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Tuesday,
March 11, 2003, Chandigarh, India  
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Savings Bond rate to be cut by 0.5 pc
Consider policy on export subsidy: USA
Office rents go down in Asia |
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Avoid hike in petro prices: Naik to FM
A Pro-rich Budget
Technique to detect pure Basmati
Tata, BP pact for DPC
5-star status for Radisson
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Savings Bond rate to be cut by 0.5 pc
New Delhi, March 10 RBI Relief Bonds, bearing an 8 per cent coupon rate and so far tax-free in nature, will be made taxable the next fiscal even though the rate of interest will be kept untouched, Finance Ministry sources said today. The effective return on the Relief Bonds will be over 9.2 per cent. The notification on Savings Bond and that for US-64 investors was expected in 2-3 days, the sources said. The Savings Bond was introduced last fiscal providing an attractive return. The fresh subscription was, however, stopped after the Budget as the government intended to “reset” the coupon rate. The move to realign interest rates on the bonds follows Finance Minister Jaswant Singh’s announcement of a 1 per cent cut in small savings and PPF rates in the Budget. The sources said the rate of interest on Savings Bond was slated to be reduced by only 0.5 per cent as the rate of return was lower at 7 per cent. But in the case of RBI Relief Bonds, whose rate of return is already at 8 per cent, the government intended to bring it under the tax net, thereby reducing the actual return by more or less 0.5-1 per cent. With the redemption of US-64 beginning in May this year, the government has already firmed up plans to issue tax-free and tradable bonds as an option of redemption mainly to corporate and charitable trusts instead of cash payments. The sources said the tax-free bonds would be pegged at 6.75 per cent, which would be still higher than many of the government papers. Since the bonds would be tax exempt, sources said the effective yield would be around 9.64 per cent for large investors. The government had announced an administered price of Rs 10 per unit for US-64 in August, 2001, with an addition of 10 paise every month till May, 2003. After the freeze of the UTI’s flagship scheme in July, 2001, the government was able to check the redemption pressure. But the redemption would start in May this year, for which government decided to offer the option of tax-free bonds.
PTI
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Consider policy on export subsidy: USA New Delhi, March 10 "The USA has made a powerful proposal in the WTO that will eliminate export subsidies, and limit all trade-distorting domestic supports and input subsidies to 5 per cent of a country's agricultural production", US Ambassador to India Robert Blackwill said while speaking at the agricultural exhibition, Aahar, here. "This would result in average agricultural tariffs around the globe falling from 62 per cent to 15 per cent, and an overall reduction of over $ 100 billion of trade distorting price supports in the agricultural sector. We hope the Government of India will give serious attention to this proposal", he said. He said if India increased access to its market for US agricultural goods, it would provide for all segments of the Indian society greater consumer choice and resultant lower prices. " This surely will be a good thing", Mr Blackwill said. The US Ambassador said India enjoyed a 810 million dollar trade surplus with the USA in agricultural products in 2002. Over the past six years, US agricultural exports to India had increased by 147 per cent to $ 280 million in 2002. "However, given India's population and growing middle class, this figure remains quite small", he said. He said both India and the USA would prosper if the objectives were pursued in a bilateral as well as in a multi-lateral framework. "Developing countries in particular will benefit from tariff reductions”, he said.
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Office rents go down in Asia
Singapore, March 10 "Most of the major office property markets in Asia Pacific registered rental declines during the fourth quarter, including Shanghai," property consultant Jones Lang LaSalle said. Corporate restructuring and downsizing hurt demand while new supply in key cities such as Hong Kong, Beijing and Tokyo added to downward price pressures, it said. Leasing demand was also weak in Hong Kong, Taipei, Tokyo, Singapore, Sydney and Melbourne. Flight of domestic capital from Taiwan to China had also dampened the demand for commercial space. Rents in the central business districts of Mumbai, Singapore and Hong Kong were the hardest hit. But those in Shanghai, China’s business centre, were up 0.7 per cent for the year and down 0.3 per cent in the fourth quarter against the third. Bangkok’s central business district was the exception, rising by 5 per cent in 2002 and 4.5 per cent in the fourth quarter against the third. But Jones Lang said retail rents across the region fared better than office rents with demand for shop space in modern retail malls strong in Shanghai and Jakarta, propped up by growth in domestic consumption in the two countries. Demand for prime retail space was also reasonably healthy in Manila and Bangkok, the consultant said.
Reuters
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Avoid hike in petro prices: Naik to FM
New Delhi, March 10 “The Finance Minister is due to reply to the debate on the Budget tomorrow. He may announce something to contain effect of
spiraling international crude oil prices in the domestic markets,” he told reporters here. A rise in global crude oil prices has already led to a Rs 3.50 a litre increase in petrol and diesel prices since January, LPG is faced with the prospect of price hike by Rs 60-70 per cylinder due to lower budgetary provision for subsidies. “Whatever is needed (after the reply) will be done,” he said in reply to a question if prices of LPG would be raised.
PTI
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A Pro-rich Budget
I am amused at the praise being showered on the Budget presented by Mr Jaswant Singh. Surprisingly, nobody is even murmuring at the blatantly pro-rich bias shown by this Budget. Almost 90 per cent provisions are meant to benefit the creamy layer of the society. For example excise duty on cars and ACs has been substantially reduced and the loss of revenue is sought to be covered by collecting service tax from beauticians, photographers, drycleaners, taxi drivers, workshops, caterers, advertisers, insurance agents, health clubs and such other petty self-employed people. While the duty on cars was paid by the elite and had no scope for evasion without any monitoring, the so-called service tax will be borne by the entire society which is an unnecessary headache for the self-employed people. Everyday there is talk of abolition or freezing of MSP and yet the prices of fertilisers and diesel are being enhanced, thereby showing the callousness of the government towards the plight of farmers. Even before the Budget the media was orchestrating a chorus for the “hapless wealthy senior citizens” who earned mainly interest income. If this was the purpose then the government should have enhanced the deduction U/S 80-L in their case. But nobody understands the mischief being caused by the tax rebate in the name of the “poor elderly people”. This benefits mainly politicians and retired bureaucrats. Nobody ever talked of enhancing the pensions of the elderly or the widows to a respectable amount. May be because they do not have any lobbies in the government. It may not be an over statement to call the present setup “A government of the
lobbyists and for the lobbyists”. The abolition of dividend tax, though a welcome step, has little to do with the common man and will mainly please the corporate houses. There are only a few prominent instances. Another special feature to be noted is that the present rate structure of income-tax came into being when Mr P. Chidambram was the Finance Minister. In that year the tax collection went up despite the reduction of rates. Therefore, we can say that was the last innovative Budget in this respect. The present one can be called only a routine one or more appropriately as described in the weekend magazine of The Tribune as Polka dance of politicians. —
M.S. Parmar Jalandhar
Jaswant pleases everybody The Union Budget 2003-2004 reveals that the Finance Minister, Mr Jaswant Singh, has played the role of a Santa Claus celebrating Christmas, with small gifts for everyone in his bag. He has made the salaried class happy by raising the limit of standard reduction up to Rs 30,000, by abolishing the 5 per cent surcharge on income tax and restoring LTC to government employees. No doubt, small investors have been discouraged by 1 per cent cut in the rate of interest on SSI and PPF but by making dividends tax-free, it has helped shareholders. The Finance Minister has lured the middle class and the industrial sector by reducing Custom duty on specified life-saving drugs and consumer goods. In the nutshell, it can be said this Budget had tried to lure almost all sections of the society, but this Budget could be expected only in pre-election financial year, because it could now be no more reflecting the true picture of the economy, rather it could be used merely to increase the vote bank. —
Dr Vinod Kumar Bathinda |
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Technique to detect pure Basmati Amritsar, March 10 The protein fingerprinting can easily differentiate between the pure Basmati from other rice varieties which are increasingly used for procuring inflated prices for the Basmati consignments from exporters. Besides loss of export orders, rejection of product and consequent fall in exports have gripped rice exporters from the Majha belt here due to new varieties are used for mixing in the real Basmati. These inferior varieties are almost impossible to detect by conventional methods of aroma and grain appearance. However Dr Dalbir Singh Sogi and Ms Gurpreet Kaur, the Department of Food Science and Technology, Guru Nanak Dev University, have successfully used this technique to differentiate the real Basmati from inferior qualities. The testing can boost exports, which are exposed to “rigorous ” testing by foreign countries. Results of this research will not only guarantee authenticity of the produce in quality conscious nations but will also raise farmers’ income, said Dr Sogi and Ms Gurpreet.
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Tata, BP pact for DPC
Mumbai, March 10 "We teamed up with BP to make a combined effort for finding an economically viable solution towards the restructuring of the project," TPC Managing Director Firdose Vandrevala said here today. In a notice to the BSE the company has stated that it has signed a memorandum of
understanding with BP Global Investment Ltd to jointly participate in evaluating Dabhol project opportunity in Maharashtra.
PTI
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5-star status for Radisson Jalandhar, March 10 The hotel, equipped with 24 hour multi-cuisine casual dining
restaurant, the “great kabab factory”, electronic locks and in-room safe, is the first hotel to provide
complimentary transport to its guests, between the railway station and the hotel.
OC
Punjab, ESC sign pact at Indiasoft NEW DELHI: Indiasoft 2003 IT exhibitions and international conferences has generated business enquiries worth Rs 225 crore, surpassing the previous year’s record. “Around 650 business enquiries and 11 business MoUs were signed during the three days of Indiasoft between Indian participants and overseas business associates and more MoUs are in the pipeline. Importantly, 28 business tie-ups had taken place during the course of the event”, says Mr D.K. Sareen, Executive Director, Electronics and Computer Software Export Promotion Council (ESC). The Punjab Government has signed an MoU with the ESC for cooperation in IT development in the state.
UNI
Amend norms for bottled water NEW DELHI: The Director-General of Bureau of Indian Standards has urged the Health and Family Welfare Ministry to amend specifications of packaged drinking and mineral water in line with the amendment carried out in BIS specifications, the Rajya Sabha was informed today. The BIS has now proposed revising the methods of analysis to use internationally-established test methods which can detect proposed residue limits, Health and Family Welfare Minister Sushma Swaraj said in a written reply.
PTI
Employment up, poverty down NEW DELHI: Estimated employment has gone up 6.14 per cent from approximately 374 million in 1993-94 to 397 million in 1999-2000 and the proportion of people living below the poverty line has gone down from 36 per cent in 1993-94 to 26.1 per cent in 1999-2000, the Union Minister of State for Labour, Mr Vijay Goel, said today. In a written reply in the Lok Sabha, Mr Goel denied that the employment position had deteriorated during 2001-02 leading to an increase in the number of people with low income.
UNI
Money transaction facility for J&K JAMMU: With an eye on providing multiple facilities to tourists, particularly foreign tourists, the Jammu and Kashmir Government will launch the facility of “western money transactions” in the winter and summer capitals of the state, according to a senior official. “The Tourism Department would soon launch western money transactions for better money-relating facilities to tourists, particularly foreign tourists, in Jammu and Kashmir,” Senior Manager, Travel Division, Jammu and Kashmir Tourism Development Corporation (JKTDC), Shamim Ahmed, said here today.
PTI
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