The Hindu Business Line : Friday, March 02, 2007

NRIS
Handful for non-residents
The activities carried out by non-residents within the widened definition of `India' could trigger taxation in India. More

NRIs: Scope of taxability up
Finance Bill 2007 has proposed certain amendments in the field of corporate taxation and international taxation. It is proposed to widen the scope of taxability of interest, royalty and fees for technical services earned by a non-resident in ... More

IOB, Union Bank trim FCNR rates
Indian Overseas Bank and Union Bank of India have lowered interest rates on FCNR deposits across maturities. The previous and revised rates of both the banks are identical. They are: 4.99 per cent (5.18 per cent previously) for US dollar deposits ... More

Karnataka Bank cuts rates on NRE, FCNR (B) deposits
Karnataka Bank Ltd has reduced interest rates on its NRE and FCNR(B) deposit schemes with effect from March 1. A bank release said here on Thursday that the interest rate on NRE deposits has been revised to 5.74 per cent (5.93 per cent) for ... More

NON-CONVENTIONAL ENERGY
`Policy on bio-ethanol missing'
The Finance Minister has merely tinkered with the Budget, but there is nothing revolutionary. While he has taken cognizance of issues like global warming, climate change and given a fillip to biofuel technology development, an opportunity to ... More

Cabinet nod for raising IREDA capital
The Cabinet on Thursday gave its nod for raising the authorised share capital of Indian Renewable Energy Development Agency Ltd (IREDA) from Rs 400 crore to Rs 1,000 crore. IREDA is a non-banking finance company under the administrative control ... More

AUTOMOBILES
Budget: `Little for auto sector'
Mr Rajeev Chaba, President & MD, General Motors India: As far as the Automobile Industry is concerned, it was not in line with expectations. The industry expected a reduction in the excise duties on motorcars, phaseout of ... More

BUDGET
No vote for the silent majority
If the Budget was subdued and failed to enthuse Corporate India vis-à-vis further economic reforms, focussing instead on the silent majority — the small or landless farmers or the millions who cannot give their children a decent educatio n — so be it. Only, the government must ensure delivery if it is not to face further political setbacks as it did in Punjab and Uttarakhand, says RASHEEDA BHAGAT. More

`There could have been more for insurance sector'
"With economic growth firmly set in the 8 per cent plus range and a targeted annual growth rate of about 10 per cent for the 11th Five Year Plan period, the Union Budget for fiscal 2008 aims at sustaining the growth momentum while extending the ... More

Cos may not rush in for interim dividends
Dividend distribution tax proposal comes into effect from April 1 More

YSR lauds Budget thrust on farm sector
The Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, on Wednesday complimented the Union Finance Minister, Mr P. Chidambaram, for the budget thrust on the agriculture and welfare sectors. Addressing a press conference here, Dr Reddy ... More

Govt to offer weather-based insurance scheme soon
Could be operational for crops in rain-fed areas More

Land sale proceeds to part fund AP budget
Apart from Rs 5,000 crore from the IMG Bharata land sale, about Rs 3,500 crore will be raised from sale of land around Hyderabad to meet the Rs 32,973-crore annual Plan needs. 850 acres allotted to IMG Bharata to be sold More

Budget strikes balance between fiscal consolidation, growth: S&P
"The flexibility accorded by such revenue growth will be vital given ongoing spending pressures related to public investment, infrastructure, and the rural and social sectors." More

Mobile VAS providers don't plan to hike rates
Value-added service (VAS) providers for cellular users will not hike tariffs for mobile content like ringtones and downloads despite the Government bringing them under the service tax net. Mobile content providers have said that they would ... More

`First step in employability direction'
The Finance Minister's announcement of a scheme to provide Rs 33-crore fund for manpower development in the software sector needs to be studied with a magnifying glass, but the industry has welcomed it as the first step in the `employability ... More

`Why were EOUs taxed?'
Mr Vimal Kumar, Whole Time Director, Shasun Chemicals and Drugs Limited Though features like extending deduction for R&D activities in the pharma sector by five years, exempting service tax on clinical trials and ... More

Mixed reaction from AP Chambers
The Union Budget has attracted mixed reaction from chambers and business houses representing various sectors in Andhra Pradesh. The reactions have ranged from `good' to lukewarm to disappointing. Mr Y. Harish Chandra Prasad, Vice-Chairman ... More

`An inclusive Budget', say industry circles
Falls short of expectations on corporate tax; not much done on service tax front More

Bangalore chamber hails Budget proposals
But not happy over dividend distribution tax hike More

Budget: `Some good, some bad'
Mr Baba Kalyani, Chairman and Managing Director, Bharat Forge The Budget consolidates what's been happening in the economy. As far as industry is concerned, there are a couple of good things and a couple of bad things. ... More

The biz end of it
IN CHEERFUL MOOD: (From left) Mr Shivinder Mohan Singh, Managing Director, Fortis Healthcare Ltd & Escort Heart; Mr H.F. Khorakiwala, President, FICCI; Mr V. N. Dhoot, President, Assocham; Mr R. Seshasayee, President, CII; Mr Sunil Mittal, ... More

Budget scores 8/10 in CEO survey
The Finance Minister scored eight out of 10 marks from 100 CEOs in a survey conducted by Assocham on implications of Budget proposals 2007-08 for industry. Barring representatives of cement and oil and gas industries who ... More

CEMENT
Steel, cement companies announce hike in prices
On a day when the Finance Minister, Mr P. Chidambaram, asked industry to hold the price line, domestic steel and cement manufacturers went the other way and announced price hikes in the two products. On Thursday, primary steel manufacturers ... More

ECONOMY
`Hold the price line'
Chidambaram tells industry More

GDP growth in Q3 slips to 8.6%
The GDP growth slowed to 8.6 per cent during the third quarter of the current fiscal compared with a 9.2 per cent increase posted during the second quarter of the current fiscal and a 9.3 per cent growth clocked during the corresponding period of ... More

Export growth decelerates in Jan
Imports grow at 23.24%, notching $15,430.06 m in Jan 2007 More

Wheat, rice futures freeze: `A preventive step'
The Centre's decision to suspend forward trade in wheat and rice is a preventive step, rather than a reaction to developments in the market, according to an official of a multi-national firm. "It is a retrogressive move in this day and age" ... More

ENVIRONMENT
Infrastructure spend by IT firms soaring
Eco-friendly structures provide quality office space More

EXCISE AND CUSTOMS
`Edible oil market has discounted cut in additional duty'
Prices seen ruling stable; solvent extractors welcome sops for machinery More

FOREIGN TRADE
India, Australia to step up bilateral trade, investment flows
India and Australia have resolved to step up bilateral trade and investment flows substantially, while taking due note of the increasingly diverse and considerably large nature of the bilateral trade and economic relationship. This is indicated ... More

HOTELS
Kuwait group to set up 5-star hotel in Kochi
Partners with InterContinental group More

Thumbs up for tax holiday for NCR hotels
The announcement of the Finance Minister, Mr P. Chidambaram, to not only provide a five-year tax holiday for two-, three- and four-star hotels but also conventions centres seating a minimum of 3,000 people in and around Delhi, has been welcomed ... More

INFRASTRUCTURE
Budget could fuel fund investment in infrastructure sector
The Union Budget could fuel investments in the infrastructure sector by permitting mutual funds to launch and operate dedicated infrastructure funds. Mutual fund managers say it was unclear whether the infrastructure-dedicated funds would be ... More

Tie-up for new gas pipeline project
Numaligarh Refinery Ltd (NRL) and Assam Gas Company Ltd (AGCL) on Thursday entered into a joint venture agreement for formation of a new company to implement the 200-km gas pipeline from Dhuliajan to Numaligarh. The new company ... More

PETROLEUM
Oil marketing firms losing Rs 100 cr a day
Oil marketing companies are losing about Rs 100 crore a day on sale of petrol, diesel, LPG and kerosene through the public distribution system (PDS). This continues even after the Finance Minister, Mr P Chidambaram, cut excise duty on auto fuels ... More

No change in RIL's petro prices
The proposed excise duty reduction will not bring about any revision in the pricing of petrol and diesel at Reliance Industries outlets. In other words, fuel sold by RIL outlets in the North-Eastern States, West Bengal, Bihar, Chattisgarh, ... More

PHARMACEUTICALS
Cos conducting clinical trials can now compete on prices
As service tax of 12.24% on new drugs is scrapped More

Sports Broadcasting, NIPER Bills introduced in LS
The Sports Broadcasting Signals (Mandatory sharing with Prasar Bharati) Bill, 2007 and the National Institute of Pharmaceutical Education and Research (Amendment) Bill 2007 were introduced in the Lok Sabha on Thursday. The Sports Broadcasting ... More

Cautious cheer to Centre's efforts on AIDS
The Centre may take credit for bringing HIV/AIDS "out of the closet". But cheer for the proposed increase in spending to the AIDS control programme is being tempered with some concern on implementation. As part of the Centre's efforts to ... More

PLASTICS
Plastic manufacturers disappointed
The Tamil Nadu and Pondy Plastic Manufacturers & Merchants Association has expressed disappointment over the Budget not taking steps to bring down the cost of plastic raw material. According to the association, the high cost of plastic ... More

POWER
Maharashtra may pay Rs 3.30/unit for Dabhol power
New PPA soon with Ratnagiri Gas More

TAXATION
Tax sops, rebates cost Govt over Rs 2.35 lakh cr
How much do special tax rates, exemptions, deductions, rebates, deferrals and credits cost the exchequer? About Rs 235,191 crore or over 50 per cent of the Centre's gross tax revenues of Rs 467,848 crore as per the revised estimates for ... More

A fund of changes for financial services
There are no major amendments or changes relating to direct or indirect tax affecting the financial services industry. The overall increase in corporate tax rates would apply to this industry too. The changes that have a bearing on this industry ... More

Centre to decide GST rate after consulting States
The Finance Minister, Mr P. Chidambaram, has made it clear that the Centre would decide upon the national level goods and services tax (GST) rate, but only after going through a consultative process with the States. Asked whether the Empowered ... More

`Budget has made tax laws more complicated'
Finance Minister produced defensive Budget, say experts More

TEXTILES
Move to place polyester fibre in FTA negative list opposed
Indian Spinners' Association has protested against the proposal to place polyester fibre in the Negative List under the ongoing Free Trade Agreement (FTA) negotiations with ASEAN on the ground that it would lead to an inverted ... More

SSI
Small units hail excise duty relief
The Union Budget has received a mixed reaction from the small and tiny industries sector. The Tamil Nadu Small and Tiny Industries Association has welcomed the excise duty relief granted by the hike in exemption limit for the small scale ... More

Welcome step, say small units
The Karnataka Small Scale Industries Association President, Mr R. Prithviraj, described as timely the proposal of granting increase in the exemption limit from Rs 1 crore to Rs 1.5 crore for SMEs. The tempo of flow of funds to ... More

WATER
Action plan for drinking water
As the summer season approaches, the Andhra Pradesh Government has convened a State-level meeting on March 6 to prepare an action plan to provide drinking water to all the villages. Mr D. Srinivas, Minister for Rural Development, said here on ... More

BREWERIES
Foreign liquor lobby to seek WTO action against India
No move to reduce duties on imported liquor in Budget More

CIGARETTES
Hike in excise duty on cigarettes may lead to shifting of brands
While the tobacco companies were not willing to comment offhand on the Budget proposal to raise specific rates of excise duty on cigarettes by about 5 per cent, industry watchers in the know told Business Line that it may not have too high ... More

EDUCATION
Madras School of Economics gets Oriental Bank grant
Madras School of Economics on Thursday received a grant of Rs 30 lakh from Oriental Bank of Commerce. Dr D.K. Srivastava, Director, MSE, told Business Line that the funds would be used for building infrastructure — essentially for ... More

MS to launch e-newsletter for Asia-Pacific teachers
As part of its `Partners in learning' programme, Microsoft will launch an e-newsletter and an Internet portal for teachers in the Asia-Pacific region. Mr Peter Moore, Managing Director-Public Sector, Asia-Pacific, Microsoft, said that both ... More

`BPO cos offer better work environment'
"If you need a job, and you have the right attitude, aptitude and willingness to work hard, BPO gives you a wonderful opportunity. Any college degree is enough. Indian BPO companies offer better work environment than those in any other country," ... More

IIM-Indore student placements
It was consulting and BFSI again. Placements at the Indian Institute of Management, Indore, saw about 57 per cent of the 115 students opting for careers in McKinsey, Accenture, KPMG, Deloitte Consulting, Lehman Brothers, Deustche ... More

Upgradation of ITIs proposed
To address the problem of skilled workforce in the country, the Union Finance Minister, Mr P. Chidambaram, has proposed upgradation of Industrial Training Institutes (ITIs) into centres of excellence and announced grant of interest free loan up ... More

Spring is here
A RIOT OF COLOUR: Students of Rabindra Bharati University, Kolkata, celebrating `Basanta Utsav' (Spring Festival) on Thursday to mark Holi (Festival of Colour) at the university campus in Jorasanko Thakurbari. The university is located at the ... More

CARS
Car sales on a high in February
Passenger car sales were on a roll in February with most carmakers recording double digit increase in sales. Maruti Udyog said on Thursday it sold 62,999 vehicles in February, up 53 per cent from 41,095 units a year earlier. The company said it ... More

FOODS & FOOD PROCESSING
India, France set up panel on food processing
`Creation of food parks, cold chain will be part of agenda' More

GEMS & JEWELLERY
Duty cuts a positive step: Jewellery sector
Reacting to the Budget announcement on the gem and jewellery industry, Mr Mehul Choksi, Chairman, Gitanjali Gems, said, "Cut in customs duty in synthetic stones from 12.5 per cent to 5 per cent; in unworked corals from 30 per cent to 10 per cent; ... More

MEDICAL INSTITUTIONS & HOSPITALS
`No fundamental changes for healthcare'
According to Mr Vishal Bali, CEO, Wockhardt Hospitals Group, Budget 2007 has missed the opportunity to create a much-needed healthcare delivery transformation. The downside: "The (healthcare) industry's demand for ... More

REAL ESTATE & CONSTRUCTION
CII meet on urban planning
The Confederation of Indian Industry (CII), Coimbatore, is organising a `Conference on Urban Planning and Construction for the Future' (ConNext 2007) here on March 2 and 3 to discuss the issues that have a bearing on the preparation of a master ... More

Realty industry eyes `skilled civil engineers'
The real estate industry is facing a "severe shortage of skilled civil engineers", according to Mr Manoj Namburu, Chairman and Managing Director of Alliance Infrastructure Pvt Ltd, a three-year-old real estate organisation that had started out ... More

Infrastructure spend by IT firms soaring
Eco-friendly structures provide quality office space More

Commercial space may cost 12% more
Service tax levied on rent adds to increasing costs More

INDUSTRY ASSOCIATIONS
`Refreshingly different Budget'
The Madras Chamber of Commerce and Industry (MCCI) has expressed pleasure at the `refreshingly different' Union Budget 2007-08 as it did not spring any major surprises. According to a press release, SMEs, senior citizens and ... More

NEWSPAPERS & PUBLISHING
Man with the whistle
The Guardian's outgoing Readers' Editor on newsgathering in the age of you-tube... More

FOREIGN DIRECT INVESTMENT
Investments sought in mining, farm, education
The Union Commerce and Industry Minister, Mr Kamal Nath, today invited Australian companies to tap the growing opportunities in the mining, farm and education sectors. While speaking at the 16th meeting of the India-Australia Joint Business ... More

RURAL DEVELOPMENT
Business school for rural women
On offer is vocational and financial training to create entrepreneurs with access to micro credit. More

Shedding light
A WORKER undertakes maintenance work on a lamp-post in suburban Kochi. The Kerala State Electricity Board and the Rural Electrification Corporation have entered into an agreement for undertaking a project worth Rs 438 crore under the Rajiv Gandhi ... More

EVENTS
Official language meet
The official language meet of the Rubber Board this year will be inaugurated by writer K.L. Mohana Varma on Friday at the silver jubilee hall of the Rubber Research Institute of India. Mr Sajen Peter, Chairman of Rubber Board, ... More

EXPORTS & IMPORTS
Onion exports top record 1 m tonnes
For the first time, onion exports from the country have crossed one million tonnes (mt). This comes even as the Centre, through the National Agricultural Cooperative Marketing Federation of India (Nafed), has announced curbs on shipments ... More

Curbs on arecanut import boost domestic prices
Private traders offer better rates to growers More

TOURISM
Malaysia shopping coupons
The Minister of Tourism for Malaysia, Mr Datuk Seri Tengku Adnan Tengku Mansor, unveiled Malaysia's "VMY Passport" programme on Thursday. The "VMY (Visit Malaysia Year) Passport" is a collection of discount coupons for shopping, dining, ... More

ECONOMIC OFFENCES
PAN for mutual fund investors
The Mutual Fund Identification will be withdrawn effective March 2. This follows the Finance Minister's announcement in the Budget that PAN will be the sole identification number for all participants in the securities market. Association of ... More