PM for return of excess spectrum from mobile firms

Dubbing it as a 'national resource', Prime Minister Manmohan Singh is believed to have favoured return of spectrum from any telecom operator who is found having airwaves in excess of the contractual obligation. A suggestion to this effect is understood to have been given by Singh when Communication Minister A Raja met him on Friday night (November 30). The CDMA operators led by Reliance Communications and GSM service providers led by Bharti Airtel are slugging out in public on the issue of allocation of spectrum to mobile firms.
While no official comment could be obtained on the meeting between Raja and Singh, sources indicated the Prime Minister also disfavoured suggestion of referring the issue of spectrum allocation to an empowered group of ministers as suggested by some of his Cabinet colleagues.
According to DoT sources, top GSM operators have got beyond the contracted obligation of 6.2 MHz of frequency (in some cases the contracted quantity is only 4.4 MHz).In Parliament also, members belonging to various political parties especially Samajwadi Party leader Amar Singh has raised the issue of surrender of surplus spectrum.
While Anil Ambani, in a series of letter to the Prime Minister, accused GSM operators of hoarding spectrum, Bharti Airtel chairman Sunil Mittal refuted this, saying the CDMA operator should put his mathematics in order.The government has also constituted a panel with representatives from the Department of Telecom (DoT) and operators to review the recommendations of Telecom Engineering Centre which had suggested that the subscriber base be increased by 2-15 times to become eligible for additional frequency.
Source:- http://www.headlinesindia.com/archive_html/03December2007_64747.html

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'Reduce corporate taxes to attract more investments'

With the Finance Ministry initiating the process of budget preparation, global consultancy KPMG said India will have to reduce its corporate taxes to woo more foreign investors into the country. "By 2010, some sort of softening is expected in the corporate taxes in India as the current level of growth demands a lower tax regime," KPMG's Global Head of Tax Loughlin Hickey told reporters. Hickey said according to a study held by KPMG, among 18 leading economies, India has been ranked third facing pressure from its tax regime.
As per the study, countries are experiencing pressure from various tax functions such as documentation requirements, higher level of accuracy, regulatory compliance requirements and time compression in financial reporting. Hong Kong has topped the list, followed by Canada.
India, which has become a prominent investment destination in the last decade, will have to reduce the corporate tax rates in the next three years, Hickey said. "They (India) want to attract more investors. Obviously, that will happen, only if the taxes are reduced," he said.India has an estimated Rs 3 lakh crore target for 2007-08 and is understood to have registered a 41 per cent jump in the collection of corporate taxes so far in 2007.
In the pre-budget consultation, Industry representatives have reportedly asked government for a cut in corporate taxes to 25 per cent from the current 33.9 per cent.Hickey also said only a lower and simple tax system can bring in better-compliance from tax payers. "If you want to develop more compliance in the tax system, you will have to lower the rates as well as make the process much simpler," Hickey said. This apart, the introduction of tools like PAN has also helped in tax compliance, he said.
Source:- http://www.headlinesindia.com/archive_html/03December2007_64746.html

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Jet, Kingfisher, AI hike airfares; others mulling

Private airlines Jet Airways Ltd and Kingfisher Airlines, and state-owned carrier Air India said on Sunday they were increasing airfares by Rs 300 to offset higher fuel prices. The new fares come into effect from December 3. The decision by the carriers came in the wake of a nearly 12 per cent increase in aircraft turbine fuel (ATF) prices by oil marketing companies such as Indian Oil Corp. This latest increase would take the fuel surcharge on a ticket to Rs 1,650.
ATF prices in India are among the highest in the world. They account for nearly 40 per cent of the operating costs of an airline, according to officials. SpiceJet Ltd, Deccan Aviation and Go Air would take a decision on increasing airfares on December 3, according to the airlines' officials.
Source:- http://www.headlinesindia.com/archive_html/02December2007_64706.html

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Financial sector reforms lagging behind: FM

Finance Minister P Chidambaram on Sunday expressed concern over the slow progress of financial sector reforms in banking, insurance, pension and capital markets and hoped that some breakthrough might take place in the remaining tenure of the United Progressive Alliance (UPA) Government. "Financial sector reforms are lagging behind. We need to push through financial sector reforms in banking, insurance and pension and unfinished agenda in the capital markets... But I still think that we have 16 months and we might be able to make some progress," Chidambaram said at the India Economic Summit in New Delhi. The UPA Government took over charge in May 2004 and its tenure would end in the first half of 2009.
Pointing out that these reforms are the heart of the economy, he said: " We have not been able to push through the financial sector reforms." Earlier, Chidambaram had asked for political space to carry out financial sector reforms. But continued resistance from the Left parties have seen little breakthrough in banking, insurance and pension reforms.While insurance reforms to hike FDI (Foreign Direct Investment) limit in the sector from the present 26 per cent was referred to a group of ministers, not much headway has been made there.In banking reforms bill also, not much progress has been made and minor portion of the amendment bill on the limit on the Statutory Liquidity Ratio was separately passed since the overall bill was opposed by the Left parties.
In the pension sector, while most state governments and the Centre have agreed to allow their employees to put part of their retirement money under New Pension System in the stock market, a bill to give statutory powers to the pension regulator is pending in Parliament for long.
Source:- http://www.headlinesindia.com/archive_html/02December2007_64701.html

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Lakshmi Mittal tops South Africa billionaire list

London-based steel magnate Lakshmi Mittal has topped the South African billionaires' list for the third consecutive year. Mittal's 27.3 billion rand ($4 billion) listing in the annual Rich List, released in Johannesburg by the weekly 'Sunday Times', takes into consideration his South African investments only. The Indian-born businessman has much more interest in steel plants across the world, especially after the recent merger of Mittal Steel and Arcelor. With the emergence of non-whites' economic empowerment in a free South Africa, Mittal, along with many South African non-white entrepreneurs, has ousted the two white families who were top of the list for decades in the apartheid era - the diamond magnate Oppenheimer family and the luxury goods Rupert family. Nicky Oppenheimer was in second place with wealth of 16 billion rand ($2.35 billion) and Patrice Motsepe was third with 13.5 billion rand ($2 billion). Rich List researchers emphasised the figures were based only on publicly available information of investments on the Johannesburg Securities Exchange, and there may be much more by way of property ownership, cash holdings, offshore investments and other investments. They also said it was possible that people outside the identifiable business sector, such as international sportsmen, patent holders and owners of listed companies, were excluded from the list, as it was not possible to identify them or their wealth.
The value of Mittal's 52.02 percent holding in ArcelorMittal SA has almost doubled to 27.36 billion rand ($4 billion). Mittal's' interest in South Africa began several years ago when he turned around the fortunes of the ailing state-owned steel producer Iscor with huge cash injection and a business assistance agreement that saw him net millions. This success just continued to grow amid rising global steel prices.Somewhat ironically, there were recently strong rumours that the South African government was considering options to start a competitor to what has now evolved into ArcelorMittal SA from the original Iscor. Mittal's takeover has not been without controversy, as the Competitions Commission recently slapped the local subsidiary with a fine of almost 700 million rand ($103 million) after local customers claimed that the company was fixing its prices unfairly.
The only South African Indian in the 100 Richest List is former Minister of Environmental Affairs, Mohammed Valli Moosa, who came in at 71st position with his combined holding of 316 million rand ($42 million) in transport giant Imperial Holdings, insurance giant Sanlam, and leisure group Sun International.
Source:- http://www.headlinesindia.com/archive_html/02December2007_64698.html

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Antidumping duty sought on imported ceramic tiles

The Indian Council of Ceramic Tiles and Sanitaryware (ICCTS) has sought antidumping duty on import of glazed wall and floor tiles to protect domestic manufacturers from losing market share and incurring heavy losses. ICCTS chairman Nancy Shah said late on Saturday in New Delhi that the government should levy anti-dumping duty on glazed wall and floor tiles, imported largely from China and the United Arab Emirates, as it did in the case of imported vitrified tiles in 2003. "Though antidumping duty on imported vitrified tiles brought relief to local manufacturers, import of ceramic wall and floor tiles in large quantities has led to prices crashing and profit margins of domestic manufacturers eroding," Shah said.
"The dumping is affecting local players who have invested heavily in setting up production plants with huge capacities," she pointed out. The domestic market of glazed wall and floor tiles is estimated to be about Rs 50 billion annually. With large quantities of these tiles, valued at Rs5 billion, being imported into India from China and the Gulf countries during the last 2-3 years, local manufacturers and dealers have been forced to lower prices by 15-20 per cent to survive."We have presented our case to the Union Commerce and Finance Ministries and sought immediate relief, as further delay in imposing antidumping levy will drive many domestic manufacturers out of business in the face of surging imports," Shah said. The demand for glazed wall and floor tiles has shot up by about 30-40 per cent during the last three-four years due to all-round construction boom in a burgeoning economy.
"Even the middle-classes have started investing in exotic tiles in new houses or renovating existing ones, especially in kitchens, restrooms, prayer rooms, etc. Using imported tiles has become a fashion though Indian-made tiles are no less in quality and variety," Shah pointed out.The ministries have asked the council to supplement its case with additional data on the impact of dumping across the supply chain and the quantum of antidumping duty to be levied to protect local manufacturers in the organised and unorganised sectors.
"We have already briefed government officials on how in the past about 30 per cent antidumping duty on vitrified tiles had bailed us out. It also enabled the organised sector to expand capacity with more players entering the industry. It is for the government to decide on the quantum of levy in conformity with the WTO (World Trade Organisation) regulations," Shah noted. There are 40-50 well-known manufacturers in the organised sector, while 200-250 units are scattered across the country in the unorganised sector, meeting the growing commercial and housing construction industry.
With the lifting of quantitative restrictions (QRs) under the WTO regime and lowering of duties, import of cheaper tiles from China, the Gulf region and some European countries has been increasing by five-ten per cent annually. As a result, the use of imported tiles in the commercial and housing sectors has been going up by 10-15 per cent annually."If the government does not check the dumping trend, the local ceramic tiles industry will be severely hit in the coming years, forcing many to shutdown their manufacturing units," Shah affirmed.
The council, a 17-year-old apex body of the ceramic tile industry, promotes the growth of Indian tiles and sanitary ware in the domestic as well as overseas markets. As a platform to voice the concerns of the industry, the council has been representing to the government for level-playing field vis-Ã -vis importers to meet the increasing demand for a variety of tiles in the domestic market.
Source:- http://www.headlinesindia.com/archive_html/02December2007_64684.html

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Gujarat's cotton grows on child labour

Though, the textile industry in India is reaching new heights, with expected growth of $55 billion, the fine looking data has many a tragic tale of exploitation behind it to give that kind of push. The Indian textile industry is thriving on the child Labour. According to the Dakshini Rajasthan Mazdoor Union (DRMU), the industry in Gujarat and Rajasthan has myriad children working in it and face verbal, physical, and sexual abuse regularly. The government data estimates the number to be around 1.4 million.
India hopes to export as much as 7 percent of the world's cotton textile in the coming years, but the government has not yet come up with meaningful policy to curb the menace of child labour in the industry.
A report from DRMU reveals a horrific tale of a 12 year old girl Shobha from a village of Rajasthan, who went to work in a textile factory in Amreli in neighbouring Gujarat. Shobha, who was involved in the ginning work, became a victim of sexual assault and died a tragic death in February in 2007. The union report says, there are a number of cases like Shobha going unreported. The estimated number of children working in the Gujarat textile industry is 2,00,000. Most of them belong to tribal groups and muslim community, and are in the age group of 9 to 14, reveals the report.
Speaking at a recent workshop in Hyderabad, DRMU official Ashok Khandelwal told the media that almost every 18th child in Gujarat is working or searching for work. "The textile sector in Surat alone employs one fourth of the state's child labour," Khandelwal maintains.
The working and living condition of children in these places are also very pathetic. There is no proper drinking water facility, neither their accommodation are taken care of. Girls and boys are made to live together, often in the open, causing deaths due to snakebites. Girls are at an added disadvantage as they often face sexual harassment.
Rise in the demand of cotton textile in world market, and India meeting maximum of it sounds really nice, but economic progress on the expense of precious future can not be acceptable in a developing society like ours.
Source:- http://www.headlinesindia.com/archive_html/02December2007_64683.html

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