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Thursday,
September 27, 2001, Chandigarh, India
  
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New rules
on perks to increase liability Bharti to
launch operations in Punjab
HP banks
disburse credit of Rs 177 cr Industry
to oppose anti-business move Plan to
bring more under IT net HP share
in govt supplies ‘dismal’ |
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Maruti
exports dip, Hyundai jumps
Roorkee
varsity declared IIT
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New rules on perks to increase liability New Delhi, September 26 The government while framing the rules, which would come into effect from October 1, does not take the view of the industry the cost of compliance and simplification of tax laws, PHDCCI President Sushil Ansal said. According to the rules finalised by the CBDT, the value of free or concessional accommodation provided by an employer would be limited to 10 per cent of the salary for cities having a population exceeding 4 lakh and to 7.5 per cent of the salary for other cities. The rules for reimbursement of employee-owned cars provides for deduction of Rs 1,200 for cars with engine capacity up to 1.6 litres and Rs 1,600 for cars with engine capacity above that. The exemption limit for education allowance of a child per month has been fixed at Rs 1000. The prescribed interest rates for housing and conveyance loans have been fixed at 10 per cent and 13 per cent for other loans. On the rule relating to perquisite value of car, Mr Ansal said the CBDT has provided for higher exemptions provided necessary documents are provided to show that it was used for official purpose. This would mean increased documentation to claim full reimbursement and the procedure would add to the complexity of law and may result in a large number of protracted litigation. In the absence of an effective mass rapid transportation system in most of the metropolitan cities, the employees are forced to use their own vehicles. Part of the cost of the vehicle is borne by the employer. Mr Ansal said the limits stipulated are just adequate to take care of insurance and normal wear and tear. It appears that employee is expected to bear the fuel cost which is rising. Mr Ansal said the exemption limits in respect of motor car/conveyance is grossly inadequate and perhaps similar to the allowance given to government officials, he lamented. So far as the perquisite value of interest free and concessional loan to employees is concerned, he said it appears that the government has based the deemed rates on the long term lending cost. It is interesting to note the contradiction in the government policy of encouraging housing sector, Mr Ansal said. “On the one hand various tax incentives are being given for house owning and on the other if the employer extends a benefit the same is being taxed as perquisite value”, he
added.
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Bharti to launch operations in Punjab Chandigarh, September 26 Mr Sunil Bharti Mittal, Chairman and Group Managing Director said, “We will offer cellular services at much lower tariff rates that what the mobile users in the state are paying in the monopoly environment. The services we will bring to the people will also be at par with international standards”. Bharti which formally got the licence yesterday, to operate in Punjab spans across 15 cellular circles. Mr Mittal said the company is committed to provide all the benefits of rue competition which the people of Punjab have been deprived of till now. We promise to offer much better prices, better services and better customer care. Mr Mittal also said Bharti would introduce Air Tel & Magic, one of the best mobile services brands in the country. “Bharti would also provide the country’s largest domestic and international roaming networks alongwith a special roaming service within the Northern region covering Punjab, Haryana, Delhi, UP(West) and Himachal Pradesh.
Beetel to double capacity
Beetel plans to double its production capacity to 10 million phones per annum in next two to three years even as the company today introduced a cordless phone with a multi-handset configuration in the domestic segment. “We will also consider an initial public offering at some point of time and it could be timed with our needs for expansion and research and development”, Beetel Executive Director and CEO, V.J. Prakash said in Mumbai.
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HP banks disburse credit of Rs 177 cr Shimla, September 26 Inaugurating the 86th state-level bankers committee meeting here, Mr Gupta said the banks had to play a “critical role in meeting the challenges of the WTO and to achieve long-term gains by educating industrialists, agriculturists and entrepreneurs from the service sector as to how the world market was being opened up for them. He stressed for launching an “awareness building programme for understanding the WTO, its rules and agreements and industry specific implications”. He expressed satisfaction that banks in the state were providing adequate credit to various activities covered under the service sector. Credit to the tune of Rs 69 crore had been disbursed by the banks in Himachal Pradesh during the first quarter ended June, 2001. The Chief Secretary said the state government had decided to set up a “venture capital fund” for the promotion of small and medium units. The work for setting up of software technology park near Shimla has been started. The hydro-electric sector involving mega as well mini hydro electric power projects remained on the top priority of the government to expeditiously exploit the power potential in the state for which he also sought the cooperation and help of bankers on large-scale. Mrs Asha Swarup, Financial Commissioner-cum-Secretary (Finance), Mr Deepak Sanan, Commissioner-cum-Secretary and Director, Institutional Finance, Ms Sunanda Lahiri, General Manager, (Operation-1) Mr S.D. Uppal, Deputy General Manager, Mr Surinder Kumar, Regional Director, RBI and senior officers of the state government were also present in the meeting.
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Industry to oppose anti-business move Chandigarh, September 26 This was decided at a meeting of representatives of the trade and industry bodies here today. “We have decided to form an “industry and trade sangharsh samiti, Punjab, which will oppose the wrong economic and industrial policy decisions of the state government”, said Mr Harish Khanna, President, Industry and Trade Forum Punjab, in a press release here today. The industry representatives have taken strong exception to the move of the state government which is indicative of the levy of fresh taxes. “Abolition of octroi from October 1 is a welcome step, but we are apprehensive that the government will levy entry tax, surcharge or cess on sales tax which the industry today can ill-afford.
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Plan to bring more under IT net Shimla, September 26 Stating this at a press conference here today, Mrs Vimal Vasisth, Commissioner, Income Tax, Himachal circle, said the total number of assessees , which stood at 1.60 lakh in the last assessment year, was likely to cross the 2.50 lakh mark in the current year. Under the scheme any person residing in any of the 67 notified urban agglomerations of the state and fulfills any of conditions like having a telephone, a four wheeler, a credit card, or member of a club with entrance fee over 25,000 or is in occupation of immovable property would have to file returns irrespective of the fact whether or not their income fall in the taxable limit. She said the new scheme would not only bring more persons under the tax net but also lead to substantial increase in tax collection. Last year the total income tax collection in the state amounted to Rs 204 crore and the target for the current year had been fixed at Rs 250 crore. |
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HP share in govt supplies ‘dismal’ Solan, September 26 Industries Minister Kishori Lal Vaidya, while delivering the keynote address, said the share of Himachal units in DGS&D orders, valued at Rs 3,282 crore last year, was a dismal, less than 1 per cent. Only 13 units were registered with the Directorate. He emphasised the need for adopting state-of-the-art production and management technologies with a special emphasis on quality control and assurance. This would help Himachali units become cost-effective and hence competitive in the markets. Mr Hem Raj Goyal, President of the Small-Scale Industries Association demanded that the DGS&D should introduce the practice of allotting parallel rate contracts on the analogy of the state government. Mr Ram Kumar Bindal said there was an urgent need for protecting patent rights of Himalayan herbs being used in ayurvedic medicines since ages. Mr Ramesh Aggarwal said steps should be initiated to enable small units to compete with imported goods under the WTO regime. Mr Ashwini Jain, of the association, Una, demanded that the DGS&D should issue identity cards to its register suppliers who at present faced some difficulties in gaining access to the right authority in the offices of the directorate. Ms Neena Ranjan, Additional Secretary (commerce) and Director-General, Supplies and Disposals, provided clarifications to the queries raised by the participants.
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Maruti exports dip, Hyundai jumps New Delhi, September 26 Other segments like commercial vehicles, multi-utility-vehicles, scooters, mopeds and three-wheelers posted a decline in exports during the period, data compiled by the Society of Indian Automobile Manufactures (SIAM) showed. Car exports increased by a whopping 118.5 per cent at 18,153 units during April-August 2001-2002 against 8,307 units in the year-ago period even as Maruti Udyog and troubled Daewoo Motors India recorded a decline. Maruti registered a 25 per cent dip in exports at 4,440 units over 5,922 units during the same period last fiscal. Exports of beleagured Daewoo declined by 97 per cent year-on-year at only 30 cars against 1,272 cars. However, Hyundai Motor India’s impressive increase of 92 per cent at 1,890 units over 984 units gave a fillip to car exports from the country. Ford India, which did not export even a single vehicle last year, made its presence felt in the overseas market by exporting 11,632 units during April-August 2001-02. However, exports of commercial vehicles dipped by 33.4 per cent at 3,513 units over 5,276 units during the same period last year. Telco’s medium and heavy (M&H) vehicle exports fell 59.2 per cent at 396 units during April-August this fiscal. Ashok Leyland also posted a 26.8 per cent dip at 396 vehicles. Scooter exports fell by 25.6 per cent at 9,870 units over 13,282 units in the same period last fiscal. Motor cycle exports grew by 15.5 per cent at 19,493 units (16,872 units).
PTI
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Punjab industrialisation at
crossroads The Punjab economy has ushered in a phase of economic development in which the maintenance of the growth rates of its economic parameters necessitate an industry driven economy. In the normal course of economic development, as a sequel to the first phase of an agricultural prosperity, the agricultural surpluses generated therein ought to propel the industrialisation process through their investment in the latter. But this transitionary process has eluded the growth track of the Punjab economy. That is why we are currently encountering problems of a retrogressive industrial sector; lagging per capita income; a low credit-deposit ratio (37.8 compared to all India figure of 55.8); grossly mismanaged surplus agricultural produce on the one hand and increasing incidence of poverty, low purchasing power and unemployment particularly among rural masses and indebtedness of the farming community in the state, on the other. The malady, to my mind, lies in our ambivalent approach to industrialisation in the state. We have either tended to be too traditionalist in our approach to industrialisation, or as of now we have chosen to follow the flock instead of cutting ourselves above the rest by treading new challenging grounds. So far we have continued to hold ourselves smugly on to the traditional pattern of industrialisation-mainly small scale confined to a narrow range of low value adding manufactures, like hosiery goods; sports goods; bicycles and sewing machines and parts and hand tools etc., or if at all we have tried to break away from that pattern, the progress has been too imperceptible. The traditional small and tiny industry, which is too capital light, technologically disoriented and low value adding in nature, could neither absorb large surpluses generated in the agricultural sector in the past to form capital, nor has been adequately productive to give a strong surge to incomes and output in the state. They may have contributed in a small humble way to absorb some industrial workforce, but have proved to be too inadequate to generate multiplier effects in the state economy to escalate the growth of incomes, output and employment a feature which identifies with the setting up of large and medium-sized industries. To cap the regressive pattern of industrialisation in the state, the corresponding industrial infrastructural development has also remained largely inadequate and snail-paced, apart from on account of its own internal inertia manifesting in bad management, as also due to wrongly placed economic priorities of the successive governments. With the result, industry is constrained to face power shortages; inadequate and expensive transport; relatively lacking road network and insufficient finance and research facilities. This is so because, firstly, the whole IT and knowledge based industry’s growth is itself dependent upon the growth of the mainstream industry. The products of this industry — both hardware and software — will be required by the other industries as a support to their production and market processes. Thus if the latter misses the growth dynamism, its impulse for the IT industry’s growth will be subdued. Secondly, IT industry may require a large working capital, but its development may be insufficient to create a strong tangible capital base in terms of fixed capital assets. The value of its stock may zoom up depending upon the buoyant trends in the capital market, yet this strength would be only transient. Thirdly, employment generating capability of the IT industry in the short run may sound plausible, but its capacity to sustain long term employment rates seems doubtful because of its bleak hard asset capital base. Fourthly, IT industry would be found completely wanting in absorbing the illiterate, semiskilled and the unskilled workforce, particularly of the rural Punjab. Thus what Punjab needs at the present juncture on the road to economic growth and modernisation is a well diversified industrial base with a whole gamut of large, high value adding, capital absorbing and agro-friendly industries. High value adding industries like IT and knowledge based industries including electronics and telecom industries; and pharmaceutical industry etc would generate ample employment opportunities for the educated and skilled youth of the state. These industries have the potential to generate a large revenue including export earnings. Thus economically these are most viable industries for realising quick returns. Appropriately therefore, Mr Badal’s recent reminder to the Prime Minister about the expeditious implementation of the earlier promised and sanctioned project of a petroleum refinery near Bathinda, must be appreciated. In fact Punjab does need some such heavy capital deep projects and the Centre must spontaneously come out to fund such heavy investment projects in the state (especially those promised earlier). The Centre can be rest assured that as it has
benefited from the Punjabi enterprise by patting it earlier, in terms of Punjab’s bountiful contribution in the national food pool, it will be benefit in the same manner in terms of industrial production if appropriate back-up is afforded to us. The Punjab Government should also offer pampering incentives for setting up large industries especially to NRIs, as it has offered recently for attracting IT industries in its policy package for the IT industries in the year 2000. The author is Professor, Punjab School of Economics, Guru Nanak Dev University, Amritsar.
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Roorkee varsity declared IIT New Delhi, September 26 A press note issued here today said Roorkee University has become the seventh institute in the fraternity of the Indian Institutes of Technology. It has been integrated with the IIT system by an amendment to the Institute of Technology Act, 1961. The government decision to convert Roorkee University into an IIT was announced in this year’s Budget speech. By virtue of this ordinance, IIT, Roorkee, will be governed and supported by the Central government in the same manner as other IITs established under the Institute of Technology Act. The estimated non-recurring expenditure for upgrading infrastructure and facilities in the new IIT would be about Rs 120 crore.
TNS
KFCs, Pizza Huts up for sale SINGAPORE: All Kentucky Fried Chicken, Pizza Hut and Taco Bell restaurants in Singapore are up on the menu board for sale as part of a “refanchising programme” by Tricon Restaurants International, a news report said on Wednesday. A 200 million
Singapore dollar ($ 115 million) price tag was attached per outlet on the three fast-food franchises by Tricon, The Business Times newspaper said. The 106 outlets include 70 KFCs, 30 Pizza Huts and six Taco Bells, employing about 3,000 people. Sales account for about 25 per cent of the fast-food business here. Following the sale, Tricon will concentrate on franchising restaurants in Singapore and operating team in Thailand.
DPA
Flower Export Complex for Delhi NEW DELHI: The Delhi Government will set up a “most modern” Flower Export Complex (FEC) near Indira Gandhi International Airport to facilitate swift airlifting of flowers and other floriculture items to market in South Asia and Europe. The land acquisition for the Rs 50 crore complex was in progress, Dr Murari Lal, Joint Director, State Department of Agriculture, told UNI here.
UNI
Zee Tele to prune subsidiaries to 12 NEW DELHI: Zee Telefilms today said it will reduce the number of its subsidiaries from about 20 at present to between 10 and 12 over the next couple of months in line with overall corporate restructuring plans. “Over a period of time, we will rationalise the number of our subsidiary companies for maximising synergies. At present, we have about 20 subsidiary companies,” President (Corporate Finance and Strategy) of ZTL, Rajesh Jain told PTI over phone from
Mumbai. PTI |
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VIP gold card RITES turnover TVS-Suzuki Kirloskar |
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