Friday, April 23, 1999
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B U S I N E S S | Friday, April 23, 1999 |
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spotlight today's calendar |
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M & M to develop
Mohali IT park Opt for presidential form of govt:
Badal
Telecom policy for partnerships How Punjab can raise revenue |
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End political stalemate, says
industry Sale of strong beer goes up VSNL to offer roaming service
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M & M
to develop Mohali IT park CHANDIGARH, April 22 — The Punjab Government has shortlisted Mahindra and Mahindra from among eight contenders, including L & T and the Ansal group, for the development of an information technology park at Mohali. M&M is expected to invest about Rs 20 crore in the project to be carried out through a joint venture company. An MoU to this effect will be signed shortly, it is learnt. The Punjab Government’s contribution towards equity in the joint venture will be in the shape of land. In the first phase 50 acres have been acquired near Mohali for developing the electronics estate, also known as ELTOP (Electronics Town of Punjab). In the second phase 200 acres more will be made available for promoting information technology (IT) industry, according to official sources. In total the government has earmarked 500 acres for industry development. A satellite earth station has already become functional at the IT park which will also provide (a) an electronics hardware technology park (b) a software technology park (c) an institute of information technology and (d) developed plots for setting up IT and electronic units. Punjab’s first software town will also provide Internet connectivity and a leased channel service to connect software exporters in India to their clients abroad. When completed, the IT Park will provide centralised computing facilities, built-up cabins for datacom link and uninterrupted power supply. Hardware and software units coming up in the park will be entitled to duty free imports, income tax and sales tax holiday, and exemption from electricity duty. Besides, the facilities of 100 per cent foreign equity and clubbing of net foreign exchange are also permitted, according to official sources. “To be competitive and to attract IT multinationals, the proposed park has to meet international standards”, says Mr Harpal Singh, Sr Adviser-Corporate Projects with Mahindra & Mahindra. Asked about the progress
of M & M’s tractor project, which was announced
last year, Mr Harpal Singh said: “We are still
looking at it. M & M will not undertake any project
for which there is no export potential.” The
Mahindras have already set up an IT park in Chennai. |
How Punjab
can raise revenue WHILE the Punjab Government has shown grace by keeping the tax proposals of the Budget and that of the Municipal Corporation, Ludhiana in abeyance, the Government must get its due revenue. Here are a few suggestions. There is logic in the argument that Punjab having the highest per capita income should have adequate sales tax revenue from items of consumption. These items come from outside Punjab. A high tax regime makes a consumer avoid tax. Only a low-level of taxes can reverse the trend. Multi-pronged taxes on a product inflate the costs to a prohibitive level. No item should carry sales tax of more than 4 per cent. The government can use computers to record incoming goods at the entry points of the State. Random checks thereafter can help improve the situation. Trading centres are highly concentrated. The Government should honour office-bearers of such centres who mitigate tax evasions. Official raids should thus be substituted. For outgoing goods a similar computing can be arranged. Random checks of such movements can prove deterrent for evaders. Industry finds it difficult to obtain ‘C’ forms. Sometimes this leads to evasion. The Punjab Government should ensure the supply of these forms. Dealers with comfortable liquidity may be allowed to purchase pre-tax paid bonds of the government. Their goods need no interception. As for the finances of the Municipal Corporation, bulk of the burden is on industry. The grand principle for municipal taxation is that taxes should not directly increase the cost of the product and they should not be discriminatory. Octroi on power qualifies both these adverse parameters and should be avoided. In the present context if this tax is to be retained then it should have a ceiling according to 2 paise/unit so that burden on industry remains at the previous level but all other consumers can be made to pay more. At least the discriminatory nature of the tax will be modest. In Punjab urban bodies hardly get any assistance from the State. Sales tax on petrol has been increased by 5% in just one year and no money is given to local bodies. In all fairness part of the revenue from the vehicles and stamp duty on the sale of immovable properties should go to the local bodies. Industry in big towns has expanded along the G.T. Road and State highways. In Ludhiana, Sahnewal, Doraha, Kohara and Phillaur are just part of the city. One led of a particular industry is located in Ludhiana while the other lies in satellite towns. This makes the daily movement of goods very frequent. With octroi posts erected in smaller towns every movement of goods attracts octroi. This adds up to a whopping amount. Octroi in satellite towns should be removed and these towns should get assistance from the state government and part from the main town. Another principle to
make the urban local bodies self-sustaining should be to
make every house pay taxes. |
Opt for presidential form of
govt: Badal CHANDIGARH, April 22 —Political instability at the Centre cast its shadow at the PHD House “bhoomi poojan” function here today with Punjab Chief Minister Parkash Singh Badal suggesting a switch-over to the presidential system of government and Punjab Finance Minister Kanwaljit Singh stressing the need for all-party-chamber consensus on economic policies. Addressing a gathering of industrialists after performing the earth-breaking ceremony for the PHDCCI building in Sector 31 this afternoon, Mr Badal said a President can complete his fixed term and induct experts as his ministers. For the present set-up the choice of ministers is generally confined to party MLAs. He predicted re-election in three to four months. Mr Badal asked the industry to set up a separate wing for small units and provide necessary training to unemployed youth. Capt Kanwaljit Singh said if industry and commerce are to flourish, political stability is must. Mr Balramji Dass Tandon , Punjab Minister for Local Government, hoped the PHDCCI will stick to its schedule of building the PHD House in 10 months. Earlier, PHDCCI President Ashok Khanna said the Centre should share some percentage of export earnings with States. He urged Mr Badal to take up this issue with the Centre. Mr R.K. Saboo, Chairman, Chandigarh Building Committee, said PHD House, whose foundation stone was laid by Dr Manmohan Singh, will come up as scheduled. The landscape design for
the building is being done by Ajai Johl and Rachna Singh
of Panchkula-based Foliage. |
Telecom
policy for partnerships NEW DELHI, April 22 — The National Telecom Policy 1999, provides framework for partnership between the government and the private sector for the growth of telecommunications, the Secretary, Department of Telecommunications, Mr Anil Kumar said here today. Speaking at a seminar on “Infrastructure and Investment India 99”, Mr Kumar said convergence of technology has made possible increased bandwidth to carry image, voice and data to the remotest parts of any region. He said telecom and postal sectors would gear up to meet the challenges of the emerging scenario and make available modern communication services to the maximum number of people. The government has already put in position a plan to set up telephones in all villages. He said India has great potential to offer an attractive destination for foreign investment. The acting Chairman and Managing Director of VSNL said the communication revolution is sweeping across the world in the field of basic, mobile Internet, satellite and multi-media services leading to convergence of technology. The four day seminar is
organised by the India Investment Centre and is
co-sponsored by the various government departments as
well as private institutions. |
Website
launched CHANDIGARH, April 22
— A new cyber commune, www.dig-IT.org, opened its
portals today to manager who use information technology.
A non-profit site is supported by Matrix Information
Services Limited. Apart from free advice on how to hunt
for breakthrough insights on the Indian marketplace, the
site features monthly contests, news on new websites and
bulletin board for members to air their opinions on
current topics. |
End
political stalemate, says industry NEW DELHI, April 22 — The business community today welcomed the passing of the twin Budgets — the Union Budget and the Railway Budget — in the Parliament, but called for an early end to the political stalemate saying that the formation of a new, stable government was completed expeditiously in order to restore market sentiment and confidence The President of the CII, Mr Rajesh Shah said that passing of the twin Budgets was truly commendable and keeping with the best traditions of the democracy.. Mr Shah hoped that these were a percursor and the other pending economic legislations would be passed in this session of Parliament itself which would put India as well as Indian industry back on higher growth path and stimulate higher investment flows. In the last few months there were signs of industrial recovery and positive measures by the government would reinforce this recovery, Mr Shah said. Welcoming the passage of the Finance Bill 1999-2000 and other essential financial business pending before the Parliament, the President of the FICCI, Mr Sudhir Jalan hoped that a stable government will assume office at the earliest to continue with the reform process and urgently address to some of the economic issues that the nation is presently faced with. Mr Jalan said that a major concern of the business is the backlog of economic legislation which were to be enacted in the current session of Parliament. These legislations are critically important for the economy and therefore should be passed at the earliest , he had said. President of the ASSOCHAM, Mr K P Singh had appealed to all political parties to rise above narrow and myopic gains and save the budget proposals. Mr Singh said that it was important to send right signals to the foreign and domestic investors about the continuity of the economic reforms process. Mr Singh underlined the need to amend or enact the Money Laundering Bill, the Foreign Exchange Management Act, Insurance Regulatory Authority Bill and Industrial Disputes Act. President of the PHDCCI,
Mr Ashok Khanna had said that political parties should
focus on the economic agenda and pass crucial
legislations pending before the Parliament. |
Card
business to grow by 30 to 40 pc NEW DELHI, April 22 — The joy of the baby boom or the frustration of the Y2K bug, there are cards for all occasions as the world steps on the threshold of the new millennium. The greeting card industry in India, which has grown from the fledgling stages in the unorganised sector to blue chip scrips in the stock market, is gearing up to cash in on the millennium boom. The industry has grown at a rate of 20 per cent per annum and has diversified from the earlier bulk sales of seasonal cards for wedding, anniversaries, birthdays and seasons’ greetings to the millennium cards now. The cards today range from friendship day, rose day, Valentine’s day, teachers’ day, doctor’s day and boss day. According to a study, the customers for these cards are either corporate houses or people in the age group of 14 to 24, in other words mainly the teenagers. There are about 40,000 designs produced each year in the country and the market size of cards and gifts sector in the organised sector accounts for Rs 100 crore. The unorganised sector account for about Rs 150 crore, the study added. The high growth rate notwithstanding, the card industry is far from reaching its optimum potential in India. A study found that in India less than one card bought by a person per annum compared to 42 cards in United Kingdom and 17 cards in the USA. The card companies in the coming years would focus on 60 to 80 million upward mobile urban populace, the study stated. The year 2000 AD is unlike any other new year as it heralds the beginning of not only a new century but also a new millennium. Artists, copy writers and creative designers are working over time to design the cards in different way. The card business is expected to grow by 30 to 40 per cent due to the millennium boom, Managing Director of Archies Greetings and Gifts Limited (AG&G), Mr Anil Moolchandani told the Tribune News Service. The company has set its ball rolling for the millennium celebrations and has launched advertising campaigns which show the different ways, in which people can celebrate and share their happiness on the eve of the millennium . Packaging the concept of millennium in greeting cards in India could be a tricky exercise. This is primarily so because millennium celebrations is originally a Western concept. “If Valentines Day, Mother’s Day and Friends Day could be sold with substantial success, selling Millennium Day concept cards should not be very difficult”, said one industry observer. Moreover, by its very nature, the cards and gifts industry is an evolving one and it is important to keep pace with changing times. Consider the cricket World Cup 1999. The World Cup fever has gripped the nation and AG&G has come up with a huge collection of special gifts and stationery items like caps and stickers, post cards, posters, etc and a series of greeting cards which can be addressed to each individual player or the entire cricket team. While banks and corporates are racing against time to find an effective solution to the Y2K bug, greeting card companies are working hard to corner a bigger chunk for the expanding market that the millennium would set in. AG&G, has already
drawn elaborate plans to strengthen its franchise
network. The company presently has 386 franchise outlets
spread all over the country and has come up with a
“Drive for Exclusivity” campaign which
introduces the concept of Vision 2000 store. These stores
will have 85 per cent of shelf space for Archies range of
products as compared to 60 per cent earlier.” Mr
Moolchandani said that the company plans to open 25 such
franchise outlets by 2000. |
Sale of
strong beer goes up CHANDIGARH, April 22 — The growth patterns in the Indian beer market in the last six years point to a distinct shift from mild beer to strong beer. While the market share of the mild beer segment in 1998-99 has slipped to 45 per cent from a high of 66 per cent in 1993-94, the corresponding gains have been accrued to the strong beer segment. In terms of sales, while mild beer has increased its sales from 303.1 lakh cases in 1993-94 to an estimated 315 lakh cases in 1998-99, the sales of strong beer have increased from 159 lakh cases to an estimated 385 lakh cases over the corresponding six year period. Strong beer brands fielded by top companies like the UB group and Shaw Wallace have recorded an unprecedented growth over the last few years. Haywards 5000 from Shaw
Wallace has led the rally in the strong beer segment by
recording a growth of more than 10 times over the last
six years, the fastest by any beer brand in the country. |
VSNL to
offer roaming service NEW DELHI, April 22 — Videsh Sanchar Nigam Limited (VSNL) and IPass Inc., has announced a partnership to offer IPass Global Internet Roaming Service to its customers as well as enable world travellers coming to India to use VSNL’s network for an access to Internet worldwide. VSNL customers will now be able to travel anywhere in the world and gain high speed Internet access through a local phone call from over 3,000 access points in 150 countries. VSNL has announced this service at an initial one-time registration fee of Rs 1000. The countries where the customers can access the Internet have been divided into three categories based on the charges levied in these countries for Internet access. For Group 1 countries,
the charge will be Rs 1.50 per minute, the countries in
this group include the USA, Canada, Puerto Rico, etc. For
countries in Group 2 — Australia, Japan, the UK,
Hongkong, Germany, France — the Internet access will
be available at Rs 4 per minute. The third slab comprises
Group 3 countries, with a rate of Rs 7 per minute for
Internet access. The charges for VSNL customers will be
billed back in India through their normal internet
accounts. |
Taken for non-joy ride on elephant IT was a joy ride that ended in a disaster. When Dr Mayi Gowda climbed on elephant Saraswati along with his three children and two nephews on that fateful night at the Dasehra exhibition grounds in Mysore, little did he know the price he had to pay for it. According to the complaint filed by Dr Gowda before the Karnataka State Commission, the elephant had barely taken a few steps when the cradle fixed on its back tilted to the left, resulting in all the children falling down. The elephant then caught Dr Gowda in its trunk and threw him out. He fell on an electric pole and sustained grievous injuries. His ribs were broken, and the head injury led to permanent loss of sight.. Dr Gowda, a medical practitioner, sought from the government of Karnataka and the forest department which had organised the joy ride, Rs 10 lakh as compensation. The opposite parties, however, argued that the accident had taken place while the complainant and the children were getting down. For some reason, the elephant suddenly got frightened and began to run. And as the children fell, Dr Gowda got panicky and jumped, disregarding the mahout’s advice, thereby sustaining serious injuries. In support of this contention, the opposite parties produced two forest guards present there and the mahout. They also produced evidence to show that Saraswati was a safe elephant and had participated in Dasehra exhibitions for several years, besides religious functions and festivals. She had even ‘acted’ in a movie. On the basis of the evidence produced before it, the Commission held that Dr Gowda’s accident could not be attributed to negligence on the part of the government or the Forest Department. Since under the Consumer Protection Act, a complainant has to establish that loss or injury was caused as a result of negligence of the opposite party, in this case, no compensation was payable as the complainant had failed to prove negligence, the court said. I quote this unfortunate case to emphasise the need for consumers to collect proper and adequate evidence in support of their claim. Before you file a complaint, imagine the worst scenario that you could be confronted with, the toughest arguments that the opposite parties could come up with and be prepared to deal with it. Only then can you win a case. Mr Gowda should have in
this case, got someone to get authentic information (from
books, libraries, internet) on responses of elephants to
light, sound, crowds, etc. He should have called in
independent experts on animal behaviour, talked to
retired forest officials to find out about accidents
caused on account of sudden behavioural changes in
elephants. In short, built up a case to prove that
bringing an elephant to the exhibition ground was an act
fraught with danger and that the government officials
took the step despite being aware of it. |
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| Exide NEW DELHI, April 22 (TNS) — Exide has launched Powergen range of domestic inverters. The features incorporated in the new range are direct installation of mains through high power changeover relay, powerful battery charger built-in,short circuit, overload and battery discharge protection, and single point warranty. Dhawan Travels Rs 50 note |
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