Ramadorai of TCS is Asia business leader of the year

BEIJING, Oct 11: S Ramadorai of Tata consultancy services and Ramalinga Raju of Satyam Computers are among the four receipients of the prestigious Asia Business Leader Awards this year.

Ramadorai, Chief Executive Officer of TCS, was named the Asia Business Leader of the year, while Raju, Chairman, Satyam Computers, received the corporate citizen of the year award for their achievement, innovation and leadership in regional business.

The awards were announced last evening in Hong Kong, Xinhua news agency reported.

Others recipients are Neil Montefiore of Mobileone (Asia) Pvt Ltd of Singapore as innovator of the year and Jong-Yong Yun of Samsung Electronics Co. Ltd of Korea as CEOs of choice.

Financial Secretary of the Hong Kong special administrative region Antony Leung congratulated the awardees on the occasion.

The Asia Business Leader Awards 2002 was organised and presented by CNBC. (PTI)

Fuel adulteration burns a Rs 10,000 cr hole in economy

NEW DELHI, Oct 11: Adulteration in petrol, diesel and other petroleum products is costing a whopping Rs 10,000 crore loss to the economy and at least Rs 2,500 crore to the national exchequer, a study by the Ministry of Petroleum has said.

The fuel adulteration is also a major cause for increased air pollution, leading to environmental and health related problems, the study said.

The study, conducted by the anti-adulteration cell of the Ministry of Petroleum and natural gas, also identified six major reasons for the adulteration including price differential and diversion of public distribution kerosene to the extent of around 30 per cent.

Being a Government study, it had not considered various other type of losses, which were incurred by consumers like reduction in efficiency of a vehicle and expenses made on treatment of diseases caused by air pollution. However, it has taken into consideration the damage to vehicle engine and machinery. The study points out that even the marker system introduced by the oil companies to check the menace of adulteration has failed because the blue dye of kerosene could be easily removed and the testing process was cumbersome.

The cell has recommended a more advanced marker system like ROHAM and HAAS spectrace, ICI Synetix Fuel Tagging, BASF market, United Colour, GFU and Indianoil developed system to reduce the level of adulteration.

It has also identified the level of adulteration in various regions of the country. According to the study, the adulteration in western region, considered as the main production centre of hydrocarbon, is very high since 56 per cent samples failed the test and another 18 per cent indicates possible adulteration. The remaining 26 per cent shows other malpractices, indicating hundred per cent retail outlets, considered for the study from the region, were not meeting the standards.

On the other side, the random inspections in northern region showed that around 46 per cent retail outlets were free from any malpractices while the remaining were found engaging in adulteration or other type of malpractices.

The cell feels that the Bureau of Indian Standard (BIS) specification were too broad, making it difficult to detect the level of adulteration. A mixing of up to five per cent of naphtha in petrol is very difficult to detect as it do not have a substantial impact on the specification of adulterated fuel.

However, if the mixing level is more than 20 per cent, the adulteration could be comparatively easier to detect. The study notes that around 25 to 40 per cent subsidised PDS kerosene is being diverted to mix in diesel because the price differential is around Rs 10 per litre.

While the diesel is costing around Rs 20 per litre, the PDS kerosene is costing around Rs ten per litre, making the adulteration more attractive. The other products, which are adulterated in diesel because of wide price differential are PMS SK (price Rs four), superior LDO (Rs five), LDO (Rs seven), Furnace oil (Rs four) and Slop oil ( Rs six).

Similarly in petrol, naphtha is considered as one of the most usable adulterants, costing Rs 15 per kilo. Other adulterants are benzene (Rs five), toluene (Rs nine), solvants (Rs 10), MTO (rs 12) and pentane (Rs 14).

Diversion of PDS kerosene is causing a loss of Rs 2,500 crore to the Government as the Government is shelling out a subsidy of around Rs 9,000 crore every year under this head. Besides this, the sale of oil companies also reduced to the extent of adulteration, causing another Rs 6,000 crore losses to oil companies.

"Reduced volume of sales also result in sales tax, customs and central excise losses to the Government," the study pointed out.

The cell feels that easy availability of adulterants should be checked immediately. Naphtha and solvents were available freely in the market since there is no bar or restrictions on imports. Economic compulsions of dealers and indifference of oil companies were also other factors responsible for adulteration.

In an effort to reduce adulteration, the cell has prepared a draft "the petroleum products quality regulation act, 2002," which is under consideration of the ministry. Under the proposed act, the cell wants it should be empowered to punish as well as summon witnesses and confiscation of products. (UNI)

100 million phones by 2010

HYDERABAD, Oct 11: Apart from providing more than 100 million telephones in the country, every village will be provided at least one Village Public Telephone (VPT) soon, Communication Minister Pramod Mahajan said today.

Inaugurating the 1000th VPT in Andhra Pradesh, provided by Tata teleservices at a function, here, he said of the six lakh-odd villages in the country, BSNL was providing telephone services in five lakh villages, leaving 97,000 villages to be covered by the six private companies.

It was also decided to organise state level exhibition with the cooperation of various departments of the State Government to highlight the significant achievements made by the present Government.

It was informed that a Tapovan Park and a town park were being developed in Kurukshetra and a Tourism Information Centre would be set up at parakeet tourist complex in Pipli shortly to facilitate the tourists and pilgrims. The town park would be ready by the end of this month.

About 2,000 artists, including those from various zonal cultural centres of the country, Haryana public relations and cultural affairs department, Indian Tourism Development Corporation and Kurukshetra University and Rang Vidhushak, Bhopal will participate in this festival. Cultural functions will also be organised by the participating artists hailing from various states of the country.

The festival will be inaugurated on December 11 evening by organising a special function on the banks of the holy Brahmsarovar where fireworks would be displayed. It was informed that a package tour entitled as ‘Discover Haryana’ had already been introduced by the department of tourism to take students to Kurukshetra and Morni and now the light and sound programme to be held at Jyotisar as well as panorama museum at Kurukshetra would also be added to this package tour.

The Chief Minister directed that a youth hostel be set up at Morni and all roads leading to Morni should be strengthened on priority basis as it was the only hill resort of the State in Panchkula district. He said all necessary facilities for tourists should be improved considerably to develop the hill resort of Morni. (UNI)

SEBI cancels registration of six stocks brokers

MUMBAI, Oct 11: The Securities and Exchange Board of India (SEBI) has cancelled the registration of the six stock brokers, members of the Ludhiyana Stock Exchange (LSE), who were declared defaulters by the LSE, with immediate effect.

The registration have been cancelled in terms of sub-regulation (2) of regualtion 29 of SEBI (stock brokers and sub-brokers) rules regulations, 1992.

These stock brokers were declared defaulters by the LSE and ceased to be members of the exchange, and failed to fulfill the pre-requisite condition of registration as brokers with SEBI, the SEBI said in a release here today.

These brokers are: Pravin Kumar Jain, Ashok Kapoor, Ashok Rani Malik, Mohanbir Singh, Premjit Singh Sidhu and Ashok Kumar Gupta. (UNI)

Tax evasion detected in Assam

SIVASAGAR (ASSAM), Oct 11: Sivasagar district transport authority claims to have detected a major tax evasion case by a Mumbai firm, which has been engaged in ONGC’s drilling operation on a contract basis, according to official sources.

The company M/S Dewan Chand Ramcharan India Private Ltd has been operating four rigs, two each at Galeky Oil Field and Lakwa Pathaligarh Oil Field. The four movable rigs are fitted in as many rig-carrying giant vehicles which can move to any place. The value of each vehicle is around Rs 40 lakhs.

The sources said the company had been evading payment of taxes. Of the four rig-carrying vehicles two had Gujarat registration number (DG I R/4871 and DG I R/6332). These two vehicles were subsequently registered in Assam on 26.5.1998, the new registration numbers being as-04-8302 and as-04-8303 and road and other taxes had been paid up to 31.12.1998.

But since then no tax had been paid for these two vehicles. As such the State Government has been deprived of road taxes at the rate of Rs 30,000/- per annum from 1.1.1999 up to March 31.12.2002 and at the rate of Rs 45,000/- per annum w.e.f. 1.4.2002 for each of these vehicles. The sources said another major tax-evasion was seen in two other rig-carrying vehicles operating at lakwa pathaligarh oil field were also detected.

A Sivsagar district transport authority source said these two vehicles had been using the registration numbers of the other two vehicles, which were subsequently registered in assam. The amount of tax evasion in this case would be more than that of the earlier case.

The sources said, it was yet to be known how the Mumbai based company could have hoodwinked the ONGC authority which should examine throughly all the aspects of the functioning of a company before alloting contractual work involving crores of rupees. "The present case appears to be only the tip of the iceberg and more such cases may be brought to the light in the coming days," the sources added. (UNI)

India’s textiles export to cross $15 bn this fiscal

KOLKATA, Oct 11: Textiles Minister Kashiram Rana said today the country’s textiles export during the current financial year would cross the US dollar 15 billion mark (Rs 65,000 crore) and touch $ 50 billion by 2010.

Export of textiles products during 2001-02 was US dollar 13 billion.

"Fortunately demand for our textiles products worldwide is increasing and the European Union’s recent decision to withdraw certain concessions to products from Pakistan will help India," Rana told reporters here.

EU was offering a special concession to Pakistan for the steps taken by it in dealing with drug trafficking among others.

The situation, he said, was fast changing in favour of India so far as garment export was concerned and it was visible from the export figures of the first quarter of the current financial year.

Rana said textiles export during the quarter April to june this year was up by 16 per cent to $ three billion from about $ 2.58 in the same quarter of the previous fiscal.

He said the national policy of 2000 had set a target of $ 50 bn for textile exports by 2010 and his ministry was confident of achieving it. (PTI)

Recommendations of the tax conference

NEW DELHI, Oct 9: Taxation of farm income with an exemption limit of Rs one lakh, time-bound withdrawal of exemptions and selective use of search and seizures operations are some of the recommendations of the two-day tax conference organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) in mid-September.

Along with creation of a tax-friendly atmosphere and better tax administration, it suggests that to substantially enlarge the direct tax base in the country amendment should be made in the definition of agricultural income under the I-T Act to bring within its purview at least the cash crops like timber, rubber, cashewnut, coconuts, spices and flowers.

To begin with, the exemption limit income from agriculture could be fixed at a higher figure of Rs one lakh against Rs 50,000 for non-agriculturists.

Further, there is need to expedite allotment of PAN and the coverage of transactions where PAN is mandatorily to be quoted should be enlarged, computerisation relating to the functioning of the I-T Department should be expedited to enable matching of information to detect non-filers of returns. Voice message system on telephones, during the period when returns become due should be extensively used to induce people to file their returns of income and a time-bound programme should be formulated for networking of all Income-Tax offices across the country.

The conference noted that the tax base and revenue earning get eroded because of umpteen exemptions, incentives and concessions in the tax laws.

Therefore, a time-bound programme needs to be drawn for removing provisions relating to these on the basis of some systematic plan, not in an ad hoc manner.

Also, tax laws should not be used for doing the work of other Departments and Ministries. Tasks such as development of regional and backward areas and industrial development should not be the responsibility of the tax department.

A proper mechanism should be evolved to make effective use of survey operations — both internal and external. For this, concerted attention needs to be given in regard to collection of information, its collation, dissemination, storage and retrieval and fast verification, said ASSOCHAM.

Instead of specifying the sources to be tapped every year, it is recommended that the CBDT should draw up a long-term plan indicating the sources from which information should be collected. The information should be procured in a prescribed form on magnetic tapes. It should be effectively used for discovering new assessees.

Further, search and seizure operation should be used in a selective but effective way to find out about new taxpayers and for unearthing evaded incomes and wealth. However, search and survey operations cannot be an end in themselves. These should also create credible deterrence for making tax compliance.

In an era where nearly 97-98 per cent of returns are to be accepted, the picking up of cases for scrutiny should be done through a process which is secret and fair and creates a climate for voluntary compliance for non-filers. Also, to develop faith in the administration, promises made to the taxpayers such as those contained in the Vision 2005 document should be promptly and sincerely fulfilled.

For developing a tax-friendly atmosphere for better compliance, concerted attention should be paid for redressal of taxpayers grievances, promptness in giving refunds with interest where it is due to the taxpayers, better facilities for taxpayers in tax offices, public relations aspect of Tax Department’s working needs thorough reorientation, educating the taxpayers about their rights and obligations under the tax laws, recognition of the role of honest and sincere taxpayers and formulating a system where the expenditure incurred by the taxpayers in assisting the Tax Department in its functioning in regard to role in the matter of TDS is compensated.

Finally, the ASSOCHAM conference emphasised the need for better tax administration for improving compliance and in increasing the tax base.

For this, the tax administration has to be firm but responsive to the taxpayers needs.(UNI)

Govt to review HMT divestment set up committee to better PSUs

NEW DELHI, Oct 9: The decision not to disinvest HMT Ltd will be reviewed within a month and proper valuation will be done before inviting financial bids, Minister for Heavy Industries and Public Enterprises Balasaheb Vikhe Patil said here today.

Some procedural steps were yet to be taken, otherwise there was no problem in the disinvestment of HMT, he told a news conference.

The minister had earlier indicated that disinvestment in the public sector HMT was stalled for the time being. It was not the right time to get good price or return, he said.

A Committee of Chairmen and Managing Directors of PSUs would be set up by monday to hold quarterly reviews of the performance of psus and suggest ways to improve them, co-ordinate the work and suggest ways to improve marketing and production. The committee that would have five or six members would start working within a week, he said.

The announcement was made soon after a meeting of CEOs of various PSUs.

Replying to a volley of questions on the disinvestment of public sector units, the minister said it was up to the Government to decide which psu should be divested and at what time. "It all depends on the judicious decision of the Government," he said.

"There is no fun in keeping loss making units with the Government," according to Mr Patil. Wherever revival is possible it should be done, the minister said.

However, the core industries should remain with the Government, he added. Mr Patil said his ministry would ask for more budgetary allocations for revival of certain PSUs and implementing the VRS. However, he did not give the quantum of the amount, except indicating that this would be done only selectively.

Earlier, addressing the CEOs, the minister said the performance of each PSU would now be closely monitored. He wanted them to demonstrate a winning leadership for availing huge domestic and global opportunities.

Minister of State for Heavy Industries and Public Enterprises Vallabhbhai Kathiria exhorted the PSUs to build on each other’s strengths through meaningful alliances.

Mr B N Jha, Secretary, Ministry of Heavy Industries and Public Enterprises, highlighted the need of PSUs to be comprehensively responsive to changing environment.

He mentioned about setting up separate task forces on exports of capital industry and the automotive industry.

Chairmen and Managing Directors of BHEL, Hindustan Paper Corporation, Bharat Bhari Udyog Ltd and Engineering Projects India Ltd made presentations on various topical issues. (UNI)

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