The Tribune, Chandigarh, India

	Govt tightens customs laws; makes offences cognisable New Delhi, April 5 The government has proposed to tighten the customs law by taking away the power to grant bail for offences punishable with imprisonment of three years or more from customs authority and giving it to courts. Under the new provisions, proposed by Finance Minister Pranab Mukherjee in the Finance Bill 2012, persons charged with serious offences, which invite penalty of imprisonment of three years or more, will have to approach court or magistrate for bail. This amended provisions in the Customs Act will come into effect if the market value of the goods on which duties have been evaded exceed Rs 1 crore, duty evasion of over Rs 30 lakh or there is an attempt to import prohibited goods. "...All offences punishable with a term of imprisonment of three years or more under Section 135 (of the Customs Act) shall be cognizable," says the explanation to the Finance Bill, 2012. Experts said the move was required to check cases of evaders who are left free after penalty since that will not deter them from future offences. Such a move was required for curbing severe offences, they said. "Earlier all offences were non-cognizable. But for investigating cases of grave offences like smuggling, incorporating such a provision was necessary," Ernst & Young Tax Partner Bipin Sapra said. The memorandum also says that for offences which are punishable with imprisonment for more than three years, the court or magistrate will give bail to the offender only after hearing the public prosecutors. "Section 104A is being inserted to provide that bail in the case of offences punishable with a term of imprisonment of three years or more under Section 135 shall not be granted by a Court or Magistrate without an opportunity being given to the Public Prosecutor to present his case," the amendment said. As per the proposal, attempts to fraudulently avail duty drawbacks exceeding Rs 35 lakh will also be covered under the new provision. The government is also proposing to remove serious offences from Section 138 of the Act, which deals with summary trial. — PTI Tightening Noose Under the new provisions, persons charged with serious offences, which invite penalty of imprisonment of three years or more, will have to approach court or magistrate for bail The amended provisions in the Customs Act will come into effect if the market value of the goods on which duties have been evaded exceed Rs 1 crore, duty evasion of over Rs 30 lakh or there is an attempt to import prohibited goods
	Negative list for India, positive list for Wagah! Perneet Singh Tribune News Service Amritsar, April 5 Even as Pakistan’s move to switch over to negative list regime for trade with India had generated a lot of euphoria in the country’s business world, it has turned out to be a dream gone sour for Punjab’s trading community as the notification regarding the negative list for trade with India released by Pakistan allows import of only 137 items from India via Attari-Wagah land route. A copy of the notification declaring the negative list, which has been received by Gunbir Singh, Member, CII National Council on Public Policy, mentions 1,209 items that cannot be imported from India, followed by a list of 137 items that are “importable from India through land route from Wagah”. This means that while Pakistan has shifted to negative list regime for carrying out trade with India, it is sticking to the positive list regime when it comes to bilateral trade via Attari-Wagah land route. It also indicates that on the one hand, bilateral trade from the rest of the country will get a boost as the negative list allows Pakistan to trade with India in more than 5,600 items, the exporters sending their goods to Pakistan through Attari-Wagah land route will not get the desired share in the trade pie. What is even more shocking is the fact that the list doesn’t comprise 137 different items, but it includes numerous categories of various items. These items include livestock (8 categories), carcasses/meat (15 categories), vegetables (22 categories), raw jute (29 categories) and yarn (44 categories). These five items alone take the figure up to 118 in the list of 137 items. Apart from these, other items in the list are pineapple, black pepper, raw cane and beet sugar, oil cake and other solid residues, cement and clinker, polyethylene, polypropylene, newsprint, paddy harvesters and paddy dryers. Pakistan is already importing seasonal vegetables, jute and meat from Attari-Wagah land route. Talking to The Tribune, Gunbir Singh, said, “It came to me as a rude shock that only 137 items can be imported through Attari-Wagah land route. In this scenario, the benefit of the negative list trade regime seems to be getting accrued to Kashmir and ports in Mumbai and Gujarat. Moreover, this list for trade via Wagah has clearly defined the specifications of the items.” Former CII Zonal Council chairman Suneet Kochhar said if Pak has shifted to the negative list trade regime with India then it should be applicable to bilateral trade from any part of the country. “Policies are country-to-country and route restriction to negative list can create hindrance in growth of trade via Wagah. This discrimination is confusing for both the countries as it can defeat the purpose of providing MFN status,” he averred. The trading community here also feels that if Pakistan does not intend to implement the negative list in Wagah then the bilateral trade will not benefit as much as it could have with the coming up of Rs 150-crore Integrated Checkpost in Attari, which will be inaugurated on April 13. "Raising such a huge infrastructure to boost the trade between the two countries will not bear desired results if the trade is restricted to these 137 items," they opined. Googly from Pakistan While the bilateral trade from the rest of the country will get a boost as the negative list allows Pakistan to trade with India in more than 5,600 items, the exporters sending their goods to Pakistan through the Attari-Wagah land route will not get the desired share in the trade pie. What is even more shocking is the fact that the list doesn’t comprise 137 different items, but it includes numerous categories of various items
	EPFO may give 8.6% interest for 2012-13 New Delhi, April 5 Faced with criticism for slashing interest rate on deposits by 1.25 per cent for 2011-12, the retirement fund body EPFO may raise it to 8.6 per cent for this fiscal to benefit about five crore subscribers. Last month, the Employees' Provident Fund Organisation (EPFO) had brought down the rate of interest to 8.25 per cent for 2011-12 from 9.5 per cent provided in 2010-11, evoking sharp criticism within and outside Parliament. "EPFO is working on income estimates to provide 8.6 per cent rate of return on provident fund deposits during this fiscal," a source privy to the development said. He further said the EPFO's apex decision making body, Central Board of Trustees (CBT), headed by the Labour Minister could meet next month to take a call on the issue. The source said EPFO can provide higher returns in the current fiscal as the government has increased interest rate on Special Deposit Scheme (SDS) 1975 to 8.6 per cent from 8 per cent with effect from December 1, 2011. The EPFO has parked about Rs 55,000 crore in the scheme which was launched by the Central government on July 1, 1975 to provide better returns to non-government provident funds and other such funds. During the previous CBT meeting, the unionists had demanded matching EPFO's interest rate with that of PPF. — PTI
	State of Finances RBI report brings solace to Punjab, Haryana Ruchika M. Khanna/TNS Chandigarh, April 5 The newly elected SAD-BJP government in Punjab, which has remained under fire for its alleged inability to revive the sagging state economy, may find some solace in the latest report on State Finances released by the RBI. The report, while analysing the Budgets of 2011-12, has said the state’s own tax revenue has increased and its debt to Gross State Domestic Product (GSDP) ratio has remained static. The RBI report, released earlier this month, also has some good news for Haryana. The state’s revenue balance has seen a correction, as has its gross fiscal deficit. Even the debt to GSDP ratio has seen a minimal increase of 0.1 per cent, between 2010-11 and 2011-12. Providing an analysis and assessment of the finances of all state governments, the report says that the 2011-12 budgets of Punjab and Haryana proposed to carry forward the fiscal correction process by focusing more on expenditure control against the backdrop of fiscal stimulus measures and tapering off of the impact of the Sixth (Fifth in case of Punjab) Pay Commission Recommendations. The report says that the states are in line with the recommendations of the 13th Finance Commission, with an aim to eliminating revenue deficits and bringing about graduated reductions in fiscal deficit and debt levels by 2014-15. However, the report highlights that the revenue deficit in Punjab has gone up by Rs 170 crore (and revenue balance has gone adverse by 0.4 per cent), while fiscal deficit has gone down by Rs 2,110 crore. The revenue receipts of the state (as percentage of GSDP), too, have declined from 13.8 per cent to 12.8 per cent (between 2010-11 and 2011-12). The own tax revenue to GSDP ratio has gone up from 7.9 to 8.3 per cent, but the own non-tax revenue to GSDP ratio has come down from 3 to 1.3 per cent. In case of Haryana, the revenue deficit has come down by Rs 800 crore, while the gross fiscal deficit is down by Rs 740 crore. The revenue receipts to GSDP ratio, however, has fallen from 11.1 to 10.9 per cent and the own tax revenue to GSDP, too, has fallen from 7 per cent to 6.8 per cent. The own non-tax revenue to GSDP ratio has remained static at 1.5 per cent.
	SEBI mulls new code of conduct for brokers New Delhi, April 5 With an aim to check flow of illicit funds and other manipulative activities in the stock market regulator SEBI is planning more frequent inspection of various market entities and a new code of conduct for brokers. Besides, the capital market regulator would also ask all the market entities, including brokers and mutual funds, to implement the new common KYC (Know Your Client) norms even for their existing clients in a phased manner. These are part of the policy initiatives proposed by SEBI for the current fiscal year 2012-13. These have been approved by its board and would be implemented over the year ending March 31, 2013. The proposed 'code of conduct' would detail various obligations that the brokers have towards their clients and would be drafted by SEBI in consultation with the stock exchanges. The SEBI would also look at setting up an alternative trading mechanism for small-cap companies, which witness concentrated shareholding and low trading volumes, thus posing potential risks to the investors. Among other initiatives, SEBI would also look at establishing and maintaining a more effective information management system, employing latest technology and developing teams of expert officers for benefit of various market segments, especially the derivatives trade. Regarding various market entities, SEBI is of the view that all of them must maintain high standards of integrity and fairness and also act with due skill, care and diligence in the conduct of their business, with high levels of compliance. SEBI has said that the number of inspections of intermediaries was enhanced considerably during the last fiscal, and steps are being taken to strengthen and monitor the process of follow-up of the findings of such inspections. "This process will continue in the year 2012-13 also with further increase in the number of inspections," SEBI said, while adding that it was examining a proposal of carrying out inspections of market entities through chartered accountants. Besides, SEBI would also consider carrying out "some specific inspections to check the compliance of anti-money laundering rules by the intermediaries". — PTI
	Hike in levies Jewellers to meet FM today; hopeful of early resolution Mumbai/New Delhi, April 5 Protesting jewellers today said they will take a decision on their indefinite strike tomorrow after meeting Finance Minister Pranab Mukherjee on the issue of rollback in increased taxes. Meanwhile, a delegation of jewellers led by RJD president Lalu Prasad met Mukherjee. The Finance Minister has assured the delegation of "positive" action soon, Prasad said after the meeting. Jewellers in various parts of the country have been on a strike since March 17 to protest the hike in import duty on gold and imposition of excise duty on unbranded jewellery. The proposal was announced during Mukherjee's Budget speech for 2012-13. The strike entered into the 20th day today. Mukherjee has called a meeting of meeting with representatives of jewellery manufacturers from major cities tomorrow in New Delhi. Delhi Jewellers and Goldsmith Association president Ram Avtar Verma said they will decide on whether to end the strike or not after meeting the Finance Minister. "We appreciate the assurance of a positive action by the Finance Minister to the agitating bullion traders and are hopeful of an early solution to the crisis," he added. All-India Gems and Jewellery Trade Federation chairman Bachhraj Bamalwa said told reporters in Mumbai, "We are hoping that the Finance Minister will understand our plight and will consider a complete roll back of excise duty. If there is a fall out in the talks we will continue with our agitation." The RJD chief said Mukherjee assured the delegation that the matter will be discussed in the ongoing Budget session of Parliament when it resumes after a break, and the issue will be settled amicably. The agitation has cost the industry a revenue loss of about Rs 20,000 crore and the government has also incurred a direct revenue loss of Rs 700 crore from Customs Duty, he added. — PTI
	India to be second largest mobile broadband market in four years Tribune News Service New Delhi, April 5 The GSMA has said India will become the second largest mobile broadband market globally within the next four years with 367 million broadband connections. In doing so, India will overtake the US, which will account for 337 million mobile broadband connections by 2016. However, it will still be second to China, which will have 639 million mobile broadband connections by then. Since 3G licences were first awarded to mobile operators in India in September 2010, mobile broadband connectivity has grown steadily. There are now more than10 million High Speed Packet Access (HSPA) connections across the country and this is expected to grow exponentially, by 900 per cent, to more than 100 million connections by 2014. This will make India the largest HSPA market worldwide within the next two years, surpassing China, Japan and the US in the process. “The mobile industry in India is set for immense growth as Mobile Broadband technologies such as HSPA and LTE start to proliferate, but there is scope for far greater development,” said Anne Bouverot, Director-General of the GSMA, who also announced opening of its permanent office here today. “To take full advantage of this, the Indian government should facilitate the timely release of additional spectrum in a fair and transparent way for all stakeholders. The benefits are clear to see - a 10 per cent increase in Mobile Broadband penetration could contribute as much as $80 billion (Rs 3,506 billion) of revenue across the country’s transport, healthcare and education sectors by 2015,” Bouverot said.
	In Bangalore, a remake to avoid being ‘Bangalored’ Bangalore, April 5 Rajesh Rao is among a handful of Indian entrepreneurs who may prevent the country's software industry from getting "Bangalored". The 41-year-old self-confessed geek runs Dhruva, a firm that sells content and services to global online game companies from a bungalow in a crowded suburb of a city that has come to embody outsourcing and the transfer of jobs from the West. But plain vanilla outsourcing - help desks and back office operations - is finding cheaper locations abroad. India's software industry has discovered it needs to move up the value chain or enter niche areas like gaming to continue growing. Rao, a dapper man with a soul patch beard, was drawn to multimedia computing while at university and set up his own firm. He progressed to video gaming and says he lucked into a sector that is now realising its potential. It is less than a $500 million business in India - and $50 billion worldwide and growing. "Whenever something transcends from a geek activity to an everyday activity, that's when you can say that this is now going to become mainstream," Rao said at his unpretentious headquarters set amid shops, a temple, a women's college and cheek-by-jowl homes. As gaming scales up, the advantages of outsourcing are becoming apparent to the firms on the US West Coast that dominate the sector. Jobs that can cost up to $12,000-$15,000 per man-month there can be outsourced to companies in India like Dhruva for about $4,000-$5,000. "The gaming industry began to discover the benefits of outsourcing, and we were already there, and so we started seeing a huge upswing in business," Rao said, speaking in a new office, set up as he expands staff. — Reuters
	Indorama to expand Baddi unit; pump in Rs 600 cr Tribune News Service Chandigarh, April 5 Indorama Industries, part of Singapore-based Indorama Corporation, has announced that it would invest Rs 600 crore for expanding its spandex manufacturing facility at Baddi. Buoyed by growing consumption by domestic spinning companies, Indorama is looking at a major expansion of its facility here. The company has set up the country’s first spandex-making plant at Baddi with an initial investment of Rs 400 crore. The plant was commissioned on March 25. "We intend to scale up the capacity of spandex from 5,000 metric tonnes (MT) to 15,000 MT in the next three years. Over the next two phases, we will infuse Rs 600 crore for this expansion,” said RD Gupta, business head of the company, here on Tuesday. The company caters to various Indian textile companies, including Vardhman, Nahar, and Arvind Mills, as spandex has applications in making stretchable denim, sportswear and innerwear. “We see consumption of spandex growing by 15-20 per cent per annum in India as against a growth of 7-8 per cent globally. Domestic spinning companies will now no longer depend on countries like China, Taiwan or Vietnam for meeting their requirement for spandex, as we go on stream,” he added.
	Airtel partners ZTE for 4G network in Kolkata Tribune News Service New Delhi, April 5 Bharti Airtel yesterday said it has selected ZTE Corporation as its telecom equipment partner for the 4G network launch in Kolkata. The service launch will offer high-speed wireless internet access that can support bandwidth intensive applications, support video streaming and high-definition video conferencing. Reports said Airtel will launch its 4G services in Kolkata later this month and it has selected ZTE as its equipment provider. Bharti Airtel, which has operations in 19 countries across Asia and Africa, will deploy its TD-LTE network in the 2.3 GHz frequency band allocated by the Indian government for broadband wireless access technologies. Sanjay Kapoor, CEO, Bharti Airtel (India & South Asia), said, "According to industry estimates, by 2016, 6 per cent of all mobile connections will have 4G connection, which would create 36 per cent of the total mobile data traffic, thus paving way for the ensuing data revolution. The impending launch of 4G in the country will provide ultra high speed data access, driving fundamental changes in society at large. We look forward to the launch of 4G technology in India, which will be timed to match the world in its launch." "We are glad to be a part of Airtel's foray into LTE services for the first time in India," said Cui Liangjun, chief executive officer, ZTE India.
	Korea’s LSC&S opens facility at Rewari Our Correspondent Rewari, April 5 Haryana’s Labour and Employment Minister Shiv Charan Lal Sharma and Jong-ho-Son, president and CEO, LSC&S, Korea, inaugurated LS Cable and System India (LSCI), the country’s largest power cable manufacturing plant, at Bawal in Rewari district yesterday. Besides Joong-Keun Kim, Ambassador of the Republic of Korea in India, Euy-don Park, Managing Director, LSCI, and Rajeev Arora, Managing Director, HSIIDC, were also present on the occasion. LSCI is a wholly owned subsidiary of $7.67-billion LS Cable & System (LSC&S), a global leader in cable and system solution. The state-of-the-art plant, built at a cost of Rs 180 crore, will have a capacity to produce power cables up to 220KV and Optic Ground Wire worth Rs 1,000 crore and communication cables worth Rs 500 crore.
	Infosys to set up 2nd campus in Kerala Thiruvananthapuram, April 5 Infosys will set up a new campus at Technocity here, estimated to cost Rs 600 crore, providing a boost to the IT sector in the state. This will be the Infosys' second campus in the state. The state government singed an agreement here yesterday with Infosys to hand over 50 acres at Technocity, which forms a part of the fourth stage of expansion of the Technopark. Chief Minister Oommen Chandy, State Industries Minister PK Kunhalikutty and Infosys executive co-chairman Kris Gopalakrishnan were present on the occasion. The new campus is coming up at a 10 lakh sq feet area that would provide direct employment to over 10,000 people and indirect employment to over 50,000. — PTI