Chandigarh, March 12
Punjab Deputy Chief Minister Sukhbir Badal today said that the state’s economy was on an upswing. Quoting data from the Planning Commission, Badal used the forum of the Punjab Council Meeting of the Confederation of Indian Industry (CII) to push his economic reform agenda for the state.

Badal was chairing the annual session of CII on ‘Transforming Punjab: Implementing Strategies for Growth’.

Encouraging the industry to expand operations in the state, rather than migrating to the neighbouring tax-exempt states, Badal assured them of continuity in government policy and increased spending on infrastructure. “The neighbouring hill states may be giving you tax exemptions. However, We will now offer you the best infrastructure in terms of expressways, air connectivity within the country and to foreign destinations, and ensure round-the-clock power availability,” he said.

The Deputy CM said under the SAD- BJP government, the state’s finances had improved. “When we took over, finances were in a mess. The total revenue of the state was just Rs 9,017 crore. The Debt to Gross State Domestic Product (GSDP) ratio was 44 per cent. We have managed to increase the revenue collections to Rs 20,408 crore, while bringing down the debt to GSDP ratio to 30 per cent, in spite of the fact that the state has been burdened with an additional Rs 3,000 crore because of the Fifth Pay Commission recommendations,” he said. He added Punjab was now growing at 37 per cent.

Sukhbir said that in the next two years the state would have additional thermal power generation capacity of 11,000 MW and 700 MW from renewable energy sources. “We will soon be initiating a clean energy project to generate 1,500 MW power from the run of the canal turbines. I will soon be visiting China to study how the power is thus generated, so that PEDA can emulate this in Punjab,” he added

The deputy chief minister said that three of the 13 international airports sanctioned by the Centre will be set up in Punjab. “We have spent over Rs 1,00,000 crore on creation infrastructure, and in the process, we have managed to get investment worth Rs 1,35,000 crore in the past four years,” he said.

Badal added the government was planning a textile hub in Malwa region, a sugar hub in border areas and an IT hub in Rajpura.

Patiala, March 12
The Punjab State Power Corporation Ltd (PSPCL) is in a debt trap and has been borrowing funds from financial institutions to meet operational deficit. The first priority in the Budget should be to bring PSPCL out of the debt trap, said Padamjit Singh, retired chief engineer from erstwhile Punjab State Electricity Board.

“This can be achieved through a financial restructuring plan by which the power utility is given a clean balance sheet and can function on commercial lines. Subsidy to agricultural consumers should be restricted only to small and marginal farmers. PSPCL should be allowed to charge tariff determined by the Punjab State Electricity Regulatory Commission from all agricultural consumers. The government can then compensate the small and marginal farmers directly by reimbursing their power bills,” asserted Padamjit.

Padamjit added Punjab was one of the few states, which had abandoned its responsibility towards development of power generation stations under the public sector. He added total dependence upon private sector players was not a healthy strategy. In addition, it would certainly lead to costlier power with the private sector player pocketing the profit.

Padamjit said the state government should cancel recently signed Memorandum of Understandings (MoUs) with the private sector parties for new power stations and instead take up one thermal generating station of 1320-MW under state sector. “The equity requirement for this station would be of the order of Rs 1,400 crore, spread over four years, for which a budget provision of Rs 350 crore per year, would be required. Progressive states like Rajasthan, Maharashtra, Andhra Pradesh - all follow the policy of giving financial support for development of power sector generation”, he said.

Bathinda, March 12
Sensing the socio-economic benefits of bio-mass power plants, the state government has planned 29 biomass plants that will contribute more than 400 MW of power out of which three are operational and three are under construction. Sukhbir Singh, promoter, the Universal Bio-Mass Pvt Ltd, says that the government must first relook into the fee rates charged by the Punjab Energy Development Authority (PEDA).

It is perhaps due to the high rates that a majority of the entrepreneurs, even after receiving the allocation of the plants, do not show up. If the state government decreases the fee charged by PEDA, it would help in the promotion of the industry.

Sukhbir states that there must be subsidy on the machinery used for the collection and chipping of the straw, stubble and other raw materials. “Subsidy on such machines would surely save the labour, time and cost being incurred by the farmers that will encourage them to shun the straw burning and sell it to the bio-mass plant authorities. It will not only have a monetary benefit but also play a role in saving the environment. Ultimately, we too will feel secure from the threats of lack of fuel and it will also help in energy conservation,” he adds.

Q: I have some investment in income schemes of mutual funds. Would the Budget 2011 provisions mean I will have to pay higher taxes on these investments? — Dafftari

A: No, the higher tax is payable by investors other than individuals and HUFs eg. Partnership firms, companies etc. Currently the Dividend Distribution Tax (DDT) on dividends from non-equity funds stands at 12.5% for individuals and HUFs and 20% for others. The DDT on dividends from money market or liquid funds is 25% for all categories of investors.

Budget 2011 proposes to increase the rates applicable to investors other than individuals and HUFs to an uniform 30% to cut off any tax arbitrage between DDT and the basic tax rate.

There will be no change in the rate of DDT in the case of individual or HUF. Distribution of income by an equity-oriented fund shall continue to be exempt from tax.

The exposure of three pilots (one has been arrested) for fudging vital documents to secure licences is not a recent phenomenon. Indian civil aviation, despite its expansion, has not been free from corrupt practices.

Pilots flying on fake licences and endangering lives of passengers has been in existence for at least two decades, if not more. Except for a brief spell when Air Marshal Denzor Keeler was at the helm of Flight Inspection Directorate (FID), corruption has been endemic.

A study states that fudging of documents and age has been flourishing when a mere deputy director-general officiated as director-general of the Directorate-General of Civil Aviation (DGCA).

Following the arrest of a lady pilot, the civil aviation ministry and the DGCA have decided to check and re-check documents and other flying papers of more than 4,000 pilots and co-pilots. This is a necessary exercise, but DGCA officials responsible for accepting these fudged documents must also be exposed?

For this, the most alarming development is that the DGCA will probe its own departmental officials! The scandal would not have become public if Parminder, an Indigo pilot, had not made a heavy landing in Goa on January 11. The pity is that the country’s apex civil aviation body wakes up only when a mishap occurs.