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Friday,
March 14, 2003, Chandigarh, India  
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Punjab
seeks tax sops for industry
Introducing
VAT system in Chandigarh |
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Govt to disinvest in
EIL, STC, MUL HPL
expects fresh lease of life Honda,
Hero Honda prefer ‘co-existence’ ROUND-UP
Canara
Bank opens ATM SBP
scheme for medicos
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Punjab seeks tax sops for industry New Delhi, March 13 The Punjab Chief Minister, Capt Amarinder Singh, who called on Jaswant Singh today, said that the Finance Minister had assured him that he would take up the matter with the Prime Minister to announce a special package for promoting industry in Punjab. Among other things, Punjab has sought a 10-year excise holiday, income tax waiver up to Rs 1 lakh per annum as applicable to the industry in the hill states. The Punjab Chief Minister said the lack of an appropriate industrial package had the potential of sparking off the dangerous trend of flight of the industry from the state to other states. This could have adverse socio-economic consequences in the state. Regarding the unbundling of state electricity board, Capt Singh said the report of the Haldia Committee would come up for discussion in the Cabinet and tabled in the state Assembly. Meanwhile, in an attempt to break the wheat-rice monocropping cycle, the Punjab Government today announced the launch of a massive crop diversification programme through contract farming in the state. An agreement was signed by the Punjab Agro Foodgrains Corporation and Mahindra Shubh Labh Services (a company of the Mahindra Group) for growing maize, Basmati, oilseeds and pulses. Under the programme, 300,000 acres are estimated to be covered by the initiative in the first year which will go up to 25 lakh acres by 2007 — representing approximately one-fourth of the total cultivable land in Punjab. About 100,000 acres are expected to be brought under cultivation of Basmati and maize during the coming Kharif season. In the next Rabi season too, another 100,000 acres will be taken up for contract farming in mustard seeds, sunflower and other edible oils and barley (winter crops). For the maize contract farming Mahindra Shubh Labh will provide farmers with access to the best seed material, newer agro-chemicals and nutrients. On harvest the Punjab Agro will procure the crop from the contracted acreage. Farmers will be offered a fixed price contract or a market-linked contract. Capt Amarinder Singh said the state PSU would directly enter forward contracts with buying agencies for facilitating the assured marketing opportunities to farmers. “This will provide assured return to farmers. Farmers can opt for a fixed price or a variable proposition”, he said. The Chief Minister said the area under contract farming was expected to be around 5 lakh acres each season in the coming five years. He allayed fears that the proposed contract farming would result in the exploitation of farmers and would eventually be uprooted from their land. Since the Centre was out to freeze the MSP of wheat and rice, Punjab was left with no option but to initiate contract farming. In the first year, Mahindra Shubh Labh will deploy 250 extension officers in the identified areas for motivating and training farmers in six select districts in the beginning. Subsequently, their strength will be raised to 1,000. The state government has already approached the Centre for an assistance of Rs 1,200 crore for implementing the diversification programme. |
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Introducing VAT system in Chandigarh VAT is proposed to be introduced in all states from April, 2003. Traders oppose it truth and nail alleging harsh punitive provisions and a tax burden on inputs for manufacture, the main grounds. A true analysis of both the system in its right prospective helps effectually dispel traders suspicions and fear. The present levy suffers from complexities with multiple rates of taxes providing exemptions/ deductions to be backed by various statutory declaration forms. The loop-holed system helps un-scrupulous dealers thrive at the cost of the genuine ones besides playing havoc with a huge chunk legitimate state revenue. The levy is narrow based and is more and more subject to avoidance operating as a barrier to the government’s ability to reduce deficit. It is a ‘hidden tax’ charged mainly at the first stage, with inability to evaluate as to how much tax an individual pays on daily ‘monthly’ annual basis. In simple terms VAT means a tax levied at each stage of value addition to product or service. It is a state subject. Tax paid at each stage is subject to rebate. Eventually, such tax reduction leads to self assessment in majority of the cases which is missing in the present system. Invoice based tax liability under this system enhances dealers reliability compared to the present complex system reflecting their
un-reliability. The success of VAT has lead to its introduction in 123 countries of the world. It is more transparent and industry friendly. To fall in line with its neighbour UT Chandigarh may opt for extension of the Punjab VAT Act. While doing so the problems and sensitivities of the local trade and industry needs to be taken care of in view of the peculiar situation of U.T. Chandigarh. The phasing out of C.S.T. by the Central Government may not help much, the import of goods from other states is a must. Although, Revenue Receipts of U.T. Chandigarh go to the Consolidated Funds of India, the Administration is committed to revenue resource mobilisation so as to have a bigger plan out-lay every year. Measures like subsidy, lower rate of interest on loans and a low water and electricity tariff help the Small Scale Industry’s growth in the interest of revenue and employment. An Advisory Committee comprising of officials/and non-officials to help traders is solving their problems under the new system shall go a long way in introducing the VAT in letter and spirit. |
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Govt to disinvest in EIL, STC, MUL New Delhi, March 13 The government, which held 45.54 per cent equity of the MUL, proposed to disinvest 25 per cent through the public offer of shares, he told the Rajya Sabha in written reply to a question. He said steps had already been initiated in this regard. Also the Centre had decided to disinvest 51 per cent equity of the Engineers India Ltd (EIL) through strategic sale and 10 per cent equity in favour of company employees. Similarly it had decided to disinvest 62.02 per cent equity of the State Trading Corporation (STC) through strategic sale and upto ten per cent in favour employees, Mr Shourie said. The transaction documents for EIL and STC were being finalised, the Minister told the House. However, implementation of these decisions would depend upon a variety of factors including market conditions, interest of the prospective bidders and the adequacy of price bids, he added.
UNI
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HPL expects fresh lease of life Kolkata, March 13 The official, who is now in Delhi to chalk out the nitty gritties of the commercial agreement which HPL had signed with state-owned Gas Authority of India Limited (GAIL), said that it is possible that the much-talked issue regarding equity participation by Indian Oil Corporation (IOC) in HPL would be sorted out. Recently, the IOC chairman M.S. Ramachandran stated that the oil PSU was still keen to pick up equity in financially-strained HPL provided it was given management control. Earlier, IOC had conducted due diligence for purposes of investing in HPL. However, the IOC effort did not fructify as the existing HPL promoters, particularly Purnendu Chatterjee, objected to the oil company getting management control with 26 per cent stake which it had wanted.
PTI |
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Honda, Hero Honda prefer ‘co-existence’ Mumbai, March 13 With this, Mr Sudo completely squashed rumours of buying out Munjal’s stake in the company. ‘’Hero Honda is a shining example of Indo-Japanese venture in India. And we will always support Hero Honda - the company, the brand, the team,” he said in a statement released here. Mr Sudo emphasised that Hero Honda was the most successful two-wheeler joint venture of Honda worldwide for the last 20 years. ‘’It (Hero Honda) is now World No 1 motorcycle manufacturer,” he added. “Honda has strengthened its R&D unit in Delhi. Joint work by Honda and Hero Honda R&D has already begun,’’ he informed. Hero Honda on its part has already lined up a slew of new products. The first launch is in April 2003 of a 100cc entry-level model, to be followed by a premium 200cc plus motorcycle in May and then some upgraded variants of the existing models in October, Mr Munjal said.
UNI
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ROUND-UP New Delhi, March 13 “We will add 500-600 professionals in 2003 to extensively serve our clients in the healthcare, travel, telecom and financial verticals and also the new verticals like government and retail”, C P Gurnani, COO, HCL Perot, told PTI. In the last quarter, the company added 150 professionals, he said.
PTI India, Canada in pact for eco project
New Delhi: Canada will provide $ 9 million to India for implementation of environmentally and socially sustainable initiatives. An MoU to this effect was signed here today by Deputy High Commissioner Brian Dickson and Finance Ministry Joint Secretary U.K. Sinha. The purpose of the project is to increase the implementation of environmentally and socially sustainable initiatives within the industry and the Centre and state governments, a press note by the Canadian High Commission said.
TNS No agreement on roaming services
New Delhi, March 13 Both the sides justified their term of roaming services at the meeting, because of which no settlement could be reached, Telecom Commission Chairman Vinod Vaish told mediapersons after an-hour-and-a-half-long meeting with representatives of the operators. The case will now be decided by the TDSAT, which will fix the date of next hearing on March 17.
UNI
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Canara Bank opens ATM Patiala, March 13 Bank General Manager K. Rangaraya said this was the first ATM of the bank in Patiala and that the facility was networked with other such facilities spread all over the country. He said ATM cardholders could draw money from not only branches of the bank of Punjab region but all over the country. He said the bank was committed to installing 250 ATMs this year and that more such facilities would be set up in Punjab.
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SBP scheme for medicos Chandigarh, March 13 Mr J.R. Devgan, General Manager (Operations) said the bank as a goodwill gesture has decided to extend certain concessions in margins and rate of interest on various Personal Segment Loan Schemes so as to make the doctors and other employees to enjoy various comforts of life by conveniently availing finance for housing, cars, scooters, consumer durables. Loans under SBP-Chikitsak will be available as per terms and conditions in which margin can be reduced by 10 per cent where check off facility is available.
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RBI permits FIIs to buy PTL shares
Mumbai, March 13 The shares or debentures could be purchased through primary and secondary markets, as the company has passed a resolution at its board meeting to this effect, RBI said in a release here.
PTI
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