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Wednesday,
July 17, 2002, Chandigarh, India  
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Jaswant assures of improving tax regime
FDI in crematorium?
BSE membership has few takers
Waste management plan for Haryana |
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Punjab dumps rural focal point scheme Board to develop small units
ITC Hotels
goes into
red in Q-1
Karnataka Bank net up
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Jaswant assures of improving tax regime New Delhi, July 16 “The fall in savings rate, particularly, public savings is a matter of concern and government will come out with schemes for improving tax regime and economic climate,” the Finance Minister said during the Question Hour. India, which is the largest importer of gold, has continued with its large unproductive investments in the yellow metal, he said adding this needed to be changed without which the savings rate cannot be improved. “Unless we are able to move away from unproductive savings in gold and structure the tax regime, we cannot achieve 32 per cent of GDP investment for realising targeted 8 per cent growth in tenth plan,” he said. The savings rate has slipped from 26 per cent of GDP to 22 per cent, he said adding it is a slippage principally because private savings had stagnated and public savings had not gone up. “Public savings rate can go up if public sector undertakings are inspired by greater efficiency and autonomy,” he said, adding states too would have to undertake fiscal consolidation. The Finance Minister also assured the House that the government was reconsidering the working of the Foreign Investment Promotion Board (FIPB). Expressing concern over the slow rate of FDI in the country he said that suitable measures would be undertaken to enhance the FDI inflow to $ 10 billion per annum. “As far as FIPB is concerned we are reconsidering this issue,” he said while replying to a specific question raised by Sanjay Nirupam. Quoting Disinvestment Minister Arun Shourie’s observation that there were 287 steps to be followed before clearing any FDI proposal, the Finance Minister said he would prefer to bring the number down to as low as three or four procedures. He also said that the current inflow of $ 4 billion was not satisfactory. |
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BJP MPs for sops to middle class WITH
a change in guard in the Finance Ministry, Bharatiya Janata Party MPs are now hoping that the new incumbent, Mr Jaswant Singh will address the woes of the middle class and pensioners. With the former Finance Minister, Mr Yashwant Sinha’s policies being perceived to have hit the salaried class and an erosion in the vote base of the BJP, party MPs at the Parliamentary Party meeting here today decided to meet Mr Singh next week and discuss how the middle class and the
pensioners can be wooed back before the next Budget. The meeting with the Finance Minister will be held shortly, Parliamentary Party spokesman Vijay Kumar Malhotra said. The MPs want a dilution in strict income tax laws, steps to increase savings and returns on savings instruments, further relief for pensioners from the falling interest rates and concessions for the middle class salary earner. After the electoral defeat of the BJP in Delhi, the entire party had held the financial policies of the government as being responsible for the reversal. |
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FDI in crematorium? New Delhi, July 16 “Kya aap Shamshan ghat mein bhi FDI layenge? (Are you going to bring FDI in crematorium also?)”, Yadav asked Singh during Question Hour. Laloo cautioned that liberal foreign investment policies should not lead to an East India Company type situation (when India came under British rule). “I have heard the story of one being cautious of hunter’s trap.” In his reply, the Finance Minister sought to assure the RJD leader that the country’s interest will not be sacrified at any cost. He told Yadav that neither would the interest of small fishermen be compromised nor would foreign participation be allowed in the defence sector. Reacting to a remark by Yadav that “we don’t understand your language”, Singh said he was brought up by his parents and spoke the way he was educated.
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BSE membership has few takers Mumbai, July 16 The BSE card, once sold at more than Rs 4 crore, is presently quoted at Rs 80 lakh, lower by 80 per cent from the peak value, market sources said. Sources said the sharp decline in brokerage charges, from 1.5 per cent to 0.1 per cent and even lower than that, was the major reason behind the slump. According to them, the drop in BSE’s daily turnover was another reason behind the sharp fall in the card value. The BSE, which had recorded an average daily turnover of Rs 7000-8000 crore during the peak level in the recent past, has seen it plunging to Rs 1200 crore at present. Sources said the BSE card value shot up to Rs 4 crore in 1990s following the Centre’s initiatives towards economic liberalisation and subsequently, opening stock markets to foreign investors. They said the Rs 4 crore transaction took place between a foreign investor and a BSE member in 1997. The card value was hovering at Rs 4 crore prior to the BSE Sensex touching 5000 level in 1999. It was quoted at Rs 2.80 crore in early 2000, said some veteran BSE members. The card value has fallen to Rs 80 lakh this year, though no transaction has taken place at that level. Brokers believe no one will come forward to buy the card at the current level as its value was likely to fall further. Sources pointed out that the BSE card is transferable but the fee cannot be refunded, as is the case with National Stock Exchange (NSE). The NSE, whose membership fee is Rs 1.25 crore, refunds the fee by charging an extra amount if a member wants to exit. However, in the case of BSE, a member has to sell it at the prevailing price which can be defined either as an auction or an agreement, sources said. With the falling card value and brokerage charges, few people/ institutions are interested in becoming BSE members which was once an honour and most sought after membership. The card value was known as entrance fee when the BSE came into existence in 1875. One could easily start business by paying Re 1 as entrance fee. There were 318 members on the roll of BSE when trading started, sources said. The number of members rose to 333 in 1896, 362 in 1916 and 478 in 1920. The entrance fee was raised to Rs 5 in 1877, Rs 100 in 1896, Rs 2,500 in 1916 and Rs 48,111 in 1920. The entrance fee was later changed into a ‘card value’ and was made transferable by the BSE governing board. The value of the right of nomination - called a “seat” on the London and New York Stock Exchanges and locally known as a “card”- has fluctuated according to the market activity. The card was quoted at Rs 14,000 in 1954 during the slump that followed the war boom, while ten years later the value was Rs 32,000. The BSE’s card value, which was around Rs 1 crore towards the end of 1998, shot up to Rs 2.80 crore in 2000, when the Asia’s oldest Exchange celebrated 125 years of its foundation, sources added.
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Waste management plan for Haryana New Delhi, July 16 At an interactive session organised by the PHDCCI, Mr Bains said the government is committed to clean environment and the pollution board will not hesitate to take strict action against non compliance of pollution control norms. However, before any action, the board will suitably advise the industrial units to co-operate and discharge the obligations as facilitator. He said an environment upgradation plan for Faridabad is on the anvil and it will be placed before the state government for consideration and implementation. The board is working out modalities for an integrated solid waste management disposal scheme for Delhi and Haryana. Recognising the adverse impact of the increasing problem of waste management, Mr Bains said huge investment is required to curb this menace. A plan has been formulated to seek 70 per cent of the project cost as grant from the Ministry of Environment, the balance 20 per cent is to be borne by the board and 10 per cent by municipalities. Mr P.K. Jain, Vice-President, PHDCCI and Mr SK Arya, Co-chairman, Haryana Committee, PHDCCI, were also present on the occasion. |
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Punjab dumps rural focal point scheme Chandigarh, July 16 The officials admit that the rural focal point scheme launched by the Badal Government in 1978 had aimed to encourage the rural educated unemployed youths to set up industrial units. The scheme was again relaunched in 1996 by the Akali Dal Government with an objective to shift a section of the rural youths to the non-farming sector. However, neither the previous government nor the present government, has cared about around 600 rural focal points. Under the Industrial Policy, 1996, the state government promised to provide subsidy to entrepreneurs. They were promised capital subsidy up to 30 per cent of the total fixed capital investment, exemption from sales tax for 5 years, five per cent subsidy in interest on bank loans and exemption from electricity duty for five years. However, these subsides were not paid to the units with the result that capital subsidy worth about Rs 450 crore is still pending towards these units. Mr P. Ram, Financial Commissioner, Department of Rural Development and Panchayats, says, “when the industry is passing through recession, how can one expect the tiny units in the far-flung areas to survive without any support.’’ Mr Shaminder Singh, an entrepreneur, at Kumkalan focal point, Ludhiana, says,‘‘ infrastructure has been provided — 24-hour electricity supply, roads or marketing
support. Neither we are allowed to use the land for other purposes. In fact, the government has made us bankrupt and defaulters of banks.” Mr Ram agrees that at present there is no proposal to revive these focal points? Regarding the permission to use land for other purposes, he asserts,‘‘ in case the Industry Department or entrepreneurs bring any proposal we may issue notification.” |
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Board to develop small units THE
Ministry of Small Scale Industries has taken a bold initiative to consolidate procedures and various provisions. This will make the working of this sector more smooth. Draft Bill “The Small Enterprises Development Bill 2002” — has got prepared from the Administrative Staff College, Hyderabad. Under this Act, a national small enterprises board will be constituted. The board will advise the Centre in the formulation of small enterprises development policy. The Minister of the small scale industries will be the ex-officio Chairperson of the board. Members of the board will be: five MPs, four representatives from the Union Ministery of Industries, Commerce, Finance and Planning Commission; five from various institutions, five from state governments; five from banks and FIs, and at least five from various association of the industries. The Development Commissioner of small enterprises will be the member secretary of the board. Functions of the board include measure for development of small enterprises, measures to improve the marketing of the products and services in India and abroad, increase the ability of enterprises to compete in the international market and guard them against the impact of imports. Most important provision under the Act pertains to the credit from banks and FIs. Within 6 months from the date of commencement of this Act, the RBI will issue guidelines for the extension of credit by banks and FIs. This is a good beginning and things will improve with time. Sales tax is a very important feature. The board will have to ensure that sales tax rates are uniform in all states. |
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ITC Hotels goes into red in Q-1
Kolkata, July 16 Net income from operation dipped to Rs 24.86 crore from Rs 27.20 crore in the same period last year. Other remained flat at Rs 0.13 crore as against Rs 0.14 crore in the same period last year. Expenditure for the period surged to Rs 23.89 crore, as against Rs 23.49 crore due to the sharp increase in the staff cost to Rs 6.89 crore from Rs 6.27 crore and power and fuel cost to Rs 4.11 crore from Rs 4.07 crore. The interest charged also declined.
UNI |
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Karnataka Bank net up Chandigarh, July 16 This was disclosed by Mr Ananthakrishna, Chairman and CEO, Karnataka Bank Ltd., here today. Speaking at a press conference, he said,‘‘ The bank’s income increased to Rs 984.26 crore from previous year’s figure of Rs 743.37 crore, by 32.41 per cent. The deposits stood at Rs 7001.40 crore registering a growth of 19.24 per cent. The advances have grown at the rate of 20.84 per cent to reach Rs 3417.54 crore.’’ The capital adequacy ratio of the bank has moved to 12.96 per cent as against 11.37 per cent, much higher than that of the RBI’s stipulated limit of 9 per cent. |
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Power plants SBI new scheme Probe rejected Samsung Allahabad Bank Cambridge Canbank MF |
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