The Tribune, Chandigarh, India

	Honda’s plant to resume production today New Delhi, December 18 Honda Motorcycle & Scooter India (HMSI) today said normal production at its Manesar plant will resume on Sunday after it had been suspended since yesterday due to strike by casual workers. “There was a minor incident yesterday due to which evening shift production was affected. It has been resolved and we will be resuming production from Sunday," a senior HMSI official said. He said the plant will remain closed today as the management decided to advance the weekly off to Saturday instead of Sunday in view of the prevailing situation. Workers sources, however, said there was still uncertainty and the production shutdown has resulted in a loss of about 5000 units since yesterday. The workers claimed that about 2,500 casual labourers went on a flash strike after one of them was "manhandled" by a security staff, thus affecting production. The permanent employees also joined in to support them, a worker source said. "Today the management has given all the permanent employees off," he said. The HMSI official, while refusing to go into the details of the incident, said the matter has been resolved and the production loss wasn't as big as what the workers were claiming as "production started in the evening shift itself yesterday". The company's Manesar plant has a capacity to produce around 16 lakh units of two-wheelers annually. Last year HMSI suffered a loss of over Rs 300 crore after workers went on a go-slow strike that had resulted in production dipping by over 50 per cent for nearly three months. In 2005 also, the firm witnessed a violent strike by workers that rocked the Gurgaon-Manesar belt. — PTI
	Lobbying on for shake-up of Maharashtra’s power regulator Shiv Kumar Tribune News Service Mumbai, December 18 Hectic lobbying is on by various corporate houses to get Maharashtra’s politicians to change the members of the state’s power regulator ahead of a major auction of distribution licences in Mumbai. The state’s power regulator Maharashtra Electricity Regulatory Commission (MERC) has invited Expressions of Interest from parties interested in taking over power distribution from Reliance Infrastructure, the Anil Ambani-owned firm, which supplies power to suburbs of Mumbai. R-Infra’s whose licence expires on August 15 next year. MERC has three members led by a chairman. Companies like Tata Power Company, Torrent Power Ltd, DPSC Limited (Kolkata), GMR Energy, Lanco, Indiabulls Power ahave shown interest. Reliance Infrastructure has applied for an amendment of the licence conditions so that its license to supply power to Mumbai's suburbs is extended. One of the conditions imposed by MERC on the prospective suppliers is that they should have adequate power generation capacity to take care of suburban Mumbai's needs. R-Infra does not have adequate power generation capacity because of which it has to buy power from the open market at higher prices, which are then passed on to consumers. Prominent politicians like Nationalist Congress Party leader Sharad Pawar and his nephew Deputy Chief Minister Ajit Pawar have turned sharply critical of the Maharashtra Electricity Regulatory Commission (MERC) in seemingly unrelated issues. Even the ministers of the Congress party have taken to demanding that the members of MERC be changed, though on the grounds that decisions taken by it are hurting the Maharashtra State Electricity Distribution Company Ltd (MSEDCL). The Congress as well as the NCP says that is little transparency in the decisions taken by MERC. The body has several consultants with expertise in the power sectorto look into power supply, distribution and pricing issues. MSEDCL, against which a number of strictures have been passed by MERC, has alleged that the power regulator represents the interests of only a section of the power consumers in the state. MSEDCL has also called for increased transparency in MERC’s functioning. MSEDCL is accused of bending to dictats of politicians who want industrial estates in the state to be exempt from load-shedding. MERC has pulled up the state-owned body for defying its orders to ensure regular power supply to farmers. Politicians like the Pawars are now accusing MERC of being an impediment in the operations against Naxalites operating in Maharashtra. Ajit Pawar recently accused MERC of not allowing uninterrupted power supply in Gadchiroli district seen as the stronghold of the Maoists. MERC officials said they were concerned about ensuring equitable supply of power across the state.
	Kashmir industry hails increase in subsidy Tejinder Singh Sodhi Tribune News Service Srinagar, December 18 The Jammu and Kashmir government has welcomed the Union govt’s decision to double the subsidy for micro, small and medium enterprises in the state and take it on a par with the North Eastern states. Industry representatives say that more such steps need to be taken to attract investments in Kashmir. The Indian government has decided to increase the capital investment subsidy of the micro, small and medium enterprises in the state by 30 per cent of the investment on plant and machinery. “These units both in J&K and NER will now be eligible to claim subsidy each time they undertake expansion as long as the total investment on plant and machinery does not exceed the prescribed ceilings,” a handout issued by the Press Information Bureau read. The statement added that the limit for units in the manufacturing sector was Rs 10 crore and for Rs 5 crore for the services sector. “The scheme is one of the components of the industrial packages announced for J&K in June 2002 and for NER in April 2007, for boosting industrialisation in these states.” The Federation Chambers of Industries Kashmir (FCIK) has welcomed the decision: “It is a welcome step and it will help medium enterprise to set up units here. We had made the recommendations in this regard, which were approved by Prime Minister and now it has been approved in the cabinet,” said FCIK President Shakeel Qalandar. “The central industrial packages will be applicable to all the places in the state. These incentives will also benefit the service sector in Jammu and Kashmir which were otherwise restricted to North Eastern region,” he said The President of the Kashmir Chamber of Commerce and Industries Nazir Ahmed Dar said that the package should have been more attractive to invite investment in other towns as the new package would attract investment in the two capital cities of Srinagar and Jammu only. According to the new incentives announced, the other industrial incentives include 100% excise duty exemption, income tax exemption, interest subsidy of 3 per cent on working capital loan and reimbursement of comprehensive insurance premium on capital. “These changes have been made as per the recommendations of a Task Force on MSME, which was set up by Prime Minister Manmohan Singh in September 2009, under the chairmanship of the Principal Secretary T K A Nair,” the handout read. It was formed to look into issues like non-availability of easy credit, infrastructure, taxation and labour laws as the MSME sector was badly hit due to the global economic slowdown. The MSME sector, which employs 42 million people, contributes about 45 per cent to India’s total manufactured output and close to 40 per cent to the country’s exports.
	Textile Commissioner seeks report on cotton exports K S Chawla Ludhiana, December 18 The textile Commissioner of India has asked cotton exporters to furnish the status report regarding export of cotton within two days and has stopped the export of cotton for the time being. The Centre had allowed registration of export of cotton in October and allowed export of as many as 55 lakh bales of cotton. However, the textile industry opposed this decision of the government as it was alleged that cotton export resulted in hike in the prices of the same in the cotton markets. The exporters got their export orders registered to the order of 55 lakh bales. Textile industry sources say about 30 lakh bales have been exported till now. The government would take fresh decision regarding allowing the further export of cotton after receipt of reports of shipment of cotton so far. It was on this estimate that the government had permitted the registration of 55 lakh bales of cotton for export.
	Aviation Notes Rule change for fog operations ‘impractical’ by KR Wadhwaney The year’s most exacting and foggy month has just descended on the northern belt. It has started disturbing and dislocating flight operations. The visibility has not yet deteriorated to zero, but it has dipped quite low affecting short-distance flights with small aircraft, at the Indira Gandhi International Airport IGIA). “Small aircraft are not equipped with sophisticated landing gears and therefore it is not advisable to take a risk, when visibility is lower than the prescribed limits,” said airline officials. An abnormal situation arose at the IGIA when a private airline's flight from Bangalore to Chandigarh via Delhi landed several hours behind schedule. The commander on the PA system announced that weather was bad in Chandigarh and the passengers were being transferred to Chandigarh by deluxe (Volvo) bus. The passengers did not accept airline's decision and kept sitting in the aircraft. The disembarked only when they were assured of refund of full fare. The same aircraft was, however, diverted to fly to Pune instead of Chandigarh. According to weather reports, fog will hit Delhi soon and operations will be disturbed, as in earlier years. Passengers' woes are likely to increase as the Terminal-III is not wholly operational as certain lounges have not yet been opened. Amidst the uncertain scenario, the directorate-general of civil aviation (DGCA) has barred airlines from holding passengers in aircraft during zero visibility. In other words, passengers will wait in their respective 'hold-in areas' as visibility improves. According to aviation analysts, this rule is impractical and lacks wisdom. It promotes uneven playing field. It will advantage airlines with low passenger-load to become air-borne before popular airlines get clearance from the air traffic controller (ATC). When asked to elaborate, analysts said that an aircraft with 30-40 passengers would complete boarding quicker than aircraft having load of 200-250. This was not all. Certain airlines had been allotted parking bays close to the Terminal-III and they would steal uncalled for advantage over other airlines. "There are several other reason for this rule being impractical,” they argued. Airline officials say, what was the need for the change of the rule?. "Indeed , it is not judicious to hold passengers in aircraft for hours but in abnormal situation like this why should there be any complaint/ grievance when airlines are serving passengers with snacks and soft drinks,” they said. Analysts are of the firm belief that there will be much chaos at the IGIA, when this is rigidly adhered to. "This will allow ATCs to dominate the scene and give clearance for take-off to 'favourites' and hold others in queue,” opined airline officials. As of now, all operations- international, national and whether by big and small airlines - are from Terminal.-III. A proposal has been mooted by low-fare airlines that all operations be shifted to one of the unoccupied terminals.
	Investor Guidance PPF account for HUFs no longer allowed by AN Shanbhag Q. I had opened a PPF account in the name of my Hindu Undivided Family (HUF). This account had finished its initial term of 15 years and has been extended for five years, according to PPF rules. Currently, the account is in the second year of extension. However, my bank has informed me that since PPF accounts in the name of the HUF are no more allowed, I will have to close the account by the end of the fiscal. I was under the impression that though fresh PPF accounts in the name of HUF are not allowed, already open accounts can be continued till the term ends. Then why is the bank saying that the account will have to be closed in the interim period itself? — Kanakia A. The bank is correct in informing you regarding the need to close the account by fiscal end. Though PPF accounts opened on behalf of HUF prior to the May 13, 2005, have to be closed after the expiry of fifteen years from the end of the year in which the initial subscription was made, Notification No. GSR 956(E), dated December 7, 2010 provides that HUF PPF accounts that are extended after the initial term of fifteen years has expired should be closed at the end of the current financial year. Bank nomination Q. I shall be grateful, if you can tell me whether we can nominate more than one person with definite percentage share. My bank is not permitting me more than one nomination. If more than one nomination is possible, kindly point me out under which rule/section of PPF, to enable me to take the matter with the bank. — Girish A. As per Section 12 of PPF Scheme, 1968, a subscriber may nominate one or more persons. If the nominee is a minor, the subscriber should appoint an adult to receive the amount in the event of death of the subscriber during the minority of the nominee. In the case of joint nominees, PPF rules allow allocating percentage of benefits against each nominee. But the form does not provide a specific place to indicate the same and therefore, many fail to indicate the percentages. In that case, the nominees are treated as joint holders and have to apply together for the closure. Each nominee is required to identify himself to the satisfaction of the concerned officer. After completing all the formalities, a single cheque is issued in favour of all of them together. This cannot be encashed, unless all the nominees have a joint account. In case one of the nominees has expired, before receipt of the balance on demise of the depositor, the entire balance will be paid to the survivor nominee/s, on submission of the death certificate of the deceased nominee. NRI status Q. I am a naturalised US citizen and also an OCI. Would I be considered a NRI when residing in India? Also recently I have come across a bulletin where it is stated that as per the new Direct Tax Code, if an NRI stays in India for 60 days or more in a year, he/she will not be considered as NRI anymore and will instead become an Indian resident. I thought this period was six months. Can you please clarify? (The question has been edited for brevity) — Manoj Basu A. If you spend 182 days or more in India in any financial year (Apr-Mar), you will be considered as resident in India for tax purposes. This is regardless of the fact whether you are a US citizen or not. Coming to your second query, note that first of all the Direct Tax Code (DTC) is as of now scheduled to be operational from April 1, 2012. As of now, it is still at a discussion stage and by the time the same gets finalised, there may be additional changes over and above those that have already taken place from the time it was first mooted. Secondly, to answer the question in its entirety, first we need to visit the definition of the term NRI. A Resident is one who satisfies either one of the following two conditions - a) He is in India for a period or periods amounting to 182 days or more during the financial year OR b) He is in India for a period of 60 days or more in the financial year and for a period or periods of 365 days or more during the four years preceding the current financial year. Now, for an NRI / PIO who is on a visit to India, the period of 60 days above had to be substituted by 182 days - hence in their case, basically it came down to the test of 182 days only. The above is as per the current Income Tax Act. Now, in the DTC the provision for substitution of 182 days for 60 days has been dropped in the case of persons who are visiting India. However, this does not mean that the test of 60 days has to be applied in isolation. As and when the DTC gets operational, a person who is visiting India will lose his NRI status if his stay in India during any financial year exceeds 60 days AND if he has stayed in India for more than 365 days during the past four years. Therefore, the NRI status stands to be lost only if both the stipulations of 60 days and 365 days are met by a visiting NRI and not only the 60 days one. The authors may be contacted at wonderlandconsultants@yahoo.com