 |
Tuesday, January 22, 2002,
Chandigarh, India  
|
Satyam
Computer net spurts 36 pc
Industry can’t bear
additional burden |
|
|||||||||||||||||||||||||||||
|
Govt
expects growth at 6.5 pc
HP may
not get export zone
PNB launches
privilege card
Meeting
on EPF interest rate today Finalise
drug policy: panel Production
of crude oil falls Rise in imports worry
textile sector
|
|
Industry can’t bear additional burden THE Finance Ministry has taken powers to hike Central Excise duty to any rate. Earlier it had power
under Section 3(1) (b) of the Central Excise Tariff Act 1985 which limited the hike to 100 per cent. The hike can be effected on all rates irrespective of whether it is the Cenvat rate of 16 per cent or special excise duty rates. So this decision has surprised and shocked the industry. Earlier the government had levied a surcharge on income tax to cover the additional relief related expenses in the wake of Gujarat earth-quake. That exercise also meant to show a better picture of the budget. This time too the intention is more or less the same. The industry is in recession and the government’s revenue is decreasing. Can industry sustain any additional burden? By having emergency powers the government may not raise the duty rates but prefer to force the tax payers not to avail Modvat for sometime and pay duty in cash. The government’s ploy can be that Cenvat claims have gone many times over the actual duty. Cenvat claims are soaring due to the system as such. Cenvat is available on capital goods and big investments absorb huge amount of Cenvat from accruable running duty. So the government’s suspicion is unfounded to a greater extent. On leakage of revenue CBEC has earmarked some sectors which are vulnerable. Field functionaries have been asked to send in duty collection data in the electronic format from January this year. Whole process is expected to supplement the board’s initiative to acquire the revenue collection data in the electronic format only for an effective analysis of the commodity wise excise duty collection. To check revenue leakage board has decided to profile petroleum, cigarettes and textile companies as also important MNC’s like Hindustan Lever & Procter and Gamble to begin with. The industry is already under heavy pressure from Central Excise Department to pay more duty and postpone Cenvat. This happens during the last months of the financial year. As a result Cenvat amount is mounting in the books. If the government bans Cenvat for a few months small and medium scale industries will be crippled. Excise paying industrial units have many grievances. The government enacted law under which a seller of goods has to add 15 per cent to the selling price if goods are sold to a relative or inter connected undertaking. This simply means that department presupposes a minimum profit margin of 15 per cent. Is it possible? With this law in place many excise paying units are facing severe financial strain. The buyer of goods with 15 per cent extra cost can hardly think of staying in the business. There are many interesting but unfortunate aspects of this case. If both buyer and seller are covered under excise the government will be revenue neutral as extra duty on 15 per cent increased price means extra Cenvat credit to that extent. On the other hand if the buyer is not covered under excise he cannot claim cenvat and hence will be wiped out of the business. Will Income Tax Department allow loss due to 15 per cent extra purchase? In Punjab many such combinations are present. The industry has known yet another very unfortunate aspect. Some top companies like Reliance, ACC, Bombay Dyeing and L & T are still zero companies despite MAT in place. Minimum Alternative Tax (MAT) was devised to tax zero tax companies. Were loopholes left intentionally or our law makers are no match to such skill in the private sector. Some time back it was also revealed that one of the biggest companies was given the facility of zero Customs duty on kerosene oil. Kerosene attracts zero duty as it is meant for use by the poor. There instances have been quoted to suggest that such baggies who have played with government revenue ruthlessly should awaken now and contribute to the exchequer on the face of threat to the country. |
|
Govt expects growth at 6.5 pc New Delhi, January 21 “Next year the GDP growth target will be no less than 6.5 per cent. This is, however, lower than the 8 per cent growth target fixed for the 10th Five-Year-Plan period.” Planning Commission Member Mr
N. K. Singh said at the ‘India Energy Mart 2002’ conference here. Mr Singh said 2001-02 was likely to end with a GDP growth of around 5.2 to 5.5. per cent thanks to a revival of the agriculture sector and some segments of the manufacturing sector. Mr Singh felt foreign direct investment in areas like infrastructure could increase in the coming years as India was liberalising investments and putting in place a credible regulatory framework for sectors like telecom and insurance. Growth to be above 5 pc:
Jalan
RBI Governor Bimal Jalan said today the economic growth during the current fiscal was likely to be above 5 per cent and ruled out any pressure on interest rates due to heavy government borrowings. India was likely to finish 2001-02 with a growth rate of 5 to 6 per cent, Dr Jalan told reporters after a meeting with Finance Minister Yashwant Sinha. The RBI Governor said the increased borrowings were not a cause for concern from a debt or monetary management point of view. “There is no problem in borrowings, the interest rates have come down, there are no concerns,” Dr Jalan said. “We are very comfortable, reserves are rising... We like it, no problems,” he said. The government has so far borrowed Rs 1,22,000 crore in the current year, against a target of 1,19,000 crore.
UNI
|
|
HP may not get export zone Nurpur, January 21 According to reliable sources, NAPEDA has so far cleared 10 such AEZs in different states amounting to an approximate investment of Rs. 215.03 crore in the current fiscal year. The investment is likely to generate export earning to the tune of Rs 1,700 crore per annum. The maiden export consignment is expected from potato AEZs set up in Uttar Pradesh and Punjab by February. These AEZs which will bring a sea change in the economic condition of the farming community and fruit growers are Punjab (potato), Uttar Pradesh (potato), West Bengal (pineapple) Uttaranchal (litchi) Karnataka (gherkins), Uttar Pradesh (mango-I) Punjab (vegetable), Tamil Nadu (flower), Maharashtra (grapes), Uttar Pradesh (mango-II). It is revealed that NAPEDA will clear five more such AEZs on January 23 at the meeting of its steering committee. These will be in Tripura (pineapple), Maharashtra (mango), Andhra Pradesh (vegetable and mango) Madhya Pradesh (onion) and Jammu and Kashmir (apple). The state has again kept aloof from this list, too. The fruit growers of Himachal Pradesh in general and Kangra in particular are keeping their fingers crossed for sanctioning of at least one AEZ in the third phase scheduled to be undertaken in March end. Kangra produces 9,100 tonnes and 7858 tonnes of citrus and mango fruits annually. The Indora belt of this district is also called Nagpur of Himachal Pradesh for producing kinnow and orange. The sources say NAPEDA is formulating a special marketing strategy for the export of mango, flowers, grapes, Basmati rice, potato and meat. Mr Sat Mahajan has said the state government should exert pressure and Mr Shanta Kumar should use his good office with the government for setting up at least two AEZs. One in the apple belt area and the second in the lower fruit producing area. He alleged that Kangra district was neglected by the Ministry for Food Processing Industries in September last year when it had sanctioned four “food parks” of Rs 4 crore each to be set up in different parts of the state. |
PNB launches privilege card Chandigarh, January 21 All the eligible existing customers of the bank shall be automatically issued these cards without any request by them. The maximum loan will be Rs one lakh, based on the monthly salary credits, a bank press note said. Mr Kohli said that PNB is serving more than three crore customers with a net work of over 4250 offices spread across the country and has a business turnover of Rs 91,000 crore. Launching the card, CMD S.S. Kohli, said the step was certainly going to delight its customers.
TNS Oriental starts online facility Indore: The Oriental Insurance Company has started online insurance facility, through which a subscriber can get desired policy by applying for it through his personal computer. Company Director and General Manager Suparas Bhandari told reporters here today the information technology department of the company has prepared software, through which the dealer can issue policies to the customer by obtaining on-line clearance from the company. Even individuals can get insurance cover by using the online facility, he said adding that, last year the company transacted business of nearly Rs 2,222 crore.
PTI Tyre production dips 6 pc in Nov New Delhi:
Domestic tyre production went down by 6 per cent in November, 2001, due to a decline in car, truck and bus, scooter and utility-vehicle tyre production. Total tyre production stood at 34.6 lakh units during the month against 36.8 lakh units in the same month of 2000, data released by the Automotive Tyre Manufacturers Association (ATMA) showed today.
PTI 13 vying for cement plant in Bagga Shimla:
At least seven leading cement manufacturers are among the 13 applicants who are in the race for obtaining approval for constructing a plant at Bagga in Solan district. The Himachal Pradesh Government had recently sought proposals for constructing a 2 million tonne cement manufacturing plant at Bagga. It is reliably learnt that the government was scrutinizing these applications which have been sent by ACC, the Ambujas, the Birla group, Lafarge of France, Grasim, Larsen and Toubro, the JK group and India Cements. ACC and the Ambujas already have their cement plants in Darlaghat and Barmana, while the L&T group is constructing their unit at Chamba.
TNS
|
|
Meeting on EPF interest rate today New Delhi, January 21 The meeting, to be presided over by Labour Minister Sharad Yadav, will decide the rate of interest, taking into consideration the continued fall in the yield on bonds and securities in last two years due to easy liquidity, poor credit offtake and the cut in the credit reserve ratio (CRR) by the RBI, an official press note said today. EPF subscribers were getting an interest rate of 12 per cent from its inception in 1989 till July, 2000, when it was brought down to 11 per cent. The rate was further reduced to 9.5 per cent for the current financial year. According to sources, the Finance Ministry has rejected the Board’s proposal to raise the interest rate from 9.5 per cent to 9.8 per cent. Tomorrow’s Board meeting will also consider the proposed amendments to the EPF and Miscellaneous Provision Act, 1952, in lieu of the mobility of workforce from formal to informal sector due to the increase in the outsourcing of work.
UNI |
|
Finalise drug policy: panel
Chandigarh, January 21 The association demanded immediate finalisation of the drug policy to increase investment in this sector. “The much-awaited pricing policy is yet to see the light of the day. While the Pharmaceutical Research and Development Committee, set up in 1999, has recommended certain incentives be given to the pharma industry and the industry also has advocated taking more drugs and formulations out of the preview of the Drug Price
Control, all these measures are hanging fire in the absence of the new drug policy”, said he. Mr G. Vakankar, Executive Director, North IDMA said price control should apply to single ingredient formulation with a turnover of over Rs 50 crore, and all new drugs for 10 years, as approved by the Drug Controller General of India, to encourage R& D, novel drug delivery system approved by the DCGI and veterinary products, should be excluded from price control. |
|
Production of crude oil falls New Delhi, January 21 Crude oil production was 1.9 per cent lower at 24.015 million tonnes in the first nine months of current fiscal as compared to 24.470 million tonnes in April-December 2000-01, according to the latest figures released by the Petroleum Ministry. Crude oil production from Bombay High fields was down 1.5 per cent in December to 1.444 million tonnes and 5 per cent to 12 million tonnes in first nine months of current fiscal. Refinery production, however, was 8.8 per cent higher at 9.518 million tonnes in December 2001 as against 8.751 million tonnes of the same month the previous year. It increased 4.2 per cent to 80.176 million tonnes in April-December, 2001, as compared to 76.912 million tonnes refinery crude throughput in first nine months of last fiscal. Refinery capacity utilisation was up at 99.5 per cent in December and 94.5 per cent in April-December, 2001, as opposed to 91.6 per cent and 90.8 per cent in December, 2000, and April-December, 2000. Natural gas production at 2,579 million cubic metres during December was 1.9 per cent.
|
|
Rise in imports worry textile sector New Delhi, January 21 While India’s imports of textile goods have registered an alarming growth of 28.03 per cent during the first half of the current fiscal, while exports declined by 13 per cent creating consternation within the industry, the Indian Cotton Mills Federation (ICMF) has said. “The steady fall in exports is an indication that our textiles are being priced out in the international markets. But what is even more worrying is the quantum increase in imports which would mean that domestic consumers are going for imported textile products driven mostly by lower prices”, Chairman of ICMF, Dr Rajaram Jaipura said. Such a change in consumer
behaviour patterns calls for introspection at the governmental level and taking speedy corrective measures to ensure the Indian textile industry a level playing field vis-a-vis their competitors both in the international and domestic market, he said. An analysis made by the ICMF shows that the surge in imports during the April-September 2001 was mainly due to higher imports of textile goods from countries such as Korea, Taiwan and China.
|
bb
Spice Bucks Bravery award Iffco union L&T gets award |
 |
| Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Editorial | | Business | Sport | World | Mailbag | In Spotlight | Chandigarh Tribune | Ludhiana Tribune 50 years of Independence | Tercentenary Celebrations | | 121 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
