A recent study has shown that the imposition of Central Sales Tax (CST) has mainly benefited the high-income States at the expense of the poor and middle-income States. The study, undertaken by a public finance expert, Dr. Amaresh Bagchi, has shown that four high-income States — Maharashtra, Gujarat, Haryana and Punjab — accounting for only 18.8 per cent of the country’s population but 29.95 per cent of all States’ Domestic Product (SDP), receive as much as 45.08 per cent of revenues from CST. The situation was exactly the reverse for five low-income States, namely Bihar, Madhya Pradesh, Orissa, Uttar Pradesh and Rajasthan. These States house 44 per cent of the country’s population but accounted for only 33.23 per cent of SDP and an abysmal 18.1 per cent of total CST revenues.

Penalty prescribed for telecom bids

Private companies entering the basic telecom services will attract deterrent penalties if they fail to honour their commitments made in the financial bids. An official announcement from the Department of Telecommunications (DoT) said today the penalty prescription was necessitated in view of the weightages attached to different parameters to be quoted in the financial bid slated to close on June 23.

Arvind Mills ties up with US textile firm

Arvind Mills Ltd said it entered into a marketing and technical alliance with Alamac Knit Fabrics Inc, a subsidiary of US textile firm Westpoint Stevens Inc. Under the agreement, Arvind Mills will produce high fashion knitted fabric products for the apparel trade in India, Asia and Africa, Arvind Mills officials told a newspersons. The project cost for the first phase of this venture is Rs. 100 crores and is expected to be operational by 1996.

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