Economy
Monetary and Credit Policy examined
THE RBI Governor's statement on the Monetary and Credit Policy for 2001-02 consists of three parts: 1) Review of Macroeconomic and Monetary Developments during 2000-01; 2) Stance of Monetary Policy for 2001-02; and 3) Financial Sector Reforms and Monetar
y Policy Measures. The RBI has issued a study, ``Macroeconomic and Monetary Developments in 2000-01,'' which serves as a basis for the Governor, Dr Bimal Jalan's review.
Editorial
Save Dabhol project
THE DECISION OF the Dabhol Power Company board -- at its meeting in London on Wednesday -- ``to authorise the Managing Director to issue a notice of termination on the contract to sell 740 MW of power in India'' is important for the message it sends to N
ew Delhi, the Maharashtra Government and the Maharashtra State Electricity Board: Closing down the project would be a real option at the right time.
Infrastructure
Infrastructure: Losing power
IN THE 2000-01 Budget, the Finance Minister, Mr Yashwant Sinha, extended the tax holiday for several infrastructure sectors. He also offered tax incentives to those who provide long-term finance or investment in the equity of these enterprises. But these
measures by themselves will not help tackle the problems arising from the acute and widespread shortage of infrastructure facilities.
Politics
The shikar
RECENTLY, a national daily carried a photograph on its first page depicting three or four people in a border village in Bangladesh -- where the recent flare-up between the Border Security Force and the Bangladesh Rifles occurred -- carrying the body of a
BSF jawan strung across a pole with hands and feet tied. The first reaction of this writer was to liken the picture to old, early-20th Century shikar photographs which showed tigers, leopards, sambar and deer being carried in like fashion by happy hunte
rs with the sahibs following behind, congratulating themselves on having done a good day's or night's work.
Taxation
AC split
THE Hindusthan Motors case, which came up before the Calcutta CEGAT, was about air-conditioned cars. The dispute was not about the effectiveness of cooling but whether AC kits were inputs (as the company contended) or accessories (as averred by the Depar
tment).
Wanting in coverage
Dividend stripping has been rendered less easy but not impossible, says K. Srinivasan
Transfer of provisions
Prabhat Agarwal says that the new transfer pricing provisions draw heavily from the existing I-T Act
Foster infrastructure faster
To give a boost to the infrastructure sector, bestowing tax sops alone may not suffice, says T. C. A. Ramanujam
