Daily Excelsior...Business

Diamond exporters
welcome decision to
exempt sales tax

MUMBAI, Mar 31: Diamond exporters today welcomed Gujarat Government’s decision to provide .....more

IA’s fleet requirement slated
to rise by 10th plan end

NEW DELHI, Mar 31: The fleet strength of Indian Airlines, which has decided to acquire 43 aircraft....more

Inflation skids to 1.44 pc

NEW DELHI, Mar 31: Inflation fell marginally by 0.07 per cent to 1.44 per cent for the latest...more

India to participate
in ‘Outsource
World London’

NEW DELHI, Mar 31: Electronics and Computer Software Export Promotion Council (ESC) will....more

Maruti offers
warranty for
four years

NEW DELHI, Mar 31: Maruti Udyog Ltd, car market leader, today announced that all its cars purchased from tomorrow will have the option of warranty cover for the third and fourth year after purchase........more

Deregulated era for
petroleum products
from midnight

HP Govt signs agreement
for establishing IT University

SHIMLA, Mar 31: The Himachal Pradesh Government has signed an agreement in private sector for establishment....more

Diamond exporters welcome decision to exempt sales tax

MUMBAI, Mar 31: Diamond exporters today welcomed Gujarat Government’s decision to provide sales tax exemption on diamonds to boost the gems and jewellery exports from the state.

The complete exemption of sales tax on diamonds in Gujarat has provided a strong support to the industry towards the growth of exports, exporters said and felt that such initiatives should be taken by other states like Maharashtra, West Bengal and Rajasthan where maximum cutting and polishing of diamonds take place after Gujarat.

Recently the Maharashtra Government in its budget proposal, had announced a one percentage reduction in sales tax to 0.5 per cent because of diversification of diamond cutting and polishing business to neighbouring Gujarat here sales tax was around 0.5 per cent till recently.

Now with the complete abolition of sales tax in Gujarat, exporters and traders hoped that the Maharashtra Government would shortly resort to complete withdrawal of sales tax to promote diamonds business and trade.

"The exemption of sales tax on diamonds in gujarat has paved a new way for the gems and jewellery exports, devising a strong base to cross the milestones in coming years," said Mr Sanjay Kothari, Chairman of Gems and Jewellery Export Promotion Council here today.

The diamonds industry contributes to 82 per cent of the total gem and jewellery exports. During the financial year 2000-01, gem and jewellery has recorded total exports to the tune of us dollar 7.8 million of which diamonds export constituted u s dollar 6.18 million. India’s share of the world’s cut and polished diamond market is pegged at 55 per cent by value, 80 per cent by volume and 90 per cent in terms of pieces. (UNI)

IA’s fleet requirement slated to rise by 10th plan end

NEW DELHI, Mar 31: The fleet strength of Indian Airlines, which has decided to acquire 43 aircraft and six turboprop planes, is projected to increase to 68 from the current level of 55 in the next five years, given the prevailing rate of passenger traffic growth.

The airline has planned its fleet strategy as a mix of lease and purchase of new aircraft. While it plans to lease aircraft in their mid-life as it has done in the recent past, it also plans to buy new aircraft.

"This approach, compared to an all-purchase option, would help in reducing investment level as well as provide flexibility in responding to future market trends", Aviation sources said.

Based on projected traffic growth and aircraft phase-out, it is estimated that the domestic carrier would require a fleet of 68 jets at the end of the tenth plan period, compared with 55 at the end of the current fiscal, the sources said.

The IA Board has decided to acquire 43 planes - a mix of A-319, A-320 and A-321 - at a cost of Rs 10,089 crore to replace its ageing fleet of A-300S and boeing 737S. These 43 aircraft, having seating capacity ranging from 122 to 172, would meet IA’s fleet requirements from 2003-04 to 2007-08.

The sources said the fleet requirement was likely to increase by another six aircraft if IA’s domestic market share was to increase to 55 per cent during the tenth plan period.

The 50-seater turboprop ATR fleet, needed for operations in the north-east, was also projected to increase from current fiscal level of six to ten by the end of the tenth plan period, they said.

Based on the traffic forecast and fleet projections during the tenth plan, the total plan outlay was likely to be put at over Rs 9,100 crore if the IA had a 50 per cent market share during this period.

If its market share increased to 55 per cent, the outlay would rise to more than Rs 11,300 crore, the sources said.

Government also plans to inject Rs 325 crore into the airline, an amount which is long overdue after having been recommended by the now-defunct disinvestment commission. The sources said Government’s contribution of Rs 325 crore was likely to be made in the beginning of the tenth plan period.

They said the loans taken to finance the acquisition of aircraft would be around Rs 7,100 crore if IA maintains 55 per cent market share.

The total net deficit of over Rs 2,600 crore was expected to be met by appropriate fare hikes and through benefits accruing from measures relating to reduction in taxation and Governmental support for uneconomical operations, among other things.

The sources said the disinvestment of IA, which was kept on hold due to lack of valid offers, could be taken up later again.

By that time, the airline would be put back on rails, its financial position and fleet-size strengthened, so that the company has a much better worth in the disinvestment process, they added. (PTI)

Inflation skids to 1.44 pc

NEW DELHI, Mar 31: Inflation fell marginally by 0.07 per cent to 1.44 per cent for the latest reported week due to sharp fall in the prices of primary commodities and marginal increase in the price of manufactured products.

The point-to-point price change based on Wholesale Price Index (WPI) fell despite a steep hike for beverages, tobacco and tobacco products. The index was, however, as high as 6.70 per cent in the same period a year ago.

WPI stood static for the second consecutive week at 161.5 for the week ended March 15 and the index was lower at 159.2 in the previous year.

Among the commodities that had become costly include tea, gram, eggs, ragi, fish-inland, hydrogenated vanaspati, ghee, sunflower oil, sugar, Indian made foreign spirit and bidi.

The final WPI was higher at 160.8 for the week ended January 19 as against the provisional level of 160.7, while the final inflation was 0.07 per cent higher at 1.39 per cent as compared to the provisional figure of 1.32 per cent.

The Consumer Price Index for Industrial Workers (CPI-IW) fell by one point to 466 points, while the point-to-point rate rose by 0.25 per cent to 5.19 per cent in February this year.

Primary articles became cheaper by 0.4 per cent due to 0.5 per cent drop in the price of food items. But the fall was to a great extent contained by marginal rise in the price of non-food items and minerals, which rose by 0.1 per cent each.

Fuel items continued to remain firm for the second week, while manufactured products rose marginaly by 0.1 per cent although beverages, tobacco product prices shot up by more than three per cent.

The index for primary articles’ group fell to 167.4 from 168 due to fall in the price of fish-inland (eight per cent), ragi and eggs (two per cent each) and gram and eggs (one per cent each) among food-articles, the index of which fell to 175.8 from 176.7.

Among non-food articles — down to 150 from 149.8 —prices were down for copra and kardi seed (three per cent each), raw cotton and cotton seed (two per cent each) and raw jute, mesta, raw silk, rape and mustard seed and raw hides (one per cent each).

But price increased for fodder (11 per cent), sunflower (five per cent), bajra (four per cent), barley, copra and kardi seed (three per cent each), groundnut seed (two per cent) and jowar, moong and soyabean (one per cent each).

Minerals’ group index rose to 121.9 from 121.8 due to 19 per cent hike in the price of barytes and two per cent in fire clay, even as there was three per cent dip in ochre price.

The index for fuel, power, light and lubricants’ group remained firm at 233.3 and the index was only 222.7 in the previous year.

Manufactured products’ group index rose to 143.4 from 143.3 despite costlier food products and textiles and the index was 144.2 a year ago. (PTI)

India to participate in ‘Outsource World London’

NEW DELHI, Mar 31: Electronics and Computer Software Export Promotion Council (ESC) will showcase India’s IT capability at the ‘Outsource World London’ to be held on April 24-25 and sponsor a high-level Indian delegation to UK to coincide with the event.

ESC will set up ‘Indiasoft’ pavilion at the fair which would be a meeting point of well-known international companies and generating good business in areas of software solutions, services and IT enabled serbices, Mr D K Sareen, Executive Director, ESC said here.

The Indiasoft pavilion would showcase capabilities of Indian IT companies to familiarise the IT multinationals with the continuous surge of Indian software and IT-enabled services, he said.

Twenty three Indian companies have confirmed their participation at Indiasoft pavilion offering a host of products and services including off-shore development services, data conversion, application management services, on-site it consultancy, database management services, resource augmentation and wireless and mobile technologies.

The Indian participation at Outsource World London will come on the heels of Cebit 2002 held recently in Germany where ESC had set up an Indiasoft pavilion. (UNI)

Deregulated era for petroleum products from midnight

NEW DELHI, Mar 31: Petroleum Minister Ram Naik has assured the nation that the Government will ensure sufficient supplies of petroleum products across the country at stable prices in the deregulated period and warned dealers that action would be taken against them for creating "artificial shortage" of any product.

"We will ensure the smooth supplies of petroleum products in remote and hilly areas," the minister told UNI in an exclusive interview on the eve of dismantling Administrative Price Mechanism (APM) from mid-night tonight.

He said oil companies had been directed to ensure supplies even in the islands like Lakshadeep and Andaman Nicobar.

The minister hoped that all players, including oil companies, related agencies and authorities and the State Governments would cooperate in ensuring a smooth transition.

He sought cooperation, in particular from the State Governments, in reaching the benefit of free pricing to the consumers as some Governments had decided to mop up the reductions announced in the retail prices of petrol and diesel (by the Union Government) from March one, 2002, by increasing the sales tax rates.

He said there will be no price increase in the next three months, though the crude prices at the international market had increased by four dollars and were now ruling over 25 dollars per barrel. Mr Naik said a dollar increase in international market would later mean an increase of 60 paise in petrol prices.

The Government may consider the option of adjusting the duties, similar to the practice used in various countries, to minimise price fluctuations in the domestic prices.

Mr Naik said the Government was considering various options to reduce the impact of international price fluctutatons, including creating a special fund, similar to the oil poor account and changes in the excise duties.

The oil companies may also consider the option to fix the domestic prices at a regular interval so that consumers were not hurt directly by the volatility of the international market.

The minister said a hospitality agreement between all the three public-sector companies — Indian Oil Corporation, Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited —had been signed for a period of two years to ensure that consumers would continue to get supplies of petroleum products.

Under the agreement, oil companies can supply their products to dealers of other companies.

Giving details of other measures being taken by the Government for a smooth transition from regulated period to the deregulated era, the minister said a regulatory body would be set up and the related bill for this would be placed before the cabinet soon.

For setting up a regulator for the downstream petroleum sector, the ministry had finalised the draft bill which would be introduced in parliament when it re-assembles after April 14.

Till such time the regulator is not in place, the ministry will oversee the functioning of the downstream oil marketing companies, he added.

The minister said consumer prices of petrol and diesel would become market determined. Consequently, all petroleum products will be sold at market prices, except kerosene — which will be sold under the Public Distribution System (PDS) — and LPG cylinders used for domestic cooking. (UNI)

HP Govt signs agreement for establishing IT University

SHIMLA, Mar 31: The Himachal Pradesh Government has signed an agreement in private sector for establishment of a university of information technology in the state.

The agreement was signed on March 25 last with the trust of the university in which five per cent seats will be reserved for bonafide Himachali students, according to an official spokesman here.

The trust will complete the project of the university, known as Jaypee University of Information and Technology within five years and run it on "not for profit" basis, a relevant bill has been passed in the State Legislative Assembly recently for setting up of the university.

The university will offer courses in information technology, electronics, bio-informatics in the first year. Later bio-technology and computer sciences and engineering would be introduced in a phased manner. It would also offer post graduate courses from the 2005-2006 academic session, the spokesman said.

The spokesman said Japyee Institute of Information Technology, an institute of international standard, was already being set up at Rachina village near Vaknaghat in Solan district at a cost of Rs 65 crore. This institute has academic tie-up with the University of California at Berkley, USA. Classes in the institute are expected to start from July this year.

Besides, Jaypee Industrial Training Centre for more than 450 students would be made functional at Samirpur in Hamirpur district from the 2002-2003 financial year.

The State’s Information Technology policy envisages investment of Rs 20,000 crore in IT industries and related services in the state by the year 2010.

The state’s pollution free and salubrious climate offers a vast scope for development of information technology in the state, the spokesman said. (UNI)