New Delhi, February 16
At a time when the country is keeping high vigilance from terrorist threats that are looming large in the region, the government's own arm is procuring sub-standard scanning equipment for cargos coming in from sea ports.

On February 18, the Central Board of Excise and Customs (CBEC) will open tenders to procure mobile Gamma-Ray Containers Scanning Systems to be deployed at Chennai, Kandla, and Tuticorin port.

Mobile scanners are used for scanning containers in ports and borders to check hidden arms and ammunition and other items like bombs and explosives.

These scanners are required as a measure of security on the ports, because every container cannot be inspected manually.

Such necessity and the seriousness of deploying these scanners notwithstanding, the ministry of finance does not think that it is a serious issue and has ordered for technology that is sub-standard.

The reason why a gamma scanner is not a very effective alternative is sighted in the objections raised by the Intelligence Bureau (IB), which conducted an independent inquiry to ascertain the suitability of mobile gamma scanner, and has come to the conclusion that, the system uses gamma rays from Cobalt 60 source and has a penetration limit of only 150 mm steel, which is not suitable for detection of weapons, arms, ammunition and other cargo that is dense.

Another reason why gamma scanner is not effective is because it uses radioactive source, that in case of a terrorist attack, will cause radioactive exposure through a diameter of 1 km. These gamma scanners, which are purported to prevent terrorism, could instead be an environmental hazard.

The CBEC, despite knowing that it is a failed equipment that does not have enough strength, has still gone ahead and opened a tender for the same technology called gamma.

The CBEC, in its own words stated that, the images transmitted by the system are not very clear, which is a major shortcoming, the purpose for which it has been deployed is defeated.

In addition to the failed system, the CBEC has paid double the price for these equipment, when it first bought them in 2003. ECIL Rapiscan,the company supplying gamma scanner, was paid Rs 9.57 crore, which in the US would have cost less than Rs 4 crore.

When the original draft was proposed by the CBEC for procuring this equipment in 2005, it was sought to buy mobile cargo scanners having minimum capability of penetrating 200 mm steel.

This requirement of 200mm penetration of steel is in conformity with the norms of the World Customs Organisation, a fact confirmed by the ministry of finance in its original draft presented to the Cabinet Committee of Economic Affairs (CCEA).

On July 19, 2007, the CVC ordered an inquiry into the proposed purchase of mobile gamma scanners.

The enquiry was supposed to end in about three months, however, to date the CVC has not been able to complete its inquiry.

Yet, the CBEC is going ahead with the present tender for mobile gamma scanners, ignoring IB's warnings, CBEC's own bitter experience and pending CVC inquiry.

New Delhi, February 16
The Indo-US relations improving by the day and US emerging as one of the possible major supplier to arms and ammunition to the country, the US companies today sought a “level playing” field and "fair evaluation" in the weapons bidding process while seeking to capture the lucrative market here.

As many as 46 companies, the largest number, are participating in the DefExpo 2008. While showcasing their weapon systems at the exposition, the US companies have also sent their top executives as part of the USIBC.

Some of the executives here stressed that the military ties between the two countries were set to grow and the fate of civil nuclear deal will have no impact on this.

Former US defence secretary William Cohen, who heads the Cohen group of companies, indicated that the American companies were keenly watching the upcoming visit of defence secretary Robert Gates to India in terms of generating business.

He noted that Gates' two-day visit from February 26 was significant, and told reporters, "we have stressed upon Gates to ensure that US companies get a level playing field and fair evaluation in bidding for Indian contracts."

Cohen and Raytheon Asia chief William P Doran said the US companies had on offer the most advanced technologies not available anywhere in the world.

They said that were looking forward to being a reliable supplier and trusted partner of the Indian military for a long term.

They noted that the arms deals had paved the way for "collaborations and joint ventures" between US and India firms and visualised a big jump in the defence ties.

New Delhi, February 16
DefExpo-2008, which was inaugurated today, would be a major platform for the small and medium enterprises (SMEs) which can look at forging ties with suppliers from abroad keeping in mind the country’s offset policy, a senior official of the CII said.

Lt-Gen S.S. Mehta, director general of CII, which is organising the expo in conjunction with MoD, said the exhibition could actually lay down the route for the SMEs to forge alliances to bring the latest technology into the country.

With the Indian armed forces eyeing purchases of Rs 155 billion over the next five years, he said it was time to raise the threshold of technology available in the country through these alliances.

He pointed out that the SMEs had a very crucial role to play over the next decade or so with the country going in for major deals.

Incidentally, keeping this very factor in mind a record 475 defence manufacturers, including 202 from the country, are showcasing their products at the DefExpo.

Spread over eight halls and 32,000 sq mt of open and covered space, Defexpo-2008 will see the launch of a staggering 91 new products ranging from radars, to communications systems, torpedoes, anti-mine vehicles, unmanned aerial vehicles and combat clothing.

Kolkata, February 16
Buddhadeb Bhattacharjee's much- published Salt Lake's IT hub has suffered a major setback following the sudden sacking of several young engineers by the software MNCs, which had earlier recruited them last year through campus interviews.

The state's lT industry is protected under special rules, which have guarded the industry against the trade union activities.

But, unfortunately, the IT corporate bosses at Salt Lake have utilised that weapon in dismissing about 700 new recruits (TCS-500 and IBM-200) recently without assigning any reasons. It is learnt that some more engineers are on the list, who will be receiving the termination notices in due course.

As a result, Salt Lake's Sector V — lT hub, has suddenly turned into a "nightmarish dreadful world" for numerous of other young boys and girls who have been working 24X7 in various capacities for fulfilling the job commitments of their respective companies' foreign clients.

But they all are panicky and frightful. They are anxious about their job protection. The upcoming IT engineers are worried, and so are their parents, about their children's future.

The state IT department, too, is deeply disturbed. The trade union leaders are aggrieved that the MNCs have been now behaving like tyrants and dismissing their employees at their wish.

None from IBM and TCS was available for their comments. But some engineers attached to the IT industry at Salt Lake said the IT companies were now forced to downsize the employees strength in the wake of sudden devaluation of the dollar and the possible recession in the US.

New Delhi, February 16
India is expected to finalise and formalise Free Trade Agreements (FTAs) with the major economies in the region in a year, union commerce and industry minister Kamal Nath said here today.

“The signing of the agreements with all the regional economies will enable India to effectively integrate with the new and emerging global economic architecture.

The agreements will further enable the Indian industry to adapt to the changing global business dynamics,” Nath said.

These agreements, he said, will definitely adversely impact certain sections of Indian industry in the short-run, but in the longer-run, “We will realise the worth of the efforts and measures taken today.”

The minister was speaking at a special luncheon session on “The new global architecture: WTO, RTAs and FTAs” at the 80th Ficci AGM here.

According to Nath, the time had come for India to occupy its rightful place in the new global and regional economic and trade order.

For this to happen, India needed to consolidate its efforts in terms of technological upgradation, skill development, and business competitiveness.

Raising the issue of high levels of subsidies given by developed countries, specially the US and the European countries, Nath underlined that the current distortions in the trade dynamics due to such measures was completely unacceptable to developing countries, of whom, India has emerged as a collective voice, which, developed nations can no longer afford to ignore.

“Better late than never" is the unanimous feeling of all persons connected with civil aviation. The start of the international flights from Srinagar to various destinations and back will have multiple advantages for twin vital industries, aviation and tourism.

The operation of direct flights from Srinagar and back will considerably reduce congestion at the Indira Gandhi International Airport (IGIA).

Not only this, there will be an unprecedented demand for "chartered flights" for tourism and golf in the valley of rare beauty.

The proximity of the Srinagar airport is very vex. The central and state governments will have to make extraordinary immigration arrangements so that untoward incidences of piracy do not take place.

Not long ago, the United Nations Military Observer Group (UNMOG) in India and Pakistan had been operating flights from Islamabad to Delhi with an unauthorised stop-over at Srinagar. Such flights were not shown as international flights but domestic flights and the passengers flew in and out without any immigration check. The flights were received by the UNMOG’s representative at Delhi's domestic airport.

According to decisions, taken by senior ministers, the terminal at Srinagar will be fully operational by June this year. The extended runway, aerobridges and parking bays

will all be ready for wide-bodied aircraft to land and take off. The Airports Authority of India (AAI), which has been entrusted with the responsibility for the completion of the work, is optimistic that the initial flights between Srinagar and Gulf will start functioning before June is out, as planned.

The operations of the international flights from Srinagar is one of the major achievements of the AAI in recent years. Its chairman, K. Ramalingam, specialist in planning and operational areas, says that more airports in the region will get facelift. His five-year term ends on March 10, 2009.

Chandigarh, Punjab, Haryana and Himachal Pradesh are all set for international flights. The AAI has many competent officials, who should concentrate on developing regional areas on war-footing.

Let Delhi and Mumbai be handled by private companies. Dual control is always counter-productive. The unsavoury happenings at Delhi airport are on account of dual control.

The international airport at Greater Noida is an exciting prospect. It should be allowed to develop without any political hitch. The more the international airports,

the better will be for the country. Similarly, cargo operations should also be upgraded. It is alright to have Nagpur as cargo hub, but other regions should not be neglected.

Maybe, Haryana will be another centre where cargo hub can be earmarked. Any fertile area around IGIA will be suitable for cargo operations.

Q: Recently, Colgate Palmolive (India) reduced their share capital by reducing the face value of their shares from Rs 10 to Re 1 effective from 1.11.07. It refunded difference of Rs 9 per share to the shareholder.

My query is: Whether Rs 9 per share received by me and other shareholders is regarded as deemed dividend and hence tax-free or it is regarded as long-term/short-term capital gains based on date of acquisition of shares by the shareholder.

— Noshiir Mobedjina