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Adjust income tax slabs, says Rangarajan
Rationalise taxes on ATF, Patel asks FM
Centre will not thrust any SEZ: Kamal Nath
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Spending in key areas falls: Study
Batteries to go green
Bajaj Bros’ Tussle
Single bank account for exporters, importers
Export Of Eggs TCS Q3 net up 24 pc at Rs 1,178 cr
Infy BPO to ink four deals worth $50-150 mn each
Intel develops mobile health monitoring device
M&M to invest Rs 100 cr for upgradation
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Adjust income tax slabs, says Rangarajan
New Delhi, January 16 Prime Minister’s Economic Advisory Council chairman C Rangarajan said, “In my view tax rates should be the way they are, however, some adjustments in the income tax slabs could be made but there should be no substantial reduction.” The council also advised the finance minister to increase public investment. The recent IIP figures for the month of November were an area of concern and the Advisory Council is taking a futuristic view to give stimulus to the economy in case any recessionary pressure is seen. He was replying to a query if the council favoured more income tax exemptions. Expressing concern over the slowdown in manufacturing sector that could restrict economic growth to 8.5 per cent in FY'09, he said: "...there are some areas of concern where there are weaknesses." The Indian economy had grown by 9.4 per cent in 2006-07, and is expected to clock close to 9 per cent growth this fiscal. When asked whether the council wanted reduction in excise duties on consumer durable goods, Rangarajan said: "Something of that sort." On oil sector, he said already the committee headed by him has recommended changing excise duty structure on crude to specific duties from the present ad-valorem. "That point was also made (at the meeting)," he said. On the rupee appreciation, Rangarajan said the issue was already discussed in a recent report of the council. The report had suggested three measures for dealing with the issue — allowing the rupee to appreciate a bit, making sterilised intervention and taking some steps to moderate capital flows. Growth in the manufacturing sector, which the EAC described as an area of weakness, dipped to 5.4 per cent in November, 2007 from 17.2 per cent in the same month in 2006. The overall industrial production plunged to 5.3 per cent from 15.8 per cent during the period. For the first eight months of this fiscal, manufacturing growth stood at 9.8 per cent, down from 11.8 per cent during the same period last fiscal. Industrial production, on the other hand, slid to 9.2 per cent from 10.9 per cent during the period. |
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Rationalise taxes on ATF, Patel asks FM
New Delhi, January 16 In a pre-budget meeting the minister also urged FM to extend the recent tax rebate given to the newly- merged Air India to the entire aviation industry as M&A activities would increase in the future. According to ministry officials, the minister also had other matters on mind to discuss with the Finance Minister, including withdrawal of service tax on first and business class travellers. At present service tax is levied on travellers in the first and the business class but only on those travelling in Indian airlines. Since this is not levied on foreign airlines it puts the India carriers at a disadvantage against them. “I feel that the impact of the price hike is something, which needs to be addressed by the government. This, coupled with higher taxes at the central and the state levels, is having serious impact on the viability and the financial health of the aviation sector,” Patel told reporters after the meeting. Patel said that finance minister was of the view that the government would have to understand the problems faced by the Civil Aviation Industry due to the high prices of ATF. According to aviation ministry officials, even though the finance minister did not make any commitment, he was sympathetic to the cause of domestic aviation sector that is reeling under cost escalations. The state taxes on aviation fuel vary between 4 per cent in Jharkhand to 38 per cent in Maharashtra. Patel told reporters later that the finance minister assured him that he, too, would impress upon states to prune taxes at the meeting with chief ministers in Delhi on Friday. “I have already asked the state governments to rationalise various taxes and duties levied on the airlines sector,” he said. |
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Centre will not thrust any SEZ: Kamal Nath
New Delhi, January 16 “SEZs have been successful, they have generated employment and investment, there is no rethinking on the SEZ Act as it is an Act of Parliament,” the minister stated. Referring to the Goa Government’s decision to scrap the SEZs in that state, Nath said “We have received a letter from the Goa Government and it is totally up to the state government to carry on with the SEZs or not. I have said earlier also that if the government does not trust SEZs in any state then it is for the states to decide on the kind of development model they would like to have.” Nath is also likely to have a meeting with WTO Director General Pascal Lamy during the three-day summit. Meanwhile, the Board of Approval for special economic zones will next month consider a request to scrap SEZs in Goa, weeks after Commerce Minister Kamal Nath asserted that the Centre will not thrust such projects on states, according to a PTI report. “We will take the issue to the Board of Approval which will meet in February to deliberate on Goa Government’s request to cancel the SEZs, including the three notified projects,” a highly placed official said. He said despite political assertions, it may not be legally tenable for the Centre to denotify SEZs that have already become legal entities. Goa had announced scrapping of all the 15 SEZs in the state on December 31. Three projects, including one from Cipla, have already been notified. |
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Spending in key areas falls: Study
New Delhi, January 16 In a study by Centre for Budget and Governance Accountability (CBGA) shows that the Centre’s expenditure as a proportion to GDP declined in the post-FRBM era from 7.49 per cent in 2002-03 to 6.42 per cent in 2005-06. The Centre’s total expenditure as a proportion of GDP has declined from around 17 per cent in 2003 to around 14 per cent in 2006-07. The government has achieved all-deficit targets of FRBM to the desired extent with the logic that reducing deficits will lead to decline in inflation. However, the deficits have declined substantially but the inflation has grown in tandem instead of reducing. The average annual growth in consumer price index for industrial workers, which was 3.74 per cent during 2000-01 further, increased by around 7 per cent during 2006-07. Economists are of the view that with a growing population and with an aspiration to become a developed nation, India cannot afford to neglect key sectors of the economy today and concentrate solely on industry and commerce. Unbalanced growth of the society will affect economy of the country that is rearing to be a major power in the 21st century. This decline in expenditure by the Centre has been in critical areas of development such as education, health, rural employment and agriculture. In case of education the expenditure has declined from around 2.5 per cent of GDP in 2002-03 to less than 2.2 per cent of GDP in 2005-06. In the health sector the expenditure drop has been from 0.6 per cent to 0.49 per cent and in agriculture from 0.67 per cent to 5.8 per cent. Critical areas as they are, a lack of attention to them will only add to stagnation and make India laggards instead of leaders in the human development index in the world. It is a very myopic view to governmental expenditure exercise done to please a few in powers making the whole lot suffers, economists say. The study says in the post-FRBM era the money is getting spent on interest payment due to high interest rate maintained by monetary authorities in order to keep the investors’ confidence intact. Such a high interest rate is a primary reason for high-fiscal deficits incurred by the state governments. It is shocking revelation that interest payments are mounting and the expenditure on capital investment is declining in India. The growth in government receipts has been more than the growth of GDP. By contrast the growth in total disbursements of the government is far less than the growth in receipts. |
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Batteries to go green
Chandigarh, January 16 Participants in the BEST program include Indian battery producers, including Tata GS Batteries, and bulk purchasers such as Hero Honda, Indian Railways, and Tata Motors; the government of India; international agencies; and non-governmental organisations. “Adoption of the eco-label provides a great incentive for companies to improve pollution control in India,” said Perry Gottesfeld, executive director of Occupational Knowledge International. “This program will help establish global best practices in environmental and social sustainability, especially in growth industries such as auto components and electronics, as well as in renewable energies, which depend on lead batteries as a back-up,” said Monika Weber-Fahr, IFC manager of the Sustainability Business Innovator. IFC has contributed about $350,000 or 55 per cent of total costs for the program, which is also supported by the Finnish and Norwegian governments. Lead batteries, which are used for cars, computers, generators, are a major pollution hazard, especially in the developing world. Lead poisoning is one of the most serious environmental health threats to children and a noxious contributor to occupational diseases. S. Vijayanand, DGM of Amara Raja Batteries Ltd, said, “As a responsible manufacturer of lead acid batteries, we have taken it upon ourselves to work toward a standard for emissions and battery handling, which was developed by our non-governmental partners.” |
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Bajaj Bros’ Tussle
New Delhi, January 16 Senior advocate and former Attorney General Ashok Desai, appearing for Rahul Bajaj submitted before CLB that the case comes under the Hindu Succession Act. “Let me clear that the Board has no jurisdiction over such matters,” he contended. Shishir, by filing a suit against Bajaj Sevashram-the group’s holding company, is trying to bring all other 11 companies under its ambit, Desai said. “He wants to reach all 11 companies... He must have an understanding about the ambit of the petition,” he added. On being asked by CLB Chairman S Balasubramanian if Rahul Bajaj accepts Shishir as a member of Bajaj Sevashram, Desai said “yes”. On this, the CLB chairman said: “Let me make clear that if he (Shishir) establishes Bajaj Sevashram as a family company, he could seek relief in all group companies.” Desai also pointed out that Shishir filed the case against Bajaj Sevashram when he was its chairman. “He is in the management... has 4 people out of 22 in the board. Then in such, no case of mismanagement could be made,” the Rahul’s counsel argued, adding that it was a matter of family settlement, which was wrongly put into section 397 and 398 of the Companies Act. Meanwhile, Shishir side strongly opposed Desai’s argument.
— PTI |
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Single bank account for exporters, importers
New Delhi, January 16 At present, exporters and importers need to operate multiple bank accounts to deal with different agencies, which results in a lot of procedural difficulties. The Commerce Ministry has advised different government wings, including the customs authorities, Directorate General of Foreign Trade, Container Corporation of India and airports, to facilitate electronic payment. “All concerned government agencies have been advised to facilitate e-payment using single core banking enable account of exporters/importers in the country,” an official statement said here today. However, accounts need to be opened in banks using the “anywhere banking” system, it said.
— PTI |
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Export Of
Eggs New Delhi, January 16 The National Egg Co-ordination Committee (NECC) said in absence of separate zones for different parts of the country, exports from the entire country get affected, leading to huge losses for the industry. India produces approximately 11 crore eggs per day and out of these nearly 1 crore are exported to several West Asian destinations besides some European countries like France. “Eggs are exported from Namakkal, Tamil Nadu, which is thousands of miles away from affected areas in West Bengal. Also, West Bengal is a deficit state in respect of poultry products. There is no movement of eggs or chicken from West Bengal to other states. In fact, deficit is met by supplies from states like Andhra Pradesh yet exports from Namakkal that have no connection with poultry in West Bengal has to suffer loss”. To avoid loss of export opportunities, the industry has been urging the government to create separate zones within the country as per guidelines of the OIE and informing importing countries and the OIE. This, it says, would ensure that even if there is an incidence of birds flu in some part of the country, exports from unaffected zones is not affected. The NECC says the poultry industry that provides employment to 3.2 million persons suffers a set back because of incidence of bird flu in an isolated back-yard poultry pocket that received day-old chicks from government hatcheries.
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TCS Q3 net up 24 pc at Rs 1,178 cr Mumbai, January 16 Net profit during October-December 2007-08 stood at Rs 1,178.99 crore compared to Rs 950.52 crore in the same period of the last fiscal. Total income rose 28.38 per cent to Rs 4,941.48 crore as against Rs 3,848.83 crore in the same quarter of 2006-07, TCS informed the Bombay Stock Exchange. "We are happy with our performance in this quarter. We have crossed $4 billion revenues in the first nine months, which gives us 41 per cent growth in dollar terms," TCS CEO & managing director S Ramadorai told reporters here. Ramadorai said the company maintained its operating margins despite the appreciating rupee as it improved efficiency and pricing, besides diversifying its global network delivery model and focusing on emerging markets. The operating margins are 24.16 per cent, up by 33 basis points. The rupee has risen more than 12 per cent in 2007 against the US dollar. On consolidated basis, third quarter net profit rose 18.86 per cent to Rs 1,326.67 crore from 1,116.1 crore a year ago, while total income increased 23.04 per cent to Rs 6,041.98 crore from Rs 4,910.53 crore a year ago. The company has announced a quarterly dividend of Rs 3 per share. — PTI
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Infy BPO to ink four deals worth $50-150 mn each
New Delhi, January 16 The deals would range from various sectors such as telecom, banking and others, Infosys BPO Chief Executive Officer and MD Amitabh Chaudhry told reporters declining to divulge further details. “We have recently signed small deals worth $ 5-7 million each and are hopeful of signing 3-4 more deals worth $ 50-150 in the next 3-6 months,” he said. The firm is also eyeing revenue of $ 250 million for the fiscal year 2007-08, he said. It has already recorded revenues of about $ 176 million in first nine months of FY08. He said the company is securing 15-25 per cent on renewed contracts. The company started working on integrating the
IT-BPO solutions for the last 12-18 months, he said. Infosys BPO is also betting big on the potential of the knowledge services industry in India, which is fast moving up in the value chain. Besides, it has also started legal process outsourcing. The effect of the sub-prime crisis will be ‘positive’ for Infosys BPO in the long term, he said adding, however, for the short term there could be a possibility of a partial delay in outsourcing.
— PTI |
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Intel develops mobile health monitoring device
Bangalore, January 16 The prototype, co-developed by Intel India and Intel US teams, monitors multiple physiological parameters using a wireless body area network. Besides ease of use, mobility, power efficiency and reliability, the device helps to generate real-time data for enabling quick investigation and treatment. "As preventive care is relevant to Indian market, the mobile health monitoring system will improve access and reduce the cost of healthcare. Mobile care will enable even the under-served population in the subcontinent to access treatment from inaccessible or remote areas," Intel’s chief technology officer Justine Rattner said at a demonstration of the prototype. Mobile health monitoring is seen as a new area of application for hand-held devices. There is a lot of research happening at Intel on hand-held devices being used for physiological sensing. “In future, with the help of such devices, we will be able to remotely monitor the health parameters and even the movements of a person on real-time basis. Imagine rescuing a person having heart attack or a stroke with the help of technology,” said Vittal Kini, director, Intel India research centre. Intel labs have also developed an adaptive snoozing technonolgy for energy saving and higher performance per watt. The new technology adapts to the network traffic seamlessly and senses automatically when there is no activity. |
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Diesel Engine
New Delhi, January 16 The company, which has earmarked Rs 200 crore for the development of the M-Hawk diesel engine, is working on various upgrades to meet different emission standards such as Bharat Stage IV and Euro IV, besides the US standard-T2B5, the most stringent globally at present. “We are working on making the M-Hawk engine T2B5 compliant for the US market in the next one year,” M&M president (automotive) Pawan Goenka told reporters here at the Auto Expo. He said once the T2B5 compliant engine is ready the company would launch its SUV Scorpio in the US market by the middle of 2009. — PTI |
Reliance IPO Mahindra deal Apollo Tyres SabseBolo.com MTNL plan Tata Steel JV Tata Group MoUs Subhash Projects |
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