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Wednesday,
December 11, 2002, Chandigarh, India  
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New food law on anvil
Reliance gas to flow from 2004
NBFCs seek extension of Act
RBI favours further cut in PLRs |
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Haryana to reduce LADT to 2 pc
Supplementary demands presented
Gujarat industry unsure
of BJP’s win
IDBI offloads 2.98 lakh shares
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New food law on anvil New Delhi, December 10 The new law which will dissolve the existing Prevention of Food Adulteration Act and other rules relating to food industry, will be in harmony with the international laws. It is also learnt that the expertise of the existing quality rating agencies like Agmark will be used by the Council of Food Standards proposed by the Ministry of Food Processing Industries. “The council will decide the quality standards on the basis of which the role of the quality rating agencies will be redefined”, said Mr G. Venkataramani, Director, Ministry of Food Processing Industries, while talking to The Tribune. The draft bill, said he , aims at bringing higher transparency levels and will pave way for speedy growth of the food processing sector. “After attaining the due approvals , the Ministry will introduce it at the earliest to the Parliament”. Mr Venkataramani said that while the government has already started its efforts directed towards attracting higher investment in the food processing sector and helping growth of the sector with the introduction of new legislations, the industry will also have to prepare itself to face the competition. Representatives of the food processing industry, meanwhile, in their recommendations to the Ministry, have emphasised on industry participation in law making, grading of the penalty and friendly lebelling in harmonisation with the international standards. “Though currently, India is on the top when it comes to production of sugarcane, milk , second in the world in wheat and rice production, but only two per cent of the food is processed”, said Mr PS Mukherjee, President, Confederation of Indian Food Trade and Industry (CIFTI) . He said the industry is eagerly waiting for the new modern integrated food law to replace the currently prevailing more than a dozen laws. Earlier, while addressing a seminar on food laws on the occassion of CIFTI’s Annual General Meeting, the Food Processing Industries Minister Mr NT Shanmugham emphasised on the need to analyse the regulatory system regarding food safety and quality prevailing in other countries. Assuring the industry that the new food law will be introduced at the earliest, he said the government is determined to create an industry conducive environment. |
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Reliance gas to flow from 2004 New Delhi, December 10 “We estimate 5 trillion cubic feet of recoverable reserves from the KG Basin block which can produce around 40 million standard cubic metres per day of gas,” R.P. Sharma, President-Gas Business, RIL, said at a seminar on ‘The New Gas Scenario: Supply, Demand and Price’ here. He said 25 developmental wells would have to be drilled for sustaining the above rate of production. Currently, the consortium of RIL and Niko Resources of Canada is drilling the sixth well in the block. RIL was planning to lay gas pipelines connecting the country’s eastern and western coasts for transporting gas. Gas Transportation and Infrastructrue Co Ltd, a company promoted by RIL, is executing two pipeline projects, Goa-Hyderabad-Kakinada pipeline project and Jamnagar-Bhopal pipeline project, which will be extended to Cuttack in Orissa in Phase-II, he said. “For the pipeline projects the process of acquisition of land under Petroleum & Mineral Pipeline (Acquisition of Right of User in Land) Act, 1962 is on,” he said. Sharma said RIL was also going ahead with its proposal for import of LNG from Iran at Jamnagar in Gujarat at an investment of $ 350 million.
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NBFCs seek extension of Act Chandigarh, December 10 Mr S.D. Chug, Secretary, Punjab Finance Companies Association, and member of the Federation, claimed that 777 ‘A’ category NBFCs with an annual business of over Rs 3,000 crore were providing up to 12.5 per cent rate of interest, the highest rate in the financial market, by advancing loans to small entrepreneurs. However, their investments were not adequately protected by any law. On the other hand, he said, the banks could approach Debt Recovery Tribunals (DRTs) and now have the power to seize and sell the assets and securities of the defaulters to recover their loans. Speaking at the concluding day function of the two-day training programme, organised for the personnel of NBFCs, he urged the RBI management to implement the provisions of the Act towards them as well. The training programme was organised by the regional office of the RBI. He claimed that as per the language of the Act, ‘‘the provisions ‘may’ be implemented to the NBFCs by the RBI.’’ About thirty five officials of the NBFCs from Punjab attended the programme. Mr Chug pointed out that about 140 companies ‘A’ category companies, out of the total 777 companies in India, were operating in Punjab. It included 70 companies in Jalandhar and about 20 in Moga districts. Talking to TNS, he disclosed that in a recent held meeting with the executive director of the RBI, Mr Shivanandan, in Mumbai, their Federation had urged the RBI to extend the provisions of the newly passed Act, at least for ‘A’ category NBFCs. They have been assured that the RBI would consider their proposal. However, RBI officials claimed that they were stressing on setting up of a Self Regulatory Organisation (SRO), by these companies to provide guarantee for the amount of the depositors. Since, the NPAs were around 2 per cent in their case, there was no need at least for the present, to extend the Act for them. |
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RBI favours further cut in PLRs
New Delhi, December 10 “Top ranking companies are getting credit at PLRs. But there is a need to look at rates and spreads,” RBI Deputy Governor Vepa Kamesam said, adding although RBI will not direct banks, it was upto them to reduce lending rates further. This was necessary for the small-scale industries and agriculture sectors, he said. Kamesam dodged queries on interest rate movement saying “you have seen the interest rate structure and you know where they are.” He said lending rates of banks are determined by various aspects of the market. “Now, largely it is the market that determines the rate,” he added. RBI had reduced its bench-mark bank rate by 0.25 per cent to 6.25 per cent in the busy season credit policy of October. The central bank has slashed bank rates four times in the last three years.
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Haryana to reduce LADT to 2 pc Chandigarh, December 10 However, some items were likely to be exempted from this tax relief measure so that revenue generation in the state was not adversely affected, the sources said. Citing instance, they said crude petroleum, on which LADT at the rate of 4 per cent was being imposed, would not be subjected to the relief as otherwise it could affect the state’s revenue position. However, most of the items, including steel, non-ferrous metals, chemicals, etc, which were now being taxed at 4 per cent, would get the relief, the sources said. Petroleum-based fuels, which were being taxed at the rate of 6 per cent, also would not get the relief, the sources said. They, however, pointed out that most of the raw materials were being taxed at the rate of 4 per cent only and added that a large number of these items would be subjected to the 2 per cent relief decided upon by the government. It was learnt that Mr Om Prakash Chautala also announced a 2 per cent reduction in LADT during an interactive session organised by the Chamber. |
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Supplementary demands presented New Delhi, December 10 The Rs 1949-crore grant to bail out the UTI would comprise Rs 438 crore for meeting shortfall under US-64 and Rs 1,511 crore for shortfall under the assured return schemes, the second batch of supplementary demands for grants said. Comprising 37 grants for various ministries, the supplementary demands for grants tabled in both the Lok Sabha and the Rajya Sabha would involve a cash outgo of only Rs 5,032 crore as the remaining Rs 4,013 crore would be matched by savings. The increased expenditure of Rs 3,806 crore provided to the Rural Development Ministry would be for meeting additional requirements for the supply of foodgrains under Sampoorna Gramin Rojgar Yojana and Food for Work Programme particularly in the drought-hit states. The supplementary grants also provide Rs 500 crore for ways and means advances to state governments facing financial crunch. As these advances are recoverable in the same financial year, there will be no cash outgo. It provides Rs 442 crore to Fertilisers Department for writing off loans and interest against ailing Madras Fertilisers (Rs 65 crore), Fertilisers and Chemicals Travancore (Rs 240 crore) and Hindustan Fertilisers Corporation (Rs 137 crore). It has also apportioned Rs 394 crore for providing assistance to Brahamaputra Valley Fertilisers Corporation to settle outstanding claims of input and gas suppliers of Namrup unit and for providing assistance to Hindustan Fertiliser Corporation, Pyrites Phosphates and Chemicals to meet Voluntary Separation Scheme payments. The supplementary demands for grants allocates Rs 472 crore to Coal and Mines Ministry for conversion of non-plan loan of Rs 44O crore into grants-in-aid and Rs 32 crore for accounting adjustments in Hindustan Copper. Rs 298 crore has been provided to Commerce and Industry ministry for issue of compensation bonds against assignments receivable from Iraq Government by the Project Exporters in favour of the Indian Government. A provision of Rs 150 crore was provided for Voluntary Retirement scheme in ailing Indian Drugs and Pharmaceuticals, Rs 315 crore for providing Central Assistance to Northeastern region and Sikkim. |
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Gujarat industry unsure of BJP’s win Ahmedabad, December 10 There is resentment among traders, businessmen and industrialists against the BJP government here. Before the BJP came to power in Gujarat, it was the fastest growing state in the country. However, during the past five years, its growth rate has suffered tremendously. Since the devastating earthquake, unfortunate Godhra incident and the post-Godhra carnage, industry, trade and business have suffered many jolts. Existing textile industry is in shambles. Foreign investors have started evading Gujarat. No new investment is coming to the state. It has been so all because of Mr Narendra Modi’s government policies, especially politics of violence and hatred. It is only because of the recent Reliance refinery project of Rs 40,000 crore in Jamnagar that Gujarat has been able to keep its face. What is happening in Gujarat now on the industrial and trade front, has happened in Punjab during two decades of violence in 1980s and 90s, says Capt Amarinder Singh, Chief Minister, Punjab. Because of the cascading effect of violent era in Punjab, it has slipped from number one state to 13th place in the country and that is going to happen to Gujarat in due course, if political situation remained
unchanged. Besides Punjabis, Gujaratis are also found almost in every part of the world. Gujarati NRIs have played a great role in building a sound economic base of Gujarat. And now these NRIs are fully active in the elections here. However, when asked which party the GCCI is supporting in the elections, Mr Shah says his organisation is not supporting any particular party. “ It is not our concern that which party is voted to power. We have certain demands such as end of inspector raj, abolition of octroi, rationalisation of sales tax and reduction in power tariff rates for industry. All parties have included our demands in their manifestoes, but these are never implemented once a party comes to power”, he adds. A former president of the GCCI, Mr Kalayan Shah, says Gujaratis are wise people. They will take a right decision while casting their vote. “ No one should doubt the wisdom of Gujaratis”, he adds without explaining that which party he has been extending support to in the current elections. Other industrialists with whom this correspondent interacted say that the BJP government has done very little for the industry in the past five years. It did not help the industry that suffered losses due to earthquake and the post-Godhra carnage. Only excise duty and sales tax on power bills have been waived. Despite this power tariff rate for industry in Gujarat is over Rs 7 per unit while in Punjab it is almost half of that. Domestic power supply costs over Rs 4 per unit for major consumers. There is lot of corruption in bureaucratic circles. |
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