 |
|
Review tax exemption in hill states: PHDCCI
Exodus of pharma firms to HP, Uttaranchal, J and K
Ministry proposes OIL IPO
Opec to hike output by 2 pc
Liquor sale up in valley
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Ban likely on intake of cigarette, bidi
Upgradation of two airports to cost Rs 15,120 crore
Remove word ‘baby’ from labels, J&J told
GTB integration by June, says OBC chief
UGC-Nasscom pact to boost IT workforce
Carmakers to jack up prices
Mico to invest $ 2 b in India
SBI woos rural segment
|
||||||
|
Review tax exemption in hill states: PHDCCI
New Delhi, March 16 Addressing a press conference here today, PHDCCI President K. M. Memani said, “though we have members in Punjab, Haryana, Himachal and other neighbouring states, but we do feel that there is any justification in extending tax exemptions in a lopsided manner, that had hit the industries in Punjab, Haryana.” For instance, he said, the government should offer tax exemptions to promote industrialisation in the far-flung areas. “ It should offer exemptions to only those industrialists who set up their units at least 15-20 km away from the border. What is the point of offering tax sops in Baddi, a plain area in Himachal Pradesh like Mohali in Punjab? “The tax exemptions should be aimed at promotion of industrialisation in the interior areas in a manner that benefits are to some extent set off by the gains through increase in transport costs,” he said while referring to the migration of industries from Punjab and Haryana to Himachal and from UP to
Uttaranchal. The chamber, which is celebrating its centenary year, urged the Left-supported ruling United Progressive Alliance (UPA) coalition to at least divest 50 per cent of its shares locked in profit-making companies to raise funds for infrastructure projects. “Our exports are growing by 20-25 per cent, but we still don’t have the ports to handle movement of goods. These are some of the roadblocks that need to go,” Mr Memani said. The Left parties, which extend crucial support to the ruling coalition, are opposed to privatising state-owned companies. “Unless and until the government takes hard decisions, the country cannot avail of opportunities thrown up by the economic revolution,” said Mr Memani, former chairperson of Ernst and Young India. The demands would be submitted in a memorandum to Prime Minister Manmohan Singh, who will inaugurate the centenary year celebrations of the PHDCCI on March 21.
|
|
Exodus
of pharma firms to HP, Uttaranchal, J and K
Mumbai, March 16 “About 50 companies, including Torrent, Sun Pharma, Indoco and Alchem are moving to Uttaranchal, Himachal Pradesh and Jammu & Kashmir, to avail benefit of the zero per cent excise duty and more companies are following suit,” sources in the Indian Drug Manufacturing Association said here. Around 70 per cent of the pharma companies are located in Maharashtra and Gujarat, which would be hit most by the exodus, they said adding, about 150 companies have already set up shop in Baddi in Himachal and 50 in Dehradun. An IDMA official said the biggest losers would be small manufacturers who are sub-contracted by the big players. The government should revert to the old structure of levying duty on manufacturing prices rather than the MRP after which there would not be much incentive for the companies to move to other states, which are offering tax incentives, the sources said. Maharashtra alone has a turnover of about Rs 14,000 crore they said, adding that there would be a lot of employment loss in the sector due to the flight of industries. Nicholas Piramal director Swati Piramal said that the duty was now charged on a higher base of MRP than the manufacturing price, which led to an overall impact of 37 per cent. She said the governments of Maharashtra and Gujarat should also advocate against the duty hike since both the states are losers. — UNI
|
|
|
Ministry proposes OIL IPO
New Delhi, March 16 The ministry has opposed the Finance Ministry’s proposal of diluting government holding in OIL and has instead proposed issue of fresh equity for the purpose. Government sources said an IPO of enhanced equity base of OIL would bring the proceeds to the company while the sale of government equity through an IPO would plough money for the Finance Ministry. Petroleum Minister Mani Shankar Aiyar, when asked about the IPO, said, “no decision has been taken as yet. There is a proposal before me to see how OIL’s resources could be strengthened, possibly by adopting such (initial public offer - IPO) a route.” The Finance Ministry is pitching for offloading 15 per cent of government holding in OIL through an IPO. The government currently holds close to 98 per cent stake in unlisted OIL. Previously, the Petroleum Ministry had favoured sale of 15 to 20 per cent of government stake in OIL to state-run refiner Indian Oil Corp (IOC) to make the latter a fully integrated oil firm. Aiyar said various options were under consideration and a final decision would be taken by the Cabinet. “Many proposals are being worked out. We have yet to arrive at a conclusion. No decision has been taken as yet,” he said. — PTI
|
|
|
Opec to hike output by 2 pc
Isfahan, Iran, March 16 The Organisation of the Petroleum Exporting Countries (Opec) said it raised production limits by 5,00,000 barrels a day to 27.5 million bpd with immediate effect. The agreement gives the cartel president power to consult with ministers to trigger an additional 5,00,000 bpd later in the second quarter should prices fail to ease. Ministers scheduled their next meeting for June 7. Saudi Oil Minister Ali al-Naimi said Riyadh was aiming to bring crude down to $40-$50 per barrel, the first time the world’s biggest oil exporter has advocated support for prices that high. “Current oil price levels of $55 are high and we want prices to be between $40 and $50 a barrel,” Naimi told the London-based Arabic-language Al-Hayat newspaper. Crude eased only marginally, US futures trading off 15 cents at $ 54.68 a barrel by 1330 GMT and London Brent slipping 9 cents to $ 53.43 a barrel. “Opec is doing their best but it is a train that is difficult to stop,” said Bob Finch, head of trade at independent oil trading house Vitol SA. Investors from other financial asset classes have ploughed into oil and commodities this year, driving US crude to an average $ 48.87 in the year to date, up $ 7.40 from the 2004 mean. “This story is not about the fundamentals, it’s about the financials,” said consultant Gary Ross of Pira Energy. “The investment community is looking beyond the short term fundamentals and wondering whether Opec can meet forward demand growth without prices going sharply higher.”
— Reuters
|
|
Liquor sale up in valley
Jammu, March 16 The liquor shops in the valley were shut on the orders of terrorists about 15 years ago. According to official figures, as many as 5.18 lakh liquor bottles were sold in Srinagar district during 2003-04 against 4.98 lakh bottles the previous year. However, in Baramula district, a decline has been registered in the sale of liquor
during the past two years. Whereas the sale declined to 26,000 bottles of liquor during 2003-04, the number was 33,000 in 2002-03. Prior to this, almost all liquor shops in the valley remained closed. The graph was shooting upwards at the clubs in Jammu. As many as 1.61 crore bottles of liquor were sold in the Jammu region last year against 1.55 crore bottles during 2002-03. The authorities were expecting to earn a revenue of Rs 176 crore from the sale of liquor in the Jammu region during the current year against Rs 29 lakh in the Kashmir valley. The issue of the growing menace of consumption of liquor came up in the Assembly today when Mr Jugal Kishore (BJP) walked out of the House to protest against the government encouraging the sale of alcohol. Noisy scenes were witnessed in the House as certain Opposition members alleged that the city of temples was getting
converted into a town drenched in liquor. The members wanted that the shortlisted applicants should not be given licences for opening new wine shops. In reply to a question of Mr Jugal Kishore, the Finance Minister said that 10 new country liquor shops have been opened in the districts of Jammu, Doda, Udhampur and Rajouri.
|
|
Ban likely on intake of cigarette, bidi
New Delhi, March 16 However, he admitted that the banning of tobacco consumption was not an easy task since the tobacco industry was a powerful one with turnover of Rs 35,000 crore a year which was equal to expenses on entire medical treatment in the country. In addition to this, he said, banning of tobacco would entail social problems as a large number of workers are engaged in cigarette and bidi manufacturing and for thousands of farmers, since tobacco was a cash crop. But he pointed out since the farmers were getting a meagre share of total profits of the tobacco industry, they could grow alternative crops like medicinal plants.
|
|
|
Upgradation of two airports to cost Rs 15,120 crore
New Delhi, March 16 According to official reports here it has been estimated on preliminary basis that for modernization and restructuring of Delhi and Mumbai Airports, capital investment to the extent of Rs 8720 crore and Rs 6400 crore will be required, respectively, for the two airports. These estimates, however, do not include the cost of likely relocation of some of the assets and removal of encroachments. Earlier this month the empowered GoM met but could not take a decision on the finalisation of principal transaction documents which could to delay in deciding the two joint venture partners for developing the Delhi and Mumbai airports. The deadline for the same had earlier been set as March 31. The government had earlier said the two JV partners for developing Delhi and Mumbai airports would be finalised by
this fiscal-end. With the final request for proposal not being cleared by GoM, it would take some more time to invite bids from the international consortia now. The official spokesperson for the Ministry of Civil Aviation here said that at present, the principles of Request For Proposal (RFP) Document and other Transaction documents, including evaluation criteria regarding restructuring and modernisation of these two airports, are under consideration of the government. The first phase of modernisation and expansion of Delhi and Mumbai airports is likely to be completed by 2010. Earlier on September 11, 2003, the government had accorded approval for restructuring and modernisation of the international airports at Delhi and Mumbai through the formation of two separate Joint Venture Companies (JVCs) for world-class development and expansion. It was also decided that AAI and other public sector undertakings (PSUs) of the government would hold 26 per cent equity while the remaining 74 per cent of the equity would be held by the private sector partners. The transaction of restructuring and modernisation of Delhi and Mumbai airports, has been proposed to be structured with the mechanism of upfront fee as well as annual lease payment from the JVCs. The quantum of revenue, which will accrue to AAI, can be estimated only after the bidding process. The existing manpower at the two airports is to be utilised by the JVCs for three years. Thereafter, at least 40 per cent of the employees shall be offered regular appointment in the JVCs. The remaining employees shall revert to AAI.
|
|
Remove word ‘baby’ from labels, J&J told
Mumbai, March 16 The FDA has asked J&J to remove the word ‘baby’ from several of its products. The FDA had probed six products from the company including baby shampoo and baby oil. However the company’s baby soap was given a clean chit by the
FDA. The authority termed the word usage ‘misleading’. The company was issued notice yesterday as chemicals used in the products were in no way different from those used in other cosmetic products, FDA commissioner A. Ramakrishnan said. He said at least six products, including baby shampoo and baby oil came under FDA scanner following complaints. The official, however, added that baby soap did not have any harmful chemicals in it. He said the company has been given 15 days to file its reply. Mr Ramakrishnan said the use of liquid paraffin in baby oil violates section 17 C ( c ) of the Drugs and Cosmetic Act (1940) amounting to misbranding and misleading labelling. The body is also probing the soap products manufactured by Wipro. In its notice to Wipro, FDA stated that no sandalwood oil was present in the company’s sandalwood soap.
|
|
GTB integration by June, says OBC chief
Kolkata, March 16 In the last two quarters, GTB had posted losses of Rs 65 crore and Rs 10 crore respectively, adding that the operations was likely to post a profit in the last quarter. He said in the next financial year, GTB was expected to contribute Rs 350 crore into the profit and loss account of OBC. Some of the steps which were taken for full integration with OBC were those of merging the balance sheet of the two entities at both the head office and branch levels, and addressing the staff issue for which National Institute of Bank Management (NIBM) had been engaged. At the time of acquisition of, OBC had inherited a loss of Rs 1,415 crore. Mr Narang said that till February 2005, OBC had been able to recover cash worth Rs 140 crore, while accounts amounting to Rs 50 crore had been upgraded from doubtful to standard. Based on the settlement scheme, the bank was hopeful of recovering Rs 450 crore, he said, adding that there would be no compromise on the principal amount. He said criminal action had been also initiated against account holders, which included corporates and big players in the stock market. Besides, assets worth Rs 350 crore had also been restructured. The second public offering from Oriental Bank of Commerce (OBC) would hit the capital market in the first quarter in the next financial year, he said. Mr Narang told reporters here today the OBC had filed the draft prospectus with Securities & Exchange Board of India (Sebi) last Friday, adding that the capital market watchdog generally takes three weeks for giving the approval. The bank would issue 5.80 crore equity shares of Rs 10 each, the price of which would be determined by the book-building route.
|
|
UGC-Nasscom pact to boost IT workforce
New Delhi, March 16 The project, which is being initiated on a pilot basis, will first target about 20 teachers from 10 institutions and rapidly scale up. Being funded by the UGC and also to some extent by Nasscom, the project will have the academia-industry working together to increase students and faculty interface with IT through workshops, seminars and projects, which will provide students a chance to learn what the industry requires and also to earn. The efforts of the programme will be to ensure the upgradation of the graduation degrees and help students imbibe skills, said Nasscom President, Mr Kiran Karnik. Referring to the need to equip students with skills, he said, “graduates are not unemployed, but unemployable”. Prof. Arun Nigavekar said, “The 21st century demands that in the higher education there should be access and equity and through these we can have quality”. The UGC-Nasscom will also partner in setting up of Techno-Business Skills Development Centres.
|
|
Carmakers to jack up prices
New Delhi, March 16 The shift to new emission standards, coupled with an expected rise in steel prices next month, is forcing domestic car manufacturers to raise prices. In the price race, motor cycle makers are also in the same league with Bajaj Auto finalising the cost rise ratio. India’s biggest utility vehicles maker Mahindra and Mahindra Ltd has decided to increase prices of some of its models from April. “When we introduce our new BS-II (Bharat Stage) and BS-III vehicles next month, we will raise prices in line with the new emission norms and higher steel costs,” Mahindra Chief Operating Officer (Automotive Division) Pawan Goenka said. Bus and truck maker Tata Motors Ltd would raise prices of its cars by 2 to 3 per cent in April. “There is a whole host of factors responsible for the price increase, chief among them steel costs and the new emission norms,” Tata Motors Vice-President (Passenger Vehicles) Rajiv Dube said. He said the company has not taken any decision on raising prices. General Motors India said prices of its mid-sized sedans, the Optra and the Corsa, as well as the multi-utility vehicle Tavera would go up from next month. “While Tavera prices will go up by 2 to 3 per cent, Corsa and Optra will be dearer by 1-2 per cent from April this year,” a spokesperson for General Motors India said, adding that the increase in prices included the effect of the shift to Euro III emission standards as well as the higher steel costs. Yesterday, Maruti Udyog Ltd said it would raise the prices of all its models from April on account of high steel costs. However, the quantum of increase is still to be worked out, Maruti added. The proposed raise would be in addition to the new pricing announced by the company for switching to Euro III emission norms in 11 cities and Euro II norms in other parts of the country as per the new auto fuel policy. India’s second-biggest motor cycle maker Bajaj Auto Ltd (BAL) said it would increase prices of all its vehicles by 1-2 per cent because of the higher steel costs. “We are yet to determine when these will come into effect,” said BAL Vice-President (Marketing and Business Development) R.L. Ravichandran.
— UNI
|
|
Sony Ericsson eyes India
New Delhi, March 16 “India is a big market. We are evaluating the manufacturing option but we cannot take any final decision over this as we outsource most of our
manufacturing to business partners like Flextronics and Beijing Mobile Corporation. We have provided them information on the Indian market, now it should be their call”, Sudhin Mathur, GM, Sony Ericsson India, said here after launching a slew of new cellular phones.
— PTI
|
|
|
Mico to invest $ 2 b in India
New Delhi, March 16 Addressing a press conference, Dr Albert Hieronimus, Managing Director, Motor Industries Company Limited (Mico), said, “we will start the production of various components for CRS in 2005. The high pressure pumps for the system will be produced in Bangalore, supported by the production of injectors at Nasik.” The company will leverage, he said, the emerging opportunities in the Indian automobile sector, especially as the Bharat Stage II and Bharat III emission norms roll out across the country. It will help come up with products and technologies that make mobility cleaner, safer and more economical.
|
|
SBI woos rural segment
Rajpura (Aakeri), March 16 Addressing a gathering, AGM (Personal Banking), Mr Ashutosh Sharma, said “the idea is to market the products at their doorstep as villagers find it difficult to visit branches, which are often located at some distance. Apart from the visual communication, the mobile van is accompanied by a team of marketing personnel, who address the queries of the villagers.” A van with hoardings showcasing products and services moves to a village and an announcement is made from the local gurdwara or community centre, said Mr Sharma. The project was launched 25 days ago and has covered nearly 150 villages in Moga and Patiala district.
|
|
|
|
|
|
|
bb
UTI Bank GDRs Equipment hub LG laptops Yes Bank IPO IVRCL price band Kribhco manager Orchid pact |
| HOME PAGE | |
Punjab | Haryana | Jammu & Kashmir |
Himachal Pradesh | Regional Briefs |
Nation | Opinions | | Business | Sports | World | Mailbag | Chandigarh | Ludhiana | Delhi | | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
