that it would cause skin infections such as ringworm. Ong said she had secured exclusive distribution deals for the belts in Asia and West Asia where orders have already come but she declined to reveal the numbers. Judging from the Singaporean comments, local orders are not expected to balloon. Men interviewed said that it would be mental and physical torture for women to wear the belt and it reflected poorly on marital relations. Chastity belts have gone on sale in Indonesia where ethnic Chinese women were raped during riots there in May. — Reuters Chicken crisis The acute chicken shortage in New Delhi is likely to prolong with poultry farmers joining issue with the striking suppliers saying they would sell the birds only by weight and on cash payment. “Nowhere in the country do you have an open auction system wherein the amount is calculated on the basis of the number of chicken in boxes”, say Poultry Federation of India President B.M. Chadha. “The suppliers’ strike has brought us on the verge of starvation but we will not sell our birds to commission agents who buy in numbers and resell these in the secondary market by weight while keeping our payments pending,” he complains. — PTI NRIs Non-resident Indians (NRIs) who do not have any taxable income in India need not file income tax returns. A recent notification issued in this regard also excluded any person, including residents over 65 years of age, from filing the returns if he or she did not engage in any business or profession for the past one year.The notification has cleared confusion regarding mandatory filing of returns by anyone possessing one of the six assets in specified cities in the country. NRIs had protested fearing harassment by taxmen on their return to India. —
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| Gold steady NEW DELHI, Sept 19 (PTI) — Silver continued to rise on the bullion market today on persistent buying support from local dealers in the face of restricted arrivals and closed with further gains. However, gold held steady. The quotations: Silver .999 (ready) 7470, delivery 7475, coins buyer 10.800 and seller 11.000. Standard gold 4290, ornaments 4140 and sovereign 3500. Gifts Seminar Workshop Awards |
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