 |
||
|
||
| PM asks Commerce Ministry to work out package for plantations NEW DELHI, Dec 3: Prime Minister Manmohan Singh has directed the Commerce Ministry to .........more Car makers
want uniform NEW DELHI, Dec 3: Major car makers in India like Hyundai, Honda, Toyota and General Motors have sought extension of excise duty concessions on small .......more Govt in a
fix over NEW DELHI, Dec 3: The Government want perks of executives of Central Public Sector Enterprises (CPSEs) to be linked ......more CII asks
Govt to NEW DELHI, Dec 3: Industry chamber CII today asked the Government to rationalise all customs duties to the peak rate of 12.5 per cent.........more |
|
Rabi oilseeds acreage dips by 9 pc; pulses marginally up NEW DELHI, Dec 3: Oilseeds acreage has declined by nine per cent at 80.81 lakh ........more Household
increase NEW DELHI, Dec 3: Domestic household expenditure on food and clothing has come down significantly, while their spending ......more MFs richer
by Rs 30,000 cr; MUMBAI, Dec 3: Coffers of domestic mutual funds have become even more fatter with boosters like robust investor response to new schemes and strong returns from ......more WTO talks
must NEW DELHI, Dec 3: Amid indications that WTO talks could resume by next month, India has made it clear that the negotiations must be in line with agreed principles and its concerns on ..........more |
PM asks Commerce Ministry to
work NEW DELHI, Dec 3: Prime Minister Manmohan Singh has directed the Commerce Ministry to work out a comprehensive package detailing financial outlays for revival of the ailing plantation sector. The ministry has been asked to report back to the Prime Minister at the earliest so that the package is finalised and announced with the budget, sources said. The Prime Minister recently convened a meeting with Minister of State for Commerce Jairam Ramesh, who is looking after the sector, along with top officials of the ministry and the PMO. "Prime Minister wants specific proposals for each of the commodities - pepper, cardamom, rubber, tea and coffee. Once the proposals are finalised by the ministry, Singh will call a review meeting in the near future," a source said. The Prime Minister wants that the plan to revive the employment-generating plantation sector should become part of the 11th Five Year Plan, starting next year. "The package will be implemented over a five-year period," the source said. (PTI) |
Car makers want uniform excise duty for all cars NEW DELHI, Dec 3: Major car makers in India like Hyundai, Honda, Toyota and General Motors have sought extension of excise duty concessions on small cars to medium and big cars, though auto leader Maruti appears to be content with the present duty structure. Claiming that the duty structure was "not favourable and created market distortions", most of the car companies have prevailed upon the Society of Indian Automobile Manufacturers (SIAM), the apex auto industry body, to seek a uniform excise duty structure on all types of cars and mutli-utility vehicles. "Yes, we have recommended to the Government that the excise duty should be uniform across all car segments, big or small," SIAM president Madhur Bajaj told PTI here. On whether Maruti supported the demand, he said he would not comment on individual company's viewpoint. Asked if Maruti was satisfied with the present structure or would it want changes as being recommended by SIAM, a company spokesman declined to comment on the issue. Interestingly, the demand for uniform excise duty structure has become louder as the government has started work on the Budget proposals for 2007-08. While Maruti chose not to make an official comment on the matter, other car companies emphasised that the current excise duty structure should be made uniform. A spokesman for Hyundai Motors said: "In our opinion, it (duty structure) is not very correct. We feel that the duty structure should be uniform for all the cars." Hyundai said the present duty structure "favours all those manufacturers who have only small cars" in their product range. "For a car maker like Hyundai, who have a full product range, this structure is certainly not very favourable as it affects the pricing of many of our products," Hyundai said, adding that a uniform duty structure would be more conducive for the growth of the Indian automotive industry. On the other hand, Honda said while the present excise duty structure favouring small cars would give a boost to the segment, "it might lead to a skewed growth" in the Indian automobile market. "We feel that the 16 per cent excise duty structure for all cars would lead to a more healthy growth in the Indian automobile market and encourage upgrades to bigger, better cars," a spokesperson for the company said. General Motors said the differential excise duty "creates market distortion and also does not ensure level playing field to all." "We are in favour of excise duty reduction across the board for all cars. There should not be differential excise duty based on size of engines or length of cars," a company spokesman said, pointing out that the argument was also endorsed by SIAM. Toyota India also said the differential excise duty structure "distorts" the market. "This differential duty structure was never recommended by the manufacturers or SIAM," a company spokesperson said. As per the concessions granted in the last Budget, all cars under 4-metres in length and powered by either an under 1200cc petrol engine or a 1500cc diesel engine would be eligible for an 8 per cent cut in excise duty, which would thus be reduced to 16 per cent. This classification has seen many car companies fine tune their new product rollout strategies. While the Tatas have launched a 1.2-litre version of their compact car 'Indica' which is Rs 25,000 cheaper, Hyundai is preparing to launch a 1.2-litre version of the current 1.3-litre petrol version of the premium compact 'Getz' to avail reduced excise benefits. Even General Motors came out with a 1.2-litre petrol engine for its compact car Aveo UVA. "We have to fine tune our product strategy based on the present classification," Honda said. The Development Council under Ministry of Heavy Industry has already discussed the matter. SIAM, on its part, has submitted proposals to both the Heavy Industry and Finance Ministries. (PTI) |
Govt in a fix
over performance-linked NEW DELHI, Dec 3: The Government want perks of executives of Central Public Sector Enterprises (CPSEs) to be linked to their performance, but is also anxious to see that their earnings do not exceed those of bureaucrats. The Pay Revision Committee for executives, set up last week, has been asked to examine productivity-linked incentives and performance related payments. The government wants the committee, which will be headed by retired Supreme Court Judge M J Rao, to look at performance -linked payments and incentives as a tool to transform CPSEs into professional and successful commercial entities. However, while talking about the linking payments to performance, the government also wants to ensure that this does not lead to a situation where emoluments of officials of CPSEs far exceed those of bureaucrats. "The committee shall also take into account the report of the sixth Central Pay Commission while finalising its report," the terms of reference of the committee said. The exercise of review of salaries, which is done every ten years, has also been utilised by the government to have a relook at the entire structures and systems governing the CPSEs for making them more efficient. Rao committee has been asked to work out a pay package that promotes efficiency, productivity and economy through rationalisation of structures, organisations, systems and processes. The committee, whose award would impact more than three lakh employees, will submit its report in the next 18 months. (PTI) |
CII asks Govt to bring all customs duties to 12.5 pc peak NEW DELHI, Dec 3: Industry chamber CII today asked the Government to rationalise all customs duties to the peak rate of 12.5 per cent. CII, in its pre-budget memorandum to the Finance Ministry, has said that several product categories continue to attract significantly high duty rates, ranging from 15 per cent to 150 per cent despite the peak rate reaching 12.5 per cent since March 2006. Peak rate is the most commonly used rate of customs duty. The Confederation said the government should follow the recommendations of the Kelkar Task Force on indirect taxes and further reduce the peak duty rate from 12.5 per cent to 10 per cent. In this context, it suggested two internal reforms -- bringing down of the transaction costs related to power, cargo movement and infrastructure among others and reduction of Central Service Tax from 4 per cent to 2 per cent with effect from April 2007. After reduction of the peak rate to 10 per cent, the three most common slabs would be 10 per cent, 7.5 per cent and 5 per cent. The chamber has also recommended corresponding reduction of duty rates on intermediates and raw materials to maintain two/three tier structure, while reducing the peak customs slab. It also asked the Government to bring down the import duty on fuels like furnace oil, LSHS to 5 per cent from the existing 10 per cent and on non-ferrous metals and scrap of non-ferrous metals from 7.5 per cent to 5 per cent and 2 per cent respectively. For melting scrap of iron and steel it has asked for a 3 per cent duty cut to 2 per cent. CII, in its recommendations, asked for the removal of zero per cent customs duty except on life saving drugs and security related items, and those included in the foreign trade agreements. It also asked the Government to remove anomalies in the customs duty structure, where the inputs to a product attract higher duty than the product itself. Customs duty, for instance, on set-top box used in cable transmission system is zero, whereas its imported inputs attract a duty of 5 per cent, it said. Pointing towards the anomalies raised by bilateral Free Trade Agreements, CII said the import of full product is turning to be cheaper than import of inputs at the prevalent rates. Consequently, it sought reduction of customs duty to 5 per cent on major inputs for manufacture of those products, which are affected by zero duty due to India and Thailand FTA. Other recommendations included the removal of exemption of special counterveiling duty of 4 per cent on all types of projects to balance internal taxes such as CST/VAT. (PTI) |
Rabi oilseeds acreage dips by 9 pc; pulses marginally up NEW DELHI, Dec 3: Oilseeds acreage has declined by nine per cent at 80.81 lakh hectares in the ongoing Rabi season till November 30, as compared to 88.86 lakh hectares in the year-ago period owing to a shift in the sowing area from mustard to chana and wheat. The area coverage during the current Rabi season is less than the coverage of the corresponding period of last two years, government data showed. The decline in the acreage has been attributed mainly to less coverage under major Rabi oilseeds like mustard, which witnessed a diversion in its sowing area to Bengal gram in Madhya Pradesh and Wheat in Haryana. During the period under review, the mustard acreage declined by seven per cent at 61.36 lakh hectares from 66.10 lakh hectare owing to less coverage of the crop in Rajasthan, Haryana, Madhya Pradesh and Uttar Pradesh. The groundnut acreage in the ongoing Rabi season dipped by 14 per cent to 2.67 lakh hectares against last year's 3.1 lakh hectares. However, officials said that the acreage is likely to improve when the sowing begins in Karnataka. The acreage of sunflower also plunged by 18 per cent to 8.73 lakh hectares from 10.62 lakh hectares due to less coverage of crop in Karnataka and Maharashtra. Unlike oilseeds, the overall sowing area under pulses till November 30 rose marginally by 1.34 per cent to 96.16 lakh hectares as against 94.88 lakh hectares on the back of more acreage in Chana. In the ongoing rabi season, the chana acreage has gone up to 61.42 lakh hectares from 56.38 lakh hectares. (PTI) |
Household increase expenditure
on NEW DELHI, Dec 3: Domestic household expenditure on food and clothing has come down significantly, while their spending on health, education, transport and communication has improved, according to an ASSOCHAM study. Of their total income, the percentage expenditure on health trebled to 12 per cent in 2005-06 from 4 per cent in 1999-2000 while the spendings, as percentage of total income, on food declined to 40 per cent in fiscal 2005-06 from 52 per cent six years ago, the study said. Expenditure on education, almost trebled to 15 per cent in 2006 from 5.5 per cent of their total income in 1999-2000. Transport and communication is another major area, where household doubled their expenditure to 25 per cent of their total income from 12.97 per cent earlier. "The rising income levels coupled with increased awakening have led to more spending by household on healthcare, education and transport and communication, which reflects the improvement in the living standards particularly the middle class," Assocham President Anil K Aggarwal said. The expenditure on fuel for the period under review also increased more than two-fold at 8.05 per cent of the total income as against 3.64 per cent six years ago. On clothing, the expenditure from their total earnings came down to 5 per cent from 10 per cent while on intoxicants like tobacco and paan (betel) it came down to 0.48 per cent from one per cent, the study said. The cost of electricity has gone up along with greater consumption of electrical goods as more and more number of people are using electrical gadgets. (PTI) |
MFs richer by Rs 30,000 cr; UTI retains top slot in AUMs MUMBAI, Dec 3: Coffers of domestic mutual funds have become even more fatter with boosters like robust investor response to new schemes and strong returns from the continuing record rally in stock markets adding about Rs 30,000 crore to their assets over the past month. The total assets under management of the country's 30 mutual funds rose to over Rs 3,39,000 crore at the end of November, with a gain of about nine per cent over Rs 3,09,340 crore in the previous month, the data available with the Association of Mutual Funds in India (AMFI) shows. UTI Mutual Fund retained its top position with total AUM of Rs 41,622.51 crore, followed by Prudential ICICI MF at the second position with AUM of Rs 35,232.16 crore. Reliance MF came in at third position with an AUM of Rs 34,636.89 crore, followed by HDFC MF at fourth position with Rs 29,555.13 crore and Franklin Templeton at the fifth position (Rs 23,832.69 crore). Besides strong returns from the equity market and robust cash collection by the new fund offers, stability in the bond market has also helped boost the overall fiscal health of the fund houses, the analysts believe. Mutual funds tracking firm Value Research Online CEO Dhirendra Kumar told PTI : "The rise in AUMs basically reflect the stability in the bond market as people freely invest in them too, while equity markets are also attractive." Besides, MFs have accumulated further cashpile by heavily selling in the stock market over the recent past. Data available with market regulator SEBI shows that MFs were net sellers to the tune of about Rs 25 crore in November, while they made net purchase of over Rs 6,300 crore in the month. SBI MF's One India Fund was launched this month, the new fund offering period would be from November 24 to December 22, while Prudential ICICI AMC launched its Equity and Derivatives Fund on November 8, an open-ended equity scheme which aims to generate low volatility returns by investing in cash equities, equity derivatives and debt markets. Among other NFOs, UTI, ABN Amro and Tata MFs have also come out with new schemes. A study of all the bulk deals executed by mutual funds on the BSE and NSE in the month of November shows that IT major TCS, two-wheeler maker TVS Motor and Simplex Infrastructure were among the favourites for buying, while stocks like IDFC, OCL India, and Megasoft topped the selling list. (PTI) |
 |
WTO talks must address concerns NEW DELHI, Dec 3: Amid indications that WTO talks could resume by next month, India has made it clear that the negotiations must be in line with agreed principles and its concerns on agriculture as well as services must be addressed. The core of the Doha Round of talks was its development content and deliberations should be faithful to the mandate as elaborated by the July Framework of 2004 and the Hong Kong Declaration last year, Commerce Minister Kamal Nath has said. He said India's concerns must be adequately addressed as and when trade negotiations were resumed. There are indications that the Doha Round, which was suspended in July, could be revived by January-end next year. For this, developed economies should cut domestic farm subsidies and address market access concerns of developing countries in services, he was quoted in an official release. "It was vitally important that the resumption of negotiations should be based on a shared understanding of clear principles that should guide the negotiations," Nath said at the Inter-Parliamentary Union Conference in Geneva. "Implementation issues also need to be resolved with equal priority and the special concerns of the poorest members should be adressed," he added. Nath reiterated that India cannot just be a large market for the manufacturing energies of other countries. "We have comparative advantage in several manufacturing sectors and this must be allowed to come into play. The same holds true for services. It is important for us to ensure that our comparative advantage finds full expression in global markets," he added. (PTI) |
T&C exports be up by 30% pa
to NEW DELHI, Dec 3: To achieve the export target of textiles and clothing (T&C) at 50 billion dollars by 2010, India needs to increase its exports by about 30 per cent per annum, of which the share of garments should be around 25 billion dollars. The textile exports had been stagnant in the quota period in the range of 10 to 13 billion dollars. Textile exports recorded a growth of 8.7 per cent in 2003-04, but displayed a negative growth of 3.4 per cent in 2004-05. However, in the first year of quota free regime 2005-06, textile exports increased from 14.03 billion dollars in 2004-05 to 17.08 billion dollars, clocking a record growth of 21.8 per cent, official sources said here. As per latest data available from Directorate General of Commercial Intelligence and Statistics (DGCI&S), India's textile exports amounted to 6.1 billion dollars during the period April-July this year, recording a growth of 16.08 per cent compared to the corresponding period of the previous year. According to a latest data from the World Trade Organisation (WTO), the T&C exports during the year 2005 were to the tune of 16.14 billion dollars comprising of 7.85 billion dollars of textiles and 8.29 billion dollars of clothing. During that year, China's exports were worth 115.21 billion dollars which included 41.05 billion dollars of textiles and 74.16 billion dollars of clothing. Government, however, has not made any assessment regarding the prospective export performance of India versus China during the next 5 to 10 years. Although achieving the target of 50 billion dollars of textile exports seems doubtful at present, the dismantling of quotas has put an end to the distortionary trade regime and presents an opportunity for competitive producers, say industry sources. India's export performance during 2005 and 2006 indicate a significant improvement in performance of markets where it earlier hit quota ceilings. However, India's performance in the medium-term would critically depend on removal of domestic constraints and ability to compete with Chinese T&C exports. (UNI) |
Benefits galore in UBI's new Current Account product NEW DELHI, Dec 3: To cater to the growing needs of the trading community. The Union Bank of India (UBI) has launched the 'Union Classic Current Account (UCCA)', packaged with a range of free services and benefits. Mr S P Goel, Deputy General Manager, Regional Head Office at Delhi, UBI, said these benefits are either by way of free or concessional offers. He said a trader or any other customer can open the the UCCA under three categories, with any of the 900 Core Banking Solution branches. The choice of category is based on the Average Monthly Balnces maintained. These are: Category-I, Rs 50,000 and above but less than Rs one lakh; Category-II, Rs one lakh but less than Rs five lakh; Category- III, Rs five lakh and above. Mr Goel said the product has been designed in such a manner to enable a trader to manage his funds more efficiently, as the UCCA offers multiple benefits like free remittances and free collections. ''Such multiple free as well as concessional services are extended to the customers in increasing proportion to the increase in cash balances. The higher the amount involved the more the benefits,'' Mr Goel said. The customer-friendly free services include remittance of funds up to Rs 100 lakh per month; outstation cheques for collection up to Rs 25 lakh; multi-city cheque collection up to Rs 25 lakh per month, cash management services in two locations and instant issue of credit and debit cards. UBI is rated as among the top five banks of the country. (UNI) Orissa cannot claim incentives
for loss NEW DELHI, Dec 3: Former Union Minister and BJP Leader Jual Oram has said the Centre has rejected the proposal of the Orissa Government for grant of incentives to the state for the loss-making power sector. Mr Oram told UNI that he had raised the question in Parliament on whether Orissa had submitted any proposal to provide incentives for loss reduction of the Grid Corporation of Orissa (GRIDCO), the power distribution company, and four other private distribution companies which were dealing with the retail business in the state. Quoting the statement of Union Power Minister Sushil Kumar Shinde, Mr Oram said the state government could not claim incentives as the power sector in the state had been privatised. "An incentive claim was filed by the Government of Orissa for achieving cash loss reduction under incentive component of Accelerated Power Development and Reforms Programme (APDRP). Since the distribution of power in Orissa has been privatised, the state is not eligible as per the guidelines of the APDRP," Mr Shinde had said. (UNI) |
SEZs, Mopa airport must for Goa’s economic growth:GCCI PANAJI, Dec 3: The Goa Chamber of Commerce and Industry (GCCI) is of the view that the proposed international airport at Mopa on the Maharashtra-Goa border and Special Economic Zones (SEZs) can act as the engine of economic growth in the tiny state. Even though the Mopa Airport project ran into controversy creating a North-South divide in the coastal state while SEZ policies have come in for review in many states, the GCCI feels that they could prove to be growth catalysts that could change the face of Goa. In an interview to UNI, GCCI president Nitin Kunkoliencar said the Chambers have recently published a ‘Goa Infrastructure Report’ discussing various issues pertaining to the agenda of the state’s economic growth and development. The report has discussed various aspects of the state’s problems and steps to be taken to address the issues. According to the report, SEZs in Goa could focus on food processing industries bio-technology, pharmaceuticals, garments, jewellery, diamond polishing and IT hardware industry. Mr Kunkoliencar said the land acquisition has been put in abeyance given the politically sensitive nature of the airport controversy. The assembly elections are scheduled to be held early next year. He says that the North-South divide over the Mopa aiport is ridiculous and added that the GCCI will push for implementation of the project. "We at the Chambers do not subscribe to the view that the Southern parts of the state will suffer if an international airport comes up at Mopa. Do the critics want to say that due to the present airport at Dabolim in South Goa, there was no development in the North," he asked. "In fact, many more hotels have come up in the North and there has been employment to the local people," he added. Goa needs a second international airport because in the next seven years the tourist traffic is likely to grow in leaps and bounds. It is imperative that the Dabolim International Airport be expanded and modernized to international standards on an emergency basis to meet the requirements for at least the next seven to eight years. There is high possibility that Goa’s tourism, Industrial and Commercial growth many be seriously hampered if the current constraints and limitations regarding the present airport are not addressed immediately, he said. Mr Kunkoliencar said the GCCI report on Infrastructure states that the Mopa Airport in Pernem Taluka of North Goa can be built on BOOT basis. If the specifications and bid formalities are completed by the end of 2006-07, the new airport along with associated infrastructure like roads, power, water supply could be functional by 2014. The report states that besides Goa, the catchment area of the new airport will include some districts of neighbouring states of Maharashtra and Karnataka, for both local inhabitants and visitors travel. He said if the Mopa airport construction is delayed, Maharashtra’s proposal for an international airport in Sindhudurg district may go ahead and Goa would lose on revenue heavily. (UNI) |
|
