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Friday,
November 22, 2002, Chandigarh, India  
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Report to
spur growth: Kelkar Core
sectors post 6.1 pc growth Kinetic
250cc bike soon Fruit
winery to start production by 2003 ST cut on
handsets to hit grey market Invest
30 cr, get sops: Haryana Groups
differ on Competition Bill |
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Nathpa
Jhakri to be commissioned by March Punjab
signs 3 pacts with SA Zydus
Cadila unveils anti-rabies vaccine
BSNL to
give 5,000 WLL connections
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Report to spur growth: Kelkar New Delhi, November 21 “The recommendations on indirect taxes seek to end discrimination against any industry. Though exemption enjoyed by some industries — where we can compete globally — will end, more and more sectors will become competent through market mechanism”, Dr Kelklar said, participating at a meeting organised by the CII here. Mr Kelkar defended the proposals for lifting tax exemptions on savings, saying that these were leading to the higher interest rate structure in the economy. “A tax savings bond carries the higher interest rate due to the imputed costs of exemption compared to other instruments having the lower rates, taking the real rates in the economy to a higher level,” Kelkar, Adviser to the Finance Minister, said on the sidelines of a CII seminar on tax. For instance, the interest rate on RBI Relief Bond is about 9 per cent but considering the tax exemption the rate of return is more than any other bonds where tax is deducted at source. This differential in the rate of return was forcing other financial players to offer a higher interest rate on their bonds, which in turn raised the real interest rate in the economy. Kelkar said such tax incentives might be rational at the micro-level, but considering the overall higher interest rates structure in India compared to international markets, it might be irrational at the macro-economic level. Pointing out that the consultation paper submitted to Finance Minister Jaswant Singh was slated for changes before the panel submits the final report, he said the present tax system was “extremely” complex leading to revenue leakage and abuses. Kelkar favoured the one-by-six scheme to widen the income tax base and increase the revenue by targeting the middle income class and not merely the salaried class. Defending the proposal to raise the tax exemption limit to Rs 1,00,000 from Rs 50,000, he said increasing the discretionary income level would prop up demand in economy. He, however, said the tax incentives at the stages of accrual, accumulation and withdrawal, would only penalise the economy. Citing that cost of risk capital was extremely high due to taxes on dividend and capital gains in addition to 36.75 per cent corporate tax, he said it was one of the reasons for lifting the dividend tax for bringing down the cost of capital to benefit small and marginal enterprises. Better corporate governance was the key to better tax administration. “The information provided to shareholders would form the basis for tax for any corporate,” he said. On the proposal for search powers for income tax officials, Kelkar said “the present deterrent is not enough”. The proposed tax information network was one tool for effective enforcement.
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Core sectors post 6.1 pc growth
New Delhi, November 21 According to the provisional figures released today by the Ministry of Industry, the electricity sector registered a growth of 7.4 per cent in October this year, up from -0.2 per cent during the same month last year. Cement clocked a growth rate of 6.7 per cent, finished steel registered a growth of 5.7 per cent. The growth of crude petroleum, however, decreased to 0.3 per cent in October as compared to 1.1 per cent in the previous year. Petroleum and refinery products registered a growth of 11.1 per cent, up from -2.8 per cent in the corresponding period of the previous year. Cumulative growth of the six core sectors during April to October was 5.6 per cent, more than double the two per cent growth recorded in the same period last year.
TNS
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Kinetic 250cc bike soon
New Delhi, November 21 “We will launch Aquilla in January or February, 2003. The motor cycle will be imported from our South Korean partner Hyosung Motors,” KEL Joint Managing Director Sulajja Firodia Motwani told PTI here. The motor cycle will sport a 27-brake horse power (BHP) and twin-cylinder engine. It will, however, be sold only in limited numbers and in select cities through a few dealers. “Our idea is to sell Aquilla in a limited number and only through invitation. We took this decision after a customer feedback who asked for some degree of exclusivity,” she said but declined to reveal the price of the motor cycle. “It will have a high amount of import content, therefore, it will not be cheaper. Rather, it will be more expensive than Bajaj’s Eliminator,” Motwani said. KEL at present produces the GF125 motor cycle model with technology from Hyosung. The launch of Aquilla will make the firm, the second domestic motor cycle maker to sell 250cc motor cycles after Royal Enfield Motors. The decision is believed to be part of the company’s strategy to latch on to demand for cruiser motor cycles in the country as is being witnessed in growing sales of Yamaha’s recently-launched 125cc model Enticer.
PTI
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Fruit winery to start production by 2003 Shimla, November 21 This was stated by Mr Narinder Bragta, Horticulture Minister, presiding over a high-level meeting to review the progress of the project here today. Mr Shyam Chogle, Chairman of the Himachal Indage, also attended the meeting. The entire team also visited Pragtinagar recently to take stock of the situation. Mr Bragta stressed upon the early completion of the project and said that the foundation stone of the fruit-based winery at Nagwain in Mandi district would also be laid soon. The winery plants would be the equipped with the latest technology and the first of the their kind in the country. Mr Ramesh Sharma, Vice Chairman, Agro Industries, Mr S.S. Parmar, Principal Secretary Horticulture, were also present.
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ST cut on handsets to hit grey market Chandigarh, November 21 The Indian Cellular Association (ICA), which received a copy of the Cabinet’s decision today, has welcomed the decision. Mr Pankaj Mohindroo, president of the Indian Cellular Association, said, “The move will go a long way in short-circuiting the ubiquitous spread of the grey market in mobile handsets and make legal mobile phones cheaper in Punjab.” The state government is also likely to gain in a big way as the BSNL has already announced its plans to provide at least 3 lakh connections in Punjab in the next few months. Apart from BSNL, say industry insiders, Spice and Airtel have also been aggressively marketing their services. With the coming of RelianceInfo, the sale of handsets is likely to grow at an exponential rate. The ICA had been urging the state government for the past many months to cut down the sales tax as the total revenue had grown in those states which had decided to cut down duty on handsets. In Punjab, the share of legal mobile handsets had declined to 20 per cent due to wide difference between the price of handsets in the grey market and those purchased through proper billing. The traders had been further losing business to Chandigarh traders due to lower sales tax. The manufacturers felt that the share of legal market would stablise at around 50 per cent with the rationalisation of the tax structure by 2005 Mr Mahindroo said the customers would enjoy superior customer service, and warranty advantage from handset manufacturers and their agents. The Union Government had already abolished countervailing duty in 2002-03 Budget to help narrow down the mobile handset price differential between the legal and the grey market.
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Invest 30 cr, get sops: Haryana New Delhi, November 21 An area near Gurgaon has been identified to be developed as a special economic zone. This will be designated as a duty-free zone and various concessions and tariffs will be made available. This was stated by Mr. A.N. Mathur, Chief Secretary, Haryana, at an interactive meeting organised by PHDCCI in the Capital today. Mr Mathur said in the package for entrepreneurs for units larger than Rs 30 crore, rebates and incentives would be given to the extent of 20 per cent and above on land cost. Plots have been reserved for NRIs and export-oriented units to boost exports from the state. Some multinationals companies have already set up shop and some more are in the pipeline. Mr Mathur said IT has been an important plank of the government’s policy. Within the Haryana Secretariat, IT had been accorded the status of yet another secretariat. The government was keen to set up a world class cyber city in Gurgaon. The government had reserved 70-80 acres for the upcoming IT units. Mr Mathur said agriculture continues to be the backbone of the state and the government was setting up four food processing parks which would give a fillip to food processing sector. The state council had approved the new policy for biotech and various notifications had been issued and in a month or two the policies would take the shape of implementation. He invited suggestions from the private sector in this regard. Mr Mathur said in Gurgaon a medicity is being planned for integrated health care programme with shopping malls etc. It will also have super speciality hospitals and yatra niwas in 500 acres.
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Groups differ on Competition Bill New Delhi, November 21 “The Bill should not be enacted till January 1, 2005, by which time decisions on issues like the competition policy, trade and investment and related matters will be decided,” the group suggested to the committee. The other group, however, strongly favoured the passage of the Bill because “the MRTP Act is based on the old economic theory, which is no longer efficacious enough to check the onslaught of foreign companies against Indian companies.” The committee, in its 93rd report on the Competition Bill, 2001, which was presented to both Houses today, recommended minor amendments in some clauses. Despite sharp differences, the committee recommended that the Bill should be passed after incorporating amendments approved by it and giving due consideration to its other observations.
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Nathpa Jhakri to be commissioned by March Shimla, November 21 “Trial run will start by December 31 when water will be released to start two generating units of 250 MW each, Mr Y.N. Appa Rao, the Chairman-cum-Managing Director of the Nathpa Jhakri Power Corporation, said at a Press conference, here today. Almost 90 per cent of the work had been completed but engineering problems in the construction of the world’s largest underground desilting Chambers due to weak strata were causing some delay. Additional protection measures were being taken to stablise the four chambers, each measuring 27 m x 16 m x 500 m, he explained. The project was planned to be completed by December 1998, however, delay in starting the work, industrial unrest and blockade of the Sutlej river at the dam site following a huge landslide hampered construction. Later the schedule was revised to December 2001 and the cost increased to Rs 7666 crore. However, flashfloods in Sutlej damaged the project extensively in August 2000 delaying the completion by more than a year and facing up the cost to over Rs 9000 crore. The cost of power generation will also increase from Rs 1.30 to Rs 2.70 per unit. Mr Appa Rao said that revised cost-III had been sent to the Union Power Ministry for approval. The expenditure on the project up to October 2002 was Rs 6927 crore. So far the Centre has contributed Rs 3081.60 crore as equity, more than its share and the state Rs 693.90 crore, leaving Rs 323.30 crore as arrears. In 2002-03 the state released on Rs 75 crore up to October and released another Rs 22 crore early this month. The state’s equity share came to Rs 1135 crore as per the revised cost. He said the corporation was being renamed as the Sutlej Jal Vidyut Nigam to harness the hydro-power potential of the Sutlej basin. An agreement for the execution of the 480 MW Rampur project was likely to be signed shortly, and the state government had promised to assign the 400 MW Thopan Powari project and the Shongtong Karcham project, almost of the same generation capacity. The Rampur project was in a way an extension of the Nathpa Jhakri Project and would be completed soon.
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Punjab signs 3
pacts with SA Chandigarh, November 21 Two MoUs were signed by Capt Amarinder Singh, and Limpoo Premier N. Ramatlhodi. The MoU on cooperation in agriculture sector was signed by the Agriculture Minister, Ms Rajinder Kaur Bhattal, and Limpoo’s Agriculture executive council member, Dr Aaron Motsoaledi. |
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Material girl borrows cash
London, November 21 The Sun said Madonna told two sisters, Mimi and Titi Negussie, that she had forgotten her purse when she went into the restaurant with film director husband Guy Ritchie, their son Rocco and her daughter Lourdes. "A woman came up and said, 'Excuse me, but you look like really nice people. Can I borrow some money? We forgot our wallets'," Mimi Negussie told the Sun. Titi, who did not recognise the singer, gave the Material Girl a two-pound coin to help her cover a 1.25 pound ($2) shortfall in her 5.25 pound bill. A spokesman for Madonna told the Sun the sisters would be sent CDs and a cheque to cover the loan. Michigan-born Madonna, now a UK resident, was the highest earning musician in Britain in this year's Sunday Times Pay List, with estimated annual earnings of 36 million pounds.
Reuters
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Zydus Cadila unveils anti-rabies vaccine
New Delhi, November 21 It will be manufactured in technical collaboration with Berna Biotech of Switzerland, the originators of this vaccine and one of leading vaccine manufacturer in Europe. Rabies, also known as hydrophobia, is an acute and highly-fatal viral disease of the central nervous system. It is communicated to humans through rabid animals. Nearly 75,000 deaths are reported globally due to rabies each year with 35,000 deaths reported from India alone. The purified duck embryo rabies vaccine, which is a new generation rabies vaccine approved by the WHO, offers faster action and quicker protection, making it ideal for those dog bites cases where incubation period is less. The vaccine is priced at Rs 294, according to Mr Madhav
Kulkarni, senior vice-president for Zydus Cadila’s domestic operations.
UNI
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Excise Dept PNB rates cut Grasim petition Colgate cleared Christian Dior Mill gets ISO Aditya Birla Borland Marico Director |
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The Adviser to the Finance Minister
and the Chairman of the Task Force on Direct and Indirect Taxes, Dr
Vijay Kelkar, today defended recommendations of the panel and said it
would spur growth by institutionalising a more efficient tax system in
the country.
