Punjab on track to be next textile hub
Chandigarh, November 10
Punjab and its surrounding areas of Himachal are on fast track to become the next textile hub of the country. Even as textile majors in the Baddi-DeraBassi-Lalru belt and Ludhiana-Barnala belt are increasing their spindlage, international companies like Huntsman, Rieter and Texparts are also setting up base in the state.

New Delhi, November 10
Ahead of India’s talks with the European Union (EU) over the proposed free trade agreement (FTA), the European Union has threatened to take India to the World Trade Organisation (WTO) over high duties on imported wine and spirits.

The issue is expected to be taken up by European Union Trade Commissioner Peter Mandelson with India during his visit to New Delhi from November 17.

“The ministry has urged the State Empowered Committee of Finance Ministers on VAT headed by West Bengal Finance Minister Asim Dasgupta to look into the issue at the earliest as it is concerned with the states, which collect excise duty on domestic and imported liquor. We are making efforts to settle this old dispute once for all,” said a senior official of the Ministry of Commerce and Industry.

The industrial chambers, which have been pushing the government to sign a FTA with the EU admitted that the delay in settling of such disputes could adversely affect the ongoing negotiations between New Delhi and Brussels.

In fact, the EU has set India a deadline of just over a week to start dismantling what Brussels saw as unfair barriers to wine and spirits exports or face a case at the World Trade Organisation (WTO).

Allaying aside apprehensions, the ministry official said New Delhi was hopeful that issue would be settled amicably through formal consultations.

The European Union's Executive Commission has long called on India to bring down obstacles to imported wine and spirits, financial services including insurance, banking and other sectors. A Commission report earlier this year, prompted by complaints from European producers, said there were "clear violations of WTO provisions" in some Indian states. The combination of duties and taxes is as high as 550 per cent on imported spirits and 264 per cent on imported wines, the report said.

The state governments are however, resisting the move to bring down excise duty on wine and spirits saying that it was a major source of revenue collection for the state budget.

“New Delhi should take a tough stand on the issue as the country has imposed high duty on domestic and imported liquor alike due to social reasons. Tomorrow, cigarette companies in EU may ask India to cut down excise duty, which has been imposed due to health reasons,” said an official of an industrial chamber associated with the FTA talks.

Mandelson has said he will adopt a more "hard-headed" approach to trade issues than his predecessors as he tries to open up new markets for European companies.

The EU, in coordination with the United States and Canada, earlier this year launched proceedings against China in a dispute over Chinese tariffs for auto parts.

Mandelson is also due to discuss ways of reviving the WTO's stalled Doha round of negotiations to reduce barriers to global trade when he visits India next week.

New Delhi, November 10
The government is giving final touches to the new Companies Bill for introduction in the Budget session of 2007, Minister of Company Affairs Prem Chand Gupta announced here today.

Addressing the National Conference on ‘Emerging Trends in Corporate Laws’ organised by FICCI, Mr Gupta said the government was keen to operationalise the Competition Commission of India and has introduced amendments to the Competition Act after taking into consideration the legal challenges and the order of the apex court.

The Minister added that Limited Liability Partnerships (LLP) Bill was being finalised and expected to introduce the Bill in the winter session of Parliament.

LLP, he said, will be a new corporate form, enabling professional expertise to organise and provide a range of services to the corporate sector in a comprehensive and efficient manner. 

Chandigarh, November 10
Over 400 hoteliers from across the country, who are in the city to attend the 42nd annual convention of the Federation of Hotel and Restaurant Associations of India (FHRAI), did not get much out of the Punjab Governor-cum-UT Administrator.

In a tone that was more candid than candied, the Governor, Gen S.F. Rodrigues (retd), today asked the delegates “to give and not just take”. “You want me to get people here so that you can earn profit!” he exclaimed.

General Rodrigues asked the hoteliers not to simply wait for the things to happen, but to organise events like golf tournaments for attracting crowds.

Commenting on the demand of hoteliers for a long-term lease, he said the administration could give them the opportunity and the right kind of environment, but not the vision.

Offering joint venture and mutually beneficial partnerships with total transparency for developing quality tourism services, he called upon the entrepreneurs in the industry to strengthen the tourism infrastructure in the region and help develop Chandigarh as a hub of sustained tourism growth.

He emphasised upon the need for introducing an effective institutional mechanism by the northern states for integrating tourism-related services in the region and offer package deals for the convenience of the tourists visiting Punjab, Haryana and other adjoining states.

He said, “We can no more work in isolation. If we want to develop our tourism potential, all state and regional barriers have to be removed. Besides this, the linkages between the tourism-related services and the infrastructure available in different states needs to be strengthened. Such coordinated and participative endeavors will help in boosting tourism inflow.”

General Rodrigues added that tourism has emerged as a thriving industry and a major contributor towards the country’s economy. As such, there is a need for constant dialogue between the government and private sector to take innovative initiatives for growth in this vital sector.

He asked the FHRAI to revamp its charter, focus on diversification and provide quality services to tourists. Special emphasis should be laid on opening more hotel management institutes for training professionals in the field.

He asserted that the UT Administration had introduced the concept of citizen’s charter in each and every department and the needy people were being given quality service.

Responding to the demands of the FHRAI, General Rodrigues said the administration has a rationalised system in every field and efforts were on to create an environment of faith and trust.

New York, November 10
Taj Hotels Resorts and Palaces, one of Asia's largest hotel groups, has entered into a definitive agreement to purchase the Ritz-Carlton hotel in Boston from its current owners, Millennium Partners.

The $170-million transaction is scheduled to close on January 11, 2007. The hotel will be renamed as the Taj Boston upon closing the purchase.

Taj Hotels Resorts and Palaces operates 75 hotels across the world, which include some of the world's most luxurious and iconic hotels.

Mr Raymond Bickson, Managing Director and CEO of Indian Hotels company, which operates Taj Hotel Resort and Palaces, said the new addition shows the commitment to establish significant presence in key destination across the globe.

"The Ritz-Carlton is one of New England's finest hotels and a premiere social address in Boston. We are delighted to extend our presence in the United States with this renowned hotel," he said.

"Its rich heritage, superb location and grand architecture make it an ideal fit for Taj," he added.

Taj Hotels will assume management of the hotel on January 11 next. — PTI

New Delhi, November 10
The government is considering a drastic revamp of the public procurement procedures by putting in place a new system of centralised regulations.

Stating this at the Assocham-World Bank organised Conference on Public Procurement here on Friday, Dr S.C. Pandey, Joint Secretary in the Ministry of Finance said, “The government is also considering the suggestion received from industry associations to constitute a Public Procurement Commission to facilitate the settlement of any dispute that might arise on account of its new public procurement policy.”

Dr Pandey added the new system being considered by the government will also provide for independent public procurement mechanism separately for Defence and Railways and a general monitoring mechanism for other departments to ensure absolute transparency in the procurement of government contracts.

Several inter-governmental meetings to evolve the new centrally regulated system with decentralised procurement procedures have taken place in the past under the constant monitoring of the Cabinet Secretary, said Dr Pandey.

The general finance rules as regards to public procurements are also being revised and modernised to suit the new requirement of public procurement particularly when massive purchases will be made by the government during its ambitious 11th plan period in which $ 320 billion is estimated to be spend on infrastructure purchases.

The state government’s purchases would be regulated with a system that is evolved at the central level for the purpose of ensuring fairness and transparency in all deals, empowering the states to take their own independent decisions, he said. 

Chandigarh, November 10
Punjab and its surrounding areas of Himachal are on fast track to become the next textile hub of the country. Even as textile majors in the Baddi-DeraBassi-Lalru belt and Ludhiana-Barnala belt are increasing their spindlage, international companies like Huntsman, Rieter and Texparts are also setting up base in the state.

Mr S.S. Aich, President, Textile Association (India), informed TNS that all major textile groups in the region —Vardhaman, Winsome Yarns, Nahar Industries and Rana Group — are aiming for a 25 per cent expansion in their capacities in the coming three years.

"The government's initiative to set up Technical Upgradation Fund, Apparel Parks and Integrated Textile Parks has given a new impetus to the textile growth. The textile units are not only expanding their facilities, but also upgrading and modernising their existing facilities," he said.

It may be noted that as of now the spindlage in Baddi-Dera Bassi- Lalru belt is to the tune of 12 lakh spindles. In the Ludhiana-Barnala belt, the spindlage is over 15 lakh.

Taking into account this expansion in Punjab, international players like Huntsman (dyes and chemicals), Rieter and Techparts (both machine manufacturers) have now set up shop in Chandigarh, especially to cater to industry in North India. The Government of India has also decided to create Integrated Textile Park near Bathinda in Punjab and Panipat in Haryana to further promote the textile industry.

"The global textile and clothing trade is presently pegged at $440 million and is expected to grow to $650 million.. Indian textile exports are expected to grow from $17 million now to $ 50 billion by 2010," Mr Saurabh Gupta, Secretary of the Textile Association said. 

Mumbai, November 10
Sachin Tendulkar today embarked on a new partnership with ITC's food division to promote a new brand of health food in his name — Sunfeast Sachin's Fit Kit.

"I know the importance of sustaining energy levels throughout a day's play. Based on my experience of playing for 17 years, I intend to give inputs to ITC to develop a range of products that will not only help sportspersons but also growing children," Tendulkar said at the launch function here.

"I had always wanted to do something like this and when my agents approached me with this proposal I found it exciting," the ace batsman said.

Tendulkar recalled how a few energy bars, which he had carried with him, had sustained him and his family while watching the last Wimbledon championship.

Tendulkar, however, refused to answer any query not connected with the product launch though relenting a bit and saying he was excited to be named as Asian heroes in `Time' magazine's forthcoming 60th anniversary issue.

ITC Food Division's CEO Ravi Naware said the products, to be promoted under the Sachin brand, would hit the market before the 2007 World Cup.

"That's our aim," he said, adding that because of Tendulkar's popularity in all strata of the society, the company is planning to keep the price range within the budget of the commom man for the health food products, like cookies.

"We will restrict it to health food first and include beverages at this stage," he added. — PTI 

Duesseldorf (Germany), November 10
Corus Chief Executive Philippe Varin today defended the $8.20 billion agreed takeover offer from Tata Steel that would create the world's fifth-largest steelmaker.

''We think it is definitely a good offer,'' he said at an industry conference in Germany. ''It is the right partner at the right time.''

The Anglo-Dutch steelmaker last month approved the Tata offer, which Varin said remained on track. Official offer documents could be published later on Friday or on Saturday, he said, expressing confidence the deal could close by January.

Standard Life Investments, Corus's biggest shareholder with a 7.9 per cent stake, said at the time that the offer of 455 pence per share did not represent ''significant value''.

''It has happened that shareholders say 'It is not enough','' Varin said, but added it was not up to him to comment on any potential counteroffers.

People close to the deal have played down prospects for a counteroffer, although some bankers think the combined entity could be an attractive takeover target one day.

Corus shares traded at 470.50 pence at 1028 GMT, suggesting the market still factored in prospects for a higher offer. — Reuters

New Delhi, November 10
ONGC will take 50.5 per cent stake in the company that will set up the over Rs 2,000-crore Tripura power project and the associated transmission lines.

"We have changed the format of the 740 MW project. While earlier it was proposed that ONGC would set up the power plant and a separate company would implement the transmission link for evacuation of power from the plant, now we propose to do both the jobs through just one company," an official said.

ONGC would take 50.5 per cent stake in the company that will set up the power plant and the associated transmission lines, while IL&FS would take 26 per cent.

IL&FS would arrange investors for the balance equity.

The project is estimated to cost around Rs 2,087.6 crore and would be implemented by end of 2009. The generated power will cater to the north-east demand and also be transmitted to Northern Grid to feed demand in north India. — PTI

Chennai, November 10
Gold and silver prices rallied smartly in the bullion market here today, with standard gold (24 ct) rising by Rs 185 per 10 grams to settle at Rs 9,290 and ornament gold by Rs 17 per gram to end at Rs 860 following a firm trend in overseas markets.

Bar silver (per kg) rallied smartly by Rs 890 to finish the day at Rs 19,820 against yesterday's close of Rs 18,930.

When the market began, standard gold (24ct) zoomed by Rs 160 per 10 grams to begin at Rs 9,265 over yesterday's close of Rs 9,105. It rallied further to conclude the day at Rs 9,290, registering a rise of Rs 185. — PTI 

New Delhi, November 10
The latest Human Development Report has put India at the 126th rank in the Human Development Index.

This means that though India has marginally improved its position from the last report on the United Nations Human Development Index (HDI), it still is way down the list of 177 countries evaluated by the United Nations Development Programme (UNDP).

The HDI is a composite index measuring average development in terms of a long and healthy life, knowledge or education and a decent standard of living.

The HDR- 2006 has said India lost 4.5 lakh lives annually to diarrhoea, more than any country. It says that water and sanitation are under-financed compared to military spending in India and what the country needs are adequate funds for basic amenities so that increased income levels can be successfully translated into human development.

“India spends eight times more of its national wealth on military budgets than on water and sanitation. All countries see national security and defence as priorities. But viewed through the prism of human security, it is difficult to avoid the conclusion that water and sanitation are under-financed relative to military spending,” the report titled ‘Beyond scarcity: Power, poverty and the global water crisis’, pointed out.

On the top of the HDI list is Norway, followed by Iceland, Australia, Ireland and Sweden. On the other end of the scale are Guinea-Bissau, Burkina Faso, Mali, Sierra Leone and Niger. The report says that the average person in Norway and Niger “certainly live in different human development districts of the global village.

However, it is the comparison between the incomparable that Union Minister for Water Resources Saifuddin Soz, who released the report in India, raised objection to.

He said the report was based on a relevant theme that could be utilised for helping understand the complex issue. “But as far as the ranking is concerned, I am blank. How can you compare India with Norway? It doesn’t appeal to my mind. I do not agree with the ranking,” he told the gathering in the UN Conference hall, here on Thursday.

In the South Asian neigbourhood, Pakistan too has moved up one point to 134. Bangladesh is up by two points to 137 while Sri Lanka maintains its status quo at 93. Maldives is down by two points at 98, Nepal by two points to 138 and Bhutan is at 135.