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Sunday,
January 5, 2003, Chandigarh, India  
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25 pc
businessmen optimistic in 2003
Package
for Punjab border units demanded |
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Punjab
economy — an analysis
Premature
retirement
Q: We
are engaged in the business of manufacture and sale of calcium
carbonate at Paonta Sahib being a dealer registered under the
provisions of the Himachal Pradesh General Sales Tax Act, 1968 as also
the Central Sales Tax Act, 1956.
Time to
upgrade airports facilities
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25 pc businessmen optimistic in 2003 New Delhi, January 4 A recent report on business confidence carried out in 19 countries by the UK-based Grant Thornton has expressed serious worries about the global economic scenario in 2003. Despite more than half of the business owners in the USA showing optimism regarding the performance of their economy, businessmen in the G8 economies have shown high pessimism. “The muted expectations of many international business owners reflects the difficult economic backdrop. The USA has stalled, the eurozone and Japan are weak and there is anxiety that worse is yet to come”, said Country Director, Grant Thornton, India Mr Vishesh Chandiok. While the percentage of optimistic business owners in India is only 25 per cent, 77 per cent of the Japanese business owners are pessimistic about their economy, reveals the survey. The survey was carried out among 6.058 owners of medium-sized businesses from 19 countries between September, 2001 and November, 2002. According to the survey, the business owners in Australia, Canada, South Africa and India are most positive about the outlook for their countries in 2003. “Overall, business owners paint a very fragile picture. In many parts of the world they are pessimistic but even in cases where the optimism is stronger, political events such as a potential war with Iraq and global
interdependence between economies could very easily blow recovery off-track", said Mr Chandiok.
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High time to revive PFC Downturns, closures and bankruptcies is the general scenario in the state these days. Money transactions are squeezing to add to the woes of businessmen. On the other hand, the state government is unmindful of the realities. Regulation, rather than development, seems to be the emphasis. It is difficult for anybody is to seek meeting with the Chief Minister. With the Securitization Act, banks can browbeat any businessman. As per RBI guidelines, management can be changed even in case of running accounts. The reality is that there are only 1,594 wilful defaulters in the entire banking sector. In the gloomy scenario, only one Chairperson of the Indian Bank has been bold enough to say that banks should give industry a chance to revive without resorting to aggressive recovery measures. Ms Ranjana Kumar has gone further to say that banks cannot escape their faults. With this approach, she has been able to take her bank out of red. The Punjab Financial Corporation has to play a key role in the given situation. The Deputy Commissioner of Ludhiana showed how PFC funds were grossly misused by purchasing old machinery. As the banking sector is closing doors to small entrepreneurs, it is high time for the state government to regulate the affairs of the PFC as it can prove mainstay for the small sector. There is no reason to think of closing the PFC. It can be instrumental in industrial development. The attention of the policy makers of Punjab is drawn to another aspect. Management experts have compared the performance of China and India. Relevant to Punjab is the post-manufacturing aspect. China beats India 7:1 in this regard. For instance, if India takes 21 days to ship a product, China takes only three days to ship it. The policies of the state government to impose provisions like Exim Form are a cause for worry. Getting to the consumer first is extremely important in this highly competitive era. The politicians need to work hard to reduce the extravagance. Dozens of state government departments have hardly any purpose to serve. If the state government, backed by the bureaucracy, can become financially sick, how can it expect the industry to stay healthy all the time. The state government has failed to disburse capital subsidy to the industry but has not tried to cut wasteful expenditure. The increased sales tax revenue could be given as capital subsidy. Installments of interest-free loans are due from some industrial units due to recession. The state government is not even ready to entertain request to postpone the payment without charging interest. Is the government paying interest on its delayed payments? For its survival, the industry expects a softer treatment from the government. When finances of the state government are in bad shape, there cannot be any elaborate policy. The only policy should be to let the businesses run smoothly.
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Package for Punjab border units demanded Chandigarh, January 4 Referring to the recommendations of the high-powered committee constituted by the Governor of the RBI the state government has sought relief in excise duty for these industries and financial assistance to strengthen the infrastructure in the border areas. Talking to TNS, Mr Lal Singh, Finance Minister, Punjab, said, “On its part, the state government will announce a comprehensive package for the border industries. However, the Centre should also announce a financial package for the border area units. They have also suffered a lot due to the long spell of militancy in the state.” The committee, comprising Mr Madan Lal, Regional Director, RBI, representatives of industry and banks, has apprehended that if the state and Centre failed to provide relief to the industry, most of the them would shift to J&K. It would result in widespread unemployment and loss to the state economy. The committee has recommended that the Punjab Finance Corporation (PFC) and other commercial banks should also announce one-time settlement (OTS) policy for the border units. Mr Avtar Henry, Minister of Industries, Punjab, disclosed that the department was already in touch with the Department of Small Industries and Heavy Industries and had been assured that some relief would be announced.
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Punjab economy — an analysis Chandigarh, January 4 There is a silver lining, yet, to accelerate economic growth rate. The trend in the past three years is consistently moving upward: The overall percentage rate of growth of economy was 5.20, 5.82 and 5.98 in 1998-99, 1999-00 and 2000-01, respectively. Since agriculture/allied sector plays a significant role in the development, therefore, to give buoyancy to economy and generate employment, need will be to promote industrialisation and agro-processing units for achieving higher growth rate. The fiscal stress in Punjab has been on account of ever increasing salary, wage, pension bill; mounting debt burden; heavily subsidised social/ economic services and slow growth of revenue; and loss-making public sector undertakings (PSU). The committed expenditure on wages/ salaries/ pension and interest payments alone is 128.09 per cent of the revenue receipts or Rs 9,101 crore, as in 2001-02. The other factors for fiscal stress are constantly declining percentage share of Punjab in the divisible taxes/ duties collected by New Delhi under various Finance Commissions: 1.712, 1.461 and 1.147 under 9th, 10th and 11th Commission, respectively. Since Punjab has had an eleven-year long spell of the President’s Rule, it also adversely effected resource mobilization. Terrorism too had a lagged effect. Therefore, much of the problems that beset the state today is cumulative effect of ‘’historical factors’’. Much of the woes have been compounded by the Centre, villain was 5th Central Pay Commission. Also no giving a waiver on outstanding special term loan amounting to Rs 3,413.11 crore. Mid-term review of the present Annual Plan, 2002-03, reveals that against a total Plan of Rs 2,793 crore, actual implementation was Rs 741 crore at the end of November 2002. This excluded the Punjab State Electricity Board, Punjab Infrastructure Development Board and Rural Development Fund. The silver lining in the dark clouds is represented by the following facts at the end of November 2002 (the figures in the bracket are up to November 2001): Total tax receipts Rs 5,199 crore (Rs 4,826 crore) — up Rs 373 crore; sales tax Rs 2,027 crore (Rs 1,786 crore) — up Rs 241 crore; State excise Rs 987 crore (Rs 947 core) — up Rs 40 crore; stamps/registration Rs 374 crore (Rs 305 crore) — up Rs 69 crore; normal non-tax revenue Rs 199 crore (Rs 153 crore) — up Rs 46 crore; revenue expenditure Rs 7,107 crore (Rs 7,132 crore — up Rs 25 crore; revenue deficit Rs 1,909 crore (Rs 2,306 crore) — (-) Rs 397 crore and fiscal deficit Rs 2,899 crore (Rs 3,675 crore) — (-) Rs 776 crore. For the next Annual Plan, 2003-04, assumption is netting from sales tax, stamps/ registration and tax on vehicles would grow up by 10 per cent to 15 per cent. The current financial position shows that revenue expenditure went up by 16 per cent in the last decade and interest payments on loans accounted for 29 per cent of revenue expenditure in 2001-02. In the first 275 days of the current financial year, state was in overdraft on 53 working days and often payments stopped, much to the chagrin of the public. It is in this backdrop one has to see how much Punjab can or will do to achieve envisaged economic growth rate of 8 per cent in the 10th Plan period and why it is unable to implement its Plans. The State Planning Board, which met here on Thursday took cognisance of the stark reality and deliberated upon the need to priorities development policies/ plans. The envisaged priorities for the next year Annual Plan are as follows: adjustment of agricultural production pattern for increased productivity and growth, attending to fast depleting water-table, checking degradation of soil and pollution of water resources, conservation of water, fixing security for tube well connection in Kandi area at Rs 5,000 per connection, second push to industrial growth commensurate with WTO, infrastructure development, job opportunities for unskilled, improving standards of education and teacher-training, grants to rural colleges, involving Panchayati Raj institutions, introducing English and computer education in village schools to make students ‘’IT-enabled’’, framing schemes for poverty reduction and encouraging operation/ maintenance of rural water supply from user charges and people participation. Punjab has taken an initiative to put its economy/fiscal reforms on fast track. The beginning is slow but surely a turnaround is visible. One only hopes political determination continues and electoral/
politically populous factors do not either cloud decision making or trip the first steps.
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SBP branches computerised Chandigarh, January 4 |
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by Praful R. Desai Premature retirement Q: When a person is prematurely retired on medical grounds and is upheld by Industrial Tribunal on finding of fact, can such finding be interfered with in a writ petition? A: In Ramesh Chander v R.L. Chugh, P.O., Industrial Tribunal (2002-III-LLJ-909) Delhi H.C. was opining thus: From the complaint petition filed in terms of S.33-A of I.D. Act, the nature of the dispute is not clear. The respondent raised a contention that it was merely a case of premature retirement on the ground that the petitioner was found unfit to perform his duty as he was suffering from schizophrenia with manic depression by the Medical Board. The management also placed on record material to show that the petitioner had taken leave without pay in 1986 for 82 days, in 1987 for 107 days, in 1988 for 148 days, in 1989 for 187 days, in 1990 for 145 days and in 1991 for 25 days. He, as noticed, was, however, given a chance to act as a peon according to his own prayer, but he refused. Before the Industrial Tribunal, the parties advanced oral evidence. A finding of fact was arrived at by the Tribunal to the effect that on the basis of material brought on record by the parties, it was established that the workman was suffering from schizophrenia and was unfit for holding the post. The Tribunal also did not rely upon the report of the senior resident doctor of AIIMS. It also did not find any merit in the contention that the petitioner should have been given as alternative job as indicated herein before. This Court, in the aforementioned situation, in exercise of jurisdiction U/Art 226 of the Constitution, cannot interfere with the finding of fact arrived at by the Tribunal. The questions as to whether a person is unfit to perform his duty is essentially a question of fact. This Court, observed the H.C., in exercise of power of judicial review can interfere with the finding of procedural Tribunal of fact only when it is found that an illegality, irrationality or judicial impropriety has been committed by the respondent in the decision making process. Furthermore, the petitioner’s services were terminated in 1991 and thus, on that ground also, it is not a fit case where this Court should exercise its jurisdiction in favour of the petitioner. Reliance by the petitioner on the provisions at Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 is misplaced. No case thus is made out for grant of relief to the petitioner, held the H.C. Accordingly, the H.C. dismissed the present writ petition.
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by A.K. Sachdeva Q: We are engaged in the business of manufacture and sale of calcium carbonate at Paonta Sahib being a dealer registered under the provisions of the Himachal Pradesh General Sales Tax Act, 1968 as also the Central Sales Tax Act, 1956. We dispatched a consignment of calcium carbonate in the recent past to a Silvasa based party in Gujarat in consequent upon an agreement involving supply in the course of inter-state trade or commerce. Necessary documents such as a sale invoice and a goods receipt were duly prepared and issued to the driver incharge of vehicle wherein all relevant particulars relating to the consignment as required under the statutory provisions were furnished. On the way, the goods along with vehicle carrying them have been detained by an Asstt. Excise and Taxation Officer in the District of Karnal for what was described “Vehicle loaded with Calcium Carbonate stopped under Section 37(30 of HGST Act, 1973 for verification of genuineness of transaction”. Kindly advise if the action of the checking officer is really justified? Ans: The powers relating to detention of goods are well defined in Section (5) of Section 37 of the Haryana General Sales Tax Act, 1973 wherein it is laid down in plain words that a checking officer exercising jurisdiction can detain the goods under transport in a given case in two situations, namely, (i) that the goods in question are not covered by proper and genuine documents; (ii) or that the person carrying the goods is attempting to evade the payment of tax due under the Haryana General Sales Tax Act, 1973. The consignment in question admittedly originated from Himachal Pradesh and that the same is being carried to a place in the State of Gujarat, which means the goods were simply passing through the State of Haryana. Under these circumstances, it could not be said that any of the grounds for detention of the goods within the meaning of sub-section (5) of Section 37 much less “stoppage of goods” under sub-section (3) of Section 37 of the Haryana General Sales Tax Act, 1973 existed in this case. Moreover sub-section (3) of Section 37 does not empower a checking officer to pass an order in the fashion it has been passed. It appears that the goods have virtually been action falls outside the purview of the powers vested in the checking officer. The validity of the action can be challenged either by way of filing an objection before the checking officer inviting his attention towards the statutory provisions or preferring an appeal before the Joint Excise and Taxation Commissioner (Appeals), Ambala. |
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Time to upgrade airports facilities For a change, all sophisticated gadgets at Indira Gandhi International Airport (IGIA) have functioned precisely in the foggy season. But their functioning has not prevented flights getting disrupted because the minimum visibility level is lower than required under ILS Category III-A. Whatever measures may be taken, they do not seem to be good enough to beat dense fog. This being the situation, aviation experts opine that at least Air India and Indian Airlines should re-schedule and reorganise their flights in late December and early January. If this is done, both airlines can effect a lot of savings as also cause less inconvenience to passengers. The facilities at the airport have been considerably improved. But they are not sufficient to provide comfort to in-coming and out-going passengers when flights get bunched together because of diversions and delays owing to fog. In this December-January, the passengers had to undergo hardships as they got cramped in lounges and the transit area. Regardless of the fact whether four international airports are privatised or not, the time has come when the Airports Authority of India (AAI) must upgrade facilities at airports which, by and large, present pathetic picture as compared to other airports in neighbouring
countries.
Jet Airways Jet Airways on the Mumbai-Chandigarh and the Delhi-Jaipur sectors were successful. Airline officials expressed satisfaction at load factor. Judging from the success, the airline officials are considering feasibility of operating flights even after January 10. Private operators have not yet been granted permission to operate on the international routes although they are pressing hard for it. In the meantime, the government has approved an air service agreement between Indian Airlines and Malaysian Airlines. The new flights will connect Bangalore and Hyderabad with the South-East Asian nation. Indian Airlines will now be able to fly to Penang and Longwaki in addition to Kuala Lumpur. The agreement will help US passengers to travel to India via Malaysia.
Sri Lankan Airlines Sri Lankan Airlines has made its highest revenue from in-flight sales of Rs. 190.03 million for the financial year ending on March 31,
2002.
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