The Tribune, Chandigarh, India

	India guarded on Yuan re-evaluation Wants comprehensive and cooperative approach to tackle global fiscal imbalances Ruchika M Khanna in Tokyo Tribune news service India is not keen to take a position on the raging debate in Asia regarding the undervaluation of currencies resulting in forex losses to most countries. Though India agrees that the global fiscal imbalances need to be addressed, it feels that re-evaluation of currencies will not solve the matter. Though China and South Korea have been crying hoarse for a correction in valuation of currencies, India feels that there are other structural issues in the economies of both China and US that need to be looked at. Sources today said that though global fiscal imbalances need to be addressed, revaluation could lead to a negative sentiment in the world economy. A sharp currency revaluation could even be a negative to the world currency. “Anything drastic,” said a source, “could endanger recovery from the industrialized nations in the West and thus hamper growth in emerging economies”. The revaluation has to be seen in the context of its impact on the world economy. India's view is that currency issues need to be placed in a larger economic context, and cannot just be a part of the talks between India and China, when they meet in Hanoi later this week. Sources looking at the developments on this side agree that though the undervalued Yuan is affecting the competitiveness of Indian businesses, too, revaluation alone will not solve the problem of world economies. While India’s manufacturing sector is hurt by Chinese imports, Indian consumers benefit from cheaper products from China. However, India is waging a more direct battle with China over Beijing’s trade barriers to Indian service and goods exports, said the source. "We agree with the approach adopted during the recent G20 meet of FMs, where the members agreed to avoid competitive currency devaluations. The IMF was authorised to look into the currency issue. “We prefer that the multiple problems be fixed in a cooperative approach,” the source added.
	Achievements at G-20 meet significant: FM Gyeongju (South Korea), October 24 India had its way at the two-day conference of G-20 finance ministers and central bank governors, with finance minister Pranab Mukherjee describing achievements on IMF reforms and the currency war, mainly between the US and China, as ‘significant’. "What we have achieved is significant," Mukherjee said at the conclusion of the G-20 conference, where members endorsed a crucial reform of the International Monetary Fund (IMF) and asked nations to move toward a ‘more’ market-determined exchange rate and desist from "competitive devaluation of their currencies". The decision to give a 6 per cent quota (voting rights) to emerging economies in the IMF, which would see India jump from 11th position to 8th in terms of voting rights in the international body, was announced at the end of the ministerial conference of the G-20, a club of developed and developing nations. As regards the ongoing currency war, Mukherjee said, "What we expected and particularly what I have commented, that we will have to resolve the (currency) issue through dialogue and not through confrontationist position.. (It has been) substantially agreed to." Moreover, the minister added, "The development agenda have found place (in talks) and leaders will give their seal of approval at the Seoul Summit to be held on November 11-12." The G-20 ministers have also agreed not to resort to "unilateralism" to deal with complex issues. "Another phraseology has been used is that there should be no unilateralism and there should be cooperation... unilateral devaluation should not be encouraged," he said. — PTI
	Crucial meet on Posco’s fate today Bhubaneswar, October 24 With the fate of South Korean steel major Posco's Orissa project hanging in balance, all eyes are set on the Forest Advisory Committee (FAC) meeting scheduled in Delhi tomorrow. Though the NC Saxena Committee and subsequently Meena Gupta Committee have given adverse reports on Posco's proposed 12 MTPA steel project near Paradip in Jagatsinghpur district, the Orissa governemnt is hoepful that the country's biggest FDI might not face the fate of Vedanta. “Despite a number of negative reports on Posco, we are hopeful that the Centre would not take any harsh decision on the project. This is because of nature of the project. Its non-implementation could create a bad image for the country,” a senior minister in the Naveen Patnaik cabinet said. The fate of Posco's steel mill became more uncertain after a majority of the four-member committee headed by Meena Gupta suggested withdrawal of clearances given to the project.— PTI
	Spice Mobility launches India’s first 3D phone New Delhi, October 24 Handset maker Spice Mobility today said it has launched the country's first 3D display mobile phone, View D, priced at Rs 4,299. View D will allow users to experience images and videos in 3D without the 3D glasses, making it very convenient for a common user. "With growing popularity of 3D content and devices, this is one segment we wanted to tap. We have created this new device for people looking for smart mobile phones," Spice Mobility Vice President (Marketing) Naveen Paul said. The company is looking to sell 20,000-30,000 units per month of View D, he added. In the competitive Indian market, handset makers are looking at innovations to drive sales. "One has to keep innovating to offer the market compelling products, but at reasonable price points as India is a price-conscious market," Paul said. According to IDC, 38.63 million handsets were sold in India during April-June 2010. — PTI
	Tata among 8 shortlisted for Fortune award Boston, October 24 Tata Group Chairman Ratan Tata is among eight business leaders from across the world shortlisted by the prestigious Fortune magazine for its 'Business Person of the Year', an honour that will go to the leader who made the ‘biggest mark’ in business in 2010. Fortune magazine will name its 'Business Person of the Year' on November 18. The other business honchos in the fray are billionaire Warren Buffett, Apple Chief Steve Jobs, Ford Motor CEO Alan Mulally, Google CEO Eric Schmidt, DuPont CEO Ellen Kullman, McDonald's CEO James Skinner and Netflix CEO Reed Hastings. On Tata, Fortune said his group's Tata Motors unit restarted orders for the ‘ultra cheap, high-demand Nano car’ and ‘at the high-end, has reinvigorated Jaguar’. For the title, the publication started with 32 business leaders who had been ‘seeded and matched-up by the editors of Fortune’. In the process of finalising the winner, Fortune will talk to analysts, consultants, executives and former executives, ‘those moving markets and those playing them’. Fortune has also asked its readers to submit votes online on ‘which leader you think made a bigger impact in 2010’. The 32 have been narrowed down to eight after two weeks of voting. In the first week of elimination, Tata won 60 per cent of votes and beat micro-blogging site Twitter co-founder Evan Williams to reach the second round, where he beat Jamie Dimon, CEO of global financial services firm J P Morgan Chase by a similar number of votes. On Buffett, Fortune said the Berkshire Hathaway CEO made 2010 the "year of giving it away, getting billionaires to pledge half of their wealth.— PTI
	Sterlite to invest Rs 3,000 cr more in Talwandi Sabo project New Delhi, October 24 Vedanta Group firm Sterlite Energy has revised the outlay for its proposed power project in Punjab upwards by over Rs 3,000 crore, taking the total investment commitment to around Rs 13,000 crore. The diversified metal group will now invest over Rs 13,000 crore on the Talwandi Sabo project in the state, making the new 2,640-MW project the single largest investment by Vedanta in the domestic power sector. "The Punjab government had recently given the nod to Sterlite Energy to add one more unit of 660 MW to the upcoming thermal project at Talwandi Sabo, in Mansa district. Earlier this month, an MoU to this effect was also signed," a source said. Diversified metal conglomerate Vedanta Group, as part of its multi-billion dollar plans in the power space, had bagged the rights to develop a 1,980 (3x660) MW commercial project in the state in 2008 at an estimated investment of Rs 10,000 crore. With the Punjab government recently according clearance for the additional unit, Sterlite Energy will enhance the total generation capacity of the project to 2,640 MW through an additional expenditure of over Rs 3,000 crore, the official said. Sterlite Energy, which has plans to hit the capital market soon to part-fund its expansion plans, is targeting the last quarter of 2012-2013 for operationalisation the first 660-MW unit of the plant. — PTI
	Market Update Results to dictate trend by Lalit Batra Positive surprises in the second quarter results helped the bourses close in the green last week. Going forward as well, the result would primarily be the trend driver, as most of the heavy weights are yet to declare their results. Some of the heavy weights that are scheduled to declare the results next week are Hindustan Unilever Limited (HUL), Jindal Steel & Power, NTPC, ONGC, Punjab National Bank, Hero Hondo, ITC, ICICI Bank, and Mahindra & Mahindra. Ample global liquidity may ensure buying support for equities in the short term, though volatility may rise as traders roll over positions in the derivatives segment from the near-month October 2010 series to November 2010 series ahead of the expiry of the October 2010 contracts on this Thursday. In the medium term, inflows into secondary equity markets could be hit due to a strong equity issuance pipeline over the next six months. This may soak liquidity from the secondary equity markets. Indian companies are estimated to raise about Rs 80,000 crore from equity and debt issue over the next three to six months. State-run Power Grid Corp, Steel Authority of India and Indian Oil Corp are some of the companies that are planning large share sales in coming months. In economic news, while India’s GDP growth is on track to accelerate in the current fiscal on the back of the monsoon boost, the expectation for growth in the next fiscal has moderated slightly. The concern being how the RBI will lift rates in the fiscal to counter price rises. Gold has attracted investors throughout the centuries, protecting their wealth and providing a ‘safe haven’ in troubled or uncertain times. This appeal remains compelling for modern investors, although there are also a number of other reasons that underpin the widespread renewal of investor interest in gold. Most investment portfolios are invested primarily in traditional financial assets such as stocks and bonds. The reason for holding diverse investments is to protect the portfolio against fluctuations in the value of any single asset or group of assets that react in a common fashion. Portfolios containing gold are generally more robust and less volatile than those that do no. Investment in gold can be held in the form of Bars, Coins, Exchange traded instruments, certificates, derivatives. Investors hence must invest in gold depending upon one’s profile and return expectation. Investment in gold may either be done by buying jeweller, direct gold bars/coins which now are sold over the counter by banks besides local jeweller, gold ETFs (Exchange traded funds), Gold Mutual funds. Investment in gold in ETF or Mutual funds has an advantage of investing lump sum or thru Systematic investment plan.
	Tax Advice Location of land important for claims by SC Vasudeva Q. Section 4 was imposed on our agricultural land in Jan 2002, and the land was acquired by HUDA via Section 9 in Jan 2005. We filed a case for more compensation in the court against HUDA. The court ordered HUDA to give more amount to the land owner. HUDA, besides giving us the amount, also deducted TDS of Rs 47 lakh from. Please answer”: (i) No tax can be deducted on the land which is ancestral and was agricultural two years prior to notification of Section 4. Is it true? Can we get our deducted tax refunded? (ii) We have been in cultivating this land prior to 1980 till 1999. It is our ancestral land but our land was vacant from 1999 till Jan 2002, the year in which Section 4 was notified, before 1999 crops are shown in farad. Onwards farad shows (khali) i.e. without crop. That was because animals used to destroy crops so we did not cultivate it after 1999. Can we still claim the tax? (iii) I have heard that some ruling of Supreme Court has come in 2009 that compensation awarded to farmer by court or HUDA is part of land acquired. Hence no tax can we deducted. (iv) If land is banjar kadim or khali as shown in farad. Can we still get our deducted refunded? — Ravinder Kumar A. The facts in the query are not complete as you have not indicated whether the agricultural land was situated within the jurisdiction of municipality etc. or in an area within such distance, not being more than 8 km from the local limits of any municipality etc, as has been notified by the Central Government having regard to the factors specified in section 2(14) of the I-T Act, 1961 (The Act). Agricultural land which is not situated within the jurisdiction of municipality etc. or is beyond the notified distance from the local limits of municipality etc. is not treated as a capital asset and capital gain arising on sale of such a land is not exigible to tax. Section 10(37) of the Act inserted by Finance (No.2) Act 2004, effective the assessment year 2005-06 exempts any gain arising on the compulsory acquisition of agricultural land which is situated within the jurisdiction of municipality etc. or within the notified distance provided the following conditions are satisfied. (a) Such land during the period of two years immediately preceding the date of transfer was being used for agricultural purposes by an HUF, or an individual or his parent. (b) Such transfer is by compulsory acquisition under any law, the consideration of which is determined or approved by the Central Government or Reserve Bank of India. (c) The gain from such compensation or consideration for transfer has arisen on or after April 1, 2004. The compensation or consideration for above purposes includes enhanced compensation decided by an court or Tribunal or other authority. From the facts given in the query it is clear that the land was not being used for agricultural purposes during the last two years. Therefore, if the agricultural land (whether capable of being cultivated, banjar or khali) was situated within the jurisdiction of the municipality etc. or within such distance as has been notified by the Central Government, you would be liable to pay tax on capital gain arising on compulsory acquisition of such a land. Tax deducted at source would be adjusted against the amount of tax payable by you on the gain arising on the compulsory acquisition of agricultural land.