Sunday, July 11, 1999
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B U S I N E S S | Sunday, July 11, 1999 |
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Telecom package faces political
storm NEW DELHI, July 10 — A political storm continued to brew over the Vajpayee Government’s telecom bailout package with non-Congress opposition parties today asking the President to stall the new dispensation.
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Car security devices in
demand ‘Revenue collections
buoyant’ PSB plans loans for defence
personnel Steel price hike hits export Enfield rolls out 500cc bike Ambala scientific industry
stagnates Engineers India issues 2:1 bonus |
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Telecom
package faces political storm NEW DELHI, July 10 — A political storm continued to brew over the Vajpayee Government’s telecom bailout package with non-Congress opposition parties today asking the President, Mr K.R.Narayanan, to stall the new telecom dispensation. Leaders of the Communist Party of India (Marxist), Communist Party of India, Forward Bloc, Janata Dal and Rashtriya Janata Dal in a memorandum submitted to the President at the Rashtrapati Bhavan urged him to stall the new telecom policy which allows private telecom operators to switch over from licensing to revenue sharing arrangement. Terming the decision as the “century’s biggest scam”, the memorandum said “pursuance of the new policy by a council of ministers who do not enjoy the majority of the Lok Sabha and at a time when the House stands dissolved is a grave impropriety”. The memorandum follows a meeting of the President with the former Communications Minister, Mr Jagmohan, yesterday. The President it is understood had summoned Mr Jagmohan to hear first hand the entire telecom revenue sharing issue. The meeting was significant as Mr Jagmohan was recently shifted from the Communications Ministry for his staunch opposition to the revenue sharing agreement. The minister was adamant that the operators pay their licence fees as per their original agreement and any change in the policy could be considered only after that. Under the new policy, the telecom operators have to pay 35 per cent of their outstanding dues to the Government before August one, and thereafter they migrate to the revenue sharing arrangement. The details of the revenue sharing arrangement are still being worked out by the Department of Telecommunications. The Congress has already opposed the “caretaker” Government’s decision. The non-Congress parties urged the President to ensure that the decisions are kept in abeyance until a new Government comes into place after the Lok Sabha elections. The memorandum alleged that the new telecom package would allow new players to operate on a revenue sharing basis but also permit old licencees to switch over. They estimated that the new arrangement would cost the Government a loss of over Rs 4000 crore. “These decisions cannot be taken without Parliamentary approval. It is a complete sellout of national interests”, Mr E.Balanandan of the CPI-M told reporters soon after an Opposition delegation met the President. The delegation included among others Mr J.Chittaranjan and D.Raja of the CPI, Mr Nilotpal Basu of the CPI-M, Mr Debabrata Biswas of the All India Forward Bloc and Mr Srikant Jena of the Janata Dal. The leaders said the new policy encroached on the right of Parliament, particularly because the National Telecom Policy of 1994 was placed in both Houses of Parliament. The parties demanded that the Rajya Sabha be convened to discuss not only the Kargil developments but also the Government’s decisions relating to the telecom sector. The memorandum also questioned the Government’s decision to go ahead with further disinvestment in public sector companies to generate Rs 10000 crore. The parties felt that
the present Government was not competent to take these
decisions and these moves constituted grave impropriety
in terms of constitutional practices and conventions. |
Car
security devices in demand CHANDIGARH: After a pleasant evening spent window-shopping in the arcades of Sector 17, how does it feel, on looking around the parking lot, to find your car missing? Distressing? Surely, one cannot help being in a sweat on being deprived of a cherished possession (and status symbol) that, perhaps, it has taken one year to acquire. But thanks to modern technology today the market is awash with a wide range of reasonably priced security devices — both electronic and mechanical — that can help car owners cut down on the anxious moments they spend every time they leave their cars unattended. Says Ashok Goel, dealer, “Although a few electronic devices had been available even seven to eight years back, it is only in the last couple of years that demand for them has really shot up. Due to this, there are about 8 of 10 different brands available in the market now”. While the number of brands has risen sharply, the types of devices available have also gone up. In fact today a buyer may choose from three broad categories of theft-prevention devices — the increasingly popular remote-controlled security alarm-cum-lock, the steering immobiliser and the Mul-T-Lock. These devices, priced between Rs 3500-5000, depending upon the brand and features offered, lie concealed behind the instrument panel of the car and are operated with sleek, cookie-sized remotes that will not look out of place in a James Bond movie! And quite in keeping with that image, they also stretch the accepted definition of a lock to include functions that afford enhanced levels of confidence and convenience to car owners. Says Abhishek, who deals with the devices, “Most of the electronic devices falling the Rs 3500-4500 bracket allow car owners to lock and unlock the doors and ignition of their cars from several hundred feet. They can also alert the bystanders and parking-lot attendants through alarms that go off automatically in the even of a (attempted) forced entry.” While the remote-controlled devices are powered by the car battery and require up to two hours for installation, a much simpler (though certainly less effective) and insta-fit theft prevention device is the mechanical “steering immobiliser” that looks like a union of two umbrella rods and works by immobilising the steering wheel and clutch pedal. Besides, at a price of around Rs 200, it is also the cheapest device available. Yet another device now available in the market is the Mul-T-Lock that costs roughly Rs 4000 and works by immobilising the gearshift and ignition of a car. It can also be connected to other immobilisers and remote-controlled devices to ensure safety of the vehicle. However, according to local dealers, demand for this device is yet to pick up in the city. As to how successful
these devices really are in preventing thefts, dealers
admit they are not 100 per cent foolproof and that, in
some cases, vehicles may be lifted in spite of being
equipped with them. However, they insist, such cases are
extremely rare. But, whatever their efficacy, one theing
that is apparent from their rising sales is that car
owners do not mind spending their money on them! |
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NEW DELHI, July 10 (PTI) — The Finance Minister, Mr Yashwant Sinha, today expressed confidence that revenue collections will remain buoyant during the current fiscal. “The revenue collections so far have been good and we have registered a 21 per cent growth in indirect tax revenue and 13 per cent growth in direct tax collections during the first three months of the current fiscal,” Sinha told mediapersons at a seminar. While the excise collections from April to June was recorded at Rs 12,663 crore, a 29.5 per cent growth, the custom collection posted a 12.1 per cent growth at Rs 10,489 crore. Official sources, meanwhile, said the buoyancy in the revenue collection was mainly due to sustained growth in the excise revenue that signalled revival of the industrial sector and pushed up demand for imports, leading to higher customs revenue collections as well. He also ruled out cross-holding route for meeting the Rs 10,000 crore disinvestment target set for this financial year. “There will not be cross-holding this time. We will explore other options for meeting the target,” he said. Recently, the Cabinet approved the disinvestment programme for the year which included divestment from MTNL and GAIL through global depository receipts and domestic markets. The cabinet committee on disinvestment also decided to dilute the government stake in Indian Oil Corporation, VSNL, Hindustan Zinc Limited and Hindustan Latex, Madras Fertilisers Limited besides privatising Indian Tourism Development Corporation (ITDC). The Centre had mopped up Rs 6,190 crore during the last fiscal as against the target of Rs 5000 crore mainly due to cross holding by oil PSU’s. To attain the disinvestment target during the current fiscal, the government has planned offloading of its 19 million shares of MTNL and 180 million shares of GAIL in domestic and international markets. The Government had also decided to disinvest equity in the (ITDC) up to 74 per cent which amounts to a strategic sale of the corporation. In Hindustan Zinc, 25
per cent of the government equity will be divested to
bring down its stake to 51 per cent. In Madras
Fertilisers, the government stake will be brought down to
26 per cent from 32.74 per cent through strategic sale. |
PSB plans
loans for defence personnel CHANDIGARH, July 10 — Punjab and Sind Bank has recorded 34 per cent growth in its business turnover which touched Rs 14,000 crore mark on March 31,1999, said Mr S.S.Kohli, CMD of the bank at a press conference here today. He said the bank’s total advances in Punjab has witnessed a growth of 31.8 per cent as against the industry growth of 19.5 per cent as on March 31,1999 compared to last year. The growth of bank’s advances to the weaker section in the state was 34.5 per cent as against the industry average of 15.5 per cent. The CD ratio in Punjab was also higher at 42.07 per cent as compared to industry average at 40.4 per cent. Mr H.S. Duggal General Manager of the bank said that the bank has achieved all the target of the annual credit plan. The staff productivity has increased from Rs 92 lakh in 1997-98 to Rs 114 lakh in 1998-99 and its NPA has dropped from 19.5. per cent to 16.5 per cent. The bank declared a dividend of Rs 5 crore after a gap of five years. Mr Kohli said the bank has diversified into hire purchase and leasing, housing finance, retail trade and has opened specialised branches in the field of SSI, high tech agriculture and rural development division besides setting up nine international banking division and a global banking centre. The bank also plans to open a housing finance branch in Chandigarh by the end of this month. He said the bank in consultation with the Director General, Resettlement of the Ministry of Defence was trying to finalise schemes to help in resettlement of Kargil widows and jawans injured in action. The scheme include grant of loans on easy instalments. He said two ATMs in
Delhi and one in Chandigarh will be installed soon. The
PSB has donatied Rs 51 lakh for the defence fund and Rs
11 lakh for war widows relief fund. |
Steel
price hike hits export LUDHIANA, July 10 — As Steel Authority of India Ltd (SAIL) and Visakhapatnam Steel Plant have further increased the price of wire rod, it has affected the export of engineering goods manufactured from the steel. Mr V.P. Chopra, President of the Federation of the Punjab Small Industries Association, said the Visakhapatnam plant has raised the price of wire rod by Rs 300 to 500 per metreic tonne since July 1. SAIL had raised the price to the tune of Rs 1800 per metric tonne in April this year. He said the Central
Government should keep a check on the prices of wire rod
to save the small scale industry from disaster. The
government should not put burden on private sector to
bail out inefficient public sector steel units.
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NEW DELHI, July 10 (UNI) — Royal Enfield Motors (REM), a subsidiary of the Eicher group, today rolled out a four-stroke 500cc bike — Lightning 500 — sporting a Rs 67,750 (ex-showroom Delhi) price tag. Targetting the long distance cruising and pleasure riding youthful people, REM is powered by a single cylinder air-cooled 500cc engine producing 22BHP at 5400RPM. The bike can achieve a maximum speed of 120 km per hour. This is the only other bike to be launched in the country in the top-end segment after the major debacle of BMW’s 650cc motorcycle. The lightning 500 is the
first of the high performance bikes to be launched from
the REM stables and will be introduced in select centres.
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Ambala
scientific industry stagnates SCIENTIFIC goods industry in Ambala usually known as ‘Science City’ has history of more than 85 years. Originators were two science teachers Hargolal and Nand Lal. Today, the town has as many as about 800 cottages and small scale units of scientific equipment including more than 250 units manufacturing microscopes and instruments which provides employment to about 20,000 persons. The scenario is not as rosy as in the past and due to heavy recession most of the units have cut down their production by almost 50 per cent. During the past 3 years about 25 per cent units have been closed down or changed their business and many more are on verge of closure. According to Gian Chand Agarwal, President Scientific Appliance Manufacturers Association, higher rate of sales tax as compared to adjoining states of Delhi, Rajasthan and U.P., lack of modernisation due to paucity of funds, expensive research and development provided by government agencies, rising exchange rate of US dollars are some of the reasons affecting this industry. Price cutting is rampant affecting the quality. Substandard equipment has flooded the market marring the reputation of industry in domestic as well as international market. “Microscope is a life saving equipment. There should be a ban on the functioning of petty assemblers claiming to be manufacturers as an incorrect report from a faulty microscope can lead to series complications” says a microscope manufacturer Kapil Verma who feels regret over poor quality affecting demand and rates in overseas market. “We are proud, the instrument manufactured in Ambala are being used in MiG and Jaguar aircrafts of Indian Air Force, Polar Satellite launch Vehicles of Space Research Organisation, Light Combat Aircrafts of Hindustan Aeronautics Ltd., Agni Missile besides providing Comproviding R&D needs to organisation like Defence Ordance Factory, Petro-chemical Industry, NRL, BHEL and many more,” says Dr. Anil Jain, President Ambala Scientific Instruments Manufacturers’ Association that Ambala industry has not been able to bring any R&D efforts and boost state-of-art technology due to low profits because of poor manufacturing facilities, illitrate manpower and in-appropriate planning using outdated technologies. N.C.Jain, President of
Haryana Exports Association feels sad over Ambala
manufacturers failed in getting service from Instruments
Design Development Facility Centre set up at Ambala in
1988 costing Rs 5 crore and CSIO at Chandigarh since
1964. “It is strange that Indian microscopes are in
demand by quality conscious foreign buyers but are
rejected by domestic users. Jain feels threat from China
manufacturers which lacks in quality. |
Engineers India issues 2:1 bonus NEW DELHI, July 10 (PTI) The board of state-owned Engineers India Ltd (EIL) today announced a 2:1 bonus issue to its shareholders and declared a dividend of 150 per cent for the year 1998-99. The board, which met here to consider the auidited accounts, also announced a net profit of Rs 118 crore showing a 62 per cent growth during the last financial year as against 1997-98 figures of Rs 73 crore, an EIL release said. The company has also
reported much enlarged operations during the financial
year 1998-99 with its turnover at Rs 391;73 crore up 26
per cent from Rs 311.2 crore in the previous year, the
release said. |
Q: Give me some clarifications on the following points: (1) As per recent decision of Income Tax Authorities PAN/declaration in Form No. 68 is required in case of a time deposit of Rs 50,000 and above! Now my queries are:- (a) If after a short term FD of Rs 45,000 at a time, another FD is got for Rs 40,000 after some time. Whether deposit of both times (Rs 45,000 + 40,000) will be clubbed for the purpose of obtaining PAN/Form No. 60. (b) Whether at the time of renewal after 1.11.1998 of FDR of Rs 50,000 and above (as FD got before 1.11.1998). PAN/Form No. 60 is required. Whether it is required at every time of renewal of same FDR. (2) As per above rule, submission of PAN/Form No. 60 is required ‘only if transaction is in cash (otherwise than by crossed cheque/draft)’. Now the query is:_ (a) If FD of Rs 50,000 and above is got made by way Transfer from SB account in the name bank, then whether it is required or not. 3) Whether PAN/Form 60 is required in case of Single Deposit of Rs 50,000 and above by way of cash/cheque in Saving Account. 4) Whether at the time of encashment of FD of Rs 50,000 and above, can bank ask for PAN/Form No. 60 before issuing pay order for the amount. — Ravinder Bansal, Chandigarh Ans: For the purposes of Form No. 60 the requirement is when fixed deposit is of Rs 50,000 or more. Hence when separate fixed deposits have been made on separate dates there will be no requirement of clubbing of both the fixed deposits and submitting Form No. 60. For renewal of FDR Form No. 60 is not required. If the FDR is got made by way of transfer from the saving bank A/c in the same bank then there will be no reqirement of submission of Form No. 60. Form No 60 is not required for cash deposit of Rs 50,000 in a Saving A/c. In respect of cheque transaction there is no requirement of Form No 60. At the time of enchashment of the fixed deposit of Rs 50,000 and above there is no law for asking Form No 60. But if the bank desires such forms to be given then you should not have any problem in giving the same. Q” I donated Rs 20,000 to a Regd. trust for Sadhus at Hardwar. It is not known if it is recognised or not. What is the difference between Regd. and recognised? Can I claim Tax rebate for my donation to a Regd. trust in the financial year 98-99? — J.C. Chawla, Panchkula Ans: In respect of donation made by you to a registered trust for Sadhus at Hardwar you will be able to claim tax rebate while filing your Income-Tax return only if the said trust is possessing Exemption Certificate u/s 80G of the Income Tax Act, 1961. Thus if the Trust does not possess 80G certificate you will not be able to claim any tax benefit in respect of such donation. Merely if the Institution is registered, the tax deduction is not permissible. What is required for tax deduction benefit is a copy of 80G Certificate in the name of the Institution to whom you have paid donation. You should enclose a copy of donation receipt and a copy of Exemption Certificate in the Income-tax return. Q: My daughter and son-in-law are working abroad. In connection with purchase of a residential house for them here, they intend to send money crediting to my Saving Bank Account by telegraphic transfer or sending demand draft/s in my name for making payment/s on their behalf in the deal. Kindly advise if any tax liability involves on account of their foreign remittances to me, for the purpose, from time to time. — Jasbir Singh, Mohali. Ans: No tax liability would arise to you on receiving payment from abroad from your daughter and son-in-law for purchasing property by them in their name. It is better you keep record of the letters written by your daughter and son-in-law to the effect that they have sent the money to you for being paid on their behalf towards the house purchase instalment. Q: My basic salary is Rs 9200 and I get 25 per cent rent i.e. 2300. How much rent should I pay to my wife who owns a house so that my tax liabilities on house rent income becomes Nil. — Din Dyal Garg, Bathinda Ans: On
the facts stated by you the maximum amount which is
exempted in Income-tax on account of house rent allowance
is limited to minimum of the following items: The actual
amount of house rent allowance, the excess of rent paid
over 10 per cent of the salary, or 40 per cent of the
salary. Thus, it is advisable for you to make payment of
Rs 3,220 per month as rent to your wife to enable you to
claim benefit in respect of house rent allowance received
by you. |
Q: Where eviction order based on the ground of change of user was affirmed by the Appellate Authority but negatived on the ground of sub-letting as evidence of Local Commissioner could not be relied upon, was finding of fact of Appellate Authority, based on evidence upset by Court in its revisional jurisdiction? Ans: This point was discussed by the Punjab and Haryana HC in Mrs Naurati Devi v Hans Raj (1999 (i) RCJ 130) thus: The HC noted that Appellate Authority held in terms that no reliance can be placed on the report of the Local Commissioner (LC) to hold that the property has been sublet. The LC was held to have not visited the property. On that ground the findings of the Rent Controller were upset. However, it was concluded that it is established that the property in question was let out as shops and are being used as godowns and not as a shop i.e. contrary to the purpose for which it was let out. On that ground the order of eviction was confirmed. The above conclusion, in the opinion of the HC cannot be upset U/s. 15(5) of the Act. The conclusions, therefore, are obvious that though no cross-objections were necessary, still the findings which are based on evidence and are not erroneous cannot be upset. The HC held that it is crystal clear from the aforesaid and establishes beyond pale of controversy that once in the rent note it is described as a shop the purpose of letting, in terms of decision of the F.B. which binds, it must be taken it was let out for use as a shop and not for use as godown. Once the property is being used as godown, it must he held that there is change of user. The petitioners urged that even when the witnesses had visited the place, they found that certain customers were there. In fact, in the opinion of the HC, it will not show that it was being used as a shop, even if it is proved that certain customers were there to take the supply of goods. There are concurrent findings of facts that it was being used as a godown and in the face of aforesaid, it must be held that there is change of user. Consequently the HC held
that there is no ground to upset the order of eviction. |
AN enterprising shopkeeper in Pune, I am told, has earned the goodwill of hundreds of consumers. No, he is not offering goods at a discount or giving free gifts to every purchaser. He has done much better than that. He has taken on the responsibility of paying the telephone and electricity bills of consumers. He has installed a box in the shop in which consumers drop their bills along with account payee cheques and these are sent by the shopkeeper to the nearest pay centre, at no extra cost. The receipts are kept in another box, from which consumers can subsequently collect them. The system, I am told, has been working well. While consumers are rid of the monthly headache of having to visit the offices of the utilities, stand in long queues and pay the bills, the shopkeeper has an ever-expanding clientele, even though the offer of payment of bills is open to everyone and not just his customers. Paying bills sent by those providing water, electricity and telecommunication services should be the simplest of tasks. But not in India, where consumers are forced to waste at least two days in paying these bills every month or once in two months, depending on the frequency of the bills. And then sometimes the bill does not come at all, in which case the consumer has to run to the office of the utility, stand in a long queue to collect a duplicate bill and then waste a few more hours in paying it. Three factors have in fact contributed to this kind of attitude of the utilities towards consumers. One, that they are monopolies, two, that they are in the government sector and three, that there are no stringent performance standards for these service providers. Archaic laws that give these utilities unbridled power to ride roughshod over consumers and absence of a strong consumer lobby have also made these utilities highly insensitive to consumer complaints. Now like the shopkeeper in Pune, why can’t public utilities keep collection boxes at petrol pumps, department stores, commercial centres, where people can just drop there cheques? This will save consumers so much of time and energy spent in paying these bills. In fact, in this age of computerisation and technological development, even this system of payment of bills is quite out-dated. Consumers should be able to pay their bills just sitting at home. Utilities should offer the facility of payment of bills on telephone. All that the consumer should be required to do is to call up the utility, give his or her credit card number, Personal Identification Number (PIN) number and the amount due. The option of payment of bills through the internet should also be available to consumers. As of now, he number of consumers with internet connection may be insignificant, but once it is made available through the cable network, there will be more and more people using it. Already a beginning has been made in Bangalore and Chennai, where cable operators are giving internet connections. This is expected to be extended to other cities and soon internet connections would also be available to those who have television sets. Or, like the Automated Teller Machines (ATMs) installed by banks, the utilities should provide electronic bill payment centres, where a consumer can just walk in anytime, may be while returning from work, insert a credit card or cash, key-in the details of the bill and get a receipt. This should not be difficult for the utilities to work out. In Bangalore, Citibank has tied up with Bangalore Water Supply and Sewage Board, the Bangalore Telecom District and the Karnataka State Electricity Board to provide for payment of bills through ATM Centres using Suvidha Debit card. Banks and public utilities in other cities too should offer similar facilities. However, the utilities in the northern states have to first ensure the accuracy of the bills. In fact given the
technology that is available today, there are many ways
in which the utility can provide an easy system of
payment of bills, provided they have the inclination to
do so. And that will come about only when they lose their
monopoly status, are forced to compete with the private
sector and also face tough regulators and strong consumer
unions who would question them on the quality of service
provided to customers. |
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PHDCCI The PHDCCI has contributed a sum of Rs 11 lakh to the National Defence Fund as a token of its solidarity with the heroes of the Kargil conflict. Mr Ashok Khanna, President, PHDCCI presented the cheque to Prime Minister Atal Behari Vajpayee yesterday an New Delhi. Oriental Bank Mr Dalbir Singh, Chairman and Managing Director of Oriental Bank of Commerce, presented a cheque of Rs 1.01 crore to Prime Minister Atal Behari Vajpayee here today. The donation includes one day salary of all the employees of OBC which they have voluntarily agreed to contribute for the noble cause. IDBI Bank The IDBI Bank has
contributed Rs 6 lakh to the Army Central Welfare Fund
for the benefit of the families of the Kargil martyrs.
The contribution consists of Rs 3 lakh from the bank and
another amount of Rs 3 lakh from 419 officers of the
bank.
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| Jet Airways NEW DELHI, July 10 (PTI) — Jet Airways will start a bi-weekly flight linking Imphal with Jorhat from tomorrow. The Boeing 737-400 will fly from Calcutta to Imphal via Jorhat on every Sunday and Thursday. Oil struck Escotel Golden Resorts Anil
Malhan |
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