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Saturday,
March 29, 2003, Chandigarh, India  
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Cong to seek confidence vote on PSUs sale i-flex pros did not have work permits: Dutch govt
Steel price hike hits small units
‘Reimburse entry tax paid by EOUs’ |
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Indian tourism takes a jolt
Fears of US-Iraq war hit textile industries
ONGC to set up trading desk
Hearing on bail plea next week
NFL signs
MoU with govt
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Cong to seek confidence vote on PSUs sale New Delhi, March 28 The party’s attack on the government’s economy policy clearly indicated the strategy the Congress would adopt in the forthcoming Assembly polls. The address by senior Congress leaders to the District and Block presidents of the party indicated that the party’s leadership wanted to send a direct message to those who come in direct contact with the masses on issues of concerning the people. Congress chief whip in Lok Sabha Priyaranjan Das Munshi addressing the two-day party convention said the government’s persistence with the policy of bringing oil sector PSUs under the hammer was fraught with perilous consequences for the country’s security environment as well as economy in view of the ongoing Iraq war. Highlighting the strategic importance of oil for the country, he said Indira Gandhi had nationalised foreign oil companies like Caltex and Burma Shell after they refused to support her government in the 1971 war against Pakistan. Stating that the Congress was in a majority in Rajya Sabha, he said the party would press for a division of votes on the issue when Parliament convenes on April 7 after the recess. He said the party would enlist the support of like minded parties, now critical of such a “reckless” policy. Former Finance Minister and senior Congress leader Dr Manmohan Singh accused the BJP-led NDA government of lacking a long-term policy to accelerate the economic development of the country. “Ever since the BJP-led government came to power at the centre, economic growth has declined to its lowest level... The reality is that the NDA government has no long-term policy to accelerate economic growth in the country”, he said. He said the BJP Government had not only failed to take steps for a comprehensive education and health plan for the country, it was also unable to provide adequate jobs to the unemployed as promised before its coming to power. Referring to the plight of farmers, labourers and other weaker sections of the society, he said though the country had enough stock of food, farmers in several parts of the country were committing suicide against the anti-farmer and anti-people policies pursued of the NDA Government. Describing the NDA Government a “scam-tainted” government (UTI, stock market, bank, Tehelka and others), he also accused Vajpayee government of adopting discriminatory policies against Congress-ruled states (like Rajasthan, Madhya Pradesh and Chhatisgarh) while extending drought assistance. |
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i-flex pros did not have work permits: Dutch govt New Delhi, March 28 It also said it had sought the co-operation of the British authorities in questioning the i-flex CEO detained in the UK, as i-flex is reported to be avoiding paying mandatory taxes. “The arrested Indian nationals have been treated in a similar way as any other foreign employees involved in illegal employment. This particular case is certainly not an action against Indian IT professionals as has been portrayed in some Indian media,” the Embassy of the Netherlands said in a statement here. During its routine duties, the Social Intelligence and Investigation Service of the Netherlands searched the premises of a Dutch information technology company and four financial institutions in the centre and west of the Netherlands on March 26, 2003. The IT company was under suspicion of illegal employment of workers from outside the European Union, the Embassy said. The search resulted in the arrest of the employees of i-flex Solutions who were of Indian nationality. The Dutch authorities had established that although they seemed to have valid Schengen short-stay visas, those arrested did not possess required work permits, it said. “These Schengen short-stay visas are neither issued by the Royal Netherlands Embassy in New Delhi nor the Netherlands Consulate General in Mumbai,” the Embassy said. London-based CEO of i-flex’s Dutch subsidiary has been detained in the UK while 14 other employees have been asked to quit the Netherlands.
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Steel price hike hits small units Ludhiana, March 27 This was stated by a deputation of the Ludhiana Electroplaters Association, led by its president, Mr Joginder Kumar, during a meeting with the Union Steel Minister, Mr B.K. Tripathi. Prominent local industrialists, Mr M.S. Bhogal, Mr Ajit Singh Kular and Mr Avtar Singh Bhogal also accompanied the deputation. The deputation alleged that the producers of raw material had created an artificial scarcity and taking advantage of the situation, the secondary leftout material was being sold to the industrial units at Rs 21,000 to Rs 22,000 per tonne, whereas the prime quality of the same material was being exported at around Rs 13,000 per tonne. Logically, the secondary leftout material should command a lower price and should be sold in the range of Rs 10,000 per tonne. Moreover, the duty structure on defective sheet categories and flats was irrational as compared to a rate of 25 per cent on prime material. The members of the industry asked the minister to ensure that the MoU for the export of HR coil should be amended in such a manner that at least 50,000 tonnes of material was reserved for the small and tiny sectors of the industry and that the customs duty on secondary sheet categories and flats was rationalised. |
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‘Reimburse entry tax paid by EOUs’ New Delhi, March 28 The chamber said at present, EOUs were getting reimbursement of CST amount from the government, but there was no provision under which it could get reimbursement of entry tax. Since EOUs would not be paying VAT, they would not be able to utilise credit amount of entry tax. Therefore, unless the government made a provision that no entry tax would be levied on EOUs or reimburses entry tax to EOUs just like CST, EOUs would be burdened with heavy taxes. All EOUs should be allowed compulsory facility of export packing credit from banks up to 100 per cent of their sanctioned limits and it should not be discretionary on the part of the banks to allow or disallow this credit. Suitable policy amendments should also be incorporated for import and re-export of goods after one stage processing. At present, the policy was not clear on the benefits accruing in this regard, it pointed out. EOUs had to pay duty even after completing all export obligations. Currently after nine years, EOUs get depreciation only up to 90 per cent of the value of goods and balance value duty is required to be paid on bebanding. The PHDCCI reiterated that it was of utmost importance to have one customs notification, one excise notification and one set of regulations for EOUs. This will reduce transaction costs, check revenue leakage and lead to promotion of exports. There were more than 35 notifications of customs and excise relating to EOUs and more than 300 circulars of customs and excise. |
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Indian tourism takes a jolt
New Delhi, March 28 Although the existing holidaymakers are not in a hurry to pack their bags for their homelands, potential tourists are avoiding trip to the Indian subcontinent because of the Gulf war. “The tourism industry is the first to be hit in such cases. People not just avoid the warring countries but also their neighbouring countries. But in the case of Gulf war the media has also hyped the danger in the subcontinent,” says I.S. Wahi, President, Indian Association of Tour Operators (IATO). “There is no panic due to the Gulf war in our country. Definitely there will be an overall effect on tourism sector across the globe but to assess its effect in India we should wait for some more time,” says Rathi Vinay Jha, Secretary, Ministry of Tourism. However, industry experts say that even before the war on Iraq began, travellers from the US and Europe started cancelling their plans to visit the subcontinent. “With the outbreak of hostilities in the Gulf region, the domestic tourism industry should brace itself for some hard days ahead. The in-bound tourist inflow from European countries can fall by 50 to 60 per cent in the first few weeks of the outbreak of the war,” says Subhash Goyal, Chairman, Stic Travel Group companies. Even after that the impact on tourist arrival to India would depend on the extent to which the war is fought, adds Goyal. According to industry experts, India receives about 2.5 million visitors every year, of which 30 per cent are tourists and about 90 per cent of these tourists are from US and other European countries. India’s tourism industry is estimated to have lost more than $ 200 million since the terror attack in the US. “Ever since the threat of war started, travellers from the western countries began cancelling their plans because they had to fly close to the battle zone to reach India and as a result the occupancy rate in most of the hotels has decreased by about 40 per cent,” says Lalit Suri, Chairman and Managing Director, Intercontinental Hotel here. “This war is not good for the Indian tourism and aviation sectors as it has the potential for breaking the financial backbone of our national carrier airlines,” they add.
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Fears of US-Iraq war hit textile industries Ludhiana, March 28 The textile industry and particularly the knitwear industry was already in the state of doldrums after the imposition of central excise duty and the industry has been agitating since the presentation of the central budget in the lok sabha. The raw materials of textile — all yarns have witnessed an increase of more than 15 per cent notwithstanding the fall in the consumption of the same after the Central Budget. Mr S.P. Oswal, Chairman, National Textile Committee of the CII observed today that crude oil prices had started firming up and there was no likelihood of the prices coming down. Oil supplies from Iraq were touching zero level and there was no possibility of any decrease in the prices of raw material. Mr Oswal said that the Americans were putting onhold the export orders and they would try to rework the orders. Mr Prem Sagar Jain, President, readymade garments association maintained that the knitwear industry was passing through a big slump. Enquiries show that the consumption of all type of yarns has fallen by about 50 per cent during the past few weeks. The prices of polyster fibre were quoted at Rs 71 per kg while that of polyster filament at Rs. 96 per kg. Acrylic fibre-Rs 80 to 85 per kg and nylon filament Rs 160 to 165 per kg respectively. The export of hosiery goods to the middle east countries is likely to be affected badly due to US-Iraq War — Ludhiana exports hosiery goods worth Rs 400 to Rs 500 crores per year to the middle east countries. The export of ready-made garments to the USA is further expected to be hit as the United States is the major importer of garments from India, says Mr D.L. Sharma, President, Mahavir Spinning Mills. Mr S.P. Oswal summed up that the situation was getting grim day by day as the war prolongs. |
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IA fleet acquisition plan put off
New Delhi, March 28 The airline has also received consent of the two aircraft manufacturers, Boeing and Airbus Industrie, as well as engine maker CFM, among others, to maintain their bids till a further period of six months from March 31, 2003, they said. The extension comes a few days before the expiry of the deadline for financial bids of the aircraft and engine makers. This is the fourth time that the government has extended the time limit, with the earlier extensions being granted for three months each.
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ONGC to set up trading desk
New Delhi, March 28 “We are talking to a few consultants in the field for setting up a specialised crude marketing and trading desk,” company sources said. The ONGC wants to optimise export of surplus products like jet fuel, gas oil and fuel oil from MRPL which till now are being done through tenders that give little margins. Besides managing risk and hedging volatilities in the international oil market, the desk will also help the firm locate buyers for its 3 million tonnes per annum crude oil it will receive from a Sudan oil field, they said.
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Hearing on bail plea next week
London, March 28 According to official sources, the police had given Kumar the option to go to Netherlands and face charges there since his company was bound by the European Commission regulations but he opted to fight it out here. Kumar’s wife was able to meet him in the Brixton prison yesterday, sources said.
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AirTel VAT opposed Exim policy Morphy Richards IDS Infotech Samtel |
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In video: The US-led
coalition forces attack on Iraq badly affects export of coffee from
India to Europe as the Suez Canal falls in the theatre of war.
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