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Handloom Sector NEW DELHI, Dec 25: Despite 11 development and welfare committees being set for the it, the handloom sector is still languishing...........more Production likely to commence by July next COIMBATORE, Dec 25: With entrepreneurs entering into a memorandum of understanding with various financial institutions, the commercial production .......more USD
3 bn from Japan MUMBAI, Dec 25: Come 2006 and the pour in of India-specific funds into the equity market may match its total inflow in 2005 (year-to-date) in no time as ........more China
moves to BEIJING, Dec 25: China's parliament has announced plans to abolish the country's long-standing agricultural tax at a time when social ......more |
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MUMBAI, Dec 25: Various banks are planning to tap the money that NRIs will get from the forthcoming redemption of ........more Maxis
may clinch NEW DELHI, Dec 25: Malaysian telecom company Maxis Communications is on the look-out for entering Indian......more FMCG
cos to make a NEW DELHI, Dec 25: Predicting a bright prospect for companies in FMCG sector, Industry chamber ASSOCHAM ...........more Price revision of LPG, Kerosene on hold before ending subsidy NEW DELHI, Dec 25: The Government has decided to keep in abeyance the Petroleum Ministry proposal to revise ...more |
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Handloom Sector presents a paradox! NEW DELHI, Dec 25: Despite 11 development and welfare committees being set for the it, the handloom sector is still languishing. Parliament's Standing Committee on Labour in its latest report noted that though 11 Development and Welfare Schemes were being implemented for the Handloom Sector by the Textiles Ministry, "there is no perceptible improvement in the sector as a whole or in the conditions of workers engaged in it". In view of the problems plaguing the sector, the report, tabled in the just-concluded Winter Session, underlined the need for "total recast and a new fillip" to revieve it and make it viable, competitive and self-sufficient. Instead of loading it with the multiplicity of schemes and programmes and looking for ad hoc solutions to problems, the Committee headed by S Sudhakar Reddy recommended that solutions be found with regard to the streamlining of the production in the Handloom Sector with high productivity and latest technologies, ensuring availability of sufficient working capital, widening of the product range and strengthening of market links. (MORE) Noting that the handloom sector was highly decentralised and dispersed, the Committee said that efforts have been made to organise handloom weavers into cooperatives during the last 50 years. "However, these efforts proved dismal failures as only 17 per cent of the handloom weavers could be brought under the cooperative fold so far," it said, adding that many of the cooperatives were defunct due to inaction on the part of the Central and State Governments. On the Deen Dayal Hathkargha Protsahan Yojana launched by the Textiles Ministry to provide compehensive assistance in an integrated manner during the 10th Plan, it said the performance of the scheme "has not so far been encouraging". The Committee recommended that immediate steps be taken to review the scheme comprehensively. It also suggested that the Scheme should be 100 per cent centrally funded so as to make it fully operational in all states. It recommended that the Scheme be extended beyond 10th Plan period. The Parliamentary panel described as "tardy" the pace of implementation of Workshed-cum-Housing Scheme which aims at providing suitable work place and dwelling units for creating better environment to handloom weavers. On the insurance schemes, the Committee expressed concern over the fact that such schemes were often either withdrawn or merged with new schemes which leads to confusion in the minds of handloom weavers. For instance, it said, the Bunkar Bima Yojana was introduced in place of Group Insurance Scheme and policy holders were required to switch over to the new scheme. Recently, a new scheme -- Mahatma Gandhi Bunkar Bima Yojana -- has been launched to replace the Bunkar Bima Yojana. The Committee was "deeply concerned" to note that the Ministry has repeatedly failed to achieve the targets fixed for a particular year under the Integrated Handloom Training Programme. The panel recommended that more textile articles should be reserved for the Handloom Sector to protect it from powerloom and mill sectors. At present 11 textile articles have been reserved for exclusive production by handloom weavers. It suggested that interest on credit to weavers should be lowered from 12 per cent, which was same as that given to industries. It also favoured waiving of interest on loans availed by handloom units with poor financial health. (PTI) |
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Production likely to commence by July next COIMBATORE, Dec 25: With entrepreneurs entering into a memorandum of understanding with various financial institutions, the commercial production at the Palladam Hitech Weaving Park, near here, is expected to commence in July next. The park, coming up on a 65-acre land with a total of 750 modern looms, both projectile and airjet, is being promoted under the cluster development scheme. As per the MOU, apart from four Nationalised Banks, the Infrastructure Leasing and Financial Services (IL and FS), and SIDBI would provide rs.Six crore each for infrastructure development of the Rs 150 crore park, sources in the Park said Saying that Rs 55 crore would be spent for infrastructure, they said that the Centre and State wuld provide a subsidy of Rs 20 crore and Rs five crore respectively, while Rs three crore would be contributed by the investors and the remaining Rs 27 crore by IL and FS. IL and FS and SIDBI would provide Rs 20 crore as bridge loan, which could be repaid in 12 years, with a two-year holiday the sources said adding that the amount spent on infrastructure would be reimbursed as subsidy. The park would provide employment to about 10,000 and would have the capacity to produce fabrics worth Rs 500 crore per year, the sources said. A United State-based major buyer has expressed willingness to undertake the processing of fabrics being produced in the park, to facilitate the moving up of the value chain. The buyer would set up a processing plant near Mumbai, the sources added. (PTI) |
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USD 3 bn from Japan to flow into Indian equity markets anytime MUMBAI, Dec 25: Come 2006 and the pour in of India-specific funds into the equity market may match its total inflow in 2005 (year-to-date) in no time as Foreign Institutional Investors (FIIs) are on wait with about USD 3 billion funds. A foreign firm that tracks stock and bond flows had recently put the whole year account of India equity funds from abroad at USD 2.5 billion. Indices have scaled new peaks to the worry of many, but still no slowdown looks likely in the near future as the market awaits a further flush of funds to the tune of USD 3 billion raised by three India-specific funds in Japan, market souces told PTI. The money may flow into Indian equities anytime. Nomura Securities of Japan has collected 2 billion US dollars in its India-specific fund and may enter the Indian equities early next year. Two more, Nikko and Jardine Fleming, are also ready with their collected funds, according to brokers. This comes at a time when Merrill Lynch is still to inject the whole 750 million dollars it recently raised in Japan. Analysts are of the view that though the market valuations look stretched at present, India's growth out of the Emerging Market Fund map to a seperate investment avenue coupled with the pitiful interest rates in Japan are the main triggers to this. "Valuations do look stretched. But FIIs seem to be looking for the long term and hence, the current valuations are not relevant for them. Further, the negative interest rates in Japan is forcing fund houses to move out in search of better investment oppurtunities," Edelweiss Securities Institutional Equities Head Naresh Kothari said. The said funds, once start flowing in, would perhaps in a matter of days shade the estimate of USD 2.5 billion pumped in by India-specific funds year-to-date. With the foreign investment in Indian equities crossing USD 10 billion for 2005, the 30-share Sensex of the Bombay Stock Exchange (BSE) now stands at 9,256.91 points at a p/e of 18.37 and p/b of 4.46 as per the data on BSE website. The record-breaking journey of Sensex shows no signs of respite with more funds eagerly waiting with their loaded cash bags to get on board the Indian growth wagon, is the latest market buzz. (PTI) |
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China moves to abolish farmer tax BEIJING, Dec 25: China's parliament has announced plans to abolish the country's long-standing agricultural tax at a time when social unrest and a deepening income divide are raising official fears about stagnant farm incomes. China's economic development has been accompanied by widening income disparities, said Liu Jibin, a member of the National People's Congress, China's legislature. ''The gap between agriculture and industry, and between the countryside and cities, is steadily growing and rural problems continue to constrain China's economic and social development,'' he said, the official Xinhua News Agency reported today. The National People's Congress rarely questions Communist Party policy, but it plays a role in drafting and refining legislation. Its Standing Committee -- or ruling inner-circle -- began a five-day session on Saturday to discuss the agricultural tax, as well as amendments to China's criminal law, and steps to protect workers from mistreatment. In 2004, China's Prime Minister Wen Jiabao promised to gradually abolish the agricultural tax over five years. Since then, 28 of China's 31 provinces and regions have abolished it, and nationwide abolition will take effect from the start of 2006, Xinhua reported. The tax collected only 1.5 billion yuan this year, and it amounted to just 1 per cent of China's total tax revenue last year, said Liu, the legislator. ''Abolishing the agricultural tax won't significantly reduce government revenue,'' he said. But the tax, introduced in 1958, has long been criticised by farmers and agricultural experts as an unfair burden, because farmers must pay it regardless of how little income they earn or even whether they plant crops. The tax now only accounts for a fraction of farmers' incomes. But with grain prices falling in 2005 and the Government's efforts to raise farmers incomes losing momentum, the move is an important symbolic gesture, said Qin Hui, an expert on rural China at Tsinghua University in Beijing. ''This shows how seriously the Central Government is treating rural problems,'' Qin said of the tax move. ''But still we have to see what happens -- I think a rebound in farmers' burdens in some form will be difficult to avoid.'' Qin said that removing the tax, combined with rising Government debts and growing demands on public services, was adding to Government financial straits in many parts of the countryside, and local officials might devise ways to reintroduce taxes. The National People's Congress is also considering amendments to China's criminal law, as well as measures to protect workers from slave-like treatment by employers. Chinese policy advisers have recently warned the Government that stagnant rural incomes are fuelling social discontent and there have been growing protests in the countryside, most recently in Dongzhou, in southern Guangdong province. Farmers' average income is likely to grow about 5.8 per cent in 2005, Li Peilin, a sociologist at the Chinese Academy of Social Sciences who advises the Government, said on Wednesday. Li estimated that urban residents' incomes are about 6 times higher than rural residents, taking into account the state-backed medical and healthcare benefits that urban residents receive while rural residents do not. Last year, China's 760 million or so rural residents earned an average (367 dollars) per head, but in parts of inland China the level is much lower. Despite official efforts to raise farmers' incomes, the gap will be difficult to narrow, Li said, according to a report on the Chinese Government's official Web site. Li said that ''many new factors are still constantly expanding the income gap'', including China's entry into the World Trade Organization in 2001, which required it to slash tariffs on farm imports. ''We feel that the sustained widening of this problem may be gradually reined in, but it won't be possible to fundamentally turn it around in the short term,'' he said. (AGENCIES) |
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MUMBAI, Dec 25: Various banks are planning to tap the money that NRIs will get from the forthcoming redemption of 7.3 billion dollar India Millennium Deposits through existing and upcoming schemes. Of 7.3 billion dollars that will be redeemed, around 4 billion dollars is leveraged money. "Of the balance 3.3 billion dollars, we are targeting significant amount to tap," ICICI Bank spokesman Modan Saha told PTI. The country's largest private sector bank will come out in a couple of days with a short-term deposit scheme for those who are not sure about what to do with this money, he said. State Bank of India, which came out with the bonds way back in 2000 to raise 5.5 billion dollars, is expecting to attract 10-15 per cent of IMD redemption in its reinvestment schemes, an official of the country's largest bank said. Union Bank of India, which as a collector of IMDs will pay around 30 million dollars to the subscribers on behalf of SBI, is targeting to attract handsome portion of this amount in its schemes, an official associated with international banking busines of the bank said. The sum of 30 million dollars has already been paid by SBI to Union Bank of India to be paid to IMD holders, he said. Vinod Bangera, an official in NRI Department of IDBI Bank said the bank expects to attract 50 per cent of 2 million dollars that it will pay to IMD holders on behalf of SBI. Officials of Centurion Bank of Punjab, Bank of Baroda, and Yes Bank did not divulge their specific expectations in this connection. About the scheme that ICICI Bank will launch in a couple of days, Saha said it will have 3-6 months tenure and offer 20 to 30 basis points more interest than normal deposits. There is then third party short term global bonds which offer higher yield to those who have appetite for higher risks. The clients can leverage attractive rates of nine per cent per annum from these bonds, which have a tenure of 1-2 years and are dollar, euro and pound dominated, he said. For more sophisticated clients, who like to take higher risks, the bank has 4-5 structured notes and deposits around variety of classes. These notes are in a tenure of 18 months to 10 years and carry interest rates in the range of 7-9 per cent, Saha said. All these schemes will be sold through Singapore branch of ICICI Bank, he added. SBI is planning to tap IMD redemption money through its FCNRB and NRE deposits, besides SBI Supreme and Dollar Premium Account, a bank official said. Yes Bank will tap the money through its recently launched Global Indian Banking product for NRIs. A BoB official said it offers Baroda Term Deposits and Structured Deposits scheme for the purpose of reinvestment of IMD money. Union Bank of India plans to attract the redemption money through its FCNR and NRE deposits, besides structured schemes, a bank official said. Bangera of IDBI Bank said the bank does not have structured products for tapping IMD redemption but it expects to attract investment through its existing FCNR, NRE deposits and third party mutual funds. (PTI) |
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Maxis may clinch 26% of Aircel for Rs 1200-1400 crore NEW DELHI, Dec 25: Malaysian telecom company Maxis Communications is on the look-out for entering Indian market, may clinch a deal with Aircel for picking 26 per cent equity soon but there was no confirmation from the Indian players. In a statement to 'Bursa Malaysia' (Malaysia Stock Exchange), the Malaysian company on December 20 stated "Maxis has been approached by, and has been in discussions with a number of operators in India, including Aircel Limited, and Maxis is narrowing down the options towards conclusion." Maxis' strategy for overseas expansion has been to explore opportunities in emerging markets with good potential for growth. If fructified, the deal could be around Rs 1,200-Rs1,400 crore going by the industry estimates. When contacted, a director of the company and the corporate communication officer declined to comment to a query if Maxis was talking to Aircel and whether the deal could be clinched in near future. As per market sources, the deal expected to be signed on 30 December. The move is the fourth time that parent Sterling Infotech Group has entered negotiations to sell Aircel, with earlier deals blocked by Department of Telecom. In 2004, the company had struck a deal with Hutchison Essar to sell the entire equity of the company for Rs 1700 crore, but it fell through because the DoT did not clear the acquisition. In February Russian major AFK Sistema is believed to have offered investment of $450 million at the cost of 49 per cent stake of Aircel, but the deal didn't work out. Aircel provides mobile services in the Tamil Nadu, Chennai and Haryana circles, and has a subscriber base of over 2.16 million. The Sterling Infotech group of C. Sivasankaran had bought out the RPG group's 79.24 per cent stake in RPG Cellular Servi es Ltd two years ago. (PTI) |
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FMCG cos to make a killing as mkt poised to grow 40%: ASSOCHAM NEW DELHI, Dec 25: Predicting a bright prospect for companies in FMCG sector, Industry chamber ASSOCHAM today said the sector is poised to grow by nearly 40 per cent to Rs 50,000 crore by 2010 from the present market size of Rs 38,500 crore. Big brands like Hindustan Lever, Dabur, Coca-cola, Pepsi, Britannia, Godrej, ITC and Nirma will make a killing as the FMCG demand rises in Asia's third largest economy, according to Assocham survey 'Future prospects of FMCG products'. "Indian semi-urban and urban market with its vast size and demand base offers a huge opportunity that FMCG companies cannot afford to ignore," ASSOCHAM president Anil K Agarwal said, releasing the survey. With higher income in the hands of rural population, the chamber is also bullish on the rural population which has 128 million households, which is nearly three times the urban populace But the urban FMCG market will be fastest growing and double its demand Rs 35,000 crore in the next five years from the present level of Rs 16,500 crore, the chamber said. In 2003-04, the FMCG market grew by 16 per cent year on year basis to Rs 55,000 crore by December 15 from Rs 47,500 crore, it said. The chamber predicts that the semi-urban segment, where the growth is still less than 10 per cent, will now be the epicentre with demand surging for FMCG products. No doubt, the chamber expects cut-throat non-price competetion among leading FMCG players to enhance their market size in semi-urban market. "Products that will be in demand among the semi-urban and rural populace comprise soaps, detergents, cold drinks, biscuits, namkeens, refined oil, hair oil and toothpaste," Agarwal said. According to the chamber, a good number of malls will come up in semi-urban areas in next 2-3 years, selling a large volume of FMCG products leading to an increase in demand. The analysis points out that competetion among manufacturers of FMCG products will put a severe pressure on their margins. The branded companies that will continue to benefit include Nirma, Hindustan Level, Dabur, ITC, Godrej, Britannia, Coca-Cola and Pepsi. The rising income levels in the urban and semi-urban class coupled with advertising campaigns will enlarge the affordability of these prodcts for them. Even as the rural market promises tremendous growth, it is not without problems namely low per capita disposable income, large number of daily wage earners, dependence on monsoon, seasonal consumption linked to harvests and festivals, poor roads, power problems and inacccessibility to conventional advertising media, it said. Other difficulties include availability of product or service. India has 6.27 lakh villages spread over 3.2 million sq km and 750 million may live in rural areas. Finding them and then delivering the products is an uphill task. The chamber suggests that to tap the rural and semi-urban market, better infrastructure facilties like roads, improved telecom connectivity and proper sanitation and healthcare facilities should be created. (PTI) Price revision of LPG, Kerosene on hold before ending subsidy NEW DELHI, Dec 25: The Government has decided to keep in abeyance the Petroleum Ministry proposal to revise prices of LPG and Kerosene to the import parity level in next 15 months, before the end of subsidy scheme on both products. To attain import parity, kerosene prices would have to be raised by between Rs 11 and Rs 12 per litre, while LPG prices would have to be raised by between Rs.138 and Rs.227 per cylinder of 14.2 kg. The decision to keep in abeyance for the time being was taken in the wake of Prime Minister Dr Manmohan Singh's announcement in the Parliament that the Government is formulating a comprehensive Energy Policy as well as the Rangarajan committee report, which is likely to give its detailed report on prices in next three months. The Ministry has also mooted the proposal of dual pricing for Kerosene with an object to eliminate or reduce subsidies on the poor man's fuel. The Ministry favoured to move immediately to market-determined prices for kerosene while putting in place a system of income subsidy for the poor, with the distribution of cash or coupons taking place in the Gram Sabha by the elected Gram Panchayat, and with criteria prescribed by the Central Government for distribution of PDS SKO allocations by the States to BPL/APL families. According to the NCAER study, while working towards the eventual elimination of subsidies, measures like adoping the present PDS system for food rationing for PDS Kerosene, differential prices for BPL and APL along with a well-supplied open market are expected to lead to a reduction over 40 per cent in the subsidy burden. Besides, revision in prices of LPG and Kerosene, the Petroleum Ministry also wants the release of Rs 16,000 crore bonds to oil marketing companies as compenstation of their losses incurred on the sale of four major petroleum products. The officials of Petroleum Ministry said oil marketing companies under-recoveries have risen from Rs 9,000 crore to nearly Rs 40,000 crore in past three years due to pricing system adopted after the dismantling system on April, 2002. The pricing mechanism adopted by the Government had several advantages of stand-alone refineries as they were getting the prices of their products equal to deemed import prices. However, the Government notification at the time of dismantling APM said that the oil companies will fix market-oriented prices. The Rangarajan committee not only recommend the new mechanism but also define certain components, which go in the pricing of a product. Prices of petroleum production in 2005 have been showing high volatility and international oil prices rose to new levels. International product prices particularly LPG, kerosene and diesel, have increased much faster than crude prices, causing more financial problems to oil marketing companies like IOC, BPCL and HPCL. Petrol and diesel prices are broadly comparable with those of neighbouring countries in South Asia, prices of PDS kerosene and domestic LPG are much lower as the Government was reluctant to revise prices due to pressure from its allies. The allies wanted that the formula of working out prices of all petroleum products should be revised so that the under-recoveries of petroleum products can be reduced significantly. The Petroleum Ministry feels the OMCs margins are not sustainable and may result in deferring their investment plans, which they have to carry out every year for maintaining profits levels. The Ministry have given four options but strongly favoured realignment of domestic prices gradually in line with the objective of phasing out subsidies by April, 2007. The Petroleum Ministry has also mooted a proposal to giving cash or coupons of Rs 50 per month to be distributed by Gram Panchayats to intended beneficiaries of Kerosene users. The Ministry has also cautioned that the proposed system might have dangers of abuse of the system in the light of the obvious abuses of the present system. If the price differential between PDS kerosene and High Speed Diesel is removed, problems of both diversion and subsidy are automatically resolved. But it is highly doubtful that this can be achieved in one fell sweep. The Ministry also wants that the Centre should prescribe allocation criteria to curtail diversion of Kerosene, which mainly meant for poor people. The recent NCAER study estimates diversion of PDS kerosene to adulteration at no more than 18 percent. Much of this diversion appears to come from allocations to urban, especially metropolitan, areas. (UNI) Maruti to unveil Suzuki's 'Escudo', 'Solio' at Auto Expo NEW DELHI, Dec 25: Maruti Udyog Ltd is all set to unveil two models from its parent Suzuki's stable at the Eighth Auto Expo in January next year, which includes the SUV 'Escudo' and hatchback 'Solio' and a rally version of its popular Swift. Escudo, launched in international markets in August this year, is expected to be powered by a 2-litre and a 2.7-litre engine. It is already being sold as the Grand Vitara in certain markets of Suzuki. On the other hand, the Solio is a variant of the Wagon R, which has special features for the disabled to carry wheelchairs and rotating seats. Not only this, Maruti will also showcase its 'Swift JWRC', a specially designed variant for use in rallies. The Maruti stall, spread over an area of 2,000 sq mtrs, will also showcase the single-seater formula series car 'Hayabusa', famous on the motorsport circuit. Maruti will also showcase its latest initiative of cars that use non-conventional fuels. The LPG variants of Omni and Wagon R will be displayed at the expo. The company, which organises motorsports events like the Raid de Himalaya' and 'Rally Desert Storm', will also have a se parate motorsport section at the Expo. Visitors will also get an opportunity to design cars and take a print of the same at the 'Design Your Car Studio', an interactive initiative of the company. Maruti has recently stepped up its design capabilities and wants to bring the designing aspect closer to the customers. Maruti will also be installing simulators at its pavilion which will help visitors evaluate their driving skills after a three-minute virtual ride. To promote safe driving in schools, Maruti has set up three driving schools in the country. (PTI) Power sector has few reasons to cheer as 2005 ends NEW DELHI, Dec 25: The power sector was in the news for more wrong reasons than the right ones during 2005, which saw the resolution of Dabhol imbroglio and return of private firms even as fuel shortage caught the government unawares and controversies involving the ministry, regulator and companies like NTPC, Reliance, NHPC and BHEL erupted time and again. The gross inefficiencies and the slow pace of reforms in the sector found its echo in not just corporate conferences or ministerial discussions but out on the streets of Delhi and Mumbai as well which faced their worst power crisis ever. So much so, that it prompted Prime Minister Manmohan Singh to single out power sector for its poor state and tell global industry honchos at the India Economic Summit in November that he was "personally" monitoring the sector and was "determined to set things rights in the coming year". Singh has repeatedly voiced concern at the direction and pace of reforms in the sector, so vital for attracting private investments and achieving a high 10 per cent GDP growth rate. Although, states like Maharashtra and Punjab announced free power and commercial losses of utilities remained high, the Prime Minister's active involvement has definitely given some indications of better times ahead. Brickbats apart, the year had its moments of glory too. The most contentious issue of Dabhol was resolved, India signed a historic nuclear deal with the US and domestic private companies announced plans to diversify and expand. The year also saw the death of Power Minister P M Sayeed, the second power minister to die in office in last five years after P R Kumaramanglam in the NDA regime. The year caught the Government almost offguard on coal and gas supply. At one time, nearly one-third of the total 75 coal-based power plants were facing shortage with many in the critical storage list. Generation companies, both in public and private sector, are importing 14 million tonnes coal this fiscal and 20 MT in the next financial year. Uncertainty also remains on gas supply. With natural gas prices touching 12 dollars per million British thermal unit in global markets, Power Ministry has put gas-fired projects on hold. The emphasis now is to secure competitively priced gas for existing power plants to keep the generation cost low. Fuel crunch has bothered the country's largest generating company NTPC Ltd the most. While coal situation is better now, the concern on gas supply is far from over. NTPC's problems multiplied when Reliance Industries Ltd, India's biggest private sector firm, sought critical changes in the contract for the 1300 MW Kawas and Gandhar plants in Gujarat. NTPC had awarded the contract to RIL for 2.97 dollars per mBtu but with RIL seeking major changes in the contract, the power major has now dragged RIL to the Bombay High Court. Gas supply is also the primary concern for restarting Dabhol, now renamed Ratnagiri Gas & Power Pvt Ltd. Otherwise, the resolution of the Dabhol imbroglio has been the most notable achievement during the year. The 2100 MW gas-fired plant will restart electricity generation by June 2006, five years after it was shut down. The revival has, no doubt, come at a cost. But that cost of just over half a billion dollar looks much smaller than the six billion dollars that the Government would have to pay had it lost litigations in international courts. Another significant achievement during the year was the historic civilian nuclear cooperation agreement with the US. The deal, signed during the visit of Prime Minister Manmohan Singh to Washington in July, heralds a new era of relationship between the two countries. While US nuclear equipment suppliers such as General Electric have much to benefit from the pact, Indian power sector would also gain tremendously in the form of technology, equipment and the much-needed fuel. In a year devoid of success stories, NTPC-RIL row is not the only controversy that hogged the limelight. Earlier this year, National Hydroelectric Power Corp was challenged by another PSU Bharat Heavy Electricals Ltd for awarding a Rs 1,500 crore contract to French major Alstom. The row saw BHEL getting legal opinion and NHPC threatening to blacklist the power equipment supplier from future projects. Another controversy that hogged the limelight was the Power Ministry's attempts to make critical changes in the Electricity Act that would have curtailed the independence of electricity regulatory commissions. After much hue and cry, the Ministry was finally forced to drop those amendments. The much-hyped review of the Electricity Act, however, saw the Ministry extending twice the date for unbundling state electricity boards under Left pressure. As the year draws to a close, its the regulator now who is finding itself on the recieving end. The Central Electricity Regulatory Commission's proposal to fix trading margins has drawn strong protests from power trading companies who say the move is a step backwards to 'Licence Raj'. (PTI) Adventure tourism picking up in India, infrastructure needed NEW DELHI, Dec 25: With tourists, from within and outside the country, showing a marked preference for adrenaline releasing sports over other attractions, Adventure Tour Operators Association of India (ATOAI) has asked the government to facilititate infrastrucutre for it. "More and more tourists inside the country are now asking for adventure sports. We need Government's support to meet the rising demand from the tourists both from within and outside the country," president ATOAI Ajeet Bajaj told PTI. "With the Government support we can attract half a million foreign tourists and the domestic adventure tourism market can see a ten-fold growth in next five years," he said. Adventure sports include trekking, rafting, mountaineering and other water sports, camel/jeep/horse safaris, bike tours, sailing, ballooning, handgliding and other aero sports, skiing, wildlife safaris, fishing, scuba diving, tribal tours and heli skiing, he said. The industry has witnessed a growth of over 500 per cent during the last decade, but infrastructure has not swelled accordingly. "Import duty to bring in sophisticated equipments required fromthe sports sould be scrapped," he demanded. Currently, the operators end up paying over 4 per cent of the equipment cost as import duty. "We request the Government to scrap the duty so as to help us establish infrastructure that could hold and attract tourists from the foreign soil." About the growth projections, he said on the domestic front there is an annual increase of 40 per cent tourists while the number of international holidaymakers is growing at the rate of seven per cent per annum. Out of about 20 lakh adventure tourists, international tourists contribute up to 10 per cent. While the rest 18 lakh are from within the country itself. "Ratio of foreigners and Indian adventure tourists is now 10:90 as compared to 60:40 five years ago," Bajaj said. On the trained manpower in the sector, Director Maxxfun Holidays (a Delhi-based tour agency) Surpal Singh Deora said: "there are limited number of institutes that offer serious courses while most of the sports are managed by untrained people. There is an urgent need to have more such institutes that could offer serious courses." About the states with possible geographical terrain, he said: "Jammu and Kashmir, Himachal Pradesh, Sikkim and Uttaranchal are few states which are the major contribute to the growth of adventure tourism in India." On the growth of the sector in India, Bajaj said: "India as an adventure tourism destination has grown in popularity both in the domestic and international market. The industry has seen a boom in the last decade but this is only the tip of the iceberg." Given the right impetus, India could attract half a million foreign adventure tourists and the domestic adventure tourism market can see a ten-fold growth in next five years, he said. (PTI) |
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Centre's compensation for VAT to be below Rs 5,000 cr in FY06 NEW DELHI, Dec 25: Centre's compensation to states for Value Added Tax implementation this year could be well below the budgeted Rs 5,000 crore, as most of the states witnessed higher growth in revenues so far. Maharashtra topped the list collecting Rs 8,364 crore from VAT in the first half of 2005-06, followed by Andhra Pradesh (Rs 5,431 crore), Karnataka (Rs 3,972 crore), Kerala (Rs 2,891 crore) and Delhi (Rs 2,529 crore). Three other states -- West Bengal, Punjab and Haryana -- collected between Rs 2,300-2,000 crore. "Going by the trend, we expect the compensation on account of VAT to be much less than Rs 5,000 crore this fiscal," a Finance Ministry official told PTI. Centre has so far received claims worth Rs 1,598 crore for VAT compensation and has paid Rs Rs 1,027 crore to various states that witnessed lower than expected revenue collection. Most of the states saw double digit growth in revenue after VAT implementation and the overall collection by the 23 states and union teritories were up by 14.3 per cent at Rs 33,438 crore in the first half of 2005-06 compared to Rs 29,249 crore from Sales tax in April-September last fiscal. Only three states -- Bihar, Kerala and Mahrashtra -- saw single digit growth in revenue mop up. North-eastern states like Mizoram, Arunachal Pradesh, Manipur and Meghalaya saw more than 40 per cent growth in tax collection after switching over to VAT. Some of the Union Territories like Dadra and Nagar Haveli, Daman and Diu and Sikkim swa their tax kitty swelling by over 40 per cent. The national average of increase in tax collection is 14.3 per cent in the first six months of this fiscal. However, the growth in tax collection post-VAT was the lowest for Bihar at 2.2 per cent and below national average for Kerala (3.8 per cent), Maharashtra (9.3 per cent), West Bengal (10.8 per cent) and Andhra Pradesh (10.9 per cent). Mizoram witnessed the highest increase in tax collection at 213 per cent as its kitty went up to Rs 21.58 crore from mere Rs 6.89 crore in the year ago period. Union Territory Dadra and Nagar Haveli was at the second spot as its tax collection grew by 69 per cent, followed by Arunachal Pradesh (61.8 per cent), Daman & Diu (60.4 per cent), Manipur (46 per cent), Meghalaya (40.8 per cent), Sikkim (39.8 per cent) and Punjab (38.8 per cent). The growth in tax collection for other VAT implementing states and UTs were above the national average of 14.3 per cent. (PTI) |
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