Badal waives stamp duty on farm loans
Tribune News Service

CHANDIGARH, Feb 22 — Chief Minister Parkash Singh Badal today waived stamp duty on long-term agricultural loans in Punjab.

Farmers in the state were required to pay stamp study of 1.5 per cent while mortgaging land to take loans from commercial banks for purchasing tractors and other agricultural implements, while there was no duty on state cooperative bank loans.

Addressing a large gathering of farmers at Hotel Shivalikview here, Mr Badal said the sugarcane price in Punjab was Rs 95 per quintal, while in Pakistan’s Punjab it is just Rs 32 a quintal.

The function was organised by Punjab & Sind Bank to launch its PSB Zimidara Credit Card and in-house journal “Grameen Darpan”.

After distributing credit cards among farmers from Punjab and Haryana, Mr Badal said land holdings were becoming uneconomical. While 70 per cent of the population depended on agriculture, only 15 per cent of the total bank loans were given to this sector.

Referring to his visit to Pakistan, Mr Badal said the per acre yield of wheat and rice in this Punjab was much higher than that in Pakistani Punjab, though the quality of land there is better.

Suggesting bank loan limits of Rs 1 lakh for one acre and Rs 2 lakh for two to five acres, Mr Badal asked banks to extend loans for dairy, poultry and fisheries too.

Earlier Mr S.S. Kohli, CMD of Punjab & Sind Bank, said the priority sector advances of the bank stood at 44 per cent against the requirement of 40 per cent of the net advances. The bank has made a major headway in Punjab in agricultural advances which stood at 35 per cent of its total lendings in the state, while the overall average of all the commercial banks put together is only 22 per cent.

Mr Kohli said the card-holders are eligible to avail 25 per cent more finance in addition to the usual crop loan, which would take care of their unforeseen needs.

The card-holder is given pre-denominated cheques at the beginning of the season and the farmer may encash these cheques at his convenience from the bank’s branches. The bank has decided not to levy any charge on the encashment of the cheques.

PSB is the first bank of the country to waive the condition of comprehensive insurance of tractor, thus saving a farmer Rs 15,000 to Rs 25,000.

Mr Kohli agreed to Mr Badal’s request that the bank should put up placards highlighting Gurbani at various places in the region on the Khalsa’s tercentenary celebrations.

The bank will also hand over Sikh historical paintings in its possession to the government for display at Anandpur Sahib.

An end to confusion
Tribune News Service

CHANDIGARH, Feb 22 — By waiving stamp duty on long-term agricultural loans, Mr Parkash Singh Badal has put an end to confusion in realising the duty and hardships faced by farmers.

According to official sources, confusion prevailed as different tehsildars interpreted differently the notification which had exempted agricultural loans given by Punjab State Cooperative Development Bank from stamp duty. However, commercial banks’ loans above the limit of Rs 35,000 were given with farmers paying 1.5 per cent of stamp duty and .5 per cent registration charges while mortgaging their land. Loans given under “simple mortgage” did not take away the farmers’ right to ownership of land.

Following practical problems in implementing the 1948 notification, the cooperative bank had raised the issue at the Secretary and minister’s levels.

Mr Badal’s announcement was a sequel to this and not an on-the-spot decision. “The fund-strapped state will definite suffer some revenue loss,” said an official.

In Haryana there is no stamp duty on bank loans for farmers up to Rs 60,000. Above this limit, farmers in Haryana pay stamp duty of 1.5 per cent.

Punjab not to revive sales tax barriers
Tribune News Service

CHANDIGARH, Feb 22 — Punjab will not reintroduce sales tax check barriers”, said Capt Kanwaljit Singh, Finance Minister, Punjab, during an interaction with the CII here today. He assured the industry that Punjab was prepared to reduce the sales tax slabs from 13 to four and the process would soon begin.

He agreed to the CII suggestion that the sales tax “set off” should be available where goods are not taxable or where they are stock transferred.

The Sales Tax Department would dispose of pending cases of check barriers in three months.

Certificates of sales tax exemption will now be issued to an industrial unit without waiting for an application from the unit, he said. Industry would now face no problems in obtaining “C” form.

The minister announced that the Sales Tax Department would be fully computerised within a year.

He promised to look into the problems of goods sold from Chandigarh to Punjab which are charged CST of 1 per cent and goods from Punjab sold to Chandigarh which are charged CST of 4 per cent.

Earlier Mr Rakesh B Mittal, Chairman, CII, Punjab State Council, made a presentation on sales tax issues to the FM. He urged the Minister not to introduce export-import permit on the lines of Uttar Pradesh and give honest tax payers incentives like assessment done at the industrial units’ premises.

Mr Rajan Kashyap, Principal Secretary Finance, Mr Vijay Jain, Secretary Expenditure, Ms Kusumjit Sidhu, Secretary Planning, Mr Sudhir Mittal, Commissioner Excise & Taxation and Mr D. S. Guru, Director Industries were also present.

SC notice on field trial of cotton seed
From Our Legal Correspondent

NEW DELHI, Feb 22 — The Supreme Court today issued notices on a public interest petition, challenging the controversial permission given for the field trial of genetically manipulated cotton seeds in nine States in alleged violation of the government rules.

The notice were issued by a three-judge Bench comprising Mr Justice S.P. Bharucha, Mr Justice D.P. Mohapatra and Mr Justice R.P.Sethi to the Ministry of Environment and Forest, the Ministry of Science and Technology and the Ministry of Agriculture.

It was contended in the petition filed by the Research Foundation for Science, Technology and Ecology that the committee of the Department of Science and Technology which had granted the permission for field trial of these seeds was only authorised to monitor such trials within a laboratory.

Will IMF aid add to Pak debt?

REACTING to the charges made by some economic journalists that the bailout package from the IMF would result in an increase in Pakistan’s external debt by $ 19 billion, Finance Minister , Ishaq Dar has termed them as “preposterous” and “plain absurd”.

Some economic journalists, instead of appreciating the government’s policy of transparency, have attempted to paint a distorted picture of the government policies and the IMF agreement says Dar.

Citing statistics, Dar has said that “according to the Annual Report of the State Bank of Pakistan, 1997-98, the total outstanding debt at the end of 1997-98 has been $ 29.7 billion. Over the next three years (1998-99-2000/01) total debt servicing principal plus interest) amounted to $ 19.2 billion”.

Sales tax

Finance Minister Ishaq Dar has told businessmen that cases of fixed tax will be entertained up to February 28 and following an understanding with the IMF, the General Sales Tax (GST) at retail stage will operate from July 1.

The minister was replying to a query of the president of the Karachi Chamber of Commerce and Industry, who recalled that the Prime Minister had agreed to consider to continue fixed tax and to delay imposition of the GST.

Monitor

Pakistan will set up a Business Council comprising experts from the government and the private sector to monitor economic development of the country.

According to Prime Minister Nawaz Sharif the Council will be provided with a secretariat by the Planning Commission. It will keep a close watch on the implementation of the five-year plans and will also make recommendations to the Prime Minister and other government departments whenever necessary.

Sugar wagons

Pakistan Railways has provided 13,965 wagons for sugar transport to India via the Wagah border since February 1997. The number of wagons used for sugar export to the same destination via Karachi port was 210 during the same period.

Railways Minister Ghaus Ali Shah says that the wagons have been provided to the sugar mills on demand and does not accept the charges levelled by the Opposition that wagons are provided mainly to the sugar mills owned by the Prime Minister, his family and close associates. — ANI

‘At least sugar prices are stable’

NEW DELHI, Feb 22 (PTI) — Prime Minister Atal Behari Vajpayee said today there is immediate need to raise sugarcane productivity in small landholdings and develop by-products of sugar to improve the industry’s financial viability.

“Equally important is the challenge to raise sugarcane productivity in small landholdings. So far the impact of technology on cane cultivation by small farmers has been minimal in most countries,” Vajpayee said, inaugurating the 23rd International Society of Sugarcane Technologists Congress here.

Expressing happiness over sugar prices remaining stable for the last one year, he said: “Development of by-products of sugar is vital for improving the industry’s financial viability”. 

Pointing out to the Sugar Development Fund, which provides soft loans for cane development programmes, modernisation and rehabilitation of existing sugar mills, Vajpayee said sugar factories management should increase internal generation of surpluses.

The five-day congress is being held in India after a gap of 42 years.

Over 500 sugar industry representatives and technologists are taking part in the congress, in which the focus will be on maintaining competitiveness.

Food Minister Surjit Singh Barnala, who presided over the inaugural function, said India’s sugar production during the current season (October 1998-September 1999) was estimated to be 150 lakh tonnes against 128 lakh tonnes last season.

Stating that sugarcane was grown in sub-tropical and tropical regions in the country, he said production in sub-tropical areas could be raised by one per cent through use of proper technology.

“Use of improved varieties and better processing can also raise production significantly,” he said.

Haryana Vidyut Nigam gets licence
Tribune News Service

CHANDIGARH, Feb 22 — The Haryana Electricity Regulatory Commission has granted a licence for transmission and distribution of power to Haryana Vidyut Prasaran Nigam (HVPN).

The grant of licence to HVPN is a part of the power sector reform process being undertaken by Haryana. The HERC, which has granted the licence, is responsible for monitoring the reform process.

Mr V.S. Ailawadi, Chairman of HERC, said today the HERC has laid down guidelines for consumer interface and for operating standards. HVPN will now function as a licencee and will be required to plan, develop and operate its transmission system in accordance with these standards.

As part of the licence conditions, HVPN is required to formulate procedures for consumer protection and consumer service. These include consumer rights statement, code of practice on payment of bills and complaint handling procedures. Once the consumer interface procedures have been drafted, HVPN will have to obtain the commission’s approval. These procedures will ensure that consumer rights are protected as per the guidelines, stated Mr Ailawadi.

HVPN will submit operating standards which include grid and distribution codes, plan for implementation of the codes, to the commission for approval. Also HVPN will now only be able to invest and dispose of assets on the basis of general guidelines of the commission.

As per the provisions of the licence, HVPN has been asked to prepare and submit to the commission, a report of its aggregate revenues and cost of services provided for the next financial year.

The licence allotted to HVPN also stipulates that it has to submit a proposal to HERC every time it wants an alteration in the tariffs for transmission and bulk supply as well as distribution and retail business. These will be determined in accordance with the guidelines and regulations laid down by the commission.

All power purchase contracts of HVPN, except short-term contracts of less than six months’ duration, will have to be as per procedures laid down by the commission. HVPN will also be expected to follow the practical guidelines for major investments issued by the commission.

Haryana needs Rs 5,182 crore credit
Tribune News Service

CHANDIGARH, Feb 22 — Haryana will need a total ground-level credit of over Rs 5,182 crore during 1999-2000 for its priority sectors, according to estimates prepared by NABARD.

The estimates, which were presented at a State credit seminar for Haryana for 1999-2000 organised by NABARD here today, say out of the total credit requirement, the crop loan disbursements would be Rs 2,484.87 crore, while another Rs 916.47 crore would be required for investment credit in the agriculture and allied services. The small-scale industrial sector along with the tertiary sector would need a credit of Rs 1780.77 crore.

The seminar was attended among others by Mr A.N. Mathur, Financial Commissioner, Finance and Planning, Haryana, who was the chief guest, and Mr N.R. Kannan, Chief General Manager, Nabard.

Expressing concern over the declining credit-deposit ratio of commercial banks Mr Kannan urged the banks to accelerate the pace of off-take of advance, taking into account various recommendations made by the subgroup of the State-level Bankers Committee. He said the CD ratio had been declining since 1991. The ratio which was 46.2 per cent on March 31, 1996, had declined to 43.63 per as on March 31, 1998.

He said besides the completion of the proposed terminal marketing complex project at Rai on top priority, cold storage units and other facilities should be provided at the Chandigarh airport to handle export of perishable commodities.

Lauding the role played by NABARD in the field of agriculture and rural development, Mr Mathur said since the next millenium was approaching, we should make better use of resources and provide for more employment in rural areas.

He said the Haryana Government had given top priority to the infrastructure development. The State was likely to get second loan of Rs 1,000 crore from the World Bank for revamping of transmission and distribution systems in the power sector.

The RBI reference rate was Rs 42.40.

Duropal Glass
CHANDIGARH, Feb 22 (TNS) — Duropal Glass (I) Ltd has launched its products at the PCA Club, Mohali. The products include dinner sets, coffee mugs, gift sets and loose assorted pieces.

Export award
JALANDHAR, Feb 22 (TNS) — Omsons International Jalandhar, has been selected by Engineering Export Promotion Council for an “export excellence award”. Mr P.P. Prabhu, Commerce Secretary, Government of India, Ministry of Commerce, presented this award at function held today in New Delhi.

Global Bank
NEW DELHI, Feb 22 (PTI) — Private sector Global Trust Bank (GTB) today launched its depository and 24-hour phone banking services in the city and said it plans to get over 20,000 depository accounts in two to three months time.

ICO, VSNL
CHANDIGARH, Feb 22 (TNS) — ICO Global Communications, today signed a preliminary agreement with its Indian service partner, VSNL, regarding the distribution of ICO’s services in India. Under the present agreement, ICO and VSNL will jointly work towards establishing a joint venture company that would take the lead in the distribution of ICO’s services in India and in developing the full market potential for ICO’s services.

Greaves
NEW DELHI, Feb 22 (PTI) — Auto manufacturer Greaves Ltd has tied up with two Chinese companies to manufacture small tractors (power tillers) and plans to sell the product at one third the price of a normal tractor.

Insurance
CHANDIGARH, Feb 22 (TNS) — United Group of Chartered Engineer (UGCE) — Insurance Service Division a group of Insurance professionals have launched for the first time in India, a novel concept through which the citizens of this region can avail all types of insurance services under one roof.