The Tribune, Chandigarh, India

	FDI in multi-brand retail on govt table New Delhi, August 18 The Industry Ministry today made out a strong case for opening up the multi-brand retail sector for foreign direct investment (FDI), stating that the move will help both consumers and producers, particularly of agricultural items. "The objective will be to enhance operational efficiency of back-end infrastructure in the retail sector, reduce wastage in the agriculture sector, enhance benefit to producers... and benefit consumers through greater consumption," Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply to the Rajya Sabha. The Department of Industrial Policy and Promotion had floated a discussion paper - Foreign Direct Investment in Multi-Brand Retail Trading - and invited comments on it. It has received suggestions from a large number of stakeholders, including global retail chains like Carrefour. However, Scindia did not indicate how soon a decision on the issue will be taken. "It is expected that the views and suggestions received in response to this discussion paper will enable the government to take an appropriate policy decision at the appropriate time," he said. The issue of FDI in the sector is considered politically sensitive, as over 90 per cent of India's retail trade is in the unorganised sector - with kirana shops employing as many as 33 million people. Currently, the government allows 51 per cent FDI in single brand retail and 100 per cent FDI in wholesale cash-and-carry trade. However, FDI is not permitted in multi-brand retail. The discussion paper said that India was losing agri products, fruits and vegetables to the tune of Rs 1 lakh crore annually and establishment of cold chains and back-end infrastructure could cut down the losses by more than half. France-based Carrefour, in its comments, had said that FDI in multi-brand retail would also help in controlling the inflation rate by offering more competitive and rationalised prices of products to consumers. — PTI
	BlackBerry’s technology faces security test today Tribune News Service New Delhi, August 18 In an effort to satisfy needs of the Indian security agencies, the representatives of Research In Motion (RIM), the manufacturer of BlackBerry smartphone, are likely to demonstrate tomorrow the capability of the solution they have put forward to ensure there was no disruption of service. Sources here said a meeting of the officials of the Home Ministry and security agencies with the RIM representatives is scheduled for tomorrow, where the technical solution being offered by the Canadian manufacturer would be put to test. There have been a series of meetings between the RIM and the government officials over the past few days in an effort to end the logjam, which has been persisting as a result of the security agencies demanding complete access to the messenger services on BlackBerry. There was a hope that the matter would be resolved to the satisfaction of the security agencies. There would be a complete demonstration as to how the BlackBerry Messenger (BBM) could be intercepted, the officials said. RIM, which has a subscriber base of nearly one million in India, has been asked to give a practical demonstration and not a theoretical one as given by the firm earlier, officials said. However, the government had last week set August 31 deadline for RIM and telecom operators to address its security concerns, failing which some of the mobile phone’s popular services would be shut down. In a letter to Department of Telecom (DoT) secretary PJ Thomas, Union Home Secretary GK Pillai had asked to convey to operators and Canada-based RIM that a technical solution to make available lawful interception of BlackBerry Enterprise Services (BES) and BlackBerry Messenger Services (BBM) must be found out by August 31 or its services would be blocked. The DoT on Monday had written to the telecom service providers in the country to ensure that a technical solution for the interception was in place by the deadline. It put the onus of providing the solution on the service providers. As a result of the intense government pressure, RIM had said last week that it was willing to provide interception of the BBM manually from September 1 and the automatic process of intercepting the BBM would be completed by year end. Only after security agencies were satisfied with the technology of interception, a green signal would be given for continuation of the services, the official added.
	‘Dabba trading’ causing huge losses: NCDEX Ruchika M. Khanna Tribune News Service Chandigarh, August 18 ‘Dabba trading’ on the commodity exchanges is assuming a high proportion with its daily trade on the bourses catching up with the legal trading. For an average daily trading of Rs 4,000 crore on the National Commodities and Derivates Exchange (NCDEX), a similar volume of ‘dabba trading’ is going on every day. The ‘dabba trading’ is like any other trading on the exchange. The only difference being that the investors’ orders don’t get executed on the stock exchange system but in the dabba operator's books, which means that investors don’t have to actually buy or sell commodities. They just book commodities with a trader and actual transaction of only profit or loss takes place. Its almost like gambling on the future prices and payments are made on the profit to the customer, or in case of loss, the customer pays to the trader. It is learnt that the dabba trading is being done in all commodities - agri commodities, gold, and even metals like steel. Officials in the NCDEX informed TNS that ‘dabba trading’ on gold and steel was high in Punjab and Delhi, whereas in agri commodities, it was high in Rajasthan. “It is not just causing tax evasion, but also huge losses to the investors who are often lured into this by some unscrupulous traders,” said Vijay Kumar, chief business officer, NCDEX. This trade benefits the brokers, who are looking for an opportunity to offload some of their futures contracts, bypassing the exchanges as it helps them save transaction charges and margins payable to the comex. Considering the huge proportions that this illegal trading has assumed, the country’s largest commodities exchange is gearing up to meet the challenges posed by this. While the NCDEX still awaits an amendment to the FCR Act, which will give teeth to the comex regulator Forward Markets Commission to act against those indulging in parallel trade, it has decided to take cudgels on those running a parallel business on their own. “So far, the Economic Offences Wing of the police is empowered to act against those running this illegal trade. So, we are already training personnel in these wings of different states’ police. We are also in talks with the Punjab and Haryana governments to train their police personnel on dealing with the menace,” he added.
	TN unveils rural BPO policy N Ravikumar Tribune News Service Chennai, August 18 The Tamil Nadu government has unveiled a rural business outsourcing policy, stressing on an incentive-based approach to encourage more BPOs in the rural areas. Subsidies in two forms, capital and training, will be given to the BPO units located in village panchayats. Under the new policy, a BPO unit can receive both categories of subsidy and may get a total of Rs 7.5 lakh. The state government this week issued an order to this effect. The government will play the role of a facilitator in exchanging information with the BPO industry, besides helping to find interested institutions to partner with the BPO units. According to the policy, a 15 per cent capital subsidy will be provided on investment to any unit that is functioning for a minimum of three years and directly employing a minimum of 100 trained persons. This subsidy will be back-ended and paid in three equal instalments at the end of each year. The government will share the cost of training with the company and provide Rs 1,500 per month per person for three months, which is the normal period of skill building training for a BPO unit. Totally, a unit engaging 100 persons will get Rs 4.5 lakh as training subsidy for three months. This subsidy will also be back-ended to be disbursed to the BPO unit concerned after one year. The Electronics Corporation of Tamil Nadu (ELCOT) will be the nodal agency to determine the eligibility claims of prospective rural BPOs. The Information and Communication Technology Academy of Tamil Nadu will be involved in monitoring and reviewing the working of the rural BPOs. A senior executive below the academy's chief executive officer will be in charge of the task.
	Cap of Rs 2 lakh mooted for retail investors New Delhi, August 18 Market regulator SEBI today proposed to double the investment limit for retail investors to Rs 2 lakh in public issues, a move that would enable individuals to participate in primary issues of companies. “It is proposed to ... enhance the limit prescribed for defining a retail individual investor in a public issue from the existing Rs 1 lakh to Rs 2 lakh,” the Securities and Exchange Board of India (SEBI) said in a draft regulation on which it invited comments from stakeholders by September 3. The current limit of Rs 1 lakh for retail investors was fixed over five years ago in March 2005. SEBI said the limit for retail investors needed to be enhanced in view of the increase in inflation rate from 4 per cent in 2005 to around 12 per cent currently and rise in the BSE Sensex from 8,000 points to about 18,000 points during the same period. “This means that the retail individual investors can now buy a lesser number of securities with Rs 1 lakh than they will buy with the same amount in 2005,” it added. “It is a very timely and logical step. The lukewarm public response to some recent offers may also have made SEBI put the proposal,” SMC Capitals equity head Jagannadham Thunuguntla said. — PTI
	GST rollout plan hits BJP roadblock New Delhi, August 18 The Centre's proposal to introduce Constitution Amendment Bill in the current Parliament session to pave the way for rolling out the Goods and Service Tax (GST) today hit a road block, with the BJP-ruled states demanding more time to respond to the draft. "The states have got hardly two working days to examine the revised draft and take a decision thereon...," Madhya Pradesh Finance Minister Raghawji said at the states GST panel meeting here. "I have been wondering the reason for the rush to implement the GST as if the country is passing through a severe financial crisis and GST is the panacea for all the ills," Raghawji added. Other state finance ministers too said that the BJP-ruled states sought more time to firm up their views on the darft bill. "BJP-ruled states do not want the Constitution Amendment Bill to be passed now at this juncture. They want more time," Kerala Finance Minister Thomas Issac said. When asked how many BJP-ruled states wanted more time, he said: "All the (BJP-ruled) states." The government plans to introduce the Bill in the current, Monsoon, session of Parliament to prepare the ground for rolling out the GST from April 1, 2011. Under the proposed plan, all central and state taxes like excise, VAT and service tax will be subsumed into GST, once the new indirect tax regime takes effect. The revenue from GST will be shared equally between the Centre and states. — PTI
	PNB offers home loan at 8.5% Tribune News Service New Delhi, August 18 Punjab National Bank today announced a festival bonanza offering home loan at 8.5 per cent. The concessional rate of 8.5 per cent has been fixed for three years for housing loans up to Rs 50 lakh. As per the existing rate card, loans up to Rs 30 lakh attract a lowest rate of 9.25 per cent with a repayment period of 5 years while loans above Rs 30 lakh is available at 10 per cent for similar maturity. "Under the offer, housing loans up to Rs 50 lakh will be available at discounted rate of interest of 8.5 per cent under fixed interest rate option across all repayment tenors," the bank said. At the same time, new car loan borrower under fixed option will get a rebate of 0.5 per cent. The offer will be valid till December 31, 2010.