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| Govt urged to
announce fivetier customs duty structure NEW DELHI, Dec 25: The automobile industry has urged the Government to announce a five-tier customs duty structure in the Union budget .....more Eco weaknesses reflect NEW DELHI, Dec 25: Weaknesses in a number of key sectors of the Indian economy in 1998 left their mark on the Indian ...more EMRs-more restrictive NEW
DELHI, Dec 25: An
Exclusive Marketing Rights (EMR) regime proposed inthe
amendment to Indian Patents Act (1970) is .... more JAIPUR,
Dec 25: Rajasthan
Government has decided to float a state development loan
to raise Rs 134.03 crores. The loan will bear....more |
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NRSA offers tech for expressway project HYDERABAD, Dec 25: The National Remote Sensing Agency (NRSA) here has offered its aerial survey technology to evolve road...more Steps on to LUCKNOW, Dec 25: For improving the quality of power transmission the Uttar Pradesh State Electricity Board has drawn about 891 circuit km..more PHDCCI calls for NEW DELHI, Dec 25: The PHD Chamber of Commerce and Industry (PHDCCI) has called for reviewing the reservation list for...more India achieves break-through NEW
DELHI, Dec 25: Setting
up of an expert group to formulate the new textiles
policy, proposal to set up a cotton technology mission
and a three-pronged....more |
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Govt urged to announce five tier customs duty structure NEW DELHI, Dec 25: The automobile industry has urged the Government to announce a five-tier customs duty structure in the Union budget 1999-2000 to help the industry meet the challenge of free import of motor vehicles in line with the WTO norms. The Association of Indian Automobile Manufacturers (AIAM), in a pre-budget memorandum, pointed out that in order to encourage value addition within the country, it is necessary to evolve an appropriate customs duty structure, drawing clear distinction as to tariff for second-hand vehicles, new completely built vehicles, Completely-Knocked Down (CKD) and Semi-Knocked Down (SKD) kits, components and raw materials. It stated that the basic customs duty should be rationalised and 100 per cent duty be imposed on second-hand or used vehicles, 70 per cent on new completely build units, 40 per cent on CKD or SKD kits, 20 per cent on intermediaries and components and ten per cent on raw materials and capital goods. Moreover, in order to facilitate smooth exports and imports, a cut-off point has to be defined so as to make a clear distinction between components and CKD/SKD packs and apply the same yardstick both for exports and imports. The AIAM also called for including separate classification codes in Indian trade classification so as to draw distinction between new and used buses and two or three-wheelers, as in the case of passenger cars, lorries and trucks. The industry association further stated that the Special Additional Duty (SAD) of four per cent should be withdrawn to help make Indian vehicles cost competitive "as even the reduced sad has increased the cost of all products". The AIAM further stated that the levy of Special Customs Duty of two per cent and additional Special Customs Duty of three per cent should also be withdrawn forthwith. It also proposed a reduction in customs duty of all categories of iron and steel to ten per cent and on aluminum to ten per cent. The industry has also recommended that the restriction of modvat credit to 95 per cent be withdrawn as it has had a cascading effect and was hurting the sector. To give a boost to the sagging demand, the aiam has sought a 100 per cent depreciation for commercial vehicles in the year of purchase, for a limited period of two years. The industry has also said that the excise duty on tyres and tubes for all vehicles be brought down to ten per cent in line with the duty structure recommended for other components. It has also called for a uniform excise duty of ten per cent on all auto components and a 100 per cent import duty or excise duty exemption for research and development related capital expenditure. The AIAM has also recommended an excise duty of 30 per cent on passenger cars, 20 per cent on multi-utility vehicles and ten per cent on commercial vehicles. For two-wheelers, it has proposed an excise duty of ten per cent on vehicles upto 75cc and 20 per cent on vehicles above 75c. The industry further stated that there should be greater emphasis on roads and bridges construction, upgradation of existing roads and increased infrastructure spending. Besides, small non-banking finance companies which cater to small truck and bus operators should be encouraged and strengthened to make cheap finance available to these operators. These measures, the AIAM feels, can help the industry tide over the current recession. (UNI) |
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Eco weaknesses reflect in banks performance NEW DELHI, Dec 25: Weaknesses in a number of key sectors of the Indian economy in 1998 left their mark on the Indian banks grappling with the new challenges of globalisation and prudential norms. Non-Performing Assets (NPAs) of banks, more so the public sector banks, remained in focus so much so that a number of Chief Executives of Banks complained to the Government about "exagerating" the issue. Senior bankers argued that banks operated within the constraints of the overall economic scenario which did not look very bright right through the year. As percentage of net advances, banks showed a marginal decline in npas from 9.2 per cent in 1997 to 8.2 per cent in 1998. But the figure left at the end of the calendar is too large to be comfortable. It was about over Rs 43,000 crore. Banks CEO insisted that too much was being read into NPAs. After all, the public sector banks managed to recover something like Rs 25,000 crore in the last three years while provisions for Rs 20,000 crore have been made. The Reserve Bank of India announced stricter provisioning norms to add to the problems of the banks. Capital adequacy ratios have been raised from eight to nine per cent from 1999-2000 and the central bank was thinking aloud to treat an asset NPA if the interest for one quarter has not not been recovered. Presently banks treat asset as NPA if interest for two quarters is not realised. But then as RBI Governor told Indian Banks Association at the New Delhi conference that an international investor cannot look at the balance-sheet of the Indian banks from a perspective different than elsewhere. Whether they like it or not, the banks have to fall in line with the international prudential norms. Even when quite a few banks reported higher net profits for 1997-98 and the first quarter of 1998-99, a discernible investor was not willing to take their balance-sheets at the face value. Bank shares were among the worst performing ones in the stock market and the standard and poor’s downgraded ratings of quite a few banks. It sought to explain its action like this: The outlook change reflects S and P’s concerns that continued weaknesses in a number of key sectors of the Indian economy is having an adverse effect on the asset quality and profitability of the Indian financial intermediaries. S and P made no bones about the fact that it does not trust the balance sheets of the banks which, it felt were window-dressed. It said "asset quality within the Indian system continues to deteriorate, although balance-sheet growth has disguised NPA which have increased in absolute terms". The calendar 1998 saw completion of the financial year 1997-98 which would be remembered as a year when banks were able to earn profits during a bad year. This was thanks to new RBI rules for yield to maturity. The central bank at the year-end provides a valuation of Government securities, Yield To Maturity (YTM), for all maturities. All banks use this yardstick to value investment portfolio. Lower YTM meant huge capitals for the banks. While 25 banks recorded an aggregate rise of 14 per cent in operating profit, they recorded 58 per cent rise in net profit. It meant that while they took a hit on the operating front, the low YTM came as a saviour. Analysts also questioned a Rs 4312 crore growth in bank credit in the last fortnight of September. They wanted to know how banks could manage 1.3 per cent credit growth in the first six months of this year when there was an overall downturn in the economy. Analysts with some of the foreign institutional investors pooh-poohed this credit offtake growth saying this was quite a regular practice with the banks to window-dress their credit figures at the end of half year. Pressures of NPAs and profitability left senior bankers including IBA chairman A T Pennir Selvam wondering whether India needs to have 29 public sector banks. Recommendations of the Narasimham Committee which talked of merger of smaller with bigger banks became the talking points in the banking circles including trade unions which opposed the idea. Bank unions, of course, remained unhappy with IBA which offered them eight per cent hike for the seventh wage settlement. Unions representing over nine lakh employees have rejected the offer and the stage would be set for a confrontation early next year. The foreign banks were not free from their share of problems. They also had to restructure their Indian operations. While Anz Grindlays Bank regrouped its Indian operations into five business units, Bank of America announced to get out of its retail business from the country. (UNI) |
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EMRs-more restrictive than TRIPs: Experts NEW DELHI, Dec 25: An Exclusive Marketing Rights (EMR) regime proposed inthe amendment to Indian Patents Act (1970) is even more restrictive and monopolistic than the Trade Related Intellectual Property Rights (TRIPs) agreement, warn experts. Provisions under EMRs are far worse than those for product patents under TRIPs, says Dr S K Sinha, National Professor at the Indian Agricultural Research Institute (IARI) here, who is also member of People’s Commission on intellectual property rights. The Commission, whose other members are Justice R V Krishna Iyer, former judge of the Supreme Court Prof Yash Pal, former Chairman of University Grants Commission (UGC) and Dr Prabhat Patnaik, Professor of Economics at Jawaharlal Nehru University (JNU), released its first report this month on impications of the amendment of Indian Patents Act (1970) and review of the TRIPs agreement. The Commission has concluded that an EMR regime is even more restrictive than the final TRIPs agreement that India and other developing countries are expected to sign latest by January 1, 2005. According to TRIPs, in the interim period, applicants who have product patents and market approval in other TRIPs signatory countries can be granted EMRs in countries which are yet to sign TRIPs. TRIPs allows a patent application to be examined and opposed, whereas EMR provides marketing rights automatically. Patent experts point out that since EMR does not allow any challenge to be mounted, exclusive marketing rights for foreign turmeric and neem (azadirachta indica) may have to be provided automatically on grounds that a patent has been granted in some other country. Some experts say the amendment seeking to exclude herbal formulations from EMR is not compatible with TRIPs in any case. If we are going to amend the existing Act (1970) by introducing clauses not compatible with TRIPs, why change the act at all? Asked one expert. A product patent regime allows the domestic pharmaceutial ad agrochemical industry challenge the marketing rights of a foreign patent holder by challenging his patent itself. In contrast, EMR-derived marketing rights in India if a foreign EMR holder are not challengeable. Another worrisome feature is that EMR holder cannot be obliged to produce domestically, nor can any domestic producer make the product over which EMRs have been granted. In other words, an EMR holder can hold a monopoly in the domestic market entirely on basis of imports he brings into the country, the Commission’s report pointed out. With product patents, it is impossible to have a clause for compulsory licensing or producing the product in the new country. (PTI) |
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Rajasthan Govt to float state development loan JAIPUR, Dec 25: Rajasthan Government has decided to float a state development loan to raise Rs 134.03 crores. The loan will bear 12.50 per cent interest payable half yearly and the will be repaid to the subscribers on October 12, 2008. Funds raised through the loan will be used to finance the planned development projects in the state, an official notification said here. Subscription for the loan will be accepted on December 28 for which Centre’s permission under Article 293(3) of the constitution has been obtained, the notification said. The state’s debt position as quite comfortable with its outstanding public debt at Rs 10947.02 crore at the end of 1996-97. However the productive and other tangible assets far exceeded the liabilities of the State Government, he added. (PTI) |
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NRSA offers tech for expressway project HYDERABAD, Dec 25: The National Remote Sensing Agency (NRSA) here has offered its aerial survey technology to evolve road alignment plans for the expressway project to be launched by Prime Minister A B Vajpayee early next year. Using aerial photography and corroborative land data, accurate information could be provided about ground dimensions of each of the corridors in short time for in designing the expressway, the NRSA Director Dr D P Rao told here. The NRSA, under the Department of Space, has indigenously developed spatial planning technology involving preparation and digitisation of large scale base maps which help formulate municipal designs. "Similar technologies are being used in developed countries to design their expressways. We are in touch with the national highways authority in this regard", Rao said. With the help of aerial data acquired from modern remote sensing aircraft that scan every inch of the land, the NRSA would suggest road design models for the proposed expressways, he said. (PTI) |
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Steps on to improve power transmission in UP LUCKNOW, Dec 25: For improving the quality of power transmission the Uttar Pradesh State Electricity Board has drawn about 891 circuit km of new transimission lines and increased the capacity of 1780 transformers installed at power sub-stations. A sum of Rs 240 crore has been spent on the construction of new transmission lines and Rs 497 crore on increasing the capacity of transformers, an official official spokesman said here today. This year, about 680 circuit kms of transmission lines were energised, he said. With a view to strengthening power supply in Eastern Uttar Pradesh from the Anpara Power Station. Sarnath has been linked with Varanasi, he said. A new sub- station of 400 K V had been started in Unnao, to improve power supply in the state capital and industrial city of Kanpur, he said. A new 400 kv sub-satio has already been started in Agra which would besides checking pollution in the taj trapezium area ensure regular power supply. With a view to solving the problem of low voltage in Western Uttar Pradesh, new capacitors had been installed, he said. (PTI) |
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PHDCCI calls for reviewing SSI reservation list NEW DELHI, Dec 25: The PHD Chamber of Commerce and Industry (PHDCCI) has called for reviewing the reservation list for Small Scale Industries prepared by the Abid Hussain Committee stating that the rationale behind the reservation also needs to be specified. Talking to newspersons here today, newly elected PHDCCI President Ashok Khanna, however, supported the Government’s move to allow 100 per cent Foreign Direct Investment in cigarettes. "If it is good for the country and for the industry and if FDI is coming into a non-strategic sector, we should allow it." On the reserved list for SSIs, he said, "There has not been any rationale behind the Government’s move to have a reserved list for the SSI sector and now there is no rationale behind dereserving some items. The rationale needs to be specified and the list given a careful review to see whether new items should be added or existing ones deleted." However, he said total dereseration of the list was not warranted. The chamber, Mr Khanna said, is planning to set up a task force which will take up the problems being faced by nine Northern region states. "To start with, we will be talking to the State Governments of Punjab and Haryana. It will be on the lines of the core group formed by the Uttar Pradesh Government." PHDCCI was also supportive of opening up the Wagah Border to encourage bilateral relations and cross border trade between Indian and Pakistan. "We will work towards this end. India and Pakistan are two countries which have enormous untapped potentials in terms of bilateral trade relations. Opening of the Wagah Border would help in pushing up our bilateral trade." (UNI) |
India achieves break-through in textile sector during 1998 NEW DELHI, Dec 25: Setting up of an expert group to formulate the new textiles policy, proposal to set up a cotton technology mission and a three-pronged revised turnaround strategy for the National Textile Corporation (NTC) mills are the highlights of the textile sector of the country this year. The Textiles Ministry has appointed an expert group under the chairmanship of former Textiles Secretary S R Sathyam to recommend and formulate a new textiles policy. The need for a new policy was felt in view of significant developments that have taken place since the last policy of 1985 and the Abid Hussain Committee report of 1990. Recent developments in the World Trade Organisation (WTO) and progressive liberalisation of the Indian textile industry to make it globally competitive for the post Multi Fibre Agreement (MFA) regime make it imperative that a new textile policy be formulated. The new policy would also review the existing regulations as well as the new ones for a special financing mechanism for the development of the textile sector. The Textiles Ministry is also considering a proposal to set up a cotton technology mission. The objective of the mission will be to improve cotton production and productivity in the country through research, improve marketing infrastructure for cotton to ensure remunerative prices and upgrade and modernise ginning and pressing units for improvement in processing of cotton. A sun of Rs 60 crore has been earmarked for the mission. During the year, the ministry also prepared a detailed proposal for the Rs 25,000 crore Technology Upgradation Fund (TUF), which aims at providing concessional finance to facilitate technology upgradation of the textile industry. This has become imperative since technological obsolescence was ailing different segments of the textile industry, especially weaving and processing. While India may take pride in having the highest number of looms in the world, the productivity and quality of cloth produced leaves a lot to be desired, thereby making the country incapable of competing in international markets. The proposal is expected to get the nod of the Cabinet anytime. The Government has approved a revised three-pronged turn-around strategy to revive the NTC’s ailing mills. This will involve setting up 79 mills at an outlay of Rs 2005.72 crore. Funds of modernisation were to be raised from the sale of surplus lands and assets of the NTC mills. But the State Governments where these mills are located, specially Maharashtra, have refused permission for sale of the surplus land. This revival plan has been placed before the BIFR since eight of the nine subsidiaries have been referred to the BIFR where the matter is at present under consideration. While waiting for the tuf to get the Cabinet nod, the Textiles Ministry has already held high-level meetings with the financial institutions and commercial banks to work out a package of short-term measures to help the textile industry tide over its current problems arising out of cost escalation and demand recession. The package includes more availability of working capital of the mills, rescheduling of loans and a possibility of liberal credit terms for export to non-quota countries. In a major initiative to promote global fashion education international fashion institutes from all over the world agreed to set up an international foundation of fashion technology institutes and unanimously decided to have India as the headquarters of the foundation. This year India achieved a major breakthrough in the production of hydrocarbon free jute bags. This technology has been developed through joint technical collaboration of the Indian Jute Mills Association (IJMA) and the Indian Jute Industrial Research Association (IJIRA). Currently 12 mills relicensed to use his technology. Steps are being taken by the ministry to assess the export potential of this item in the coming two years. The need for hydrocarbon-free jute bags has been urgently felt in the food packaging industry following findings which revealed the presence of hydro-carbon residues in food products. (UNI) |
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