Mumbai, February 6
An RBI panel has revived the proposal of setting up a gold bank, or Bullion Corporation of India, to reduce imports of the metal - an idea mooted over two decades ago by the then Finance Minister Manmohan Singh.

"With considerable changes in policy related to gold over the past 20 years, the proposal for setting up a Bullion Corporation of India (BCI) needs to be revisited and activated," a committee, headed by KUB Rao, to study the issue of gold imports said in its final report.

Such a bank will reduce the gold imports, which are a major worry vis-a-vis the current account deficit, by greater activation of the domestic idle gold, it said.

The proposal to set up a gold bank was first floated by the then Finance Minister Manmohan Singh in his budget speech in February 1992. The idea was, however, never implemented.

The working group said there is a "strong intellectual support" for the idea at present and the banks' umbrella body, the Indian Banks Association (IBA), has also supported it.

Delaying or postponing the setting up of the BCI "is detrimental to the gold dynamics in the economy", it warned.

"Given the insatiable demand for gold from the Indian residents, there is a strong need for creating an institution to facilitate the activation of dealing in domestic idle gold and to provide liquidity and refinance to institutions/banks," it said.

The bank's functions will include acting as a 'backstop facility' to offer refinance of gold to institutions lending against the collateral of gold, issuance of gold bonds in lieu of collection of gold stocks, storage and safekeeping facilities for bullions and close coordination with other international bodies such as World Gold Council.

New Delhi, February 6
The government has fixed the base price at Rs 145 per share for 9.5 per cent stake sale in NTPC, a discount of 4.79 per cent, to garner over Rs 11,300 crore for the exchequer.

The government proposes to sell 78.32 crore shares or 9.5 per cent stake in the country's largest power producer through offer for sale (OFS) route. The auction would take place tomorrow.

Shares of NTPC today closed at Rs 152.30, down 2.12 per cent from its previous close on BSE.

The NTPC disinvestment, which would be the biggest so far this fiscal, would help the government garner over Rs 11,300 crore at the floor price.

In a filing to BSE, NTPC said "the floor price for the sale in terms of the Sebi OFS circular shall be Rs 145 per equity share of NTPC (the Floor Price)".

The Empowered Group of Ministers, headed by Finance Minister P Chidambaram, had yesterday decided on the floor price and date of the share sale. The pricing was, however, revealed only after close of market hours today. The government holds 84.50 per cent stake in NTPC. Post stake sale, its holding will come down to 75 per cent. — PTI

New Delhi, February 6
Net direct tax collection grew by 12.49 per cent to over Rs 3.90 lakh crore in the April-January period, less than the budgeted annual target of 15 per cent. The net direct tax collection was Rs 3.46 lakh crore in the same period of 2011-12 fiscal.

Tax collections have been hit by a slowdown in the economy as strong economic activity is required for buoyancy in tax collections. The second part is evasion, where people don’t pay the right taxes. The Finance Ministry has now on more than occasion warned tax evaders that the department will reach their doorsteps if they don’t comply.

The gross collection of direct taxes stood at over Rs 4.55 lakh crore, up by 7.02 per cent as against Rs 4.25 lakh crore in the same period in 2011-12, the Finance Ministry said.

While collection from personal income tax was up 13.81 per cent at about Rs 1.58 lakh crore, that from corporate tax was up 3.71 per cent at Rs 2.96 lakh crore.

The growth in wealth tax mop-up was 2.85 per cent at Rs 685 crore, while collection from Securities Transaction Tax (STT) dropped 9.99 per cent to Rs 3,731 crore during the April-January period.

Despite slowdown in economic activities, the government had said it is confident of meeting the Rs 5.70 lakh crore direct tax target for the fiscal. Direct taxes include income tax, corporate tax and wealth tax.

New Delhi, February 6
India needs a more systematic policy on “Direct Selling” (DS) that is based on its own constitutional structure and also the realities and idiosyncracies of the country’s economy.

A report by Indicus Analytics, an analysis firm, points out that there has to be a government policy to deal with this growing employment opportunity for the masses. A good and sustainable growth-oriented government policy needs to protect the interests of consumers and also promote cost reducing and efficiency enhancing activities of employment generation.

Fast-growing economies such as Thailand, Malaysia, Korea, Indonesia, China, Vietnam, Japan, Taiwan and Singapore all have a specific statute that regulates and facilitates direct selling.

The report says all sales are not through a physical location such as stores, stalls and marts, and also not through mail order and Internet. In other words, Direct Selling is the residual and involves selling usually through ‘explanation and demonstrations’ by a direct seller and not through any other means. Within the DS model there may be a multi-level marketing (MLM) model. However, that is very different from the pyramid schemes that the government needs to protect consumers against.

International evidence shows that there are benefits of DS through MLM which has the obvious advantage of reduction in transaction costs and bridging the gap between consumer prices and manufacturer prices, facilitated by the use of technology.

The report says India needs to operate at the Central level. It needs to amend the Prize, Chits and Money Circulation Schemes (Banning) Act, making the distinction clear.

First, direct selling, including multi-level marketing, has to be defined. Second, there has to be an explicit qualification explaining that direct selling is not to be interpreted as a money circulation scheme.

Third, a pyramid scheme has to be defined, so that one knows what is being prohibited. This will protect direct selling companies, protect consumers and also make the task of enforcement easier.

Chandigarh, February 6
The newly formed partnership - India Australia Strategic Alliance - is now looking towards Punjab not just to widen its trade, but also to provide help in the socio-economic concerns of the people here.

The new Alliance, headed by Dr Jagwinder Singh Virk, is not only trying to build partnerships of Punjab-based industries and service industries with the Australian counterparts, but will also give monetary aid to the NGOs involved in detection and treatment of cancer among the marginalised population residing in villages of Punjab. The Alliance is setting up a Cancer Council in Punjab, which will donate funds for the welfare of cancer-afflicted families.

The India Australia Strategic Alliance was launched last month in Delhi, with Australian Liberal party senator Eric Abetz as its chief patron. Talking to The Tribune, Dr Jagwinder Singh Virk, chairman of the Alliance, said the Cancer Council would be set up and donations to the tune of Rs 20 lakh would be raised initially, for helping the poor cancer-afflicted families in Punjab. “We will identify NGOs that work in the area of cancer treatment and provide financial assistance to them,” he said.

The Alliance is also exploring the areas where Australians can tie up with Indian counterparts and help in bringing investment to India. “Our main aim is to guide Australian citizens in putting investment in India. We are also tying up with the industry leaders across North India and will take them to Australia and help them forge partnerships. This will not just be restricted to manufacturing sector, but also to the services sector, especially those in the education sector, who can use our platform to form alliances with Australian colleges and universities,” he said.