The Hindu Business Line : Wednesday, March 02, 2005

Sensible Budget, say Gulf NRIs
THE NRIs in the UAE have lauded the Union Budget as positive and sensible and enthusiastically welcomed the decision of the Finance Minister, Mr P. Chidambaram, to continue the tax exemption on interest rates for the NRE and the FCNR deposits. ... More

BUDGET

Chidambaram plans to rewrite I-T Act, raise FDI in insurance
THE Finance Minister, Mr P. Chidambaram, is planning to rewrite the income-tax law. Also high on his agenda is an omnibus insurance law that would help the Government to raise the FDI limit in the insurance sector from 26 per cent to 49 per ... More

Sugar industry flays hike in excise duty on molasses
While the intention to rejuvenate the industry is seen as a right step in the long term, the Budget has failed to come out with anything concrete, feel industry representatives. The hike in the excise duty on molasses has uniformly attracted ... More

`Focus on infrastructure to boost industrial growth further'
REACTING to the Budget proposals related to public sector enterprises, the Director General of the Standing Conference of Public Enterprises (SCOPE), Dr S.M. Dewan, said that "the public sector will play a crucial role in `Bharat Nirman' - as ... More

Govt clarifies on `tax treatment' for ship sale
SHIPPING companies selling ships that were acquired through funds built up with benefits accorded under Section 33 AC of the Income-Tax Act will have to pay tax on the sale proceeds only on the amount utilised from the reserve account for buying ... More

Nothing much to cheer, says shipping industry
THE shipping industry had nothing much to cheer about in the Union Budget presented by the Finance Minister, Mr P. Chidambaram, on Monday. Reacting to the Budget, Mr A.R. Ramakrishnan, chief operating officer of Essar Shipping Ltd, said ... More

Telecom gear makers upbeat
THE telecom industry said that the Budget proposals would provide an impetus to local manufacturing. "The proposals are clearly directed to bring down the cost of setting up infrastructure. It will provide a fillip to local manufacturing even as ... More

`In the right direction for hardware sector'
Hardware manufacturing will see a renewed vigour and will encourage local manufacturers to invest in new capacity expansion. The import value-added tax of four per cent on input will bridge the gap between local manufacturing and full system ... More

Fringe tax to bite deeper into smaller IT cos
As a knee-jerk reaction, while the money implications are huge, the philosophy and the concept are worrisome, says Mr Kiran Karnik. More

Stock market calls reformers' bluff
NO talk of privatisation. No mention of disinvestment. No changes in labour laws to enable hire and fire. No proposal to close down losing public sector enterprises. That is the 2005-06 Budget. Can one get away with all this? Because they are ... More

Experts seek rollback of cash withdrawal tax
Subjecting even receipt of cash on encashment of term deposit to BCTT may hit every single citizen of the country, and lead to chaos in the banking system. More

JK Industries welcomes excise duty cut on tyres
"WE welcome the cut in excise duty on tyres from the existing level of 24 per cent to 16 per cent, a correction that was long overdue," said Mr Raghupati Singhania, Vice-Chairman and Managing Director, JK Industries. "The reduction in the peak ... More

Dredgers brought under tonnage, service tax net
THE Finance Minister, Mr P. Chidambaram, has included dredgers under the scope of the tonnage tax scheme that was introduced last year for the domestic shipping industry. The Government proposes to amend Chapter XII-G of the Income Tax Act to ... More

Chidambaram presses pause button on FRBM
THE Centre has hit the pause button on the implementation of the Fiscal Responsibility and Budget Management Act (FRBM). Under the FRBM Rules, 2004 notified on July 2, 2004 the Centre was required to reduce its fiscal deficit by 0.3 per cent ... More

Thrust on social sector in line with CMP
IN keeping with the socialist spirit of the Common Minimum Programme, the Finance Minister, Mr P. Chidambaram, has given extra thrust to the social sector in the 2005-2006 Union Budget with a view to "eliminating the scourge of poverty" and ... More

Industry, trade unhappy over tax on bank cash withdrawals
INDUSTRY and traders associations have expressed dissatisfaction over the Finance Minister's announcement in the Budget to levy tax on cash withdrawals of Rs 10,000 and more from banks. A senior official in a manufacturing company pointed out ... More

`Fillip to rural sector'
"The Budget gives practical expression to rural development with emphasis on employment generation. With the expected investment in irrigation, textile industry, IT industry, construction, etc., economic growth will be job-oriented. The benefit ... More

Vegoil bodies happy over scrapping of levy
THE vegetable oil industry associations have unanimously welcomed the Budget proposal to abolish excise duty on manufacture of refined oils and vanaspati. Mr Sandeep Bajoria, President, Central Organisation for Oil industry and Trade, ... More

SSI body opposes tax on cash withdrawals
THE Karnataka Small Scale Industries Association (KASSIA) has opposed the levy of 0.1 per cent tax on cash withdrawals from banks exceeding Rs 10,000 in a day. The move was "ill-conceived without proper research work," said the Bangalore ... More

ISB dons give thumbs up
THE Indian School of Business (ISB) is excited about some of the initiatives announced by the Finance Minister. Professor M. R. Rao, Dean, Indian School of Business, said, "I am very happy to see the Finance Minister's initiative in ... More

Growth-oriented Budget: FAPCCI
THE Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) has said the Union Budget for 2005-06 was a good attempt at addressing both growth and welfare objectives. Mr O.P. Goenka, President, termed the Budget "growth ... More

Durables majors happy with cut in peak customs duty
R.P. Khaitan, President, Consumer Electronics and Television Manufacturers Association (CETMA): The issue of inverted duty arising due to implementation of Free Trade Agreement (FTA) with Thailand has not been addressed in the Budget, ... More

`Not enough in Budget for textile industry'
Despite the enhancement of the TUF scheme, the 10 per cent capital subsidy scheme for the textile processing sector, and the Customs duty reduction on textile machinery, industry representatives say it wasn't quite enough. According to Mr ... More

Emphasis on building rural India: Thermax chief
OVERALL, the Budget maintains continuity and is aimed at the masses. It has laid a lot of emphasis on building rural India. The allocation of funds for rural education, improving nutrition and health, increasing access to credit in rural ... More

`No mention of disinvestment'
ON a macro-economic level, the Budget proposals for 2005-06 appear to have undercurrents of increased interest rates and inflation since huge expenditures are planned with no resource mobilisation efforts visible beyond the generally expected ... More

Budget widens duty gap between edible, industrial grade palm oils
WITH the Union Budget reducing the peak rate of customs duty on non-agricultural products from 20 per cent to 15 per cent, the gap between the import duty on edible-grade crude palm oil (CPO) and that on non-edible or industrial grade CPO used ... More

Budget draws positive response from chambers
TRADE and industry in the financial capital have welcomed the Union Budget's overall thrust to bring down customs duty, introduce VAT from April 1, maintain service tax at current levels, as well as the emphasis on developing education, ... More

'Uniquely special' Budget, say cooperative lending institutions
COOPERATIVE lending institutions, one of the key pillars in the agricultural and rural credit structure in the country, find the Union Budget uniquely special for more than one reason. According to Mr K. Sivadasan Nair, Chairman, National ... More

Budget proposals on micro-finance welcomed
"INFORMAL sector of banking has been finally recognised," was the response of an NGO to the packages announced in the Budget for micro-finance institutions. Reacting to the proposals here on Monday, the Executive Director of the Dakshina ... More

Kanara Chamber welcomes Budget proposals on textiles, infrastructure
Boost to textile sector should encourage industrialists to set up units at the proposed Export Promotion Industrial Park in Mangalore. More

CII-AP, others laud Budget
THE Union Budget has brought cheer to entrepreneurs in Andhra Pradesh, with the Finance Minister, Mr P. Chidambaram, laying emphasis on infrastructure, pharma, biotech, sugar, textiles, rural connectivity, and tourism. CII-AP said that the ... More

ICSI hails move on training in securities market
THE Institute of Company Secretaries of India (ICSI) has welcomed the move to set up a `National Institute of Securities Market for Teaching and Training Intermediaries in Securities Market and Research' announced in the Budget for ... More

Funds for horticulture still below the mark
``WITH about two thirds of the population dependent on agriculture, and the sector producing only 21 per cent of GDP in 2003-04, it is imperative that we address the problems of our farmers with a sense of urgency. In agriculture, we shall ... More

`A good Budget on expected lines'
"A GOOD Budget on the expected lines" is how participants at a Budget discussion organised by the Chamber of Commerce - Thiruvananthapuram described the Union Budget 2005-06, which was presented on Monday. However, most of those present also ... More

Chambers welcome Budget
VARIOUS chambers of commerce and industry in the State have hailed the Union Budget, saying that it contains several welcome proposals. The President of the Cochin Chamber of Commerce and Industry, Mr A.K. Nair, said that the Finance ... More

MF industry hails Budget
"From the Mutual Fund industry's perspective, the fact that dividend tax regime hasn't been changed, is a positive. Continuity has its advantages and I am sure that as an industry we will benefit from it. The announcements, regarding a ... More

IEEMA hails move on duty differential
THE Indian Electrical and Electronics Manufacturers Association (IEEMA) has expressed satisfaction over the correction of the inverted import duty structure, where, on the one hand, the import duty is placed at the peak rate of 15 per cent, and ... More

`A boost to derivative market'
THE derivative market has got a shot in the arm with the Government deciding to treat income from derivatives trading as a non-speculative income, a former President of the Coimbatore Stock Exchange (CSX) has said. The tax proposals relating to ... More

Lease extension period a great sign
The extension of period for lease of aircraft is a great sign. The Government has created the right environment for new players, especially for the first generation of entrepreneurs. We need all the support from the Government to make low-cost ... More

`Not much focus on infrastructure investments'
MR Ravi Uppal, Vice-Chairman and Managing Director of ABB India, has expressed surprise about the Budget proposals remaining silent on power sector investments. However, he welcomed the Finance Minister's announcement on strengthening ... More

Growth-oriented
BUDGET 2005 is a growth-oriented one with an infrastructure focus and continues the reform process. We welcome various initiatives taken. First, is the reduction in Customs duty, bringing it closer to Asean levels. Next, the thrust on improving ... More

Budget - voices
IT is an excellent Budget. It will go a long way to help sustain GDP growth rate at the higher level of around eight per cent. It will definitely unleash the country's economic and human capital strength. It has also endeavoured to give ... More

Extension of weighted deduction welcome
The Finance Minister has presented a positive Budget that further encourages economic growth and investment, while keeping in mind developmental initiatives. For the pharmaceuticals sector, extension of 150 per cent weighted deduction on R&D ... More

Budget has strong focus on infrastructure investments
Currently, the economy is growing at 6.9 per cent. Industrial growth is robust. What this Budget has done is to ensure that the growth rates are not affected. Further, the underlying principle seems to be to bet on the economic buoyancy for ... More

Comprehensive, balanced
The Union Budget 2005-06 is comprehensive and balanced. It focuses on the Common Minimum Programme, through equitable emphasis on social infrastructure - education, agriculture and health - with no major negatives for the corporate ... More

Customs duty cut will bring down project costs
The Budget has sought to address the needs of industry and at the same time has given high priority to development of the country. We are happy to see the focus on development of rural infrastructure such as rural roads, rural electricity, ... More

COURTS/LEGAL ISSUES

Non-use of trademark can lead to its removal
A BARODA-based food products manufacturing company's trademark was removed from the Register of Trade Marks after it was found that the firm was a `non-user' of the mark as per the law. The Intellectual Property Appellate Board, which had a ... More

ECONOMY

Finance panel calls for standard definition of revenue deficit
The Commission also recommended that instructions for a uniform classification code for all States down to the object head be issued. More

We've put economy back on growth track, says UPA Govt — Gives itself straight `A's in report card
THE United Progressive Alliance (UPA) on Monday released a report card that has painted a rosy picture of the economy and the development that has taken place during the first nine months of governance. The Congress-led Government credited ... More

Kerala Assembly thanks Manmohan
THIRUVANANTHAPURAM: The State Assembly on Monday passed a resolution expressing State's gratitude to the Prime Minister, Dr Manmohan Singh, for his initiatives in bringing more Central investments into the State. Moving the resolution, ... More

ACCOUNTANCY

Parliament panel favours name change for ICWAI
THE Institute of Cost and Works Accountants of India's (ICWAI) efforts to change its name to Institute of Cost and Management Accountants of India (ICMAI) may soon bear fruit, with a Parliamentary Committee endorsing the proposal. The ... More

FOREIGN TRADE

Great potential for India-China ventures: Goldman Sachs
As opposed to the competitive environment now familiar with, there are signs to show there is great prospect of mutual cooperation. More

HOTELS

Hoteliers pin hopes on more tourists
THE hotel industry has welcomed the Budget for its overall thrust on the improvement of infrastructure, which it hopes will translate into enhanced travel within the country and from outside. Mr Raymond Bickson, Managing Director, The ... More

INFRASTRUCTURE

Construction sector cautious on infrastructure allocations
THE domestic engineering and construction industry virtually gasped as the Finance Minister, Mr P. Chidambaram, while presenting the Budget on Monday, began to reel out the increased allocations to the infrastructure sector, including roads, ... More

MEPZ to upgrade infrastructure
WITH new units coming up and existing units expanding operations at a rapid pace inside Madras Export Processing Zone (MEPZ) , Rs 35 crore to Rs 40 crore would be required to upgrade zone's infrastructure, according to Mr B. Vijayan, Development ... More

PETROLEUM

ONGC Videsh bags Syrian oil block contract
ONGC Videsh Ltd, the overseas arm of exploration company Oil and Natural Gas Corporation, has bagged a contract to develop an oil block believed to have in-place reserves of 600 million barrels, along with its consortium partner IPR Energy Red ... More

Panna, Mukta: Operators can sell gas directly to users
THE Union Government has permitted Oil and Natural Gas Corporation, British Gas and Reliance Industries, partners in the Panna, Mukta and Tapti oil and gas fields, to sell the entire gas produced at these fields directly to consumers. ... More

PHARMACEUTICALS

Drugs to cost more; Ipca hikes prices
CONSUMERS, it seems, will soon have to fork out more money on their medicines. Having digested the impact of Budget 2005, drug companies and analysts tracking the segment feel that medicine prices are set to increase anywhere between two and six ... More

Drug prices will rise
"We believe that only a 40 per cent abatement while charging excise duty calculated on MRP would lead to increase in prices of drugs since the industry will need to recover the additional excise that has become payable under the scheme. A ... More

POWER

Talks on power purchase from Kayamkulam on
THE Kerala State Electricity Board (KSEB) has reached a broad understanding with the National Thermal Power Corporation (NTPC) on the terms for renewing a power purchase agreement (PPA) for the Kayamkulam thermal plant. The new PPA has been ... More

TAXATION

Stirring the VAT pot
The BJP leader, Mr Vijay Goel, along with traders demonstrating in the Capital on Tuesday against the introduction of VAT from April.

TEXTILES

`Duty cut on polyester filament yarn welcome step'
THE South India Small Spinners Association has welcomed the lowering of the excise duty on polyester filament yarn to 16 per cent in the Budget. The association has also said that the reduction in the customs duty on textile machinery from ... More

Budget: A stitch in time, says SIMA
THE Union Budget's recognition to textiles as an employment generating industry will instil confidence and attract more investments into the sector, said the Southern India Mills Association (SIMA). The 10 per cent capital subsidy for the ... More

SSI

`Cut in depreciation to 15 pc will hit tech upgrade plans'
THE Coimbatore District Small Industries Association (Codissia) has expressed the view that the reduction in depreciation from 25 per cent to 15 per cent announced in the Union Budget would hamper upgradation of technology by the industry to meet ... More

`No help for SSIs'
THE Budget announcements for the small-scale sector are unlikely to help them, according to Dr P.M. Mathew, Director, Institute of Small Enterprises Development (ISED).``The Finance Minister has spent 15 lines in his Budget to describe what this ... More

TYRES

Retail tyre prices likely to fall
THE retail tyre prices are expected to come down by 6.4 per cent (indigenously produced) and by 9.4 per cent (imported tyres), following the Budget proposals. Tyre has been brought under the 16 per cent excise slab from 24 per cent, while the ... More

WATER

Hyderabad water supply board seeks reduction in power tariff
THE Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) has appealed to the AP Electricity Regulatory Commission (APERC) to ensure that power is supplied to it at Rs 1.20 per unit and not at Rs 3.95 per unit as proposed by the State ... More

PERSONAL PRODUCTS

FMCG cos look forward to VAT, rural development
THE Union Government's commitment to the implementation of value-added tax (VAT), the reduction in corporate tax and a roadmap for the agricultural sector augurs well for corporatesand, in particular, the fast-moving consumer goods (FMCG) ... More

RADIO/TV

TWI to produce Indo-Pak series; DD to telecast
THE Board of Control for Cricket in India (BCCI) has decided to award the production rights for the India-Pakistan series to Trans-World International (TWI). However, no final decision has been taken on the award of satellite overseas ... More

DTH, multi-system operators to pay service tax
THE media and entertainment industry has been largely ignored in Budget 2005. Instead, the Finance Ministry has included certain other services in the tax net. Direct-to-home (DTH) services as well as multi-system operators would now have to ... More

EDUCATION

Education gets a fillip
IN keeping with the UPA objective of providing education opportunities to all and creating quality human capital, the Government has announced several initiatives on the education front in this year's Budget. It has decided to promote the Indian ... More

NALSAR University Act

CARS

REDUCTION IN PEAK CUSTOMS DUTY

Toyota cuts prices for Corolla, Innova
TOYOTA Kirloskar Motor (TKM) on Tuesday announced a revision in prices of Toyota Corolla and the recently-launched Toyota Innova following the reduction in peak rate of customs duty announced in the Budget. Announcing the reduction, Mr A. ... More

City, Accord to cost less
HONDA Siel Cars India Ltd today announced a price reduction of Rs 2,500-8,000 on the Honda City and Honda Accord models following a customs duty cut announced in the Budget. The Budget has proposed reduction in the peak rate of Customs duty to ... More

AUTOMOBILE COMPONENTS

Lead storage battery cos laud cut in Customs duty
THE Finance Minister, Mr P. Chidambaram, has presented a `dream Budget' for the lead acid storage battery manufacturers in the country. Responding to the long-standing demands of the domestic industry, he has proposed a reduction in Customs ... More

REAL ESTATE & CONSTRUCTION

VUDA plans shopping malls

LEATHER

Leather industry feels let down
THE leather industry had hoped for more from the Budget but is disappointed. Some of the sops announced on import of machines are welcome but do not represent major benefits, according to industry representatives. Mr Rafeeque Ahmed, Chairman, ... More

INDUSTRY ASSOCIATIONS

Industry calls it `growth oriented'
INDIA Inc has welcomed the Budget for 2005-06, terming it growth-oriented. The industry was appreciative of the increased thrust on infrastructure investment, steps to fuel growth in the agricultural sector and the rural economy. However, ... More

BIO-TECH & GENETICS

Biotech: Flush of funds in pipeline
A CATEGORICAL statement on policy support, duty and tax exemptions, the promise of increasing the Rs 150-crore R&D corpus next year: a sector that is on the ascendant couldn't have asked for more, according to Ms Kiran Mazumdar-Shaw, CII ... More

SCIENCE & TECHNOLOGY

NirmaLabs on a talent hunt; gets DST support
"NirmaLabs has been designed to serve as a groom-incubate-grow programme to transfor outstanding individuals into techno-entrepreneurs" More

FOREIGN DIRECT INVESTMENT

`FDI in coal mining, pension positive'
NEW DELHI: Reacting to FDI proposal in coal mining, retail and pension, the Executive Director of PriceWaterhouseCoopers, Mr Vivek Mehra, said, "FDI in these sectors essentially means opening them up ... More

INTERVIEW

`People should be pushed into a cheque economy'
`I have made it very clear I am not going to force Bank A to consolidate with Bank B. Two banks must come up with proposals themselves.' More

INCOME TAX

Partnership firms will have to file I-T returns
PARTNERSHIP firms would from April 1 be required to necessarily file their income-tax returns irrespective of their income level. The Budget proposes to amend income-tax provisions for this purpose. The Finance Bill 2005 also intends to ... More

Fringe benefits from Down Under
MORE as a cop than a casual observer, Chidambaram has been watching how companies keep employees happy. What did he find? That many perquisites are disguised as fringe benefits and that nobody pays any tax on these. Therefore, he made one fell ... More

EXPORTS & IMPORTS

Exporters not enthused by Budget plans
THE export segment is by and large a beneficiary of the Union Budget 2005-06 as its broad thrust is on the manufacturing sector and employment. Also, the attempt by the Finance Minister to reduce the peak rate for non-agricultural products ... More

FIEO upset
THE exporting community has expressed dissatisfaction over the Budget proposals. The President of the Federation of Indian Export Organisations (FIEO), Mr O.P. Garg, said the Budget has no mention of relief for the exporting community in line ... More

Vizag SEZ seeks 200 acres more to expand operations
THE Visakhapatnam Special Economic Zone (VSEZ) here has urged the State Government to allot 200 acres more land to expand its operations in addition to the existing 360 acres, "as many more industries are evincing interest to set up units in the ... More

TOURISM

Indian entities bag 9 PATA awards
THE Pacific Asia Travel Association (PATA) has announced its `PATA Gold Awards' for 2005. Individuals and organisations from India, including the Department of Tourism, Government of India, and Kerala Tourism, have won nine awards including a ... More

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