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| Saturday, November 11, 2000, Chandigarh, India   
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Sinha rules out tax concessions Panel on Maruti
selloff proposed Thapars:
Bilt is not vulnerable World Bank to double
aid to Andhra Pradesh |
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Scrap Central
ST: Dhumal Fast food fit for
atheists Ranjit Sagar
hydro project commissioned Central package
for J&K likely Haryana MoU
with Microsoft Internet opens up
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Sinha rules out tax concessions NEW DELHI, Nov 10 — The Union Finance Minister, Mr Yashwant Sinha, today ruled out tax cut and further hike in import duty as it would deplete the resources. “It will not be possible for us to reduce tax further as they will deplete the resources,” Mr Sinha said, addressing the 95th AGM of the PHDCCI, here. The overall tax-GDP ratio has already fallen by over 3 per cent, from 11 per cent in 1989 to 8 per cent at present, resulting in a revenue loss of Rs 75,000 crore. Indirect taxes alone were responsible for the fall as the direct tax-GDP ratio had gone up during the period he said. “Please do not ask for or expect any major concession on the tax front in the coming year as it is not possible to do it,” Mr Sinha said, adding during the last three budgets the government made relaxations on the tax front. Mr Sinha, pulling up the industry for not taking advantage of the anti-dumping regulations, said the country already had a high tariff wall which could be as high as 67 per cent on some products, including 16 per cent Unified Cenvat, 4 per cent additional duty on imports, 35 per cent peak rate duty and a 10 per cent surcharge. The Finance Minister also expressed grave concern over the large-scale dumping of products by China and said the domestic industry take recourse to anti-dumping and safeguard procedure to confront this problem. Mr Sinha said the industry instead of seeking protectionist measures from the government should try to withstand competition, particularly from China and other emerging markets from South and South-East Asia, by increasing productivity by the use of information technology and rationalisation of manpower. While the WTO had stipulated a protection rate levy of 40 per cent, the import levy in India was 67 per cent. The Finance Minister said tax reforms, involving streamling of the tax structure would go on. On the economic reforms, Mr Sinha said the government would not compromise on the norms and prescriptions of democracy and would follow the path of consensus to deal with resistance and opposition to the reforms. Mr Sinha admitted that it was difficult to cut government expenditure or reduce subsidies. While one involved the livelihood of million of employees, the other was faced with political compulsions. Downsizing of the government was not going to happen immediately, he stated. On the fall in the inflow of FDI, Mr Sinha said there was a need for convincing such investors that the investment climate in the country had undergone sea-change over the past few decades. Earlier addressing the conference, the outgoing PHDCCI president, Mr K S Mehta, said the reform process must be accelerated, widened and
deepened to cove financial sector, power sector, tax structure, public sector disinvestment, administrative reforms, right sizing of government together with greater fiscal discipline. |
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Panel on Maruti selloff proposed NEW DELHI, Nov 10 (PTI) — The Disinvestment Ministry has recommended the setting up of an inter-ministerial committee to hold discussions with Suzuki Motor Corporation (SMC) for the divestment of government equity in joint venture Maruti Udyog Ltd (MUL). A proposal to this effect is believed to have been sent by the Department of Disinvestment (DoD) for consideration of the Cabinet Committee on Disinvestment (CCD). The proposed committee is likely to comprise the Secretaries in the Ministries of Heavy Industries and Finance, besides DoD, sources said while pointing out that Finance Ministry has suggested that the committee be headed by Cabinet Secretary T.R. Prasad. The sources, however, said that the government has not decided to sell its 50 per cent stake to its equal joint venture (JV) partner SMC and the discussions with the Japanese company were needed due to one of the conditions of the revised JV agreement of 1992. While selling 10 per cent of its equity to SMC to become an equal partner, the government had also signed a revised jv deal and one of its clauses stipulate that the consent of the other partner is a must in case of a change in equity structure. Privatisation and transfer of management control in Mahanagar Telephone Nigam (MTNL) and Videsh Sanchar Nigam (VSNL) to strategic partners for preventing the two telecom PSUs from turning sick has been recommended by the Disinvestment Ministry. Official sources said that DoD has suggested sale of 15 to 20 per cent of government equity in the two corporations to a strategic partner which should also be given the management control in the two telecom giants. A proposal by DoD, prepared for consideration of the Cabinet Committee on Disinvestment is believed to have warned that any delay in the privatisation of the two entities would turn them sick as these in the present structure were not capable of competing in the fast liberalising telecom sector. |
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Thapars: Bilt is not vulnerable NEW DELHI, Nov 10 (PTI) — The
Thapar group flagship Ballarpur Industries (Bilt) today claimed that
jute baron Arun Bajoria holds merely 2.9 per cent equity in the
company against over 80 per cent held by them and thus Bilt is in no
way vulnerable. Disputing Bajoria’s widely reported assertion that he held 6 per cent stake in the company, a Bilt spokesman told PTI: “We are not unduly worried about Bajoria’s stake since it is a mere 2.9 per cent. The Thapars hold 80 per cent plus in the company and our position is safe.” While the Thapars directly hold 30 per cent stake in the company, 20 per cent is held by their Saudi business associates, who have reportedly assured the former of not selling out to Bajoria. The company may have received the same assurance from financial institutions, which also hold an unspecified equity in Bilt, but the Bilt spokesman declined comment on the breakup of 80 per cent equity claim by the Thapar family. The stake-taking drama unfolded in April this year when Bajoria wrote to Bilt, informing it of having hiked his stake to 10 per cent, following which Bilt approached Sebi with a written complaint. While the company is reportedly still awaiting Sebi’s reply on the issue, the spokesman again declined to further comment on it. Industry sources say post-restructuring, Bilt has suddenly become attractive for acquisitions since it has already turned around to post profits. Riding high on the upswing in paper prices, the largest paper manufacturer in the country registered Rs 68 crore net profit for the year ended June 2000, more than three times the Rs 21 crore figure it posted in the corresponding period in the previous year. Bilt registered Rs 1,100 crore sales turnover till June this year against Rs 978 crore till June 1999; it is eyeing an almost 100 per cent hike in profits to Rs 110 crore on Rs 1,250 crore turnover — reason enough to become game for the jute baron. While one reason widely believed to be behind Bajoria’s move is that he may want the Thapars to buy out his stake at a premium, yet another seems to be keeping certain scrips, including Bilt and Bombay Dyeing, in the limelight to improve their prices. |
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World Bank to double
aid to Andhra Pradesh HYDERABAD, Nov 10 — The World Bank has agreed in principle to double its assistance in the coming years to Andhra Pradesh from the present $ 2.8 billion. This additional Rs 10,000 crore will bail out the beleaguered Chief Minister, Mr Chandrababu Naidu, who is facing a serious budgetary deficit and stiff opposition from the public and opposition parties in the implementation of economic reforms, particularly in the power sector. The World Bank President, Mr James D. Wolfensohn, after the conclusion of his two-day visit to the state said at a press conference today that he was very much impressed by the state government’s approach and implementation of reforms and developmental programmes and has agreed to process further loan “to provide budgetary support to the state government to mitigate the impact of reforms on the poor.” The bank, he said, has immediately agreed to support the state government’s proposed rural poverty reduction project costing Rs 2,000 crore. Mr Wolfensohn said that the World Bank was impressed by Maharashtra, Karnataka and Andhra Pradesh. Because of effective administration in these states the Bank had agreed to lend assistance to them, he said. He had visited the bank assisted projects and programmes in the states this week. Hyderabad was his last destination and he was satisfied with the state government’s implementation of the programmes, he said. The visit of the World Bank President was, however, met with demonstrations at the airport and in the city by the left parties. They alleged that it was due to the pressure of the World Bank that the state government has recently raised steeply the power tariff. Mr Wolfenshon, apparently touched by the protest demonstrations, clarified at the press conference that the bank had not at any stage specifically suggested the increase in power tariff. It was for the governments to decided the manner and pace of reducing their growing budgetary deficits. Mr Wolfensohn told The Tribune that the bank would like the developed countries to open their markets to the developing countries. The Bank has initiated a new scheme to promote private institutions to give credit to rural poor. Mr Wolfensohn today signed $ 1 million investment agreement with Bharatiya Samrudhi Finance Limited to provide micro-finance. Mr Naidu detailed the state government’s efforts at poverty reduction. The meeting was attended by the Cabinet ministers and senior officials. |
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Scrap Central
ST: Dhumal NEW DELHI, Nov 10 — The Himachal Pradesh Government is seriously considering a proposal to set up special economic zones in the Baddi-Barotiwala-Nalagarh areas bordering Punjab, the state Chief Minister, Mr Prem Kumar Dhumal, said here today. Addressing the Chief Minister’s conference here, Mr Dhumal requested the Punjab government to join hands with the state government to boost industrial activity in the region and requested the Ministry of Commerce to sanction these projects in the
respective states based on combined viability. Advocating phasing out of Central Sales Tax, he said the Himachal Government was committed to make tax administration more simple, transparent and user-friendly. Packing and processing material are being given 1 per cent tax concession and even before the introduction of the uniform tax regime, the usually applicable rates in states were 4, 8 and 12 per cent on very large component of taxable commodities. The state would introduce VAT by April 1, 2002. Mr Dhumal said the state government would provide exemption from restriction of opening and closing hours for IT units in the state and it had regulated the inspectors for conducting inspection to check unnecessary and avoidable visits of inspectors. He stressed the need for changing labour laws to keep pace with the change in the rest of economy and added that the incidence of strikes, lockouts and industrial disputes have been near zero in the state. The also stressed the need for developing concentric tour circuits across the region to offer quality packages to tourists. |
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Fast food
fit for atheists ROME: McDonald’s hit a snag in Italy on Thursday when a Catholic newspaper declared fast food to be fit only for atheists, or perhaps Lutherans. Munching a Big Mac with fries was the antithesis of receiving communion and should be spurned by Catholics, declared Avvenire. McDonald’s, already bruised from clashes with employees, environmentalists, communists and gourmets, found itself accused of promoting selfishness. “The excommunication of the hamburger,” as the newspaper La Repubblica described it. In a full-page attack, Avvenire denounced eat-and-run habits for lacking the communitarian aspect of sharing: ``It is not Catholic. It completely forgets the holiness of food.” Eating food in the fastest possible way, often alone, satisfied only the self, not others, he said. During Mass, Catholics approach the altar to take Eucharist at the same time.
— The Guardian |
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Ranjit Sagar
hydro project commissioned NEW DELHI, Nov 10 — Bharat Heavy Electricals has commissioned 600 mw Ranjit Sagar Hydro Electric Project in Punjab. Ranjit Sagar project of the PSEB is equipped with four number BHEL-built hydro generating sets of 150 mw capacity each. With the commissioning of the last 150 mw set, the 600 mw project has been completed by BHEL, a release said here today. While the commission of the project is expected to ease the power situation in the power deficit state of Punjab, it will also cater to the power requirements of Himachal Pradesh, Jammu and Kashmir. |
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Central package
for J&K likely NEW DELHI, Nov 10 — The Centre is considering a special economic package for Jammu and Kashmir which provides for a 10-year income tax and central excise holiday for all industrial projects. This project, along with the state’s own
industrial package, throws open vast investment opportunities,” state Industry Minister Sheikh Mustafa Kamaal, addressing the Chief Ministers’ conference, said here today. The package, however, will not be applicable for projects in alcohol, tobacco and cigarette sectors. “Elaborate industrial infrastructure will remain available due to enhanced funding by the Centre and allotments can be made immediately on receiving proposals,” he said. Inviting greater investments in the state, the minister said land reforms have already been implemented and the efforts have led to phenomenal growth in sectors like industry and tourism, social infrastructure, education and health. Giving details of the state’s industrial policy, he said it provides for enhanced incentives for the prestigious projects where investment of Rs 25 crore or more is made. Under this policy, the state also provides fully developed land in the
designated industrial estates at subsidised rates. “The entrepreneurs are also provided with 100 per cent subsidy for installation of testing equipments with a ceiling of Rs 50 lakh per unit,” he said. Mr Kamaal said the state also provides capital investment subsidy up to Rs 75 lakh per unit depending upon the investment and nature of the project. The state has also thrown open the power sector for investment, both for distribution and generation, and maximum debt equity ratio of 4:1 has been allowed for the purpose. |
Haryana MoU
with Microsoft NEW DELHI, Nov 10 — Haryana is the latest to join the bandwagon of computer-savvy states and making this happen will be the global major Microsoft. Microsoft Corporation (India) will computerise organisations in Haryana, build skilled technical resources, develop expertise in providing technical consultancy, and develop custom applications to make the objectives set forth in the state’s IT policy a reality. The company has joined hands with Hartron. A memorandum of understanding to this effect was signed by the Managing Director of Hartron, Mr K.K. Khandelwal and the President of Microsoft, Mr Rajiv Nair. The Haryana Chief Minister, Mr Om Prakash Chautala, who was present on the occasion, said computerisation would help bring in transparency in the administration and remove corruption. More than 5 lakh youth would get employment in information technology-related services and efforts would be made to make Haryana a leading state in the IT sector. The agreement between Hartron and Microsoft will be valid for one year. The guiding basis of the MoU will be to maximise revenue, minimise cost and ensure public convenience. Hartron will actively consult develop and execute systems integration projects largely on Microsoft Corporation technology. Microsoft will provide access to training skills, transfer on Microsoft Corporation technology, referrals and exposure of Hartron products and consulting expertise to markets in and outside Haryana. Hartron officials said they would form a core team of five professionals headed by senior executive from the corporation to appropriately use Microsoft back office, office, development tools and Internet platforms. The core team would be selected within 30 days of signing of MoU and specialise in operating systems, desktop applications, data bases, messaging and systems management. Hartron plans to create a local pool of Microsoft certified professionals, engineers and solution developers. Under the agreement, both signatories will jointly work out detailed modalities for setting up a Microsoft e-governance applications development centre. Hartron plans to build a migration road map and steps for migrating its website to Microsoft platform. Microsoft will also provide assistance to Hartron to set up a Centre of Technical Education at one of its educational outlets. The centre will be used for developing the skills on Microsoft technologies. Microsoft has also offered to set up smart schools in Haryana, on the pattern of those being established in Malaysia. The company has said it would work closely with Hartron to set up five pilot smart schools. NEW YORK, Nov 10 (AP) — The master keeper of dot-com names has begun accepting non-English characters as the next step in making the World Wide Web truly global. The move yesterday evening came over the objections of some Internet engineers who fear the move is premature and could lead to a fouling of their works and a segregation of web sites. Verisign Global Registry Services, the company in charge of Internet domain names ending in.com.net and .org is initially accepting Chinese, Japanese and Korean characters for those suffixes. Arabic and other languages could follow. |
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