The Tribune, Chandigarh, India

	No tax cuts to tackle drought, says Pranab New Delhi, September 8 Hoping to meet the indirect tax collection target this fiscal despite a negative trend in the first four months, Finance Minister Pranab Mukherjee today ruled out tax cuts to tackle the drought faced by nearly half the country. Asked if drought would lead to slippages in indirect tax collection, he said, “I do not know because I am not thinking of giving any tax concessions. Therefore, I am not concerned with that part.” Mukherjee was talking to reporters after addressing the annual conference of Chief Commissioners and Directors Generals of indirect taxes. He exhuded confidence that indirect tax collection target for the current fiscal would be met. The government has set a revenue target of about Rs 2,70,000 crore from indirect taxes during the current fiscal. Mukherjee expects an improvement in indirect tax collection from the third quarter, although it has declined 28 per cent in the first four months of FY’10. He said the negative growth of indirect tax collections in the first four months was a matter of worry and reflected the economic slowdown and consequent stimulus measures. As the economy started getting impacted substantially after financial services icon Lehman Brothers collapsed in mid September last year, the government announced stimulus measures like excise duty cut by 6 per cent and service tax by 2 per cent. On austerity measures announced by the Finance Ministry yesterday, he said government alone could entirely control expenditure. So the Lok Sabha speaker and Rajya Sabha chairman have been requested to issue directions on expenditure relating to both houses. He, however, did not give any specific figure on the expected savings from the 10 per cent cut in non-plan expenditure that the finance ministry directed every ministry and department to resort to. Asked if Goods and Services Tax (GST) will be introduced as per schedule on April 1, 2010, he said, “Talks are going on. We have identified certain areas where there are possibilities of convergence.” The Empowered Committee of state finance ministers will meet on September 16 to discuss the issue. On the withdrawal of stimulus packages, he reiterated that the finance ministers at G20 meeting agreed that economic situation globally was still not good and “it would not be desirable to work out an exit strategy at the moment”. — PTI
	‘Economic winter not over’ Bhagyashree Pande Tribune News Service New Delhi, September 8 The Trade and Development Report 2009 released by United Nations Conference on Trade and Development (UNCTAD) has projected the growth rate for the Indian economy at 5 per cent this fiscal. The report predicts that there will be a slowdown in consumption, hence, investment. Trade is expected to decline in real terms. The root cause of the slowdown is the weakness in macro economic fundamentals. Given this weakness, an upturn in financial indicators signals a temporary rebound from abnormally low levels of prices of financial assets and commodities, states the report. Stating that “green shoots” were seen by most countries as there was improvement in financial indicators combined with rebound of securities, commodity prices and exchange rate of several emerging market currencies in the first and mid quarter. But, the report warns, that the “economic winter” is far from over, as tumbling profits in real economy, previous overstatement in real estate and rising unemployment will continue to constrain private consumption and investment. However, despite projecting a lower growth rate, the UNCTAD report lists India as the second fastest growing economy after China, in the backdrop of the global economy set to shrink by 2.7 per cent in 2009. As it’s a global crisis, reliance on exports offers no easy way out, since trade is expected to decline by about 11 per cent in real terms and any new trade expansion requires a recovery of consumption and investment somewhere in the world. The report warns that the upswing in financial and commodity markets are not a reflection of strengthened macro economic fundamentals but of a restored “risk appetite” among financial agents. Consequently, they could be reversed at short notice, depending on the pace of recovery and financial market sentiment.
	Cognizant acquires US consultancy firm New Delhi, September 8 Nasdaq-listed IT company Cognizant Technology Solutions Corp today announced the acquisition of Pepperweed Advisors, the IT consulting services division of US-based Pepperweed Consulting, for an undisclosed sum. New Jersey-headquartered Cognizant, which provides consulting, technology and BPO services, has over 50 global delivery centres and over 64,000 employees and most of them are based in India. "The acquisition brings to Cognizant's IT Infrastructure Services practice a strategic consulting capability," Cognizant said in a statement. It had earlier acquired another US-based consultancy firm SVC and professional services firm AimNet. Pepperweed Advisors said it uses its proprietary best practice process models and software to act as an advisor to IT companies. "We welcome Pepperweed Advisors to the Cognizant fold as we strengthen our Cognizant Business Consulting offerings," said Cognizant CEO Francisco D'Souza. Pepperweed helps to round out our ITIS consulting portfolio while enhancing our ability to serve as trusted advisors to our clients," he added. "Process improvement is a top priority for IT infrastructure and operations leaders in 2009," said Cognizant vice-president (ITIS) Robert Boles. Pepperweed Advisors brings us intellectual property, IT process models, and detailed delivery kits that deepen our domain expertise and enable hands-on implementation for our clients, leveraging our ITIL-based global service delivery framework," he added. Pepperweed Advisors has developed substantial intellectual property and IT process models, including the Pepperweed Process Model. — PTI
	Now, Rs 10 plastic notes soon New Delhi, September 8 Soiled notes may soon be a thing of past with the RBI planning to introduce Rs 10 polymer banknotes whose life span would be 4 times the normal currency notes and would be difficult to imitate. The apex bank has initially decided to introduce 100 crore pieces of Rs 10 polymer notes, for which it has floated a global tender, a senior Central bank official told. Explaining the rationale for introduction of polymer notes, the official said, these notes would have an average life span of 5 years compared to one year for the currency notes. Besides, the official said, these notes were cleaner than paper notes and it would be difficult to counterfeit the currency. The polymer notes were first introduced in Australia to safeguard against counterfeiting of currency. Besides Australia, other countries which have introduced plastic notes include New Zealand, Papua New Guinea, Romania, Bermuda, Brunei and Vietnam. The RBI that has floated tender for polymer note has fixed October 20 as last date for submitting expression of interest. It is to be noted that the RBI in 2002 had said that there was no proposal to introduce polymer/plastic notes of higher denomination in place of paper notes. — PTI
	Cairn to pay CST only on crude sold in Rajasthan New Delhi, September 8 In an attempt to stop states from levying local sales tax on inter-state transactions, the Centre has told Rajasthan that only Central Sales Tax can be levied on crude oil sold from Cairn India's fields in the state to refiners elsewhere. Rajasthan wants to charge 3 per cent higher state sales tax or VAT on 8.75 million tonnes a year of peak output from Cairn's Barmer district fields despite oil being consumed or processed at refineries outside the state. Petroleum Secretary RS Pandey last month wrote to Rajasthan Chief Secretary Kushal Singh saying: "State Sales Tax/VAT would accrue to Rajasthan Government in case the sale of crude oil is made for further processing within Rajasthan." State refiners Indian Oil, Mangalore Refinery and Hindustan Petroleum have been nominated to buy crude from Cairn but none of them has refineries in Rajasthan and will necessarily have to transport the oil to their units outside the state for processing. "(One per cent) Central Sales Tax would accrue to Rajasthan Government if the sale is made in Rajasthan and crude oil has to be necessarily carried outside for refining," Pandey wrote. "CST is, however, due to be abolished by March 31, 2010." The move by Rajasthan may set a dangerous precedent wherein mineral producing states like Jharkhand may insist on payment of local sales tax even if resources such as coal is sold and consumed outside the state. — PTI
	Satyam probe to be completed within a year Bengaluru, September 8 Market regulator SEBI today said it would be able to take action against the culprits in Satyam accounting fraud case in the next one year. “In the next one year or so, we will be able to take action (against the culprits) and we (SEBI) will come out with flying colours as far as this probe is concerned,” SEBI chairman CB Bhave said at an interactive session, organised by the Bangalore Chamber of Commerce and Industry. On criticism that independent directors on the Satyam Board before the scam broke out did not failed to prevent the fraud, Bhave said, “We are studying the investigation material and unless we come to the conclusion that there are certain things that they (independent directors) needed to do but did not do, we would not come to the conclusion that independent directors failed in their duty.” SEBI is investigating whether its mechanism to prevent such frauds failed or if the fraud was “clever”. Bhave said: “We should refrain from making the common mistake that because there is SEBI, there will be no fraud”. Bhave said SEBI had done well after the Satyam scam broke out, in terms of ensuring that the “old Board” (which was running the company) did not remain and that despite SEBI investigation into its affairs, its (Satyam’s) value was not disturbed. — PTI
	Mahindra Satyam brings back variable pay Tribune News Service Hyderabad, September 8 In a positive sign after months of crisis, Mahindra Satyam, the new brand identity of erstwhile Satyam Computers, today announced reinstatement of variable salary for all its employees with effect from October. Mahindra Satyam chief people officer T Hari said the variable pay was withdrawn in April this year when the company was in crisis following the Rs 7,800-crore fraud committed by the founder chairman B Ramalinga Raju. It also reinstated other benefits including staff welfare allowance, performance-based ESoPs for middle and senior-level associates and service anniversary programmes. It is also reintroducing staggered cash bonus for select set of associates at the junior level, along with various rewards and recognition programmes in order to acknowledge excellence at work and enhance associate delight.
	Industry rues hike in power tariff Ruchika M. Khanna Tribune News Service Chandigarh, September 8 The industry in Punjab is up in arms against the sharp hike in power tariff by the Punjab State Electricity Regulatory Commission (PSERC). Faced with a severe shortage throughout the year, the industry feels that they are being forced to pay more for less power. According to the new tariff order issued by PSERC, the actual hike in tariff per unit will be 42 paise per unit. However, since the hike has been announced from retrospective effect (from April 1, 2009), the effective hike for industry will be 72 paise per unit. Industry rues that for most part of this year, they have been facing two compulsory off days, besides 4-6 hours of unscheduled power cuts everyday. Talking to TNS, S C Ralhan, regional chairman of Engineering Export Promotion Council (EEPC), rued that the industry has been suffering from such onslaughts of politicking. “Farmers, who are getting free power for agriculture operations, continue to misuse this power, while the industry is being forced to pay more. If the government has increased the tariff, they should at least ensure that the industry gets uninterrupted supply. Moreover, the government should calculate the number of units being consumed by the farmers for agriculture purposes and the subsidy should be given only for these units,” he said. The industry also lamented that though they were being asked to pay the minimum monthly charges, they were not getting power for which they were paying. RS Sachdeva, co-chairman of the Punjab Committee of PHD Chamber said with the new power tariff, the power tariff in Punjab will be highest in the region. Amarjit Goyal, CMD of Modern Steels, said the hike in tariff would lead to increase in prices of all industrial goods, and they would be forced to pass on the hike to the consumers. “For a power-intensive industry like steel, the hike will have to be passed on to the consumer. The industry is already passing through a recessionary phase. But instead of coming to our aid, the government has hiked the power tariff and it will hit the industry hard,” he said.
	Hershey may bid for Cadbury New York, September 8 US chocolate maker Hershey could jump into a takeover battle with a bid for Cadbury after the British confectioner rejected an offer from food giant Kraft Foods, the Wall Street Journal said today. The Pennsylvania-based company "is likely to make some response" to Kraft's Monday bid, the financial daily said, citing a source close to the matter. Hershey's potential bid rises from awareness "that Cadbury is the last major confectionery company potentially available," said the person familiar with the situation according to the financial daily. In comparison to Kraft, Hershey's position in the market is diminutive — its annual turnover of some $5 billion is eight times smaller than the food giant. However, the Journal noted, Hershey and Cadbury have a long working relationship, having talked about combinations in the past. The firm also distributes the iconic British confectioner's products in the United States. On Monday Kraft Foods's $16.7 billion (£10.2 billion) bid was spurned by Cadbury, though Kraft said it hoped the British group would eventually jump on board. — AFP