Respect tariff order, says Manmohan
NEW DELHI, March 25 — Former Finance Minister Manmohan Singh today said the Centre should have settled the telecom tariff issue in consultation with the Telecom Regulatory Authority of India without dragging the matter to the present stalemate.

Hegde, Sinha discuss exim policy changes NEW DELHI, March 25 — Commerce Minister Ramakrishna Hegde had a detailed meeting with Finance Minister Yashwant Sinha last night to fine tune financial and revenue issues in the exim policy modification, to be announced on March 31.

Plan to upgrade textile sector
NEW DELHI, March 25 — Government has formulated a three-pronged strategy to upgrade the textile sector to prepare the industry to face the impending global competition in the post-multi-fibre agreement phase and improve the quality of fabrics, garment and cotton produced in the country.

No half-day for banks on March 27
MUMBAI, March 25 — The RBI has decided that branches of public sector banks conducting government business will remain open for the whole day on March 27 for receiving government duties and taxes.

Self-help groups discussed
CHANDIGARH, March 24 — Mr Ali Mian, Executive Director of the National Bank for Agriculture and Rural Development was in the city today to review the functioning of self-help groups in Punjab and Haryana.

PAL Peugeot told to refund car deposits
NEW DELHI, March 25 — A Delhi consumer court has warned Pal Peugeot Ltd of imprisonment up to three years for non-delivery of “Peugeot 309” car and subsequently not refunding booking deposits to customers.

Will tax dose improve infrastructure?

Reduction in government expenditure hailed

Mr Rakesh B. Mittal, Chairman, CII, Punjab State Council : The reduction in the non-Plan expenditure of all government departments by 5 per cent reduction in the fleet of all government vehicles, freeze on LTC for one year, reduction in government advertisement by 50 per cent are steps in the right direction. This would help in releasing funds for the government which can be utilised for sectors like housing, education, health etc.

Also welcome are features like the reduction of sales tax slabs from 13 to 7, deemed assessment scheme to dispose of pending sales tax cases, lowering of sales tax on items like photographic goods, plastic furniture, rubber goods, dry fruits and more importantly on iron and steel re-rolling industry.

While the compulsion of the Finance Minister in imposing a road cess on diesel to raise funds for construction and maintenance of the roads network is understandable, the establishment of information collection centres at all major entry points would lead to unnecessary harassment to the industry.

The 2 per cent increase in sales tax on petrol will adversely affect the industry and lead to inflation.

Mr Sunil Kant Munjal, Deputy Chairman, CII (Northern Region): I welcome the direct private sector participation in infrastructure, rationalisation of sales tax slabs and reduction of sales tax on various items. I hope all the policy framework for the private sector participation is in place.

The sales tax slabs should have been reduced to 4 slabs as per the national consensus. Also the target for disinvestment in State PSUs cooperatives set at Rs 50 crore should have been higher.

The cess imposed on diesel and increase in sales tax on petrol will adversely affect business in the State.

Prices of several items to shoot up

Harish Khanna, President, Industry and Trade Forum, Ludhiana: The Budget proposal are anti-poor, anti-trade and industry, and anti-urbanites. The Budget will give a fillip to the inflationary trend and in a year’s time the prices of all essential commodities will touch dizzy heights. Under the garb of rationalisation, the sales tax rates have been increased on petrol, motor-vehicles, two-wheelers, desert coolers, stationery, medicines, bicycles, hosiery polyester, soaps, detergents, spices etc.

There will be a massive rise in prices, corruption and tax evasion. It will also expand the scope of Inspector raj. The state government has also raised ad-valoram road tax on personal vehicles and introduced entry tax on motor vehicles, tyres/tubes, electricals and electrical goods, furniture, lubricants etc.

The State Government’s two-pronged move of raising taxes and reducing subsidies proves beyond doubt that it is no longer a popular government of the people of the State. The whole exercise in the Budget will ultimately impose an additional tax burden of Rs 500 crore annually on the people in general and the trade and industry in particular. Industry is already passing through a grave recession and it can ill-afford to withstand any additional tax burden.

TNS reports: The United Cycle and Parts Manufacturers Association has expressed a grave concern over the increase in the rate of the Punjab sales tax on bicycles to 6 per cent and has called the Budget anti-small scale industry. Mr G.L. Pahwa and Mr M.D. Chawla, President and Senior Vice-President of the association have warned the government that if the proposed increase is not withdrawn, the industry would be forced to oppose this in a democratic manner.

Reduction of sales tax slabs welcomed

Amarjit Goyal, Chairman, Punjab Committee, PHDCCI, Gursaran Singh, Co-Chairman, Punjab Committee & R.S. Sachdeva, President, Mohali Industries Association: We welcome the announcements of Capt Kanwaljit Singh for restructuring the sales tax slabs from the present 13 to 7 and also the introduction of the VAT scheme in Punjab in a phased manner.

To save the iron and steel industry in Punjab from dying, the announcement for reduction of sales tax from 4 per cent to 2 per cent is welcome, as also the proposal of the Government to completely exempt dry fruits and handicrafts made in Punjab.

To dispose of pending sales tax assessment cases up to the year 1994-95, the decision of the Government to give option to the assessees who are not able to produce record, to pay Rs 100 per Rs 1 lakh of the turnover is a step in the right direction and is welcome. However, this norm should apply up to a turnover of Rs 5 crore. Assessees with a turnover of Rs 5 crore and up to Rs 25 crore should be charged Rs 50 per lakh and for those with a turnover of Rs 25 crore and above, the fee should be Rs 25 per lakh. The decision of the Government to charge sales tax of Rs 650 per metric tonne on the production capacity of vanaspati ghee industry is also a welcome step as it will eliminate evasion to a great extent.

The decision to enforce 5 per cent economy in all departments of the Government & PSUs and minimum 4 per cent return by PSUs on the capital invested by the Government will be instrumental in containing the revenue deficit.

The proposal of the Government to apply 50 per cent cut on all subsidies will enable the Government to invest the funds so saved for infrastructure development.

The Government should review its decision to increase sales tax on bullion and garments. The steep hike announced by the State Government from 1/2 to 2 per cent in the case of bullion and 2 to 4 per cent in case of garments will prove detrimental for this industry. The decision to charge license fee of Rs 1000 for renewal of sales tax registration every year should also be reviewed. The minimum period for renewal should be three years.

Respect tariff order, says Manmohan

NEW DELHI, March 25 (PTI) — Former Finance Minister Manmohan Singh today said the Centre should have settled the telecom tariff issue in consultation with the Telecom Regulatory Authority of India (TRAI) without dragging the matter to the present stalemate.

“The government should respect the tariff order since it was passed by a regulatory body created by “Parliament,” Singh said adding, if the government wanted to avoid the imbroglio it should have consulted the regulator before the order was passed.

Having passed the order, it is the government’s responsibility to respect the order since TRAI was empowered with the tariff fixing authority by an Act of Parliament, he told reporters after launching the financial website of “Satyam on-line” here.

He described the BJP-led coalition as a “roll-back government,” and accused it of not consulting the regulator before issuing a policy directive on March 10 asking to keep the order in abeyance.

Declining to comment on the legal implications on issuing the notification and the government’s onus to implement it, Singh said “I am not a legal expert.”

When asked whether he supported the tariff order, he said “I do not fully agree with the order.”

Hegde, Sinha discuss exim policy changes

NEW DELHI, March 25 (PTI) — Commerce Minister Ramakrishna Hegde had a detailed meeting with Finance Minister Yashwant Sinha last night to fine tune financial and revenue issues in the exim policy modification, to be announced on March 31.

The meeting between the two ministers lasted 90 minutes spread over two sessions, official sources said today.

The extension of 9 per cent RBI pre-and post-shipment credit to exporters further from March 31 is understood to have figured prominently during the discussions as it held key to boosting exports.

The package, announced in october last as part of measures to spur exports by Hegde, expires on march 31 and the RBI has already notified that the credit rate will be restored to the earlier 12 per cent.

Sources said the Commerce Minister made a strong case for restoration of the package credit in the wake of turnaround in export growth.

By Pushpa Girimaji
Students, parents left in the lurch by MRTPC

Every year, during March and April, the students and parents are bombarded with advertisements and pamphlets issued by educational institutions offering a vareity of courses for the next academic session. Courses in computer technology, fashion designing, business management, hotel management, biotechnology, you name it and it’s there. There are also a large number of advertisements promising to help students secure admission in prestigious institutes in India and abroad through short and long-term courses.

But obviously, not every claim is true nor every course worth the exorbitant fee demanded. It is very difficult for students to sift the grain from the chafe, and that’s where the Monopolies and Restrictive Trade Practices (MRTP) Commission plays an important role. Ever since the MRTP Act was amended in 1984, bringing unfair trade practices under the ambit of the commission, the office of the Director General (Investigation and Registration), Department of Company Affairs and the commission took action against many a misleading or false advertisement issued by educational institutions.

Take the case of Educational Consultant. It announced admission to BDS course, duly recognised by the Dental Council of India and gave details regarding eligibility and hostel facilities. Remit Rs 30 for prospectus and application form, it said. Investigations by the DG revealed that over 1 lakh anxious students had sent in the money for the prospectus and those seeking admission had been asked to pay Rs 9,410 towards registration. But contrary to the claim in the advertisement, the Educational Consultant did not conduct any course in any stream, and only offered consultancy services to those seeking admission to various colleges. The representations made in the advertisement were false and misleading and capable of deceiving innocent students and unsuspecting parents, the commission said, in its order in 1994.

In the same year, the DG took objection to the Institute for Technology and Management using expressions like “degree” “MBA” and “MS” for its certificate courses. Use of these gave false impression that at the end of the course, degree would be awarded by a university or a deemed university, the DG said. The institute gave an undertaking to the commission that it would not use such words in its advertisements or certificates issued by it. Be it a case of inordinate delay on the part of schools in returning the caution deposit collected from students or unjustified fee-hike or false claims about affiliation to foreign universities, the office of the DG and the commission came to the aid of students and parents.

But this year, there will be no MRTPC watching over misleading advertisements issued by educational institutions because the commission has decided that it has no jurisdiction over matters pertaining to education and educational institutions. As a result of this decision even old cases against some educational institutions, lying pending before the commission would now be dismissed.

The commission’s decision over its lack of jurisdiction in matters concerning educational institutions comes in the wake of a judgement of the Karnataka High Court. In 1988, NITTE Education Trust had challenged the applicability of the MRTP Act to educational institutions. Eight years later, in March 1996, a single Bench of the Karnataka High Court took the view that neither education nor educational institutions came under the purview of the MRTP Act. Observing that the primary motive of educational activity was not profiteering, the court held that imparting of education and establihsment of educational institution could not be taken to be a commercial activity or a trade practice.

For consumers, this was bad enough because it meant that unless this judgement was reversed by a Division Bench of the high court or the Supreme Court, the MRTPC had no jurisdiction over eudcational institutions in Karnataka. But last year, a full Bench of the MRTP Commission went one step further and held that in view of the high court judgement, the commission had no jurisdiction over educational institutions anywhere in India. If one were to go by this order that details which judgement of the high court the commission should follow in case of contrary views, one cannot expect any uniformity or permanency in law as laid down by the commission on the subject, till the Supreme Court steps in.

The DG, who had filed an appeal before the Division Bench of the Karnataka High Court against the order of the single Bench, is now all set to file an appeal against the decision of the full Bench before the Supreme Court. And till these cases are decided, the consumers cannot expect any help in educational matters from the commission.

Hard times for taxi operators
By Abhilash Gaur

For a small city, Chandigarh is remarkably well connected by public transport. Apart from the regular bus and train services, the availability of deluxe coaches and the super convenient Shatabdi Express draws even the well-heeled to the crowded ticket counters.

On the other hand, it being a small city with a very high rate of vehicle ownership, people here prefer using their personal vehicles for everyday commuting.

In such a scenario, prospects for private taxi services are admittedly dim, yet over the last decade, there has been a steady growth in the number of registered taxis and taxi stands in Chandigarh with one informed source placing their current strength at 450 and 57 respectively.

However, with margins in the business shrinking due to various reasons, taxi operators in the city are a worried lot today. Says Charan Singh, a driver at Sadh Taxi Service in Sector 35, “In the last couple of years we have seen things go from good to bad and therefrom to worse”.

While it is tempting to blame the general economic slowdown for the taxi operators’ problems, facts belie this supposition — since the slump in demand and profits is restricted to this city, the circumstances leading to it, too, must be endemic. Indeed, most taxi operators hold the following three factors responsible for their plight:

There has been a manifold increase in the number of taxis over the last few years, demand for their services has not kept pace due to the immense popularity of public transport and greater penetration of motor cars in the city’s middle class. The popularity of public transport is understandable as not only is it much cheaper but also safer than travelling by taxi.

Secondly, while their operating costs, which also include their personal expenses, are influenced by increasing prices, increased competition in the business has compelled operators to maintain their charges at the 1996 level i.e. Rs 3.5 to Rs 4 per km for a Maruti Omni/Ambassador (non-AC) taxi.

Joginder Singh, president of the Chandigarh Taxi Operators’ Union, said the quarterly permit charge in Haryana, that was hiked from Rs 275 to Rs 875 during the prohibition period, has not been lowered till date. In contrast, he points out, the quarterly charge in Punjab is just Rs 125.

Taxi operators, without exception, seek the lowering of this charge there are other measures, they feel, that can help improve their situation. These include, simplification of procedures for taxation, registration etc., permanent allotment of sheds and, above all, allowing registration of more than two-year-old vehicles as taxis as this will enable them to procure cheaper vehicles from the second-hand car market.

Plan to upgrade textile sector

NEW DELHI, March 25 (PTI) — Government has formulated a three-pronged strategy to upgrade the textile sector to prepare the industry to face the impending global competition in the post-multi-fibre agreement phase and improve the quality of fabrics, garment and cotton produced in the country.

The three-pronged strategy includes formulation of new textile policy after detailed review of the 1985 policy, launching of the textile upgradation fund (TUF) on April 1 and implementing the cotton technology mission to improve the production and yield of cotton in the country.

A Textiles Ministry note, on the achievements of government in the sector during the one-year rule of the BJP-led coalition, said the multi-pronged strategy had been embarked upon to lift the textile sector out of the current crisis situation and catapult it to a position of strength.

The Multi-Fibre Agreement under the aegis of the World Trade Organisation (WTO) provides for phased easing of import curbs by member-nations. It expires in 2002.

No half-day for banks on March 27

MUMBAI, March 25 (PTI) — The RBI has decided that branches of public sector banks conducting government business will remain open for the whole day on March 27 for receiving government duties and taxes.

The decision has been taken to obviate the inconvenience caused to the assessees on account of holidays on March 25 and 29 in many states and March 28 being a Sunday.

Such branches will also open extra counters for receiving government duties and taxes.

The RBI, in a statement here today, said these branches would observe business/working hours as applicable to weekdays instead of half-day.

On March 27, the concerned departments of the RBI undertaking government business would also remain open for the whole day and normal clearing operations would take place.

Self-help groups discussed
Tribune News Service

CHANDIGARH, March 24 — Mr Ali Mian, Executive Director of the National Bank for Agriculture and Rural Development (NABARD) was in the city today to review the functioning of self-help groups (SHGs) in Punjab and Haryana.

At a state-level meeting with financing banks and non government organisations (NGOs) associated with the movement, Mr Ali Mian underlined the importance of SHGs as a credit delivery innovation in the two states and stressed the need to link the SHG’s with bank credit in order to improve their functioning. He requested the NGOs to ensure the formation of quality groups and to impart need based training to the SHGs.

Mr N.R. Kannan, Chief General Manager, NABARD Chandigarh said NABARD was in the process of studying the problems relating to micro-credit and this meeting was a part of the process of obtaining feedback from the bankers on incentive systems and approaches for better recovery recently introduced by banks and alternative approaches for improving the effectiveness of SHGs.

PAL Peugeot told to refund car deposits

NEW DELHI, March 25 (PTI) — A Delhi consumer court has warned Pal Peugeot Ltd of imprisonment up to three years for non-delivery of “Peugeot 309” car and subsequently not refunding booking deposits to customers.

The Delhi Consumer Dispute Redressal Forum-VI, has directed the company to return the booking amount of Rs 25,000 each with 9 per cent interest from the date of booking till the date of cancellation as well as further interest of 15 per cent from the date of cancellation till it makes the final payment.

Hearing several petitions filed separately by 17 complainants, the court said the company had disregarded its earlier orders and any further negligence would be taken seriously.

Several customers had deposited Rs 25,000 in 1995 as booking amount for ‘Peugeot 309’ cars, but the company failed to deliver the cars on time and also did not refund the booking amount despite cancellation.

Balarampur Chini Mills

CULCUTTA, March 25 (UNI) — Balarampur Chini Mills hopes to surpass its last year’s turnover of Rs 299.43 crore despite a sluggish market. Chief Financial Officer Kishor Shah told UNI here that though the current financial year was somewhat sluggish for the sugar industry and most of the sugar companies were likely to declare lower bottomline following lower recovery in the northern region,” we expect our turnover for the current year not to be affected by this.

Dorman Smith, Havell’s tie-up

NEW DELHI, March 25 (PTI) — British electrical products major Dorman Smith plans to integrate its Indian operations by entering into a 50:50 joint venture with Havell’s India, to produce a wide range of equipment for domestic as well as overseas markets. In the process, the British major’s two existing JVs will be merged into the new entity, called Havell’s Dorman Smith, which will come into existence from April 1.

Aptech network in Saudi Arabia

MUMBAI, March 25 (PTI) — Aptech Ltd today announced its plans to set up a network of six training centres in Saudi Arabia in collaboration with the Al Jehat company of Dhammam. The two companies have been working together on several offshore software projects in the country. Chairman of Al Jehat, Abdulrahman said at the signing ceremony here today.

Archies cards in Gurmukhi

CHANDIGARH, March 25 (TNS) — Archies Greetings and Gifts Limited has announced the launch of special Gurmukhi cards on the occasion of tercentenary of the Khalsa Panth. Archies has tied up with the Delhi Sikh Gurdwara Prabandhak Committee for display and sales of these cards at select gurdwaras in Delhi. Archies has also decided to donate 17 per cent of the sales proceeds to the committee. The Gurmukhi cards come in a variety of colours with illustrative pictures and interesting and informative literature on the history of the Khalsa Panth. The text display in Gurmukhi is colourful and is followed by translation in English also. There are a total of 22 tercentenary cards. One of them is a pop-up card with a view of the Golden Temple.