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Saturday,
February 23, 2002, Chandigarh, India  
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Disinvestment
of 4 more firms by March Move to
impose duty on garments opposed Chambers
welcome labour reforms PHDCCI:
scrap local development tax |
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Change
image of FM Indians
to head new Merrill unit Chip to
check mobile phone thefts Exempt
income up to 75,000: chamber Food
parks for Saha, Narwana Dabwali, Rai
Rise in direct tax
collections
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Disinvestment of 4 more firms by March New Delhi, February 22 "We have, so far, completed 21 transactions and we will complete four more by March 31," Disinvestment Minister Arun Shourie told reporters at the Foreign Correspondents' Club here. The four state-run companies are IPCL, Hindustan Zinc Ltd., engineering equipments maker Jessop and Company Ltd. and a few hotels run by the public sector India Tourism Development Corporation, he said. The government, which now owns 59.75 per cent of IPCL, wants to divest 26 per cent stake along with management control. IPCL operates three plants — two in Gujarat and the third in Maharashtra. The government has also invited bids from private sector companies to sell a 26-per cent stake in Hindustan Zinc. In November, the government rejected a bid by copper and aluminium producer Sterlite Industries, saying the amount it had offered for Hindustan Zinc was below the minimum "reserve" price. Hindustan Zinc, 75.92 per cent owned by the government, has six lead-zinc mines with a combined annual capacity of 3.49 million tonnes and four lead-zinc smelters — with a zinc capacity of 169,000 tonnes and a lead capacity of 43,000 tonnes. In the case of Jessop and Company, the government plans to divest 72 per cent of its equity in to a strategic partner, along with management control. Kolkata-based Jessop, which is over 200 years old, is engaged in the business of designing, manufacturing and supplying a whole range of heavy engineering equipments and systems. But the company had run into financial and business difficulties and was declared "sick" in 1995 by the Board for Industrial and Financial Reconstruction. Shourie said the government would start the process of divesting its stake in two public sector fuel retailers —BPCL and HPCL— in the year beginning April 1. On the disinvestment of Maruti Udyog Ltd., he said the government had begun negotiations with Suzuki. "The talks are still going on but I would not put a time frame to it," said the minister. New Delhi has decided to cut its stake in Maruti in two phases, starting with the rights issue. It had earlier announced the government's share of the rights issue would be allotted to domestic financial institutions and mutual funds, thereby providing new funds to the carmaker without diluting the Indian holding. In the second phase, both the government and financial institutions were expected to separately divest their shares at a premium through an offer for sale and an initial public offering. Shourie said the government had managed to mobilise Rs.66.50 billion in the current fiscal year through the sale of state's equity in 21 public sector units, just half of its budgeted target of Rs.120 billion. India's privatisation programme has progressed at a snail's pace, consistently falling short of annual targets. The government managed to mop up only a fourth of its targeted Rs.100 billion from the sale of stakes during 2000-01.
IANS
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Move to impose duty on garments opposed
Ludhiana, February 22 In a memorandum submitted to Mr Subodh Kumar, Textile Commissioner, Ministry of Textiles, yesterday, Mr Vinod Thapar, President, FEKTAA, said, “The government’s decision to impose excise duty on knitted fabric and garments will be a disastrous step for hundreds of small scale units. Since the industry is located in an unorganised sector and would not be able to cope with the cumbersome formalities of the Excise Department, the government should consider sympathetically the demand of the industry not to impose the excise duty.” Mr Thapar denied allegations made against the industry that a number of units were involved in excise tax evasion by declaring cone yarn as hank yarn and through other malpractices. He asked the government to identify and punish the black sheep instead of punishing the whole industry. The SSI units, which are enjoying exemption from the excise duty, would not be able to deal with inspectors of the Excise Department. The move would simply lead to corruption and death of hundreds of units in the region. Mr Sanjeev Gupta, President, the Apparel Exporters’ Association of Ludhiana (APPEAL), in a separate memorandum, asked the Textile Commissioner to support its proposal to simplify the process of excise refund to the export units. He claimed that textile exporters were forced to surrender more than Rs 50 crore annually due to legal tangle.
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Chambers welcome labour reforms New Delhi, February 22 Welcoming the Cabinet approval to the
amendment, Federation of Indian Chambers of Commerce and Industry (FICCI) President R.S. Lodha said, “the second generation reforms have started with a bang. The approval, coming just before the Union Budget, sends a strong signal to investors — small, medium and large — the government’s determination to resuscitate investments locked in sick enterprises.’’ FICCI was stressing the need for lifting the embargo on retrenchment and closure in the industry. The move is essential to allow the industry to restructure itself and come out from sickness. There are more than 300,000 sick industrial units. An estimated amount of Rs 20,000 crore is locked in such units. The Associated Chamber of Commerce and Industry of India (Assocham) said the provision for increased benefits for workers is a welcome move in case of lay off or closure. Its President, Mr K.K. Nohria expressed the hope that the government will bring in amendments in the Contract Labour (Regulation and Abolition) Act to provide outsourcing of various jobs and for permitting engagement of contract labour wherever necessary without legal obligation to absorb such labour on succession of contract labour. The amendment will help a large number of industries in the small and medium-sized segment. Such units will not require prior permission of the government for retrenchment and closure. The earlier legislation allowed such flexibility only to units employing less than 100 persons. “We congratulate the government for unshackling us today,’’ Mr Lodha said.
UNI |
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PHDCCI: scrap local development tax Chandigarh, February 22 While reading out the memorandum, Mr P.K. Jain, Vice President of the PHDCCI, said that foreign investors would be driven away from Haryana if the state government persisted with the tax. However, that the state government was in no mood to go back on the tax was clear from Mr Sampat’s response who carefully left out the issue even as he dealt with all other matters raised by the PHDCCI. Later talking to TNS regarding his silence on the issue, the Finance Minister said the tax had already been challenged in the court where the Haryana Government’s position had been upheld. The Finance Minister was also told by PHDCCI that since it was not desirable to raise tax rates which were already on the higher side, the state could raise non-tax revenue by imposing user charges spread over the next 2-3 years to recover at least 50 per cent cost of maintaining public services. This principle could be applied to higher education, urban services and power tariff to agriculture. The PHDCCI also demanded reduction in 11 per cent stamp duty for registration applicable to residential and non-residential properties while arguing that lower rate would encourage compliance by the general public and increase the state revenue. Mr Sampat Singh told the PHDCCI representatives that he would keep in mind their suggestions while finalising the Budget proposals for 2002-2003. Finance Secretary. A.N. Mathur, Excise and Taxation Commissioner, S.P. Sharma, Industry Secretary, S.C. Chaudhary, Special Secretary, Finance, Mr P.K. Das, and others. |
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Change image of FM HOW the perceptions change with time is evident from the fact that as the date of Budget, 2002, draws nearer, people are apprehending a further cut in the rebate and relief given to them. There were times when people waited expectantly for the Budget hoping for some additional sops. The scene has undergone a total transformation. Now there is a feeling that in the coming Budget, something more will be snatched from those falling within the hunting range of the government i.e. the salaried individuals. With the tax exemption limits already touching the bottom line and interest rates for small savings losing their sheen, it is time for the Finance Minister to turn around and herald a reverse trend. Following tax exemption limits, if enforced, the next Budget would be fair enough and bring a change in the image of FM. Tax rate
Jagvir Goyal Bathinda
II I would like to give my opinion on the article “Railway needs to check theft of baggage” written by Pushpa Girimaji on February 12. First of all her wish of providing a locked luggage compartment sounds good but practically this is a useless idea as trains stops at some stations for only one minute. Is it possible to get the luggage room attendant to get there and take the luggage out in one minute? Secondly train timings are not predictable so it is not possible to plan the timing of taking out luggage in advance. Sometimes trains stop just before the arrival of station for 15 minutes or more and a passenger can’t stand at the gate for that much time with passage blocked. The GRP is reluctant to lodge a complaint, because they know that they cannot catch the thief so to keep its image clean it doesn’t put every complaint in black and white. Even in booked luggage there is no guarantee it will come out in one piece. For example if a two-wheeler is booked there is every likelihood that its parts broken as it is handled very roughly by the loading staff. It is the attitude of Railway staff which needs to be changed for proper working of the system. Harjeet Singh, Amritsar
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Indians to head new Merrill unit New York, February 22 One of the first markets that Merrill Lynch, a global financial management and investment consultancy, plans to focus on is the Indian American community in the U.S., the company said. Initial plans include corporate support to a contemporary Indian art show this spring in New Jersey. The consultancy major said Barry and Chopra would be responsible for developing new client relationships through innovative sales and marketing strategies aimed at diverse communities. Integral to their efforts at the new unit — "multicultural and diversified business development" — is building local, community programs and partnerships within diverse markets. Barry joined Merrill Lynch in 1989 as a financial adviser and served as the manager of the Princeton Corporate Campus office, besides teaching frequently at the firm's training centre. She has a bachelor's degree in accounting from the Bombay University as also a master's in the same stream and business administration from the Rice University, Houston. Chopra joined the firm in 1998 as head of education services at the firm's private client group, of which the new Merrill Lynch division is a part. She focused on marketing efforts and developed financial literacy and educational programs. Since 1999, Chopra has been involved in marketing efforts for the firm, as also recruiting and training programs. She holds a bachelors degree in journalism from the New York University. "To be successful in today's global community, it is necessary to recognise, act upon, and support the diverse needs of our multicultural communities," said Barry. "One size does not fit all. We must think globally, bringing the full force of our extensive resources to act locally, supporting one community at a time." The business initiatives to be taken up by the new unit include strategic partnerships with national affinity groups, increasing awareness of the firm in selected metro markets through sponsorships and community outreach programs, and enhancement of product packaging and sales literature. The group will work with a broad network of financial advisors in the USA, which will help to serve the needs of diverse clients.
IANS
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Chip to check mobile phone thefts Washington, February 22 Formally known as a complex programmable logic device (CPLD), CoolRunner-II is based on a technology called Internet reconfigurable logic, which allows a chip to be reprogrammed via the Net, a phone system or any other network, to perform a completely new function. Officials said it was smaller than the previous chips in the CPLD category and consumes very little battery power, making it ideal for use in mobile handsets. Alan Mathhews, Marketing Director for the company’s European operations, said once a phone containing the Xilinx chip is reported stolen, the phone operating company can send new data to the handset, wherever it may be in the network. This turns the chip into a block between the keypad and the rest of the phone, preventing further use. “Basically, it makes the handset unusable; even if the thief changes the SIM card, the reconfigured CoolRunner-II chip continues to prevent use of the keypad,” Matthews said. The company said the same technology also can be used to reactivate the phone if and when it is returned to its owner. The chip has extensive security features to prevent hacking or other unauthorised reconfiguration, officials said.
ANI
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Exempt income up to 75,000: chamber New Delhi, February 22 There was a need for zero personal income tax on income upto Rs 75,000, levy of only 10 per cent up to Rs 1 lakh and a 20 per cent up to Rs 2 lakh. The peak rate of 30 per cent could be levied on income over Rs 2 lakh, the chamber said in a release here. “We have made a forceful plea to the Finance Minister to enhance public spending on physical infrastructure to stimulate demand for the basic and capital goods industry, put more money into people’s hands through tax rationalisation and suspend further taxation of export profits till 2004,” it said. The chamber also said it had recommended for an earlier norms for mergers and acquisitions and expeditious labour reforms which Yashwant Sinha had promised in the last Budget. Assocham suggested rationalisation of taxes whereby total impact of it on the tourism industry, especially on hotels, was limited to 10 per cent and that the export earnings from the tourism industry should be placed on a par with income from physical exports for taxation purposes. “To sustain 9 per cent growth, the government would have to enhance its budgetary allocation for social sectors like health and education for ensuring higher productivity levels,” it said.
PTI
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Food parks for Saha, Narwana Dabwali, Rai Karnal, February 22 This was stated by Mr Naseem Ahmed, Financial Commissioner to Haryana Government for Agriculture, at a press conference here today. Mr Ahmed was here in connection with a state-level flower show being organised by the government for the first time at Atal Park here. Mr Ahmed said the above scheme had been sent to the Centre for approval. He maintained that the Haryana farmers were becoming aware about the benefits of flower cultivation. Every year the flower cultivation was increasing at the rate of 1,000 acres per year. He also said kisan welfare clubs were being set up in each district. A flower auction hall was proposed to be built at Gurgaon.
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