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Rural economy to
be the fulcrum, Month-long wait
for EPF rate
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Novartis to
acquire Sabex for $ 565m India, Brazil to
promote trade Aiyar to meet FM
today UK mulls obesity
levy Bids for 81
industrial plots invited COLT gallops to
India PSB net profit
doubles
Tata Motors, Eicher press
sales accelerator
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Rural economy to be the fulcrum, says Kalam
New Delhi, June 7 The customary address of President A.P.J. Abdul Kalam to both Houses of Parliament today promised to bring about measures to maintain a growth rate of “at least seven to eight per cent per year for a sustained period and in a manner that generates employment and provides assured livelihood for each family.” The rural economy will remain the focal point of the government’s development paradigm and the government promised a “substantial portion of government’s investment will be channeled to the villages, with special emphasis on improving basic infrastructure such as roads, power and drinking water in rural areas.” There will be a “significant” rise in public investment in agriculture, particularly in the backward and poor regions. “The Government will ensure that the flow of agricultural credit is significantly stepped up and the coverage of small and marginal farmers by institutional lending expands substantially. The entire rural credit system will be restored to health,” President Kalam said. Besides, the government has promised a major expansion in schemes for micro-finance based on self-help groups and will earmark at least one-third of all funds flowing into panchayats for programmes relating to the development of women and children. The government has also sought to allay any fears in WTO negotiations and said “negotiations in the WTO will be such as to fully protect the interest and livelihood of our large farming community, which is the backbone of our country.” The land reforms process will also be hastened. A cess has been proposed to be imposed on all central taxes to finance commitment to universal access to quality basic education and a National Commission on Education will be set up to allocate resources and monitor programmes. Infrastructure development has also been accorded high priority with increased public investment and subsidies to be provided through explicit budgetary procedures. On the fiscal front, a new Backward States Grant Fund will be used to “create productive assets in these states but with performance parameters as well.” It also promised to further deepen the financial markets and give more teeth to the Securities and Exchange Board of India (SEBI). The President’s speech, however, avoided a direct commitment on VAT and only said “Value Added Tax will be introduced in close cooperation and consultation with trade and industry”. At the same time, revenue deficit is planned to be wiped out by 2009 and promised to come out with a detailed roadmap on subsidies. On the politically sensitive issue of disinvestment of PSUs, the President said the government’s thrust will on “selectivity and strategic focus”. While full managerial and commercial autonomy will be accorded to profit-making PSUs, chronically loss-making companies will either be sold-off, or closed, after workers get their legitimate dues and compensation. “Private industry will be inducted to turn-around companies that have potential for revival”, the President said adding “privatisation should increase competition, not decrease it.” Overseas investment in the hydrocarbon industry will be actively encouraged and a special programme will be launched to “ensure that each household has full access to reliable power”. Private sector participation in generation and distribution will be “actively encouraged”, the President said. A National Manufacturing Competitiveness Council will also be set up and major promotional package for the SSI sector will be announced soon. Measures are also likely to be announced for the textile sector; particularly the jute industry will receive a fresh impetus in all respects. The government has also promised to undertake a “major tax reforms”, expand the base of tax payers, increase tax compliance and make tax-administration more citizen friendly. At the same time, the government promised “effective steps and strong measures” to control the price hike of essential commodities and cautioned that the stringent measures as envisaged under the Essential Commodities Act to deal with speculators and black-marketeers will not be diluted. A Flood-prone Area Development Programme will also be launched and the UPA government has promised appropriate measures for industrialisation in eastern and northeastern states and the National Development Council (NDC) will be made a more effective instrument of cooperative federalism. Water shortage, the imprint of which is being acutely felt in several regions, particularly Andhra Pradesh, finds mention in the President’s speech who promised “effective measures” to address the problem in drought prone areas, including cities such as Chennai. “Special problems of hilly terrains will be addressed immediately”, the President said. A special programme for dry-land farming will be introduced and an “intensive agricultural development programme for the districts in the arid and semi-arid regions” will be put in place.
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Month-long wait for EPF rate New Delhi, June 7 While trade unions have demanded continuation of the present rate of interest if not more, the Central Board of Trustees would have to evaluate the budgetary provisions and await the response from the Finance Ministry before they take a decision on the rate of return for this year. As such, CBT will be under pressure to sustain the present rate of interest as it gave half a per cent bonus over 9 per cent returns fixed by the government last year and the extra outgo had to be borne out of the reserves accruing from interest income. Since the decision to give Golden Jubilee bonus was only for 2003-04, Labour Minister Sis Ram Ola will have to strike a balance between the rate of return on investments made by the EPFO that have come down substantially and sensitivity of UPA constituents and supporting parties like the CPM and the CPI. With 60-plus MPs, Left parties have said there could not be any compromise on lower returns for PF subscribers since it was the legitimate right of workers. The call for a cut in the EPF rates comes in view of the low 8 per cent interest on Special Deposit Schemes (SDS), in which India’s largest pension fund manager Employees Provident Fund Organisation (EPFO) parks 80 per cent of its funds. However, CITU, in its demand to the Finance Minister, had asked for higher interest rates in SDS. Besides, to bridge the gap between the return on its investments and the 12 per cent rate to be offered to subscribers, the government should provide subsidies since it was an “expenditure towards social security”, CITU Secretary W R Varadarajan said. According to market sources, the high 9.5 per cent return offered to the EPF subscribers was virtually “distorting” the interest rate structure in the economy.
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Miss Universe wore Made in India tag
New Delhi, June 7 The brown-beaded dress which the Australian blonde wore as she was crowned Miss Universe traces its origin to India, Gurgaon (Haryana) to be precise. The dress, which earned accolades at the pageant, was created out of a fabric from Silkin Fab, Gurgaon, owned and promoted by a Kanpur-IIT allumni Arun Kanodia. Little had Kanodia expected that the fabric created by him out of polyester net in his Gurgaon studio and sold at his Melbourne outlet would hog the limelight at the world’s grandest beauty pageant. Thrilled by the appreciation received by the fabric, Kanodia told PTI, “Indian textiles have their own charm and the Indian industry is fully capable to leave its mark in niche segments like high-value fabrics.” The fabric which was invoiced from India at $40 per metre and sold in Melbourne at $80 per metre had intricate beading work and embellishments. Kanoria, considered one of the pioneers in the line, is also exporting to the US, Europe and South East Asia.
— PTI
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Novartis to acquire Sabex for $ 565m
Zurich, June 7 Sabex, based in Bourcherville, Quebec, had annual sales of almost $ 90 million, Novartis said in a statement. “The acquisition of Sabex provides Sandoz with a leadership position in injectable generics in Canada and a platform to build a generic injectables business globally,” head of Novartis’s generic business said in the statement. “The deal also gives Sandoz a new operational presence in Canada,” Novartis Chief Executive Officer Daniel Vasella has said he’s seeking acquisitions as the more than $400 billion-a-year pharmaceutical industry consolidates. Novartis has no major new branded products to introduce this year and Mr Vasella has said he aims to make Sandoz the world’s biggest maker of generics.
— Bloomberg
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India, Brazil to promote trade New Delhi, June 7 Both countries are working to promote trade between the developing countries, especially between India and Mercosur. India is expected to sign a free trade agreement with Mercosur soon. A 30-member delegation of Ficci led by Mr Y.K. Modi, is currently visiting Rio de Janeiro to enhance trade and cooperation between India and Mercosur. The governments and business associations of both countries have decided to work together at Unctad meeting, to be held from June 8 to June 16 at Rio de Janeiro. The meeting is being held once a four year to discuss trade issues. India is also expected to become a big buyer of Brazilian ethanol fuel derived from sugarcane in near future. This will reduce dependence on OPEC.
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Aiyar to meet FM today
New Delhi, June 7 “I will be meeting him tomorrow evening,” Mr Aiyar told reporters on the sidelines of a seminar here. Mr Aiyar is likely to discuss with Mr Chidambaram fiscal measures like duty cuts and increasing government subsidy on LPG and kerosene, which might be needed to mitigate the crisis created by crude oil prices’ jumping by over $6 a barrel. The Minister, however, declined to elaborate what the Petroleum Ministry proposes to do to help state-run oil firms.
— PTI
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UK mulls obesity levy
London, June 7 “We are looking at a number of ways of increasing sport in the context of the government’s anti-obesity initiative,” a Department for Culture, Media and Sport spokesman said. Governments and food firms have been criticised for failing to combat obesity in Britain and the United States, where as many as two-thirds of the population are considered overweight. In Britain, 47 per cent of men and 33 per cent of women are overweight and nearly a quarter of both genders are obese. A spokeswoman for the Food and Drink Federation, whose members include the world’s largest confectioner Cadbury Schweppes and soft drinks giant Coca-Cola, said the government had yet to raise the issue of levies. “Obviously if they were, we would consider it along with other suggestions,” she said, adding, “We have written to the government and offered that we should talk more.” If the levies were imposed, funds would be used to build sports facilities around the country, the government spokesman said, adding: “It remains the case that improving the nation’s health and tackling obesity are key government objectives.” According to a May 27 parliamentary report, obesity in Britain has grown by almost 400 per cent in the last 25 years.
— Reuters
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Bids for 81 industrial plots invited Solan, June 7 With Baddi being the prime choice of investors in Himachal after announcement of the new industrial package, the board has convened a pre-bid meeting on June 10. As many as five categories based on the plot size have been identified for the sale. An effort has been made to develop infrastructure in the form of street lights, complete water supply and storage facilities, sanitation, a 24-metre metalled road as well as an assured power supply by erecting separate transformers informed officials of the board. Rs 3 crore has been incurred on providing the basic infrastructure. A section of industrialists, however, appeared skeptical about the quality of facilities which were being made available and rued that the basic infrastructure erected was not up to the mark. With land prices touching a high of Rs 9-9.5 per bigga at
Baddi, the pre-sale bids were expected to draw a good response maintained, officials in the board.
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COLT gallops to India
New Delhi, June 7 COLT Technology Services India Pvt Ltd would commence work from September this year and provide multiple support functions to its core business in Europe. COLT Technology Services Chief Operations Officer Richard Adams said, “Service support is one of the critical aspects of our business model and key to customer satisfaction. We consider India as a crucial
market.” — UNI
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PSB net profit doubles New Delhi, June 7 The total business of the bank went up marginally by 2.91 per cent to Rs 19,672.04 crore. For the current financial year, the bank has decided to step up its drive to bring down its net NPAs to below 7 per cent, a bank statement issued here said. In 2003-04, the share of demand deposit improved from last year’s 36.34 per cent to 41.45 per cent. The net interest margin during the year improved to 3.20 per cent against 2.65 per cent in the previous year.
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Tata Steel to issue 1:2 bonus ACMEE-2004 Canara Bank Tata AIG Cairn Energy Nicholas pact Quad handset BOP in Jodhpur |
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