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| CM for private
sector's involvement in development Excelsior Correspondent JAMMU, Nov. 9: The Chief Minister, Dr Farooq Abdullah today pleaded for private sector involvement in development of residential colonies in the State....more Audi freezes investment |
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Growth prospects of |
Audi
freezes investment plans in India The company has for the time being decided to put on hold its plans for India as the relaxations on indigenisation levels which the company had asked for from the Union Government were not granted, Audi AG global spokesman Jurgen De Graeve told here. "For the time being, the project is on hold...At the moment, we see very little chance to revitalise the project," Mr Graeve said. However, the company is open to selling its cars in India through direct imports through its franchise arrangements. "At the moment, we are observing the legal developments and competitor activities in India and is in no hurry to go ahead with the project. We feel no pressure to take a decision on a possible CKD production in the next future. But this does not at all affect future franchise arrangements as they are based on direct imports only." On the reasons for seeking sought the relaxations, he said Audi automobiles are technically advanced in comparison to their competitors. "Therefore, there are areas where we see no possibility to develop any kind of local supplier. Hence, we asked for some relaxations which were not granted." Talking about the car market in India, Mr Graeve said the premium segment market is currently developing as new manufacturers enter the market and provide products that were not easily available in the past. "The decision to enter the Indian market is a strategic one. We pursue long term objectives and we are sure that the Indian market has potential in the long run." Audi AG, a Volkswagen Group Company, was, as part of its India plans, also examining the feasibility of joining hands with a local partner for both manufacturing and marketing its luxury cars in the country. The company had, in fact, initiated talks with several Indian companies for the same. Though the nature of tie-up which audi was seeking with the local company was not finalised, all possibilities were being explored which included equity participation and even pure marketing arrangement. Besides, the company was also working towards strengthening the dealer network in India. Presently, all the Audi models being retailed in India are being imported as Completely Built Units (CBUs). The CBUs have, in fact, already hit the roads and have been competitively priced to take on the might of Mercedes and BMW. Meanwhile, another Volkswagen Group Company Skoda Auto is also awaiting Government relaxations on the indigenisation front to go ahead with its plans to produce the Felicia and Octavia models in India. The Czechoslovakian Carmaker Skoda Auto has already decided to venture into India totally on its own, striking down talks with a Pune-based firm for setting up a joint venture to market its Felicia cars here. The issue of localisation is now the only bone of contention. The company has demanded extension of the five-year indigenisation schedule stipulated in the automobile policy to seven years. The policy presently requires foreign car makers to achieve 50 per cent localisation within three years and 70 per cent within five years. According to company officials, the five-year deadline for achieving 70 per cent localisation is too less and so is not acceptable to Skoda. "We are not against localisation. We are willing to achieve this level but give us some more time to concentrate on vendor development." The Czech company has already examined the infrastructure facilities like road, telecommunications, power and water supply. It has also looked into the possibilities of vendor development near the site and the scope for implementing the state’s incentive package for the mega project. The company will sign the Memorandum of Understanding with Maharashtra as soon as the Centre clears the company’s localisation proposal. The letter of intent has already been handed over by the State Government. However, the company does not intend to call off the venture and pull out of the country. "India is a huge market and there is no question of pulling out of the country." it was planned that Skoda Auto and Audi AG, both subsidiaries of the Volkswagen Group, would set up a joint manufacturing facility in India. The unit will house the production lines for both the companies. In the first phase, Audi was to manufacture around 5,000 to 6,000 cars, while Skoda would be looking at manufacturing 60,000 cars per annum. (UNI) |
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Britain
keen to invest in India: Scaddan Investiment in India, he said, is an attractive proposition as the country has escaped the ravages of South-East Asian financial crisis through cautious fiscal management and British companies were already working in Orissa in road building, mining and port development. Scaddan was speaking at a function of the fortnight-long Best of Britain : Focus Orissa, which was inaugurated formally by State’s Minister for Industries Niranjan Patnaik last week. He said Brtain was working with Orissa Government for reforms in major power sector, which would act as a catalyst to encourage other State Governments to consider reform of their own power sectors. But to succeed, the Governments would have to be fully committed to the concept of privatisation as Orissa, he said. Orissa needed investment in infrastructure, mining, tourism and agro-food sector, he added. (PTI) |
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| DEA
criticises AEPC for forfeiting EMD NEW DELHI, Nov 9: The Delhi Exporters Association (DEA) has criticised the Apparel Export Promotion Council (AEPC) for forfeiting Earnest Money Deposit (EMD) of garment exporters in breach of its own rules and regulations. As per quota policy, an exporter has to fulfil export obligation within 75 days of getting quota under the first-cum-first-serve category. If that is not done, the exporting firm is given two months time from the date of speaking order to file an appeal and get a stay from the Textile Commissioner in Mumbai. "But last week, the AEPC has put the law aside by filing claims without giving any time for filing an appeal and getting a stay order," alleged DEA general secretary V.C. Jain. Some exporters are complaining that their banks received claims even before they got the AEPC’s speaking order, he said. "Now they are in a fix how to proceed against the AEPC for their illegal and unconstitutional claims which are not tenable under the law." Mr Jain said the AEPC’s function is to help garment exporters in promoting exports from India. But it is adding fuel to the fire as the export growth has suffered in recent times due to global economic recession. DEA president S.P. Agarwal said the AEPC’s functioning should be streamlined. "We believe that stern action should be taken against those exporters who are guilty. But the entire community should not be punished for a crime they have not committed." He demanded that the AEPC asks all banks to stop the claims until exporters settle the issue with the Textile Commissioner. Mr Agarwal alleged that the caucus ruling the AEPC acts in an arbitrary way, as a result MN is contrary to the national objective of promoting exports and can be challenged in a court of law, said AIGECCG president Chand Anand. (UNI) |
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| Handicraft exporters demand
clear cut policy on labour laws NEW DELHI, Nov 9: Handicraft exporters have urged the Labour Ministry to come out with a clear cut policy on labour laws relating to the sector. In a memorandum submitted to the ministry recently, Export Promotion Council for Handicrafts (EPCH) called for incorporating provisions relating to the handicraft sector in labour laws. EPCH Executive Director Rakesh Kumar said most of the workers in the handicraft sector prefer to manufacture the items in small cottages in village. Under the labour laws, they are not covered by the ESI and PF acts. However, under the pressure of growing world competition, some times they are called at the exporters manufacturing facitlity for training in latest designs and techniques. During this period, exporters are harrassed by the Labour Inspector when he visits the premises. Day to day interference by the district labour official poses another problem for exporters. Absence of proper guidelines in this connection was hampering the interest of the worker as well as the growth of exports, the council said, according to a press release here. (UNI) |
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| Growth prospects of Indian economy
are bright: Jalan NEW DELHI, Nov 9: Reserve Bank of India (RBI) Governor Bimal Jalan today expressed optimism over the growth prospects of the Indian economy, stating that the comparative advantages for growth in the global economy has changed in favour of India. However, Mr Jalan refused to give any growth figures stating, "numbers do not mean anything. Looking ahead, the growth prospects for Indian economy are bright." Addressing a seminar on mid-term review of the Indian economy organised by the Associated Chambers of Commerce and Industry of India (ASSOCHAM), Mr Jalan said the comparative advantages in the global economy have now changed and tilted in favour of India. "The advantages for the Indian economy today are death of distance between the rich and developing economies and growth of the service sector as a pre-requisite for development. Besides, India is also not faced with any capital constraint as we have enough domestic savings. These are our advantages now and we have to stress on these factors to move ahead," the RBI Governor said. It was on these strengths that India was able to handle the Asian crisis. In order to move ahead, the country, he said, needs to stress on investment in the infrastructure sector. "There are opportunities galore for India in the forthcoming years and investment in infrastructure is the key to industrial development." Speaking on the occasion, ASSOCHAM president L. Lakshman said in the Chamber’s estimate, GDP would grow by around 5.5 per cent during the current year. This could easily balloon the fiscal deficit to around Rs 105,000 crore. "The changing international investor sentiments on emerging markets and the continued poor performance of our exports, understandable in the present global economic scenario, are likely to adversely impact our trade and current account deficits. Inflation, fuelled mainly by increase in prices of primary articles, has crossed the eight per cent mark. All of these call into question our macro-economic fundamentals," he said. Mr Lakshman further stated that due to the adverse impact of excessive rainfall in several parts of the country, agriculture would grow, perhaps at around 1.5 per cent. Therefore, it is unlikely to provide the impetus for GDP growth. (UNI)
ICCI welcomes Govt decision to
accord It was a long pending decision to give a critical push to the tourism sector in India. In a statement issued today, ICCI said that the responsibility of the Government does not end with according the tourism sector export status which obviously would help the tourism related entrepreneurs to avail certain facilities like special import licenses for buses and coaches. But the basic malady faces the Indian tourism in lack of infrastructure. The general infrastructure being weak, the tourism infrastructure particularly the access to roads to tourism destinations are very weak and fragile. There is lack of electricity and lighting facilities on the approach roads to tourism destinations and lack of adequate housing facilities. Basic amenities for short breaks of the tourists such as, drinking water, rest houses, toilets etc should be provided in the way. ICCI said that a national task force has to be set up and a project has to be unveiled at the earliest like the one unfolded by the Prime Minister to build roads across the length and breadth of the country. This should help creating some momentum in the tourism sector and help the tourism industry to market India in a more focused manner Abroad. Mentioning that the retaining capacity of the foreign exchange aimed by the tourism is the highest, ICCI said that the outflow of resources from tourism receipts is only seven per cent. The rest of the foreign exchange resources eamed can be utilised by the Government. Besides, tourism has a great potential to generate employment and income to the people. The jobs that are generated are sustainable innature and not season based. These jobs are generated outside the purview of Government. ICCI also said that higher allocation of resources has to be accorded by the State Governments and they should take up the tourism related activities in the same spirit. ICCI said that the
development of tourism should be a planned and not a
haphazard one. It has to be linked with the climate and
local Flora and Fauna. The authorities should develop
tourism centres only when they are satisfied with the
infrastructure facilities including lighting,
availability of hotel accommodation, general climate and
the monuments. (UNI) "Today our tax is 37 per cent, excise 18 per cent, then sales tax and octroi 35 per cent," said Mr Gulu Mirchandani, Chairman and Managing Director of Mirc Electronics. "It is the world’s highest." He said the duty on main item — a picture tube — is 42 per cent which is very high. This is a major factor affecting the growth of CTV industry. Mr Mirchandani said consumer electronics is highly price sensitive. On top of it, the industry lacks economy of scales. "With a market of 30 lakh or so, it is not viable for giant component manufacturers to invest in components and one cannot blame them." China, he said, shares many attributes with the Indian market. Yet its penetration levels are far higher than those of India. It sells about two crore CTVs annually as against 30 lakh in India. The export is only 10 lakh because chinese brands are unknown in the world. However, Mr Mirchandani said, there exists a huge untapped base for consumer electronics industry in India. Only six crore of the estimated 17 crore households have a TV. Of these six crore, four crore own black and white TVs. According to the Consumer Electronics and TV Manufacturers Association (CETMA), the penetration level is hardly 1.8 crore to two crore. Besides lack of economy of scales, Mr Mirchandani said, the component sector suffers from sub-optimum capacities. The tube maker has no choice because the market does not exist. "We have to encourage them by bringing down excise duties drastically." The component sector is also hit hard by abnormally high import duties. There is virtually no Foreign Direct Investment in this sector. "Our annual industry volume should be in the range of one crore TVs. Then only, Korean and Japanese companies will invest in the component sector." A high level of indirect taxes aggregating to 35 per cent make the street prices unrealistic and beyond the reach of a common person, Mr Mirchandani said. Different levels of state taxes lead to fragmentation of manufacturing capacities. "Nowhere in the world, there is different level of taxation in the same country. This is a serious problem." Mr Mirchandani said the turnaround time for import and export consignment is extremely high due to poor infrastructure. In Dubai, it takes only four minutes to go to the ship and back. Here it takes more than one-and-a-half days in Maharashtra to reach the port. "Roads are broken, telephones not working, power is not there all the time ... How to do business," he queried, adding that excessive documentation and paperwork to clear a consignment leads to further delay and losses. Mr Mirchandani said multinational corporations involved in consumer electronics are worried as components of internationally acceptable quality and prices are not available in the country. They have to depend on imports to maintain high quality standards. In China, he said, the street price of a colour TV is Rs 7,500. Duty on colour picture tube is only 20 per cent. In India, it is 42 per cent. Indirect taxes there are 17 per cent vat. Our excise is 18 per cent more than their total tax. It is just 17 per cent in China which is a complex country. In India, the market size is 35 lakh, street price Rs 12,000, duty on colour picture tube 40 to 46 per cent and indirect taxes 36 per cent. These are major anomalies, Mr Mirchandani said. "If duties and indirect taxes are brought at par with China, a one crore TV market is possible by the year 2003. He said India has the potential to become a major production centre for consumer electronics industry by rapidly expanding its domestic base. "If we do not have a component base, exports are out of the question. We must strengthen the component base by attracting foreign investment and lowering the taxation." Mr Mirchandani said indirect taxes should be rationalised and value added tax introduced at levels comparable to Taiwan, Korea and China. At the same time, the Government must be clear whether it wants the country to be a manufacturing base or a trading ground. "We should create an
environment to make it viable for the company which has
come to make a mega brand, we have to love them, we have
to welcome them. The environment should be such that
Koreans, Japanese and Americans come and invest in
India." (UNI) IOB’s branches in Delhi are connected in a network. "What this means is that instead of being a customer of just one branch in Delhi, you become a customer of the bank at all its outlets in the metropolis", IOB Chairman and Managing Director K Subramanian told mediapersons here. The customer can now call any branch and draw/remit cash and he can even obtain statement of accounts and deposit cheques. Bank’s all 26 branches have been connected by ISDN (Integrated Switched Digital Network) and the transaction would be routed through a single server. By December,1998, IOB
would be starting similar service in all the metropolitan
centres and provide inter-connectivity, Mr Subramanian
said. (UNI) CM for private sector's involvement in development Excelsior Correspondent JAMMU, Nov. 9: The Chief Minister, Dr Farooq Abdullah today pleaded for private sector involvement in development of residential colonies in the State. Speaking at a reception hosted by the Chamber of Commerce and Industry, on the opening of Darbar move offices, here this evening, the Chief Minister said, the system is working well in several parts of the country and it could be experimented in Jammu and Kashmir also for speedy laying and development of colonies. He referred to the delay in development of Sidhra colony and said, private enterpreneurs could be entrusted the job to prepare the blue print for new colonies with all modern amenities. Dr Abdullah said, Jammu is most rapidly expanding city in the country and its development needed foremost attention. He asked the people to come forward and help to keep the city of temples neat and clean as it is being thronged by a large number of pilgrim, tourists everyday. He expressed regrets over the lack of civic sense even in posh areas of the city and said that unless people co-operate, Government efforts would not bear fruits. Saying that the tourism was the backbone of State economy, the Chief Minister said, while the facilities at tourist places like Patnitop, Mansar, Saransar etc needed to be upgraded, new destinations would be identified for giving fillip to tourism sector. He said, the pilgrim rush to Mata Vaishno Devi Shrine has greatly helped to sustain economy in Jammu as the tourist sector suffered most due to militancy in Kashmir valley. The Chief Minister stressed the need for laying underground electricity cables in the capital cities of the state in a phased manner. The system, he said, will not only help check the pilferage of electricity but would remain unaffected during snowfall or storm. He appealed to the people to pay the power tariff regularly as the State owes a whooping Rs 600 crore to the Centre on account of power procurement. Complimenting Jammuites for maintaining peace and high traditions of secularism despite grave provocations by the enemy to foment communal trouble, the Chief Minister said, the people wholeheartedly welcomed the displaced people of Kashmir irrespective of their religious affiliation. ''This is the real strength of our glorious heritage'', he added. Referring to various issues highlighted by the Chamber of Commerce and Industry, the Chief Minister said, solution to all these would be found with the co-operation of the people. He said, confrontation is no answer to solving the problems. Dr Abdullah urged the people to co-operate the Government in fighting corruption which has eaten up the very vitals of society. He said, the drive against corruption would continue and anybody, howsoever big he may be, found guilty would not be spared. He also asked the people to remain vigilant against the elements inimical to peace and form peace committtees to scuttle their nefarious game plans. The President, Chamber of Commerce and Industry, Mr Romesh Gupta in his welcome address to the Chief Minister and his government on the opening day of offices at Jammu, said that the age-old practice of Darbar Move is linked directly with the emotions and expectations of the people. He said advance planning must go into the fast expanding winter capital city of Jammu. The CCI chief expressed the hope that the administration will be available for solving the problems of this region and devote its full attention towards development works. He demanded that the demands of business community and industrial sector must be conceded early. Mr Gupta pleaded for development of tourist spots, improvement of traffic, provision parks and upgrading of civic amenities. While presenting vote of thanks, Mr Satish Gupta, general secretary, said that CCI would co-operate with the Government in implementation of development works and welfare schemes aimed at well being of the people. He, however, added that the selections for the professional institutions this year should be monitored by the Chief Minister personally so that there was no discriminations or discrepencies. |
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