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March 4, 2001, Chandigarh, India   
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It was ‘my Budget’, not prepared by PMO
2 sets of duties to hit vanaspati units
Business delegation to visit Germany Punjab must start futures
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Verka lassi enters Nepal Incentives to pharma R&D
welcomed Not a (re)tired
life
Railways: need for improvement on safety
front
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It was ‘my Budget’, not prepared by PMO
New Delhi, March 3 Sinha made this comment during an interview to “India Today” when told that some people were claiming that it was a PMO Budget and not his. He asserted today the Opposition criticism of reform measures in the Budget will not cut ice with the people, saying “good economics is good politics.” “Ultimately good economics is also good politics and certainly bad economics is not good politics,” Sinha said, adding, that the NDA allies “are fully with us though the Opposition is making the usual noises.” Citing the recent assembly byelection results in which Congress suffered a severe setback, Sinha said political parties went around with the propaganda that the agricultural prices were down because of imports, which was not correct. “But it (propaganda) did not cut ice with the voters.” On controversial proposals like labour reforms and privatisation in the Budget, Sinha told India Today that “let me make one thing very clear. Opposition parties will try to take political advantage.” “We shall reason with them (opposition parties).We shall argue with them. We shall try and build consensus with them,” he said, adding,” at the same time we will like to reach out to the largest constituency outside — people” as public opinion outside did influence the behaviour of political parties in Parliament. Sinha admitted that NDA could face problems in the passage of controversial economic legislations as the ruling alliance did not have a majority in the Rajya Sabha. “If the Congress decides that it would not allow any progressive legislation to go through then clearly there will be a problem,” he said. But “we are hoping to build a consensus and persuade the Congress to support policies to which it was wedded not only when it was in the government, but also till recently as 1999 when its manifesto talked of many of these reforms.” Sinha said his fourth budget has tried to trigger growth by trying to spur both demand and investment. “By reducing taxes, I am trying to propel consumer demand. Through measures like lower interest rates and promotion of infrastructure, I should get higher investments,” he said. He said he had also created the environment for low-lending rates by reducing interest rates on small savings and keeping the government deficit down.
PTI
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2 sets of duties to hit vanaspati units Bathinda, March 3 In the Budget introduced in Parliament, Mr Yashwant Sinha has announced that the Customs duty on crude palm oil has been increased to 75 per cent from 25 per cent for the healthy vanaspati industry while it has been fixed at 55 per cent for the sick industry. Sources said the government had introduced two sets of Customs duties on the import of the item for the first time in the country. The discrimination was never done in other industrial sector. The Punjab Vanaspati Producers’ Association in a representation made to the Finance Minister said undue benefits given in the Customs duty to the sick units would severely effect the operations of healthy units and would also turn them sick. Mr Rajinder Mittal, president of the association, said by introducing two sets of Customs duties, the Centre had rewarded the inefficient management of sick units while punished the efficient management of healthy unit. Before the Budget announcement, the duty on crude palm oil for the vanaspati industry was 25 per cent and for refined palm oil, it was 65 per cent. There was a gap of 40 per cent to compensate the higher cost of production and to encourage the use of indigenous oils. But now the gap had been reduced to 10 per cent and the
industry would not be able to meet the cost of raw material. Moreover the vanaspati industry would not be able to compete in the coming scenario as the cost of processing of indigenous oils would be higher than the imported oils. The vegetable oil industry, which was already finding it difficult to survive with the gap of 40 per cent in crude and refined palm oil would certainly close down when the gap would come down to 10 per cent. The vanaspati industry would further suffer from the imports from Nepal because of huge difference in duty as per the new structure. The discrimination done in the Customs duty would also led to various types of malpractices in the business. The association had also brought into the notice of the Finance Minister that the definition of sick unit had not been cleared and most of the sick units were working on their full capacity for multinational companies while the healthy units were utilising 40 per cent of their capacity. The two sets of Customs duties would render the vanaspati manufacturers unable to purchase the raw material from farmers at better rates. The association had urged the Finance Minister that before the implementation of the new Custom structure, a committee of experts should be formed and it should contact the captains of industries to review the factual position to remove the discrimination. Mr P.D. Sharma, President, Apex Chamber of Commerce and Industry (Punjab), said for the first time in the economic history of the country, a particular industry had been chosen at random for hefty Customs duty concession purely on arbitrary basis. He said some vested interests had misled the Finance Minister. |
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Business delegation to visit Germany New Delhi, March 3 The Chamber plans to take a composite delegation of Indian businessmen, around 20 of them, to Germany and help them strike collaborations and to examine know-how and technology transfer possibilities. The Regional Director for North India of the Chamber, Mr Ajay Singha told TNS that the visit would be organised from April 26 to May 1. The visit would coincide with the Hannover, Hamburg and Nuernberg trade fairs. Mr Singha said they were looking for organisations with a turnover of around Rs 80 crore and upwards to constitute the delegation. “There are any number of such business people in the Jalandhar-Ludhiana circle. They have the funds and the wherewithal to purchase machinery and technology” he added. Recalling the experience of such visits in the past, Mr Singha said that even though the owners of such firms are little known they are the people with the real resources. For instance, during the last trip to the Mercedes Benz factory in Germany, nearly 50 per cent of the Indian delegation said that they owned the luxury car. Others owned equally impressive brand cars. Mr Singha pointed out that the businessmen would pay for the entire trip and even contribute for the business lunches and dinners that would be organised in Germany. It proposed to take the delegation to the Volkswagen factory, one of the largest automobile
manufacturing plants in the world. The members of the delegation would have individual meetings with the members of chambers of commerce in Nuernberg and Hannover and other European machinery dealers. According to Mr Singha, the medium and small scale sector plays a prominent role in the Germany economy as it accounts for 60 per cent of the total production and 75 per cent of the employment in manufacturing. “There are bright prospects of joint collaboration and technology transfer in view of the strong presence of the SMEs in the economies of the two country”, he added.
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Punjab must start futures
market Chandigarh, March 3 This was announced by Mr I.S. Paul chairman, CII Chandigarh council, at a press conference here today. The purchase of farm produce in Punjab involves payment of mandi fees cess etc. Which add up to 14-15 per cent of the value of the material, as against 6 per cent in states like Madhya Pradesh. Processing units must be allowed to purchase agriculture products directly from farmers. Necessary exemption for this purpose may be given to them under the Punjab APMC Act. “Let us introduce VAT to agriculture first,” said Mr Paul. All processing industries should be permitted to buy raw material against ‘C’ forms without paying sales tax. This should be applicable on agriculture products, chemicals, consumables needed during processing as well as on packaging material. This would encourage companies to establish processing facilities within the state and add value here itself instead of transporting raw materials out of the state. The government would get sales tax on the enhanced price of the final product. Mr Paul suggested the introduction of futures market, particularly in cotton, potato and oilseeds. The feasibility of setting up a board of trade on the lines of the Chicago Board of Trade must be studied. Kerala has already set up a futures market in spices. The state he said, must announce its resolve to shift 6 lakh hectares in the next three years from rice plantation to Basmati and durum wheat. 2 lakh hectares, oil seeds. 2 lakh hectares, vegetables. One lakh hectares and maize and ground nut. One lakh hectares. He said the state government through its agencies like Markfed should buy, for example oils seeds like soyabean convert it into oil and sell the oil. For a country that imported Rs 8,000 crore worth of oil last year, selling about Rs 1,000 crore of oil in the national market may not be that difficult.
Verka lassi enters Nepal Chandigarh, March 3 This consignment will further be distributed among 7500 outlets in Nepal through a sole distributor based in Nepal for catering to the needs of Nalapese and tourists from neighbouring countries during the ensuing summer season. Dr Mahajan said, many more Verka brand products will be made available shortly not only in the Nepal market but also in other neighbouring countries like, Sri Lanka, Bangladesh, Maldives, Bhutan etc.
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Incentives
to pharma R&D welcomed Chandigarh, March 3 Mr Mehta said his company is in talks with the United Nations body, United Nations International Development Organisation for possible joint ventures and technological tie-ups. He said, “the proposed reduction in the list of drugs covered under price control is sure to bring cheer to the industry. “In addition to the benefits extended to the pharma sector, there are few areas where the Finance Minister could have boosted the pharma industry by extending exemption from custom duties on R&D equipment and chemicals said Mr Mehta in a press release.
Bausch & Lomb
Eyecare Mr JP Singh, MD Bausch & Lomb Eyecare India Ltd., said the Budget seems to be positive, particularly so due to the increased allocation to healthcare and education which has long been awaited in the country. We were looking for specific initiatives for the eyecare industry. From the perspective of our industry, we were also looking forward to a relaxation of the excise duty on contact lenscare solutions from the existing 16 per cent to 8 per cent which did not
materalise.
Apollo group Dr Prathap C. Reddy, Chairman, Apollo Hospital group said the group will stand to benefit from the concessions given to clinical trails and the incentives given to the alternative systems of medicine since we have already obtained licences for our Sodhha College.
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Not a (re)tired
life MOST Indians assume, and convince others also, that their pension would support them. Though, at heart they are in doubt on account of the waning rupee power. Some suggest that their children will take care when they get old. It is a mere illusion. The fact is that children get low salaries at the start of their career. Also they like to spend and enjoy life. So generally children look towards parents for some support. We can easily make our retired life a bliss. Let us have a positive and real look at the requirements and their possible solutions. (1) The first requirement is regular monthly income. Seeds of any investment to produce worthwhile fruits should be sown in early part of one’s career. Few of us are in the habit of doing nothing. By not doing anything also you are doing something. That is, you are losing money through inflation. So, don’t keep your money idle. Invest your savings quickly and regularly, Honour the maxim “cash is king”. One of my neighbours at Harare, an old English lady, because invalid with no one to support. She managed by keeping a full time nurse to look after her. All this is possible as she took care to generate a regular monthly income through proper investments. A good investment should take into account (a) safety (b) liquidity and (c) returns in that order of priority. Therefore, to be assured to have regular income flow invest in safe and fixed income securities — provident funds, pension funds, monthly income scheme of UTI, HDFC, fixed deposits with banks and post office. But never go in for private lending or join chit funds. (2) The second requirement is to minimise the impact of inflation by effective estate planning. To a major extent this is by correct asset selection, acquisition and management thereafter. Nevertheless, many may find it difficult to invest in real estate since they lack the economic resources. Yet, this requirement can be met by housing loans from employer, HDFC, banks. It would be imperative to note that there are only few who got rich with their own money. Don’t hesitate to build a house with borrowed money. Here, the emphasis is to own city houses but the returns are even more in commercial property but lower in farm lands. (3) The third requirement is to take care of ill health, possible medical bills and unexpected hospitalisation. To ward off any major expenditure, take Mediclaim policies of GIC. Mentally picture your body as being perfect both in condition and function. Do not visualise it as in decline or as deteriorating. Train yourself to stop looking for something to go wrong. Think positively about your physical self. Think health, not sickness. This is important, for mental images tend to reproduce themselves in fact. Remain enthusiastic towards life to increase it. Try to keep fit by playing games and yogic exercises. (4) While in service every one is busy throughout the day, on retirement a person has plenty of time. This new found time is generally not welcome because a person feels that he has become useless overnight. He considers himself to be a used cartridge. All this results in social, physiological and mental problems. To avoid this, utilise the new found time for purchasing interests for which there was less time in earlier years. This is largely dependant on one's good health, economic resources and attitude. The requirement of passing time can be met by any/all of the following methods:
A curse to retired life is adamant refusal to face realities. I mean that never stay with grown up children in order to avoid spoiling their youth and own budhappa. Further, never stop learning throughout life. After retirement, never become hopeless. Realise that there are no hopeless situations; there are only people who take hopeless attitudes. Finally, the Indian average life span is only 63 years. As many die young, if everything goes well, one can expect to live 70-75 years of age. All the plans should be based keeping this fact of life in consideration. Contrary to popular belief, the present retirement age, 58 years, is very high and it would be better for youngsters to think of voluntary retirement 55 years of age. This would avoid pressure of targets, responsibilities and innovations which the increased age may not withstand. Between 55 and 65 years of age one can do social works and help India regain its lost glamour. It may be an opportunity to become a coveted politician. A homing pigeon instinctively comes back to home. Man came from almighty and instinctively intends to go back to Him. So after 65 years, do religious works and tune antenna towards almighty for good. |
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Fake illness Q: Should the H.C. have believed that default was on the ground of paralytre illness? In K. Ayya Thayalnayagiammal v T.V. Thomas [2000(2) RCJ 646] the S.C. was considering this point. There was an ex parte eviction order. An application was made to set aside on the plea that applicant tenant had gone away for business trip. Another application was filed seeking protection under Madras Tenant Protection Act with delay condonation application. H.C. dismissed the application but restored the suit by setting aside ex parte order. In the appeal before S.C., an affidavit was filed stating that the tenant had suffered a paralytic stroke. From the documents on record, the S.C. found that in the earlier application, it was stated that the tenant had gone to Madras on a business trip and, therefore, he could not be present on the date of hearing. While in the affidavit filed in the S.C. it has been stated by the tenant that he had suffered from paralytic stroke in February 1994 and “I was admitted in hospital during February-March 1994”. It is quite obvious that one of the two statements is incorrect. The S.C. was not inclined to accept the correctness of the statement made in the affidavit filed in the S.C. because the said statement is not supported by any document to show the alleged illness of the respondent. On the other hand, in an interm application, was filed soon after 10.3.94, and it had not been stated in the said application that the respondent-tenant had suffered any paralytic stroke. This being so, in the opinion of the S.C., the H.C. should not have presumed that the default was on the ground of paralytic stroke which had been allegedly suffered by the respondent-tenant. In this view of the matter, the S.C. allowed the appeal and the impugned judgement of the H.C. was set aside. |
co
Railways: need for improvement on safety
front WHATEVER
the mode of transportation, safety is
the most crucial aspect of any journey. And given the dismal track
record of the railways in this regard, this was the core issue that
needed to be addressed in the Railway Budget. Yet, there is nothing in
the Railway Budget presented by Ms Mamata Banerjee on Monday that gives
the railway passengers the confidence that the Railway Minister is
tackling this issue in right earnest. In fact while presenting the
Railway Budget last year, Ms Banerjee had said that the railway’s
biggest challenge was to restore the intrinsic health of the network,
provide safe transit to passengers and freight traffic. And in this
context she had said that the Railway Safety Review Committee headed by
Justice H.R. Khanna had assessed the requirement of the railways for
rehabilitation of over-aged assets and modernisation of technology at Rs
15,000 crore. Her Budget last year gave an indication that she was
headed in the right direction in so far as the issue of safety was
concerned and that she was initiating steps towards rendering rail
transportation in the country safe. But this year the focus has moved
away from safety and modernisation of the railway service. In her Budget
speech she refers to the Khanna Committee report, says she fully shares
the concern of the House and the public about the critical need for
improvements of the safety front, but just throws up her hands and says
that resources of this magnitude cannot be expected to be internally
generated by the railways. (She has allocated Rs 3000 crore for safety
related work and makes it clear that it would only cover current
requirements of replacement works). Now surely, if the Railway Minister
wanted to, she could have found a way out and provided the much needed
funds for safety? Considering that railway safety is uppermost in the
mind of every railway passenger, I am sure they would not have grudged
contributing towards a dedicated fund for safety and modernisation,
provided of course it was used only for that purpose and consumers
informed at regular intervals about how it was being utilised. A
safety and modernisation cess of 5 per cent, for example, could have
been imposed on every ticket, to generate funds specifically for renewal
of tracks, upgradation and modernisation of signals and
telecommunication, and in short, to render rail travel safe. Lack of any
such initiative towards safety is certainly very disappointing. Travel
by train is supposed to be the safest mode of transport. Yet, thanks to
obsolete signals and communication systems, poor tracks and badly
maintained engines, not a year passes by without railway collisions and
derailments taking a heavy toll. And after every major railway accident,
the ministry promptly constitutes an inquiry commission to investigate
into the cause of the accident and that’s the last one hears of it.
Was any action taken against those responsible for the accident, if the
cause was human error or failure? Did the ministry take any corrective
steps to prevent recurrence? A passenger never gets to know. A railway
passenger has a right to information, yet these reports are not made
public. The passengers who pay for their tickets, also have a right to
safety and to be assured that they would reach their destinations
safely. Yet Railway Ministers have paid scant attention to this right of
the passengers or the consumer. In fact, successive railway ministers
have used the Indian Railways to nurture their constituency and grant
new trains, new stations and new halts to keep the voters happy. Thus
while pleasing the constituents have received the highest priority,
safety and modernisation of the service, which should have been of
paramount importance, has never got the attention that it deserves. Ms
Mamata Banerjee has been no exception. Instead of improving the existing
network, she announces 24 new trains! Her Budget sends a clear signal
that she is more bothered about the future of the Trinamool Congress
that she heads than the safety of millions of railway passengers. The
causes of accidents are clear: The report on safety performance
(1997-98) published by the Directorate of Railway Safety, for example,
says the failure of the railway staff was responsible for most of the
accidents. The remedy is also known: Improvement and modernisation of
signalling the telecommunication could play a vital role in promoting
safety by minimising the impact of human error. Similarly centralised
operations of points and signals, apart from enhancing the efficiency of
train operations, also reduce dependence on human element. Track renewal
and modernisation of coaches is another necessity. In fact, besides
enhancing safety, these measures could also speed up our trains which
are now too slow. And there is no dearth of technology or technocrats to
apply course correction and prevent collisions and derailments. What is
lacking, however, is the political will to put the biggest monopoly back
on the rails. |
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WWICS BONANZA ACCEL ICIM MAARS SOFT TRANSCORP INTL. GARMENT MAKERS HDFC BANK |
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WHO, GLAXO TO MAKE NEW MALARIA DRUG SESSIONS TO FOCUS ON ECONOMY The 10th five-year economic plan (2001-2005), topics such as improving farmers’ income and strengthening the agricultural position are also expected to attract intense attention at the March 5-15 annual Legislative session and March 3-12 CPPCC meetings, analysts said.
PTI ECONOMIC PACKAGE NEXT WEEK |
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