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Plan Panel for deregulation of sugar, fertiliser sectors
Air-India may lease aircraft
AAI plans jvs for Kolkata, Chennai airports
Intex to set up unit at Baddi
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Caparo Group makes ‘new push’ in India
Market update
Tax Advice
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Plan Panel for deregulation of sugar, fertiliser sectors
New Delhi, June 18 "Accelerating to 8.5 per cent growth in GDP will require industry to grow at 10 per cent and manufacturing at 12 per cent. This calls for substantial increase in investment in the industrial sector, combined with technological upgradation and modernisation to achieve efficiency levels needed to survive in an increasing competitive world," the Commission says in draft approach paper to the 11th Plan. The paper is to be circulated among Chief Ministers of various states for a final nod of the National Development Council (NDC), whose meeting is slated for August. It also calls for a comprehensive review of the mining policy to exploit the "largely unexplored mineral wealth". It says there is enormous scope for attracting investments in this high capital intensive area. In an obvious attempt to refrain from entering into contentious issues, the paper is completely silent on the issue of disinvestment. Faced with stiff resistance from the Left parties, disinvestment has been put on the back-burner by the UPA government. Besides, the state governments, too, want to go slow on disinvestment of PSU's under their control. The paper has been prepared under the guidance of Planning Commission Deputy Chairman Montek Singh Ahluwalia. The Paper says some industries, such as fertilisers and sugar, continue to be subject to controls and there was room for deregulation. Meanwhile, the Planning Commission has warned that 8-9 per cent growth in the 11th Plan beginning next year would not be possible without pushing up the investment rate by a whopping 6 per cent from the present level of 29.1 per cent of the GDP. In its draft approach paper to the 11th Plan, the Commission said high growth would also have to be propelled through willingness of both public and private sectors to invest, coupled with the ability to finance them. It noted that the required investment of 35.1 per cent was much lower than the investment rate reported in neighbouring China. The higher level of investment has to be financed by some combination of increased domestic savings and increased foreign savings, which meant more foreign direct investment into the country. A significant portion of the needed increase in domestic savings will, therefore, have to come from an improvement in government savings, which has shown a turnaround by around 2.5 per cent of GDP. But, further improvement would require strong budgetary discipline by both state and Central Governments, the plan panel observed. "Fortunately this buoyancy in tax revenues displayed in recent years suggests that the efforts at reforms of tax structure and tax administration were having an impact and continuation of these efforts in the Centre and also in the states should lead to rapid growth in tax revenues. This phenomenon needs to be combined with moderation in the growth of current expenditure, especially in subsidies combined with progress in rationalising user charges to reduce losses in various public sector areas," the Plan Panel
said. — Agencies |
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New Delhi, June 18 Announcing that tenders were expected to be issued shortly, he said wet-leased aircraft would be taken only from airlines and not from any leasing company. Under wet lease, an aircraft is leased with cockpit and/or cabin crew while under dry lease, only the plane is made available. He also clarified that this route would be taken only if dry-leased planes were not available and wet lease would only entail pilots and not the cabin crew. The AI chief said the airline planned to launch flights to Mauritius with the leased aircraft. Besides, Air-India also planned to launch flights from Mangalore and to Dubai in the near future. He said Air-India subsidiary, AI Express, would soon start operations to Kuala Lumpur from Chennai and was awaiting approval from the Malaysian Government which, he hoped, would be available in a few weeks. However, Air-India had begun these flights from Chennai last week with leased AI Express aircraft which were operating under AI codes, Mr Thulasidass said. — PTI
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AAI plans jvs for Kolkata, Chennai airports
New Delhi, June 18 Further, the AAI may get only 10 per cent of the gross revenue share from Kolkata and Chennai as against 45.99 per cent in Delhi and 38.7 per cent in Mumbai. “The equity infusion by the AAI for Chennai and Kolkata joint venture companies has been estimated as approximately 50 per cent of the equity investment in the case of Delhi and Mumbai. The equity infusion by the AAI during 2008-09 to 2013-14 will be Rs 150 crore,” official sources said. The equity share of private players together with borrowings would be about Rs 5,550 crore, sources said, indicating that the AAI could retain only a minority stake in the two joint ventures. The Prime Minister’s Committee on Infrastructure had earlier mandated that Kolkata and Chennai airports would be developed through the public-private-partnership route on the model followed for Delhi and Mumbai airports. It has been assumed that the restructuring process of Kolkata and Chennai airports would be completed by March 31, 2008. However, Civil Aviation Minister Praful Patel said the route towards modernisation of the two airports would be taken only after talks with the Left parties and UPA ally DMK, ruling the two states. The modernisation of Kolkata and Chennai airports would require about Rs 5,700 crore investment between 2008-09 and 2013-14, half of what has been envisaged in Delhi and Mumbai. The AAI is also projected to receive upfront payments of Rs 175 crore from the Kolkata and Chennai joint venture companies, part of which is proposed to be utilised in the development of non-metro airports. In comparison, the AAI would get Rs 300 crore upfront payments from Delhi and Mumbai airport jvs. In Delhi and Mumbai, the AAI has a 26 per cent stake in the joint venture. It would be contributing an equity capital of Rs 302 crore out of the total Rs 11,400- crore investment required. — PTI
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New Delhi, June 18 The facility would meet 5-10 per cent of the company’s requirements while the rest would continue to be met through imports from China and Taiwan, he said. “The plant will manufacture computer peripherals, desktop computers, besides some of the consumer electronics items,” he said. The company has reported over 56 per cent increase in its turnover at Rs 188 crore during 2005-06. — PTI
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Caparo Group makes ‘new push’ in India
London, June 18 The Caparo Group, which has invested heavily in auto accessory plants in Rajasthan, Haryana, Madhya Pradesh and other states, hopes to have a turnover of about Rs 1,000 crore in India by next year. “The group’s new push into India, where Caparo is building a clutch of factories to supply components to vehicle manufacturers, will boost profits again,” Paul told the newspaper. Though India draws him back increasingly, Paul said he was “misinterpreted” when the Indian press quoted him as saying that he would retire to the country of his birth. “I simply said that if there was no more work for me to do here, India would be a more comfortable place to live on the same money,” he said.
— PTI |
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Go for select buying
by Lalit Batra Markets recovered as bulls returned last week after a month-long sabbatical. Tracking global cues the market rebounded sharply during the last two trading days of the week and this helped Sensex close higher by 74 points last week. Nifty was up 24 points to close at 2,890. All eyes would be set on the US Federal Reserve on June 28. Though markets have already factored in a 25 basis point hike in the US interest rates, investors are keenly awaiting the clues on the future direction of US interest rates beyond June. Long-term investors may continue to buy selectively in case markets correct again. Such investors should not worry about the daily volatility of the markets and remember that equities provide superior returns as compared to other asset class over the long term. Indraprastha Gas
Indraprastha Gas Limited (IGL) is the sole gas player in the NCT (national capital territory) of Delhi. The company is well backed by its promoters Gas Authority of India (GAIL) and Bharat Petroleum Corporation Limited (BPCL). IGL sources its natural gas requirements from GAIL through the HBJ pipeline. It has a network of 300 km pipelines for the PNG (piped natural gas) business and another 130 km for CNG (compressed natural gas) business, thereby surrounding the length and breadth of the NCT of Delhi. The company has benefited to a great extent from the Supreme Court’s verdict to convert all public transport vehicles in Delhi to CNG so as to control pollution. Another important advantage that IGL enjoys is that CNG is cheaper by 30 to 35 per cent (cost per kilometre). This advantage for LPG is in the vicinity of 10 per cent to 12 per cent. The potential for the company is immense. The Supreme Court’s verdict clearly states that there is need for shifting all public transport from conventional fuels (petrol and diesel) to CNG to control pollution. IGL has been investing in pipelines and distribution for expansion into surrounding cities such as Noida, Ghaziabad, Gurgaon and Faridabad. These regions constitute the industrial belt and provide immense opportunities to CNG and PNG business. As per the un-audited results for the past financial year, the company has reported an earning per share of Rs 7.6. The stock is currently trading at a discounting of 13.1 times which is low, considering the fact the company has a huge potential going forward. |
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Wife can claim rebate on husband’s insurance premium
by S.C. Vasudeva Q. I have a LIC policy and paying premium Rs 24,763 per year. My wife is income tax payee. From the start, I’m claiming income tax rebate on the same LIC. I want to know that “may my wife claim the income tax rebate on my policy?” — Surender Singh Saini A. The deduction for the life insurance premia payment can be claimed by the husband to keep in force an insurance on the life of his wife. Similarly, it can also be claimed by the wife to keep in force an insurance on the life of her husband. However, such deduction can be claimed by one of them only. Tax calculation Q.
What tax is payable by us during the Financial Year 2005-06 being govt. employees.
Income from salary 1. GPF 1,20,000 10,000 — K.L. Bansal, Abohar A. On the basis of figures given by you, the total income in your case works out at Rs 2,60,000 (3,60,000 - 1,00,000) on which a tax of Rs 28,560, including education cess would be payable. In case of your wife, the total taxable income works out at Rs 2,00,000 on which a tax of Rs 11,730 would work out as payable, including education cess. In your case the maximum deduction allowable under Section 80C of the Act and section 80CCC of the Act (for pension plan) of the Act is limited to Rs 1,00,000. Capital gain Q. I purchased shares of a company for Rs 20,000 & sold for Rs 24,000, gaining Rs 4,000 after six months of it in my custody. How I will club it in my income tax return. — Rajeev Chopra A. The amount earned on the sale of equity shares within a period of one year of holding the shares is taxable as a
short-term capital gain at the rate of 10 pc plus education cess of 2 pc. In the present case, if the shares held by you are equity shares and have been held for a period of six months only, the amount of Rs 4,000 would be taxable separately as short term capital gain at the rate of 10 pc plus education cess of 2 pc. Your other income would be taxed on the normal tax rates. Tax liability Q. I am a senior citizen of 61 years of age. Following incomes will accrue me in 2005-06 (Assessment year 2006-07): 1. Interest on P.O. savings: MIS (Rs 3 lakh) Rs 24,000 Sr. Citizen Scheme (Rs 15 lakh) Rs 1,35,000 P.O. Fixed Deposit (Rs 5 lakh) Rs 37,250 2. Bank Interest Rs 3,00,000 3. Annual Pension Rs 95,000 4. Agricultural Rs 40,000 Kindly compute my total income-tax for 2005-06 (Assessment Year 2006-07) I have EPF contribution of Rs 70,000, ULIP + Rs 5,000 I also propose to invest Rs 30,000 in infrastructure Bonds and Rs 10,000 in ICICI Prudential Life Insurance during 2005-06. I am a Income-tax payee with PAN while my wife is a house wife. — G.G. Sachdeva, Bathinda A. On the basis of figures given by you, your total income works out at Rs 5,91,250. After allowing the deduction under Section 80C of the Act, which is limited to Rs 1 lakh for contributions for various savings schemes, the net income would work out at Rs 4,91,250. The amount of agricultural income is to be added for the purpose of computing the average rate of tax in the following manner. The tax on such income is computed as under: Rs.
Total income after 80C deductions 4,91,250 Add: agricultural income 40,000 5,31,250 Tax on above 1,09,375 Less tax on agricultural income 40,000 + 1,00,000 4,000 1,05,375 Add education cess @ 2 pc. 2,108 Total tax payable 1,07,483 It is presumed that agricultural income is net agricultural income i.e. after deducting the expense incurred in connection with the agricultural operations. Further, the tax has been computed on the basis of normal exempt slab of Rs 1,00,000 instead of Rs 1,85,000 which is applicable to persons of the age of 65 years or above. As per the provisions of the Act, senior citizen status is available only to persons of the age of 65 years or above. Since you are of 61 years of age, the higher exemption limit is not applicable to you. Gift limit Q. Kindly confirm that in Financial Year 2006-07, the limit of gift from non-relatives has been extended from Rs 25,000 to Rs 50,000. — R.P. Bindal, Jind A. The limit for the taxability of gift from non relatives has not been raised to Rs.50,000 and still remains at Rs 25,000. Section 80C Q. My total salary / income during the year 2005-2006 is Rs.3,09,000/-, I intend to deposit Rs 1,00,000 towards ICICI Prudential Tax Plan. I want to know my tax liabilities. — Ajay Sandhu, Mohali A. You need to ensure that the above plan is notified under Section 10(23D) of the Act. If it is so notified, then the same would be covered under Section 80C of the Act and deduction under the said section would be allowable to the extent of Rs 1,00,000 under the said section. |
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Core Projects CEO of the year Inflation up
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