New Delhi, March 11
International telephone call rates and Internet and broadband tariffs may come down further as the Telecom Regulatory Authority of India (Trai) today slashed international bandwidth prices by 70 per cent.

International bandwidth is the medium of carriage of data and voice services across countries in the world. The international bandwidth service is provided through international private leased circuits (IPLC). It is generally provided through submarine cable systems and satellite media and in India submarine cable systems is the most predominant mode of delivery of IPLC services. The providers of the service are the International Long Distance operators. The main users of IPLC in India are Internet service providers, informational technology (IT) and IT-enabled service enterprises like business process outsourcing units and international long-distance operators.

Trai has announced that the ceiling tariff for IPLC half-circuit in respect of E1, DS-3 and STM-1 capacities are Rs 13 lakh, Rs104 lakh and Rs.299 lakh per annum, respectively. Operators are at liberty to offer tariffs that are lower than the ceiling tariff. These ceiling tariffs fixed result in a reduction of 35per cent, 71per cent and 70per cent in tariffs for E1, DS-3 and STM-1 capacities, respectively (as compared to the existing listed price prevalent in the market for the distant destination i.e. India-USA).

The prescribed ceiling tariff would be applicable for all destinations, capacities and types of cable systems used for carrying either voice or data. The service providers are required to offer Standard Tariff Package containing tariff for half circuits for all routes/destinations for which circuits are offered. The tariff for capacity/speed below E1 is kept under forbearance i.e. left to market forces as the demand in future will be mainly for higher capacities.

The tariff for IPLC offered through satellite media is kept under forbearance i.e. left to market forces as the submarine cable systems is the most predominant mode of delivery of IPLC service.

The new tariffs will take effect from April 1, 2005.

The ceiling tariffs have been determined primarily on the basis of the incumbent. Forward-looking Long Range Incremental Costs (FL-LRIC) would be increasingly used from next year.

“The IPLC Leased rentals i.e. the charges for using the services of the international leased circuits were found to be higher in India than in many countries owing to lack of effective competition in the market. For instance, effectively in India there are only 3 operators who provide this service as against 14 operators in Korea, 24 in France and 32 in Germany and USA (New York)”, TRAI said.

New York, March 11
Indian-born steel tycoon Lakshmi Mittal became the third richest person in the world, trailing only Microsoft chief Bill Gates and US investment guru Warren Buffett.

London-based Mittal boosted his fortune after quadrupling his net worth by $ 18.8 billion to $ 25 billion, Forbes Magazine yesterday said. Mittal climbed 59 steps from last year to number three in 2005.

Microsoft chief Bill Gates led the list for the eleventh year in a row with a net worth of $ 46.5 billion followed by Warren Buffet, who had a net worth of $ 44 billion.

Mexican telecom magnate Carlos Slim Helu came in fourth, up from No. 17 in 2004; Saudi Arabian investor Prince Alwaleed Bin Talal Alsaud was ranked No. 5 and Ikea founder Ingvar Kamprad of Sweden rose to No. 6 from No. 13 last year.

Microsoft’s Paul Allen, German supermarket company owner Karl Albrecht, Oracle’s Lawrence Ellison — returning to the top 10 after slipping to No. 12 last year — and Wal-Mart Stores Inc.’s S Robson Walton rounded out the top 10 slots.

Software giant Wipro chairman Azim Premji stood at number 38, 20 places up from last year, with net worth of $ 9.3 billion; Chairman of commodities conglomerate Aditya Birla group Kumar Birla slipped two places from last year to 149 with net worth of $ 3.7 billion.

Telecom entrepreneur Sunil Mittal improved his position to 164 with net worth of $ 3.3 billion. Last year, Sunil was ranked at 186 while construction baron Pallonji Mistry moved up 61 places to 170 with net worth of $ 3.2 billion.

Godrej group chairman Adi Godrej was pushed to 355 with net worth of $ 1.9 billion from last year’s 277 position. — PTI

Mumbai, March 11
The Reserve Bank of India (RBI) is engaged in discussions with other central banks on diversification of the US dollar dominated foreign exchange reserves to other currencies, as the Indian economy is poised for higher growth rate for the current fiscal year ending March 31, 2005.

“It is an ongoing debate among all central banks and we cannot be an exception,” RBI Governor Dr Y.V. Reddy told newsmen at the sidelines of a conference when asked about the discussions on the diversification of forex reserves amongst central banks. “It is being discussed…we are also discussing, it is a continuous process,” Dr Reddy observed.

It may be recalled that recently the Japanese Prime Minister Zunichiro Koizumy went on the record by saying the Japanese central bank is holding discussions to diversify its dollar dominated forex reserves into other international currencies such as euro. The statement caused a fall in the value of US currency against other currencies in the forex market.

On inflation, the Governor said that RBI’s monetary policy stance was determined based on the long- term outlook in inflation.

“Response of the monetary policy is not based on weekly figures...is based on slightly long-term assessments.”

He felt that the rate of inflation by end-March would be lower than what was estimated in the mid-year review announcement in October last year. Similarly, the central bank expected a higher GDP growth rate for the current fiscal as the inflation is expected to be lower.

Earlier, in his inaugural address at the annual conference of FIMMDA and PDI, Dr Reddy said, under the provisions of the Fiscal Responsibility and Budget Management Act, 2003, the RBI would not be participating in the primary market for the government securities from the fiscal year 2006-07.

RBI is convening a conference of the state Finance Secretaries on April 8, 2005, which will be addressed by Dr C. Rangarajan, Chairman, Economic Advisory Council to the Prime Minister and the former Chairman of Twelfth Finance Commission, to discuss these issues.

New Delhi, March 11
Public sector gas infrastructure major Gail (India) Limited will set up a joint venture with a Syrian company for city gas distributions in Syria. Gail was chosen amongst the 23 bidders for gas distribution JV project by the Syrian company, and is also expected to submit technical and commercial bids shortly.

“Gail would be submitting aggressive technical and commercial bids shortly,” the company said in a statement today.

“Gail has considerable expertise in retail gas distribution, covering residential, commercial, small industrial and transport sectors. Gail, therefore, views this opportunity in line with its core competence as well as leveraging of its capabilities,” said Gail Chairman and Managing Director Proshanto Banerjee. Gail, which is engaged in several similar projects in India, has already achieved success in city gas distribution projects in several other countries like China, Egypt and Iran.

Bangalore, March 11
Declaring that Karnataka was all set to introduce Value Added Tax (Vat) from April 1, Deputy Chief Minister and Finance Minister Siddaramaiah today presented a Budget that proposes, on buoyant tax revenues, healthy increases in all sectors like agriculture, roads and highways, education, health and welfare of backward classes, apart from bold measures like 100 percent metering of electricity used by the subsidized farming sector.

He gave himself a pat on the back for achieving fiscal responsibility targets a year in advance. The Karnataka Fiscal Responsibility Act sets a target for limiting the deficit to 3 per cent of the GSDP, and eliminating the revenue deficit by 2005-06. “ I am happy to state that these targets have been achieved in 2004-05 itself. I am proud to inform you that we have received a fiscal incentive grant of Rs 185 crore from the Government of India for this achievement,” he said.

For a coalition government that came together last year on a pro-rural, anti-elite platform, his second Budget (his seventh as FM) had a commendable note of progressiveness and inclusiveness. He slammed “untargeted and poorly designed subsidies” for bleeding the state finances. The first step towards improving the efficiency in allocation in the power sector was through 100 percent metering in all sectors, including the subsidised sector and stringent anti-theft measures, he noted. The power subsidy alone accounts for Rs 1750 crore in the 2005-06 Budget.

On Vat implementation, he said the estimated revenue loss is Rs 2160 crore, to be compensated fully by the Centre in the first year, with lowered support in the subsequent years. “Overall tax effect on consumers will be lower. I expect trade and industry to respond positively.” He proposed the following exemptions to Vat: Paddy, rice, wheat and pulses for one year, and seeds, beaten rice, papad and branded breads; and a new scheme for dealers for waiver of a part of interest and penalties on payment of tax dues. Sales and Tax and Entry taxes accounted for a large increase in revenue mobilisation, and under Vat, the Special entry tax will continue. “Vat is the best system for the country,” he declared later.

“Last year, we were accused of ignoring Bangalore City and IT, BT etc, and being too pro-rural. But it was just a question of lifting up the neglected rural sector. This time, we have clearly mentioned measures for urban infrastructure management,” he said later at a media conference.

Ludhiana, March 11
Retrenched employees of the defunct Punjab State Hosiery and Knitwear Development Corporation have demanded a CBI enquiry into the alleged misappropriation of funds by a former official of the corporation, which is being sold off. The employees have also alleged that the corporation is being sold at a “throwaway price of Rs 5 crore though its value is almost Rs 70 crore”.

The Punjab State Hosiery and Knitwear Development Corporation was among the loss making units that were closed down by the government more than a decade ago. A United Nations Development Programme (UNDP) project, it was started in 1979-80 and had the latest machinery, trained manpower, infrastructure and other resources. The corporation started making losses after UNDP assistance was withdrawn and the government refused to pump in any money to sustain the project.

In a letter to the Chief Minister of the state and to Director Vigilance, the employees have blamed an official for “crippling the functioning of a good unit with top quality and high priced machinery and rendering hundreds of employees jobless.”

Mr N.K. Dhiman, general secretary, Joint Action Committee of Retrenched Employees of Punjab State Hosiery and Knitwear Development Corporation, said, “they are planning to sell the corporation at a throwaway price of Rs 5 crore only, which is against the rules and the UNDP agreement. The present assessed value of the plant is almost Rs 70 crore.” The employees also alleged that imported parts of the machinery with the corporation from knitting section of the plant worth lakhs of rupees have been sold by the official to a private party.

The decision to sell this corporation is also being criticised by a section of industry experts who feel that continuance of this project would not only have meant revenues to the government and direct employment to over 300 people, it would also have been a major help to the hosiery and knitwear industry given the fact that the quota regime has come to an end.

New Delhi, March 11
Buoyed by a robust performance in the manufacturing sector, industrial growth clocked a strong growth rate of 8 per cent during January 2005 and posted a 8.4 per cent growth in the first ten months (April to January) of the current fiscal year.

The Quick Estimates of Index of Industrial Production (IIP) released by the Central Statistical Organisation here today showed that the General Index stands at 220.3, which is higher by 8 per cent as compared to the level in the month of January 2004. The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of January 2005 stand at 164.2, 231.9, and 187.3 respectively, with the corresponding growths of 1.9per cent, 9.3per cent and 2.3per cent as compared to January 2004. The cumulative growth during April-January, 2004-05 over the corresponding period of 2003-04 in the three sectors have been 4.6per cent, 9.2per cent and 6.0per cent respectively.