5,000 ship-breakers face cancer death
NEW DELHI, Feb 21 — Greenpeace has slammed government claims that ship-breaking is safe and predicts that at least 5,000 of the 40,000 labourers at present engaged in the multi-million dollar industry at Alang in Gujarat will die of cancer.

Pay-linked tax suggested
THE basic objective of Income Tax is to collect revenue, to meet out the socio-economic objectives, to promote equity and equality in income.

Sops for capital market ?
NEW DELHI, Feb 21 —The government is examining giving tax breaks to mutual funds which focus on primary markets and listing of public debt in small denominations on the national stock exchanges among various measures to revive the capital market.

Scientific instruments fair opens
AMBALA, Feb 21 —A two-day Ambala scientific instruments trade fair and exhibition was opened at S.D. College in the cantonment here today.

Order on HLL plea reserved NEW DELHI, Feb 21— The Delhi High Court has reserved its order on a petition filed by Hindustan Lever Ltd seeking stay on an order passed by the Monopolies and Restrictive Trade Practices Commission on the company’s Pepsodent tooth-paste ad campaign.

PNB Krishi Card
ROPAR, Feb 21 — Punjab National Bank launched PNB Krishi Card here yesterday. Mr J.S. Brar, ADC (Dev) presided over the function attended by a large number of farmers.

5,000 ship-breakers face cancer death
From D. Ranjit

NEW DELHI, Feb 21 — Greenpeace has slammed government claims that ship-breaking is safe and predicts that at least 5,000 of the 40,000 labourers at present engaged in the multi-million dollar industry at Alang in Gujarat will die of cancer.

Greenpeace bases its claim on meticulous studies carried out in a German laboratory on environmental and other samples its team collected at the “graveyard of ships” at Alang and at other ship-breaking sites at Sosiya and Mumbai.

Greenpeace has just released what it claims is the first ever technical and environmental data on the toxic contamination by ship-breaking in India called “Ships for scrap:steel and toxic wastes for Asia.”

Importantly, the report controverts a claim made by Minister of State for Environment, Babulal Marandi that there is no significant hazard to the environment from ship-breaking citing a study conducted by Mecon.

Other reports such as one made by Toxic-Link, a Delhi-based environment group, last year, have recorded inhuman conditions under which thousands of workers slave at the yards simply because they cannot find other employment.

“The situation at Alang and Sosiya where most of the ship-breaking occurs can be best compared to a Nazi concentration camp,” said Madhumita Dutta a Toxic-Ling researcher.

But officials of the Gujarat Maritime Board (BMB), which controls the $ 500 million industry with accounts for 10 per cent of India’s annual steel production are on record saying that there is no vegetation or marine life or fishing near Alang.

But even the Mecon study says that there can be damage to water quality and marine eco-systems in the inter-tidal zone. Last year, the Central Pollution Control Board also produced a set of guidelines it wanted the industry to follow and suggested the rejection of extremely polluting ships.

Recently criticism has been voiced in the rich OECD countries that ship-owners assume no responsibility for very toxic susbtances in the roughly three-decade old ships but make profits by selling the ships as pure steel rather than laden with poisons.

Analyses of samples taken by Greenpeace from ships undergoing scrapping on Indian coasts showed contamination by various toxic heavy metals from ship paints and asbestos which is banned in most countries.

Sixteen years of ship-breaking at Alang has contaminated a previously unpolluted region with the environmental poison tributyl tin which is used in paints and the effects may last a long time because it is not biodegradable.

But worst of all Dr Frank Hittel, occupational health officer in the German state of Bremen has publicly stated that the lack of safeguards in handling various contaminants means that every fourth worker in Alang can be expected to contract cancer.

Unprotected by gloves or helmets at least two workers die every day on an average at Alang from diseases or frequent accidents. But most of them are impoverished people from distant states like Bihar and Andhra Pradesh who have no voice.

India competes with countries like Bangladesh, China, Thailand, Vietnam and the Philippines for the ship-breaking industry and there are fears that enforcement of the laws may result in loss of steel as well as revenue.

But Greenpeace India representative Nityanand Jayaramn said: “We will continue to expose serious human rights violations and environment hazards along long with other environmental groups and trade unions which have joined us in demonstrations.” — UNI

Pay-linked tax suggested
By Inderjit

THE basic objective of Income Tax is to collect revenue, to meet out the socio-economic objectives, to promote equity and equality in income. For this purpose the present system implies to collect tax from high income groups and various types of deductions have been given in the Act. But in reality by availing the benefits of above deductions and tax planning, the families in high income brackets remain unable to pay tax whereas, the middle income groups have to bear the burden of income tax one way or the other.

Here is a scheme that will earn almost equal revenue and savings for the nation. It will reduce tax rates and simplify the income tax procedure. The scheme is to frame a new income tax structure instead of following the present Income Tax Act and ending it on a year-to-year basis. The proposed new income tax structure is to attach the tax with pay scales for salaried class, i.e. pay scale linked tax system.

To clarify this system let me compare two types of families:

First — having only one employee (earning hand)

second — having two employees (earning hands)

If all the three employees get a salary of Rs 1,25,000 each then by following the present tax system, the total burden of income tax on family-I will be Rs. 14,000 and of family-II Rs 28,000. If both families want to avoid tax, family-I has to save Rs 70,000 that is quite impossible in this age of increasing prices. How a family can meet out its requirements with only Rs 55000 (i.e. Rs. 125000- Rs 70,000) to spend on at least two school-going kids and for residing in a rental accommodation? Therefore, family—I, has to bear the burden of income tax of Rs 14000/-.

On the other hand family-II can avoid tax by making a saving of Rs 1,40,000 because still Rs 1,10,000 remain (just equal to family-I after paying tax) to meet out the family expenditure throughout the year.

Hence it can be seen that the basic objective of the present tax structure i.e., to collect tax from highly paid groups remained unfulfilled, because comparatively the low income group family has to bear the burden of tax and the high income group family on the one hand was able to save and on the other hand remained untaxed, it will result in making the poor the poorer and the rich the richer.

Therefore, by applying the proposed pay scale linked tax system, if only 3.5 per cent flat rate of tax is to be charged the government may collect Rs 13,125 (as against Rs 14000) and a limit of 30 per cent to 40 per cent tax saving be fixed upon savings. In this way the govt. could be able to get more savings. It is suggested that the government may notify the areas of investment as it has specified under the Companies Act, 1956, for companies. As regards allowances a maximum exemption limit of 50 per cent of salary may be fixed for all salaried classes. And the same pattern should be linked with separate pay scales.

Thus, by changing the present tax structure and framing the proposed pay-scale-linked-tax-system, the nation can earn more and also minimise the tax fever of its employees. Very often the salaried class has to remain busy in finding wayouts, how to avoid tax resulting in the wastage of valuable time and energy. The proposed system will also minimise malpractices adopted by high income groups and the cost of the Income Tax Department will be reduced on many counts. The department can focus on other income groups rather than the salaried class, so as to increase the tax collections.

Sops for capital market ?

NEW DELHI, Feb 21 (UNI) —The government is examining giving tax breaks to mutual funds which focus on primary markets and listing of public debt in small denominations on the national stock exchanges among various measures to revive the capital market.

These steps have been suggested by fiscal experts and officials in the Planningg Commissiona nd Finance Ministry say they are in favour of such measures. Some suggestions have also been included in the final version of the Ninth Five Year Plan approved by the National Development Council on Friday.

Some other policy moves that are being looked into are changes in issue listing norms and giving labour unions greater say in the management of the provident and pension funds.

Officials are of the view that tax breaks for mutual funds should now focus more on the primary market to encourage them to help revive the primary market and play a disciplinary role on pricing. Mutuals have earlier been given tax sops but they are mostly in the domain of secondary and debt markets.

Though provident and pensions funds are allowed to operate in the capital market, most have kept away given the state of the capital market. To encourage them to play a more active role, the Finance Ministry is considering bringing in measures which will allow labour unions or other institutional arrangements controlled by workers a bigger say in managing these funds. The employees lured by a higher rate of return are likely to play a more active role.

The suggestion that the provident and pensions funds could also tie up with professional asset management companies for managing such funds is also being looked into.

Scientific instruments fair opens
From Our Correspondent

AMBALA, Feb 21 —A two-day Ambala scientific instruments trade fair and exhibition was opened at S.D. College in the cantonment here today. The exhibition has been organised by the Ambala Scientific Instruments Manufacturers’ Association.

The president of the association, Dr Anil Jain, said more than 35 manufacturers of scientific instruments had displayed about 500 products at the exhibition. Among the products displayed are microprocessor-based electronic instruments, electrical measuring bridges, laser-based experimental kits, trinocular and microphotographic equipment, pathological instruments, incubators, membrane filters, pregnancy kits, instrument fans and measuring instruments.

The industry of Ambala contributes to the national exchequer savings of Rs 125 crore per annum by providing import substitution instruments for defence organisations in India.

Instruments made here are used in the MiGs and the Jaguar aircraft, satellite launch vehicles of the Indian Space Research Organisation and the light combat aircraft project of Hindustan Aeronautics Limited. Instruments worth more than Rs 25 crore per annum are exported.

Order on HLL plea reserved

NEW DELHI, Feb 21 (PTI) — The Delhi High Court has reserved its order on a petition filed by Hindustan Lever Ltd (HLL) seeking stay on an order passed by the Monopolies and Restrictive Trade Practices Commission (MRTPC) on the company’s Pepsodent tooth-paste ad campaign. Earlier, on a complaint filed by Colgate-Palmolive, the MRTPC had restrained HLL from claiming that its tooth-paste was 102 per cent superior than the leading brand in the market. The MRTPC had also constituted an expert committee to test the veracity of the claim made by Pepsodent saying that it involved technical issues.

HLL had challenged the MRTPC order in the Supreme Court. But the apex court dismissed the appeal and refused to interfere with the interim order saying the injunction order passed by MRTPC was for specified period till the expert committee submitted its report.

Following the refusal of the Supreme Court to interfere withit, the matter came back to MRTPC and it passed an order directing the expert committee to carry out clinical study of Pepsodent in the context of long-term plaque and gingivitis against which HLL filed a petition before the Delhi High Court.

Saris from silk spots
By Komal Vijay Singh
Tribune News Service

CHANDIGARH, Feb 21 — The government sponsored Handloom House in the city is these days playing host to a festival of silk.

Mr B.K.Narula, Manager of the Handloom House here, says the exhibition, which is an annual affair, brings to the city a wide range of saris from India’s famed silk spots.

Endless varieties of breathtaking Banarasis, Tanchois, Jamavar, Tanzebs, Pochampallys, Kanjivarams, Gadwals, Paithanis Bonkais and scores of others have all been collected under one roof. The range is so vast that there is hardly any type of silk, embroidery, colour or style that is not found here. Bearing the stamp of the master weaver collection, each sari qualifies as a timeless creation.

Besides the silks, there are crisps cottons and crepes beautifully adorned with threadwork in pastel shades and vibrant hues.

In dress material, there is a nice range of heavy-on-the-pocket Tanchoi (Rs 1000 per metre) and brocade (Rs 600 per metre). Raw silk in every conceivable colour is priced at Rs 285 per metre.

The men’s range consists of shirts, ties and cravats. The shirts, most of them being floral prints, may be tried by the adventurous and the bold only. The range of dress material for the conservative dressers spells class. It is primarily in beige and cream. There are coats made of handwoven tweeds. Light in weight and soft in feel, they come in various colours. Silk ties are in the range of Rs 175-284 whereas the ready-to-wear cravats are priced at Rs 135.

Besides all this, there are bedcovers from Orissa, Gujarat, Andhra Pradesh and U.P. There are the lightweight, honeycomb towels from Gorakhpur and a colourful range of table mats and napkins. Wall hanging from Sholapur are in the Rs 150-800 range.

All in all, the collection here gives a unique peek into the handloom heritage of India. One can thank the government for showcasing variety that vies with quality.

The festival of silk which offers a 10 per cent discount on not just silk but anything and everything stored at Handloom House opened on February 16 and will continue for two weeks.

PNB Krishi Card
From Our Correspondent

ROPAR, Feb 21 — Punjab National Bank launched PNB Krishi Card here yesterday. Mr J.S. Brar, ADC (Dev) presided over the function attended by a large number of farmers. Mr I.D. Singh, Senior Regional Manager, PNB, said under the scheme a maximum limit of Rs 1 lakh will be fixed depending upon the land holding and a farmer can withdraw amount from any branch of the bank in the district. The rate of interest is 13.26 per cent and the card is valid for three years. It can be renewed one month before the expiry date. Mr Brar urged farmers to repay the bank loans in time so that loan schemes could achieve the desired objectives. He distributed Krishi Cards to 50 farmers. Sanction letters were given to 90 farmers.

Deal ATCs with an iron hand

“A STITCH in time saves nine”. Had the Airport Authority of India (AAI) acted firmly, years ago when pampered air traffic controllers (ATCs) were creating troubles , the situation would not have deteriorated to such an extent pass.

The ATCs, who should be nicknamed as ‘always trouble creators, must be dealt with an iron hand because they must not be allowed to hold country to ransom. An action against six erring ATCs is timely, but what is essential is that all trade unionist from its rank must be removed lock, stock and barrel. No one, much less ATCs has the right to play havoc with the safety of passengers.

The ATCs charter of demands is illegal and uncalled for. To demand pay parity with the pilots and to ask for 12 per cent of the basic pay for an hour of work are absurd. There are several other demands, which speak poorly of the guild, which is guiding the ill-informed ATCs.

There are several reasons for drawing a thick line between pilots and ATCs. It will be a fallacy to equate pilots with ATCs. How may ATCs have died when air crashes have taken place? Is there any country in which ATCs hold parity with pilots? If there is one, let the Guild specify it.

The ATCs, are a misguided lot. It is because the AAI has been lax. Every time, the Guild has submitted its demands, the AAI has yielded. During the last four-five years, the ATCs have got more raise in their pay and perks than most other technical operators in the country.

It is good that air force personnel have been kept ready to handle civil operations whenever ATCs resort to objectionable tactics. It is laudable that the government has brought functions of ATCs under the head of essential services. But what is essential is that there should be total ban of trade union activities in this all-important department.

Khajuraho, Mumbai linked

Khajuraho has been linked to Mumbai by Alliance Air (subsidiary of IA) with a direct flight.

The airline has rescheduled its flights from Mumbai and Delhi so that tourists may be able to disembark at Khajuraho without inconvenience. Also, to celebrate the millennium year of existence of the world famous temples in Khajuraho, there will be a festival of dances from March 8 to 12.

Khajuraho, recognised as world heritage monument, is expected to have thousands of tourists until the end of March. With the rescheduling and increase of flights, there are now 10 flights between Delhi-Khajuraho Delhi, and three between Mumbai-Khajuraho-Mumbai a week.

Singapore Airlines

Singapore Airlines has reverted to its original departure and arrival timings from the Indira Gandhi International Airports as disruptions because of fog have considerably reduced.

by Ashok Kumar

Q: The share price of Britannia Industries Ltd has been rising sharply. Would you recommend profit-booking now?

— Vijay Thakur, Chandigarh

Ans: A study of the turnover of Britannia Industries Ltd (BIL) indicates that bakery products account for 94 per cent of its turnover with biscuits accounting for the lion’s share of 85.5 per cent. Although BIL has the product support of Group Danone, it markets its products under the umbrella brand Britannia which is one of the top 15 brands in the country.

The BIL has rationalised its production facilities to increase its manufacturing capacity from 47,600 tonnes to 111,000 tonnes during the financial year 1997-98. BIL forayed into dairy products for which it is out-sourcing its requirements. For those products as well as for bakery products, BIL has Groupe Banone’s technical support. The prospects of this company thus appear to be fairly promising. Hold on to its shares.

Q: There seems to be a fancy for the shares of Crompton Greaves, in which I too ama shareholder. Should I consider further fresh investment in this scrip?

— Madan Maker, Shimla

Ans: Crompton Greaves is now in the midst of a consolidation phase. The management has already identified the reasons for its none-too-encouraging past performance and is on course to get things back on the right track. One major factor, which had once led to reversals for the company, is investments of over Rs 150 crore in 15 joint ventures. The company can now derive Rs 500 crore from these. It has been looking afresh at these investments. And the day the management decides to hive off these unrelated business ventures, it will mark the infusion of large funds into Crompton Greaves. Notably, this company has also received the shareholders nod for the buy-back of its own shares aggregating upto Rs 100 crores. Overall, given the backdrop of the turnaround and the cost cutting meansures, the company’s prospects appear well set to improve, making it a promising medium to long term investment bet.

Q: I am a shareholder of Swaraj Engines. Can you advise me about its future prospects?

— Mansa Puri, Nalagarh

Ans: A Punjab Tractors group company, Swaraj Engines is engaged in the manufacture of diesel engines of 15 HP to 80 HP. The total installed capacity of the company’s plant in Ropar is 16,000 units per annum and with growing demand for diesel engines, the company plans to increase its capacity by 42,000 units by the end of the financial year 1998-99. Set up in collaboration with the Punjab Government, Swaraj Engines facilities are dedicated to Punjab Tractors Ltd (PTL) and Swaraj Mazda — both group companies. All engines are supplied to PTL and job work done on connecting rods is done for Swaraj Mazda.

The capacity of Swaraj Engines for manufacturing tractor engines is lower than that of PTL and resultantly, the latter enjoys assured sales. The job work done for Swaraj Mazda is dependent upon the sales growth of LCVs. However, the income from job work is low in proportion to the overall turnover of the company. The company is also creating capacities for some more hi-tech components like crank case, gear casing etc which are till now being outsourced. While the entire expansion programme is scheduled to be completed by March 99, some additional capacities have been made available during the financial year 1997-98 itself. With the actual capacity expansion having been spread over 3 years, a substantial portion of the funds needed are being met through internal accruals and some borrowings. With the capacity for assembling engines rising to 42,000 in the current fiscal, the sales for 1998-99 are expected to double as demand would continue to outstrip supply. Overall thus, the prospects of this company seem to be bright.

Q: I brought the shares of BSES recently on the recommendation of my broker. Do you feel this company will fare well in the future?

— Pankaj Khanduri, Amritsar

Ans: A prominent player in the power industry, BSES is an integrated power generation and distribution company. The company can boast of excellent credentials and a good track record. During the last year, the company managed to solve its problems at its plant at Dahanu, which is presently functioning at optimal capacity utilisation levels. BSES, which started off supplying power to the areas of Mumbai, has now started providing the same to areas in Andhra Pradesh, Madhya Pradesh adn Kerala.

The company proposes to raise the capacity to 2000 mw, and the same addition will be completed over the next half decade. It is setting up a coal benefication plant as a joint venture with CLI Corporation and Spectrum Technologies of the USA. The company appears to be poised for fair growth in the future.

Q: Please comment on the future prospects of Smithkline Beecham Consumer Healthcare?

— Harjeet Uberoi, Ludhiana

Ans: A leading producer of the malted food drink, Smithkline Beecham Consumer Healthcare Ltd (SBCHL) has under its belt popular brands like Horlicks and Boost. The former is a leader in the market with a share of 45 per cent while the latter is positioned fourth behind Complan and Bournvita with market share of 6 per cent.

Surbhi Forests

I deposited Rs 20,000 through Mr Naresh Kumar of Jalandhar, agent of ‘Surbhi Forests India Ltd’, Mani Majra, Chandigarh on September 1, 1997. A post dated cheque on State Bank of Patiala, No. CA/21/0513338 dated September 1, 1998 for Rs 20,000 was issued to me. I deposited the cheque with my bankers at Calcutta on January 20, 1999 which has been returned with remarks “Insufficient funds”.

Col. HGV Singh
Calcutta

Golden Forests

I invested Rs 50,000 in Golden Forests (India) Ltd, Chandigarh on July 18,1997, for one year vide their receipt No LS/97/45930, dated August 28, 1997. The investment matured for payment on July 18, 1998. I have not so far received my money and the interest that had accrued to-date.

Charanjeet Kaur
Jalandhar

UTI

I sent proforma supplied by UTI vide their No CGGF/6962-6962/97-98 dated 3.10.1998 but duplicate unit certificate for 200 units, in the name of Nishant Chadha s/o Mr Vimal Chadha has not been released in spite of reminder.

Jaswant Singh Vohra
Karnal

Escorts

Escorts Ltd has failed to pay me Rs 16719 against FDR No. C66543 (cumulative) which were due for repayment on 23.12.98 in spite of repeated reminders.

Mohinder Kaur
Chandigarh

Jagjit Cotton

We, the undersigned, made fixed deposits, with Jagjit Cotton Textiles Ltd., Thapar House 124 Janpath, New Delhi-110001. The FDR Nos MOH-0342/109906 and PRE-0534/109915 dated 27.8.97 for Rs 15,000 each for one year with date of maturity 27.8.98. In spite of repeated reminders we have neither received the payment nor any reply.

Mohinder Singh
Paramjeet Kaur
Chandigarh

Krone Com
NEW DELHI, Feb 21 (UNI) — Krone Communications Ltd has posted net sales of Rs 35.16 crore for the financial year ending January to December, 1998. This is 116 per cent above its annual sales performance last year of Rs 16.26 crore. Krone Communications launched its Premisnet range of structured cabling systems, during mid-1998.