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Underground oil storage projects in the pipeline
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Nath wants Asean to address
India’s concerns in FTA
Emami to foray into biodiesel Mobile users’ satisfaction level declines Market Scan Tax Advice
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Underground oil storage projects in the pipeline New Delhi, January 7 "This strategic storage would be in addition to the existing storage of crude oil and petroleum products with the oil companies and provide an emergency response mechanism in case of short-term supply disruptions," official sources said. Taking into account the oil security concerns of India, the government in January 2006 approved funding mechanism for setting up strategic crude oil storage of 5 million tonne (MMT) at various locations in the country, Mangalore (1.5 MMT), Vizag (1.0 MMT) and nearby location (2.5 MMT). It was also decided to implement the project through a subsidiary of Oil Industry Development Board (OIDB). Oil PSU HPCL completed excavation work of underground LPG cavern storage facility at Visakhapatanam, which is the first of its kind in the south and SE Asia. Being implemented by a joint venture of HPCL with oil major Total of France, this 60,000 tonne storage will increase LPG cover by about a month for Andhra Pradesh and by nearly two-and-a-half days for the country. Other works are progressing fast and the facility is expected to be ready by mid-2007 at a cost of nearly Rs 333 crore. All options are being pursued to import natural gas from Myanmar. India has been seeking implementation of 5 MMT Liquefied Natural Gas (LNG) contract signed in June 2005 at Tehran, at various levels. Iran made fresh LNG pricing proposals at a meeting between Indian Petroleum Minister and the Iranian Foreign Minster at a meeting in Delhi in November 2006. India joined the US and Japan, becoming only the third country to carry out the specialised activity of drilling/coring for gas hydrates, an alternative and potentially exciting source of natural gas in India. The specialised drill ship, Joides Resolution, along with scientists and equipment arrived in India from the US for coring from April to August 2006. DGH obtained the drill ship from US under the Integrated Ocean Drilling Programme (IODP), as this type of specialised services are not available commercially in the world. Based on results of scientific studies on the gas hydrate cores, pilot test production is expected to be carried out in 2009-10. The government enacted the Petroleum and Natural Gas Regulatory Board Act, 2006 (PNGRB Act, 2006). This Act envisages to set up a Petroleum Natural Gas Regulatory Board to regulate the refining, processing, storage, transportation distribution, marketing and sale of petroleum, petroleum products and natural gas, excluding production of crude oil and natural gas. It would be to protect the interests of consumers and entities engaged in specified activities relating to petroleum, petroleum products and natural gas and ensure uninterrupted and adequate supply of petroleum, petroleum products and natural gas in all parts of the country and to promote competitive markets. Necessary action for setting up the Board is under way. — UNI
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Detroit, January 7 Introduced at the North American International Auto Show here, the Chevrolet Volt will draw power exclusively from a next-generation battery pack recharged by a small onboard engine - if the technology is ready in two or three years. "We have a thoroughly studied concept, but further battery development will define the critical path to start of production," said Mr Jon Lauckner, Vice-President, Product Development. The Volt is designed to run for 40 miles on pure electric power, making it marketable for everyday family use. For the average American driver who drives 40 miles a day, or 15,000 miles a year, the Volt will require no fuel and lead to an annual savings of 500 gallons of gasoline, GM said. Unlike current gas-electric hybrids, which use a parallel system twinning battery power and a combustion engine, the Volt will be driven entirely by electric power. GM has been stung by criticism that it conspired to kill the EV1, an experimental electric vehicle program it launched in 1996 and killed by 2003. GM said the Volt will have advantages over the defunct EV1, including smaller batteries, faster recharging, more room for passengers, and a faster maximum highway speed. “For most drivers, Volt will use little or no gasoline,” GM chief engineer Nick Zielinski told reporters. Meanwhile, Ford Motor Co. unveiled a new entertainment and communication system running on software from Microsoft Corp. that aims to bring the connectivity of a computer to the car. The "Sync" system allows drivers to make hands-free phone calls, listen to music on digital media players, including Apple Computer Inc.'s iPod, and have cellphone text messages read aloud. Ford and Microsoft announced Sync on the eve of the Consumer Electronics Show in Las Vegas and the North American International Auto Show in Detroit. — Reuters
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Nath wants Asean to address India’s New Delhi, January 7 India has certain sensitivities which must be reflected in the Asean FTA, Commerce and Industry Minister Kamal Nath said on the sidelines of the Pravasi Bharatiya Divas (PBD)conclave here. He would be going to the Philippines before the Prime Minister’s visit there for the Asean Summit, to make efforts to reach a consensus with the Asean on the contentious issue of the 'negative list'. India has offered to prune this list to 490 from 563 as the latest offering to the South East Asian trading bloc besides seeking a drastic reduction in the negative list. Certain Asean members like Vietnam and Indonesia want greater market access for agricultural commodities, including palm oil and pepper. In reply to another question, the minister said India was negotiating a new trade agreement with Mauritius. We hope to conclude a new trade agreement with Mauritius in the next few months, he said. The existing tax treaty between India and Mauritius has come under criticism. Answering a query on the controversies over land acquisition in Singur and Nandigram in West Bengal for industries, Mr Nath said this was a state subject and should be dealt with accordingly. The summit and other related meetings, which were put off last month due to inclement weather, are scheduled to be held at the resort island of Cebu from January 10 to 15. The ‘Lahore’ furore! Eyebrows were raised over Nath's comment that in a distant future the NRI conclave, PBD, may be held not in Delhi but in Lahore. "Twenty-five years later, if the Pravasi Bharatiya Divas is held, it could be in Lahore not in Delhi," Mr Nath said in his address at the ongoing NRI conclave where over 1,200 delegates have gathered from different parts of the world. Many of the delegates were heard debating as to what the minister meant. Later, the Commerce Ministry spokesperson clarified what Nath meant was "the openness" of the Indian economy and increasing integration of the Indian community with the world, including neighbouring countries. Earlier, addressing the conclave, he said when India started on the path to reforms, there were no set models and people at that time had predicted that India would become a basket case.
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Emami to foray into biodiesel
New Delhi, January 7 The Kolkata-based company plans to set up a refining plant at Haldia with a capacity of one lakh tonnes per annum, a source said. "The plant is likely to be operational by June next year," the source said, adding that it was a part of the overall investment of Rs 500 crore that the group had earmarked for the biodiesel foray. "Out of the proposed Rs 500-crore investment plan, Emami Biotech Private Limited, the Emami group company, has approved Rs 350 crore to be invested in the next two-three years," the source said. The proposed investment would also take care of the company's contract farming plan in Bihar, Chhattisgarh, Madhya Pradesh, Orissa and Andhra Pradesh. —
PTI |
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Mobile users’ satisfaction level declines
New Delhi, January 7 The mobile users' satisfaction has dropped largely in 2006 as compared to last year and the decrease cuts across different circles and cities irrespective of operators, according to a survey by telecom magazine 'Voice and Data'. "Of the 10 operators, only Aircel and Tata Teleservices have improved their satisfaction level in 2006. With the Indian telecom industry adding nearly 7 lakh connections every month, the operators have not put in matching efforts to increase the satisfaction level," it said. The sudden increase in the average waiting time to speak to customer care representatives is one of the reason for the drop in satisfaction level, it said. —
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Stay invested in good stocks by J.C. Anand
The calendar year 2006 was excellent for the stock market. Sensex gained 4388.98 points (32 per cent) from 9397.93 at the beginning of 2006 to 13786.91. It was also a record year for “public offers” at Rs 19324 crore. The mutual market capitalisation was up by Rs 805319 crore to Rs 3367568 crore from Rs 542249 crore. The mid-cap and small-cap indexes performed better. The biggest gainers were Unitech and Ritesh Industries, which were up by 2916.73 and 3737.96 points, respectively. Investments by the mutual funds in equity shares during the year grew by 16 per cent at Rs 15466.63 crore. What should we expect in the financial year 2007? The last quarter results (ending December 30, 2006) would be good for it is reported that the corporate sector has deposited a higher ‘advance tax’. However, we cannot be certain about the performance of the corporate sector in 2007. Diverse views have been expressed by the analysts. A poll of 50 top chief executives, carried out by a leading financial paper, indicates “that with the economy growing at 9.1 per cent in the first half 2006-07, the momentum would continue in 2007 and demand would remain buoyant.” On the other hand, the majority of analysts are of the view that while it would be a year of wide fluctuations, there are many worrying factors that may retard growth in the corporate sector. These are: rising interest rates, high commodities prices, higher input costs, including wage inflation, global slow-down in the economy, uncertainty about international crude prices the monsoon and some lapses in the economic reforms due to distempers of the coalition government at the centre. Sensex, at present, is also the most costly index of all indexes of the emerging markets. Where to invest? Almost all analysts believe that the mid-cap and small-cap equities are likely to perform better than the large-cap ones. Mutual funds investments would be relatively safer in view of the wide fluctuations in the market and high dividend returns to those retail investors who do not have much expertise in the capital market. However, retail investors should stay invested in equity shares of the sound and well-managed companies with high growth prospects like ABB, L&T, BHEL, Reliance Industries and Reliance Communication etc.
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Interest on IDBI bonds is taxable by S.C. Vasudeva Q. (a) As to whether interest earned out of deposit scheme for retired Govt. Employees — 89 remains tax-free for the assessment year 2006-07 like previous years under section 10(15)(iv)(i) (b) Interest earned out of IDBI Bonds is tax free or not. — Sardari Lal Sharma, Kangra A. (a) The interest earned on deposit scheme for Retired Govt. Employees - 89 shall remain tax-free for the assessment year 2006-07 under Section 10(15)(iv)(i). I may add that this reply is based on the presumption that the account has not matured on or before 13th September 2004 as in respect of such matured account, interest is not allowable. (b) The interest earned in respect of IDBI Bonds is taxable. IT return
Q. I am a senior citizen. My pension income for the assessment year 2006-07 is Rs 80,500 and income from others is Rs 42,500. My gross income is well below Rs 1,85,000. I have PAN number being included in 1/6 scheme which is discontinued. (i) Is it mandatory for me to file my income tax return. (ii) Is it necessary to attach copies of the pension received MIS and FD’s interest along with the return. — Gurdial Singh, Jalandhar A. (i) Since your income is much below Rs 1,85,000 being the maximum amount up to which tax is not chargeable in case of a senior citizen, you are not required to file an income-tax return. (ii) In the present scheme of things, the evidence with regard to receipt of pension or withdrawal out of MIS and FD’s shall be attached along with the return so as to avoid any complication while processing the return under section 143(1) of the Act. PAN & demat a/c
Q. I and my wife have a joint demat account with a broker firm. While, I am a PAN card holder, my wife who is a house-hold lady and had not been a tax payer, has none. I am active operator of the account and my wife has just to sign the delivery slips. It is now necessary for the customers having demat accounts to have PAN cards. The account was opened jointly with my wife simply to avoid any harassment to her in case some thing happens to me. Kindly advise whether I can advise the broker firm accordingly and request to allow this account to continue after the expiry of the time limit by 30th September for the issuance of PAN card. — V.M. Seth, Sonepat A.
It will be better for you to obtain a Permanent Account No. of your wife so that the same can be tendered to the depository. It would be worthwhile to continue to maintain the joint account on account of the reason cited in the query. Section 80 C
Q. I want to invest in ELSS in the name of my wife but my wife is not a tax assessee. Will I get tax deduction under Section 80C inspite of my investing in the name of my wife or should I invest it in my own name. — Ajay M. Badiger A. It will be better to make investment in your own name. The Equitylinked saving scheme 2005 has been notified on 3rd November 2005 and is covered under the provisions of Section 80C of the Income tax Act 1961 (the Act) for the purposes of allowing deduction out of total income. Instead of making the investment in the name of your wife you may designate her as a nominee which will serve the necessary purpose. Disability pension
Q. I am a retired defence officer drawing pension. My pension also includes disability element of 40 per cent disability attributed to my military service, for life. It is given to understand that as per MOF, CBDT circular, a defence officer drawing disability pension is exempted from paying income tax for his entire pension i.e. service element as well as disability element of pension. If so, please intimate: (a) The authority under which the entire pension is exempted from income tax. (b) My total pension, including disability element of pension amounts to Rs 1,75,000 (approx.) per annum. Am I required to submit annual IT return in case I am exempted from paying I.T.? It is clarified that I have no other source of income than my pension. — Jagtar Singh, Ludhiana A. The answers to your queries are as under: (a) The exemption to the defence personnel in respect of their pension income is in terms of letter F.No. 20/51/99 - ITA-1 received from Under Secretary to the Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, New Delhi. The letter is addressed to Director (Pens), Government of India, Ministry of Defence, Department of Defence. New Delhi. It is not clear from the query as to what is the amount of disability pension which is included in the amount of Rs 1,75,000. Further you have also not clarified as to whether you are a senior citizen. In view thereof, I am unable to provide you any clarification on the issue raised by you. |
Cobra Beer to invest $10 m Oswal’s plan |
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