Sunday, September 27, 1998
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B U S I N E S S | Sunday, September 27, 1998 |
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spotlight today's calendar |
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Jaswant outlines strategy
at UN
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Tax on plastic goods in HP
condemned
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FIPB
okays Rs 251 crore FDI proposals PTDC
wipes out losses; earns 42 lakh ASSOCHAM
for reforms in forestry sector |
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Jaswant outlines strategy at UN UNITED NATIONS, Sept 26 (UNI) — Deputy Chairman of the Planning Commission, Mr Jaswant Singh, has spelt out a seven-point strategy to help shape a more equitable international economic order. Speaking at the ministerial meeting of group of 77 yesterday, he said there was a positive realisation that islands of prosperity could not flourish if developing country markets contracted and their growth rates declined. The seven elements in the new strategy recommended by Mr Jaswant Singh were: 1) Bring back the focus on inter-governmental action and the concept of international public good into global economic policy-making with an attempt to make sound national governance and the role of international corporations complementary to it. 2) Persuade our developed country partners to factor our specific development dilemmas and special requirements into global economic policy-making. 3) Revive the traditional cooperation agenda consisting of fundamental issues of concessional resource transfers, favourable technology transfers and special and differential treatment in trade to developing countries. 4) Evaluate globalisation and its processes and identify ways of effective governance of globalisation, seeking overhaul of systems and institutions and ensure involvement of developing countries in decision-making and benchmark setting. 5) Put in place necessary safeguards to help developing countries protect their food, energy and social security and their access to international markets and finance at all times without being held hostage to globalisation or whims of developed countries. 6) Make our intervention for reinvigoration of development co-operation and sound international global governance, issue and event specific. 7) Affirm the virtues of the diversity of development paradigms within the unity of globalisation and of broad banding “of what constitutes sound macro fundamentals in different countries and situations”. Mr Jaswant Singh said the
challenge for G-77 and for any North-South dialogue was
to ensure that more and more people were economically
empowered and become at least basic consumers. |
Tax on plastic goods in HP condemned CHANDIGARH, Sept 26 (PTI) — The plastic industry today condemned the Himachal Pradesh Government for its decision to impose goods tax at the rate of Rs 500 per tonne on all plastic — raw material as well as finished products in the state. “The Himachal Government’s decision is hasty, irrational, unjustified, unprecedented and arbitrary act, without any deliberations and consultations with the plastic industry,” said All India PVC Manufacturers Association in a letter to Chief Minister Prem Kumar Dhumal. Demanding withdrawal of goods tax, the association President S.S. Gupta said such a tax which has not been imposed in any of the state so far in the country comes at a time when the nation is passing through acute recession and slow industrial growth. Himachal Pradesh has neither any source of raw material for plastic nor any developed local market for plastic products, and all the finished products are sent out of the state which will not be able to compete in the national market, thus shattering the economy of small-scale units in the state, Gupta said. The association regretted that the goods tax came at a time when the Directorate General of Supplies and Disposal, New Delhi had already finalised the rate contract for plastic products on quotations submitted to it about 18 months back. “This rate contract
which entails supplies all over India and mainly to the
Government departments, will be adversely effected,”
Gupta said, adding that supply of PVC pipes for all
developmental works, irrigation schemes and drinking
water schemes would come to a standstill for want of
revision of rates in the wake of goods tax. |
Matiz costs 2.25 lakh; booking
from mid-Oct CHANDIGARH, Sept 26 —Curious passers-by stopped to have a glance as Daewoo Motors’ Matiz arrived in the company’s Sector 9 office this afternoon. “It’s more compact than Maruti 800 from outside and more spacious inside” was the first reaction of some onlookers. The “big small car”, for which booking starts in mid-October has three models costing between Rs 2.25 lakh (non-AC) and Rs 3 lakh (with all add-ons) though the price is not being officially announced. Its 800cc fuel injection engine delivers 52 bhp at 6000 rpm and gives 26 km to a litre of petrol, claims the company. Daewoo Motors, which hopes to sell 12,000 cars during this financial year, has tied up with the Bank of Punjab for financing the car (interest rate 17.5 per cent on a reducing basis) up to 90 per cent of the car price. The car will be on display
for a day or two at the company’s local dealers
— Saluja Automobiles and Krishna Automobiles —
before moving on to Ludhiana, Jalandhar, Amritsar,
Patiala and other cities. |
Kisan credit cards to
farmers’ rescue CHANDIGARH, Sept 26 — NABARD has prepared a model scheme for kisan credit cards (KCC) to be issued by commercial banks, regional rural banks and cooperative banks to the farmers. The KCCs will facilitate farmers in the purchase of agricultural inputs such as seeds fertilisers and pesticides and to draw cash for their other production and ancillary needs as many times as they wish from the banking system. The credit extended under the scheme would be revolving cash credit and provides for any number of drawals and repayments within the limit. The limit will be sanctioned on the basis of the production credit requirement of a farmer for a year, inclusive of ancillary activities related to crop production. The quantum of limit will be based on operational land holding, the cropping pattern and scales of finance approved for the area. The KCCs would be valid for three years subject to an annual review. Banks will apply the cheap rate of interest as applicable to crop loans. Security and margin norms are to be in conformity with RBI/NABARD guidelines. The NABARD Office here has
already taken up the issue of operationalising the KCC
scheme in Punjab and Haryana with cooperative banks. The
banks have, however, been advised that the farmers will
have to be educated in using the KCCs judiciously. |
Honda launches special model NEW DELHI, Sept 26 (UNI) — Honda Siel Cars India Limited (HSCI) is rolling out two special edition ‘city’ versions and mulling the launch of a new model in the small car segment to mark the 50th anniversary of Honda Motor Company Limited of Japan. Though the new model has not been finalised as yet, the company is actively pursuing the option of foraying into other segments of the industry, HSCI President and Chief Executive Officer Teruo Fujisaki told newspersons here last night. Meanwhile, company sources pointed out that a final decision on the new model is expected by January 1999. “We have already initiated a feasibility study to finalise the segment in which the new model will be rolled out, we are looking at all segments, which includes a small car,” the sources added. The first of the new special edition vehicles — city 1.3 LXI would be rolled out today. The company has decided to maintain the price tag at the existing level of Rs 5.9 lakh. The second special value
pack — city 1.5 EXI-S — will come in Maharaja
Gold colour with a superior stereo system, keyless entry,
gold emblem set and a 50th anniversary logo, the car
would be dearer by Rs 20,000 over the existing
ex-showroom price of the 1.5 EXI-S. |
FIPB okays Rs 251 crore FDI proposals NEW DELHI, Sept 26 (PTI) — The Foreign Investment Promotion Board (FIPB) today approved foreign investment worth Rs 251 crore including proposals by the Nagarjuna group and Caltex. The board cleared a joint venture between Nagarjuna Holding, Hindustan Oil Exploration and the-UK based Hardy Oil to set up a liquid natural gas (LNG) terminal at Kakinada in Andhra Pradesh, Industry Ministry sources said. While the Nagarjuna group will hold 51 per cent stake of the Rs 533 crore equity in the company, which amounts to Rs 282 crore, Hardy Oil will have a 30 per cent holding worth Rs 166 crore. The rest would be held by Hindustan Oil Exploration company. The capacity of the terminal would go up from one million tonnes to 2.5 million tonnes and the LNG would replace naphtha used in Nagarjuna Fertiliser plants. This is the second LNG terminal at Kakinada to get FIPB clearance this month. Earlier, the board had okayed the Tractabel-BHP joint venture proposal for such a terminal at the coastal city. The FIPB also cleared the proposal by Caltex to acquire 49 per cent stake of IBP in their joint venture for LPG (cooking gas) storage facility and parallel marketing. However Industry Ministry sources said the clearance to Caltex was subject to policy parameters as it involved disinvestment of a public sector holding in a joint venture company. Multinational Caltex holds 51 per cent stake in the joint venture company with an investment of Rs 58 crore which would go up to about Rs 114 crore once it takes over IBP’s equity. The board also cleared a proposal from UPS worldwide Asia for multi-modal transport including air cargo subject to the condition that it would handle only export and import cargo. The Rs 2.75 crore foreign
investment in the venture is similar to the one between
German Airline Lufthansa and Ashok Leyland for cargo
movement. |
PTDC wipes out losses; earns 42
lakh CHANDIGARH, Sept 26 — The Punjab Tourism Development Corporation (PTDC) has wiped out its entire accumulated losses and made a profit of Rs 42 lakh in September, 1998. Giving this information here today, Ms Jagir Kaur, Minister Tourism & Cultural Affairs, Punjab, said virtually all complexes performed better than they did in the past. Depreciation losses, however, continue at Rs 3 crore. She announced that the corporation staff would be given salary in the revised scale in the current month itself as a reward for the excellent performance. However, arrears would be paid later. The new tourism policy has
been approved by the Cabinet in principle and only the
modalities for budgetary provisions were being worked
out, she added. |
ASSOCHAM for reforms in forestry
sector NEW DELHI, Sept 26 - The ASSOCHAM has called for the creation of a ‘reforestation fund’ and suggested amendment in the Forest Conservation Act for facilitating reforms in the forestry sector. The chamber in a paper on “Greening Wastelands : increasing the forest cover”, said that the proposed fund could be created by allocating the entire cess and 20 per cent of the excise duties from wood based industries. State governments should keep aside 10 per cent of the royalty collected on all forest produce for creation state level reforestation funds which should be eligible for matching grants by the Central Government and used only for promoting technology based plantation under a well defined long term policy. The paper states that the Forest Conservation Act should be amended to encourage fallow or marginal land being converted to tree plantations and its entry in the revenue records.Timber Transit Rules conceived to protect government forests, is a disincentive as the rules require permits for transporting timber. Investment allowance upto a maximum of 25 per cent of capital expenditure on WLDP, excise duty and sales tax exemption on capital equipment and inputs required for use of wastelands development have also been recommended. The paper suggested that in addition to direct financing by NABARD coordinating cells should be set up with representatives from the government, industry and financial institutions. NABARD should also have a separate fund for promoting plantation on non-forest wastelands and to disburse funds directly to the beneficiary. The chamber feels that
while the funds for the forestry sector be accessed from
international financial institutions, the Joint Forest
Management (JFM) programme should be suitably recast and
emphasis shifted from protection to plantation. |
Hailed once as the “Manchester of India” for its vibrant textile industry, Ahmedabad is now a warehouse of broken dreams and rusted machines. Ahmedabad, which once boasted of as many as 64 textile mills, is now home to at least 65,000 laid-off workers struggling to survive. Nearly 10,000 of them have bid goodbye to the city. The sorry predicament is a result of government apathy in reviving sick units. It prefers the more convenient way of just way of just laying off workers in thousands by offering a fair amount of compensation under the voluntary retirement scheme (VRS) and shutting down the once money-spinning mills. Ahmedabad has effectively turned into a city divided in two: builders and rich people with their luxury villas and commercial centres on the one side; thousands of tea stalls and vegetable carts for workers on the other. — IANS Power tariff The CII has recommended that the current hike in the power tariff of 16.6 per cent in Himachal Pradesh be rolled back to 5-6 per cent. The power tariff in the State has gone up two and a half times during the past six and a half years. Also as compared to other hill States or less developed States like J&K where the cost of power is 0.73 paise and Rs 1.38 in Meghalaya, the cost of power in Himachal in much higher. — TNS Mismanaged Chief Minister Jyoti Basu has said that the fear of militant trade unionism is keeping a section of the investors away from West Bengal. He blames the media for creating such “unfounded impressions.” Quoting a report of the Reserve Bank of India, he says 98 per cent of the sick units are the result of management inefficiency. The managements should take their workers into confidence for smooth running of the industries, advises the veteran Marxist leader. Siemens German industrial giant Siemens has announced the creation of a fund to compensate forced labourers it exploited during the Nazi era. The fund will have a
budget of 20 million Marks $ 11.9 million and is directed
at people who were forced to work in its factories during
World War II. |
Q: When an ex-serviceman was found to be not suitable after due consideration, can it be said that there was lack of consideration of his case? Ans: In Ex-Capt. R.S. Dhull v State of Haryana (1998-II-LLJ.394) the S.C. expressed the view thus: The main grievance of the appellant was that his name was wrongly excluded from consideration for appointment to the Haryana Civil Service for the year 1980, 1982 and 1983. The S.C. examined the records. The S.C. observed that the appellant had only a right to be considered and the S.C. in this regard agreed with the learned Single Judge and the Division Bench of the H.C. that his case was properly considered, ignoring the expunged adverse entries made in his Annual Confidential Reports by a high powered committee but the appellant was not found suitable by that Committee to be recommended to the Commission. It is, therefore, futile to contend, in the opinion of the S.C. that there was any lack of consideration of his case or that the consideration of his case was based on any irrelevant or inadmissible grounds. The record reveals that his case was considered along with service record of the other eligible candidates who has been brought on the select list and the S.C. was not persuaded to hold that the consideration of the case suffered from any infirmity. The plea that the high
powered committee was influenced by the adverse entries
is, in the opinion of the S.C., not correct and deserves
a notice only to be rejected.Therefore, the S.C. held
that there is no reason to interfere with the orders of
the learned Single Judge and the Division Bench in that
regard. The appeal was in that way disposed of. |
Q: I have received the arrears of held-up increments since 1-1-86. Earlier, the income statements pertaining to the year 86-87 to 91-92 were also revised while received the arrears of general pay revision w.e.f. 1-1-86. Kindly clarify the following: 1. How many statements can be splitted to cover the arrears of held-up increments. Please clarify the relevant section also? 2. In case, statements after the year 1991-92 can only be splitted then how the arrears of the period 86-87 to 91-92 are accounted for? — Harjit Singh, Patiala Ans: The amount received in respect of arrear salary can be splitted to different years. In terms of Section 89(1) of the Income-Tax Act, 1961, relief of Income-tax is permissible on such arrear salary received by you for different years. Q: It appeared in certain newspaper dated Feb. 9, 1998 that the Government has amended the Income Tax rules relating to LTA w.e.f. October 1, 1997 regarding exemption of economy class air-fare from Income Tax while the journey is actually undertaken by air. However, your reply to a similar query published in “The Tribune” dated Feb. 22, 1998 appeared to be otherwise. Kindly clarify. — Paramjit Singh, Patiala. Ans: The Income-Tax rules relating to exemption in respect of LTA have been amended. The exemption in respect of the LTA amount now extends upto economy class air-fare in case the journey is actually undertaken by air. The answer to your query as printed in the Tribune dated 22nd Feb. 98 was different because by that time the official exact extract of the circular of the Central Board of Direct Taxes relating to amendments on LTA was not officially received. Q: I am working in the university. In this financial year (1997-98) my salary will be 1,76,450 after deducting standard deduction of Rs 20,000/- I encashed MEP-91. I received payment from UTI as follow: MEP 91 — 27,960 UTI has deducted Rs 2,000 tax at source on each MEP i.e. Rs 4,000 and issued TDS. Please let me know how much tax I am required to pay on MEP amount? Whether I should treat this income as capital gain or claim rebate under 80L. In case of capital gain I am entitled for deflation of dividend cost Inflation Index or not. — A.C. Gangwar, Hisar Ans: In respect of MEP payments received by you, you are entitled to take the actual cost as per cost inflation index. The resultant profit will be long-term capital gains or long-term capital loss. The TDS certificate which has been issued to you by the UTI will enable you to get adjustments against the total tax payable by you for the current year for which you are filing your Income-tax return. Q: I borrowed a sum of Rs 10,000 through an Account Payee Cheque from my mother-in-law. This cheque was deposited in my Saving Bank account. After sometime, my aged mother-in-law expired leaving a registered Will in favour of her daughter (who happens to be my wife) to inherit through registered Will the bank balance. Do I have to return this Rs 10,000 borrowed from my mother-in-law and deposit the same in her S.B. account which is operated by her daughter. Was it necessary to take the loan through an instrument on a stamped paper. How do I undertake this loan in my tax return as I am a tax payee. Kindly clarify the following issues involved in my question: 1) Is it mandatory to raise a loan through an agreement between lender and borrower on a stamped paper and, if yes, what should be the value of such a stamped paper? 2) In the event, the lender dies to whom the borrower should return the money? 3) How such a transaction should be reflected in the income-tax return? 4) Should deposit-refund Rs 10,000 to the Joint Account of my wife and lender. — Joginder S. Bawa, Chandigarh. Ans: The loan taken by you from your mother-in-law should be repaid by A/C payee cheque to your wife who happens to be the legal heir of this money as per the registered Will left by your mother-in-law. It is not necessary to take the loan through the instrument on the stamp paper. Merely a plain paper is sufficient for giving and taking of the loan. In your Income-tax return the loan received by you as well as the loan repaid by you will not appear. However, in the statement
which you are enclosing with your Income-tax return, you
can write in the remarks the facts relating to taking of
the loan and finally the repayment of the loan. In the
event of the death of the lender the amount borrowed on
loan is to be returned to the legal heir as per the Will.
Your wife should deposit the refund amount in her joint
bank A/C in her name and in the name of your late
mother-in-law. |
RPL aims 25,000 cr revenue MUMBAI, Sept 26 (PTI) — Reliance Petroleum Limited (RPL) when commissioned is expected to generate revenues of over Rs 25,000 crore per annum. Addressing shareholders at the seventh annual general meeting at Jamnagar today, Reliance Chairman Dhirubhai Ambani said import substitution by RPL’s products would save valuable foreign exchange of over Rs 6,000 crore annually apart from contribution of an equal amount to the exchequer by way of various taxes. Ambani expressed confidence that given RPL’s global competitives and world class operations. The company would generated substantial value for all its shareholders in the future, a Reliance said here today. RPL’s is setting up a grassroot refinery project at Jamnagar and project implementation at the 7,500 acre complex is at an advanced stage. Commissioning is scheduled for the second half of 1999. Puncom to start Internet services CHANDIGARH, Sept 26 (TNS) — Puncom organised a meeting of Suppliers at SAS Nagar today to discuss the situation arisen due to the deregulation of the telecom sector. Puncom called upon its 100 suppliers to evolve growth strategies in the changing scenario. Mr A.S. Gill, MD, said Puncom software division would have ISO-9001 certification for which surveillance audit has been conducted. The company would also start Internet service for which infrastructure had been installed in collaboration with Videsh Sanchar Nigam Limited. The company plans to manufacture and supply of consumer goods through a chain of distributors and dealers. The company also demonstrated its smart card solutions to the suppliers. Amartex new unit at Dera Bassi CHANDIGARH, Sept 26 (PTI) — A Rs 12 crore, Panchkula based textile mill, Amartex Industries Ltd is expanding its facilities by setting up another Rs 5 crore a state-of-the-art processing unit for dying, printing and finishing the fabric at Dera Bassi in Punjab. Mr Arun Grover, Managing Director of the company said that the new factory which would go on stream on October 18 would complete the chain in the company’s strategy of backward integration. Mr Grover said the
turnover of his company would double to Rs 25 crore in
the next year and Rs 100 crore by the turn of the
century. The company has expanded its showroom at
Panchkula to cater to about 10,000 consumers in a day.
“We sell fabric and garments at very economical
prices. We are not only manufacturers of textiles, but
have an inhouse arrangement of weaving, dyeing and
printing, stitching and all other machinery in the
production line for providing the consumer with the final
product,” he said. To increase consumer awareness on
cloth buying the company is setting up a fabric testing
lab at Dera Bassi. |
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