19th September 2009
It is distressingly sad to see the decline in public governance standards over time. Politicians put self before country; their twin objectives being acquisition and retention of power, and of lucre. To acquire both of which, they seek discretionary powers, never mind what it does to the economic progress of the country. The electorate, on its part, is of a generation that takes the democratic attributes of freedom and liberty for granted. The post Independence third generation do not have the first hand experience of the loss of freedom, nor the second hand narrative of it. They are thus prey to the divisive policies of divide and rule, initiated by the British and perfected by our politicians, on the basis of caste, creed and religion.
The idea of having a common GST, one that good governance demands (several countries of the EU got together to form a common market. India, as one country, cannot get its State Governments to agree to it!) is likely to be derailed because state Governments wish to have 3 rates. One for precious metals, at 1%, another for commodities of mass consumption, at 4% and the standard rate for the rest, of 8-9%. It is in the second slab that discretion, with the potential of lucre, comes in. What are commodities of mass consumption?
More than the lure of lucre it is the retention of power that is important; witness the reluctance of politicians to take a call on Sn 377, placing the onus on the Supreme Court to take a decision that may perhaps be unpopular. Politicians are great at creating messes, leaving it to the judiciary to clean up (witness the clean air of Delhi after the Supreme Court mandated uses of CNG for buses/trucks, which the administration was too wimpish to accomplish).
Or take rent control. Why is it not possible to abolish this for future tenancies, leaving existing ones under protection of existing law? Such a move hurts no one's interests; in fact it helps people move to cities by opening up a rental market.
Or take the irrational policy of petro product pricing, where subsidised petrol encourages the growth of the auto industry, unmindful of the fact that vehicles running on petrol (and the plants to build them) may prove a huge future problem when fossil fuels run out and alternate fuels are brought in. Mr Deora should read a book 'Natural Capitalism' by Hawken, Lowens and Lowens. As much as 80% of the energy contained in oil is wasted because of design of the vehicle (95% by weight is the car and 5% the passenger who is to be transported) and design. This could be addressed by making the car lighter, using hybrid materials, reducing the drag and by electric hybrid or other alternative fuels.Surely not by subsidising petrol, and that, too, at the cost of IOC, HPCL and BPCL's minority shareholders.
Prior to 1992, when industrial licensing was done away with, politicians stultified growth of industry in order to retain the discretion, with concomitant power and lucre, to grant licenses. Simultaneously, the financial sector growth was constrained; long term funding came only out of three all India lending institutions viz. IDBI, ICICI and IFCI and 3 investing institutions LIC, GIC and UTI. Fast forward to today and see the impact this has had on society. Over 60% of our population depends on agriculture, but get 18% of national income; food prices are kept low due to artificial barriers, primarily to benefit a more vocal urban population. Compare with an agrarian, and poor country like Ethiopia, where agriculture supports 50% of the population but they get 80% of the income!
Good governance matters because we now need to ensure that the Indian economy continues to grow; the global problems are not yet over.
Sadly, the Government is unable to move ahead with necessary financial sector reforms, despite having an opposition that is shooting itself in the foot. In the coming winter session of Parliament, the Banking and Pension sector reform bills are not being taken up; only micro finance and stake dilution in SBI is likely to be. In a wonderful article in ET, 18th Sep, Manish Chokhani maintains that the current rally is not sustainable, pointing to the risks of asset price inflation, arising out of the huge monetary stimuli of US, UK, German and other Governments. Witness the $ 3.16m paid in HK for a 1 bedroom flat.
Globally, the largest economy, USA, has been a consumption led economy. The fiscal and monetary stimuli were meant to spur consumption, after the collapse of Lehman Bros a year ago brought down the financial system like a pack of cards. This has, however, piled up debt, which must be repaid and to repay which, the US household must save more by consuming less. Unless other countries pick up the slack of such reduced consumption, the world can slide back into low growth. This is the risk.
In domestic corporate news, RIL is eyeing gains of about Rs 4250 by selling its own stock held after RPL was merged into it. During the past week it sold about 75% of the stock with the rest to be sold shortly.
The merger between Bharti Airtel and South African MTN, is likely to run into the roadblock of dual listing. The South Africans want it. India is not yet ready for it; several changes in Company Law and the Foreign Exchange Regulations will need to be made.
The stockmarket rose last week, with the Sensex gaining 477 points to end at 16741 and the Nifty gaining 147 to end at 4976. There is still some steam left but caution is advocated as a dip is near.
One hopes that there is not another terrorist attack, as Israel has warned India to expect. If there is, the response from India is not likely to be muted and that would slay the bull. For politicians, discretion may be the better part of lucre, but for investors it is the better part of valour
Weekend edition-The Return of Risk ( Equity Master Home page)
Saturday, September 19, 2009
Thursday, September 17, 2009
UNION CABINET APPROVES NATIONAL INSTITUTE OF TECHNOLOGY FOR SIKKIM
17 Sept 2009
New Delhi
The Union Cabinet today approved setting up of new National Institutes of Technology (NITs). These new NITs will be established in Manipur; Meghalaya; Mizoram; Nagaland; Goa (which will also cater to UTs of Daman & Diu, Dadra & Nagar Haveli and Lakshdweep); Pudducherry (which will also cater to Andaman & Nicobar Islands); Sikkim; Delhi (which will also cater to Chandigarh) and Uttrakhand.
The process for setting up of these new NITs will start in 2009-10 with formation of their respective societies, constitution of their Board of Governors, appointment of Directors, etc. The admissions in these new NITs will be made from the academic session 2010-11 and NITs will start classes either in campuses taken on lease or temporarily in mentor NITs. Work for construction of campuses for these new NITs will also be initiated subject to the land being provided free of cost by the concerned States/UTs. The process of setting up will be completed over a period of five year.
The new NITs are being setup so as to cater to the needs of States/UTs which do not have NITs as of now. This will meet a long standing demand of these States/UTs. These Institutes will be covered under the National Institutes of Technology Act, 2007 making them institutions of national importance, which will ultimately help in addressing the aspirations of people especially of the North East region where 6 new NITs are to be established. The new NITs will be able to provide high quality education to many of the bright students from these States/UTs, as 50% of the seats are to be filled from the eligible students from these States/UTs. Many of the States/UTs where these new NITs are being opened, especially those in North East are lacking in national level technical institutions. This will bring such States of North East in the main stream of the technical education.
The new NITs will increase in output of high quality:
(i) By producing engineering and science graduates in the short run and postgraduates and Ph.Ds in the long run;
(ii) By providing teachers for Engineering and Science subjects at College/University level; and
(iii) By developing Research & Development and Intellectual Property generation in Engineering and Science, in the long run.
The new approved NITs are categprized under two Schemes, as follows:
(a) Scheme “A” consisting of proposed NITs at Manipur, Meghalaya, Mizoram, Nagaland, Goa, which will also cater to UTs of Daman & Diu, Dadra & Nagar Haveli and Lakshadweep, Pudducherry, which will cater to Andaman & Nicobar Islands also and Sikkim; and
(b) Scheme “B” consisting of approved NITs at Delhi (which will also cater to Chandigarh) and Uttrakahand.
Each of the NIT under scheme A will be established at a cost of Rs.250 crore while each of the NIT in scheme B will be set up at a cost of Rs.300 crore. Total project cost is Rs.2600 crore. During 11th Plan the expenditure will be of the order of Rs.540 crore and for the year 2009-2010 expenditure will be of the order of Rs.50 crore.
Main beneficiaries will be the students from the States/UTs which at present do not have NITs as seats will be earmarked for such students in these NITs along with seats earmarked to be filled on all India merit basis.
Presently there are 20 National Institutes of Technology (NITs), located at Agartala, Allahabad, Bhopal, Calicut, Durgapur, Hamirpur, Jaipur, Jalandhar, Jamshedpur, Kurukshetra, Nagpur, Patna, Raipur, Rourkela, Silchar, Srinagar, Surat, Surathkal, Tiruchirapalli and Warangal. Seventeen of these NITs were earlier known as regional Engineering Colleges (RECs). These RECs were set up as joint and co-operative ventures of the Central and State Governments with an aim to meet the increased demand for technically qualified manpower. In 2003, the Seventeen erstwhile Regional Engineering Colleges (RECs) were rechristened as National Institution of Technology (NITs) and taken over as fully funded institutes of the Central Government and granted deemed university status. Subsequently, Bihar College of Engineering, Patna; Government Engineering College, Raipur; and Tripura Engineering College, Agartala, were also converted into NITs in 2004, 2005 and 2006 respectively. NITs are governed by National Institutes of Technology Act, 2007 which came into force w.e.f. 15th August 2007. The NIT Act 2007 declares these NITs as institutions of national importance.
50% of the seats in NITs at Under Graduate level are filled from the eligible students of the State where the NIT is located. Remaining seats are filled on all India merit basis. However, Students of States/UTs which are not having NITs have complained being at a disadvantage, though this Ministry if compensating such States/UTs by way of allocating supernumerary seats in NITs. To address this problem, MHRD has proposed to set up new NITs, provision for which is available in the 11th Five Year Plan, so as to cater to the needs of non-NIT States/UTs.
*****
AKT/AD/SH/VK
17 Sept 2009
New Delhi
The Union Cabinet today approved setting up of new National Institutes of Technology (NITs). These new NITs will be established in Manipur; Meghalaya; Mizoram; Nagaland; Goa (which will also cater to UTs of Daman & Diu, Dadra & Nagar Haveli and Lakshdweep); Pudducherry (which will also cater to Andaman & Nicobar Islands); Sikkim; Delhi (which will also cater to Chandigarh) and Uttrakhand.
The process for setting up of these new NITs will start in 2009-10 with formation of their respective societies, constitution of their Board of Governors, appointment of Directors, etc. The admissions in these new NITs will be made from the academic session 2010-11 and NITs will start classes either in campuses taken on lease or temporarily in mentor NITs. Work for construction of campuses for these new NITs will also be initiated subject to the land being provided free of cost by the concerned States/UTs. The process of setting up will be completed over a period of five year.
The new NITs are being setup so as to cater to the needs of States/UTs which do not have NITs as of now. This will meet a long standing demand of these States/UTs. These Institutes will be covered under the National Institutes of Technology Act, 2007 making them institutions of national importance, which will ultimately help in addressing the aspirations of people especially of the North East region where 6 new NITs are to be established. The new NITs will be able to provide high quality education to many of the bright students from these States/UTs, as 50% of the seats are to be filled from the eligible students from these States/UTs. Many of the States/UTs where these new NITs are being opened, especially those in North East are lacking in national level technical institutions. This will bring such States of North East in the main stream of the technical education.
The new NITs will increase in output of high quality:
(i) By producing engineering and science graduates in the short run and postgraduates and Ph.Ds in the long run;
(ii) By providing teachers for Engineering and Science subjects at College/University level; and
(iii) By developing Research & Development and Intellectual Property generation in Engineering and Science, in the long run.
The new approved NITs are categprized under two Schemes, as follows:
(a) Scheme “A” consisting of proposed NITs at Manipur, Meghalaya, Mizoram, Nagaland, Goa, which will also cater to UTs of Daman & Diu, Dadra & Nagar Haveli and Lakshadweep, Pudducherry, which will cater to Andaman & Nicobar Islands also and Sikkim; and
(b) Scheme “B” consisting of approved NITs at Delhi (which will also cater to Chandigarh) and Uttrakahand.
Each of the NIT under scheme A will be established at a cost of Rs.250 crore while each of the NIT in scheme B will be set up at a cost of Rs.300 crore. Total project cost is Rs.2600 crore. During 11th Plan the expenditure will be of the order of Rs.540 crore and for the year 2009-2010 expenditure will be of the order of Rs.50 crore.
Main beneficiaries will be the students from the States/UTs which at present do not have NITs as seats will be earmarked for such students in these NITs along with seats earmarked to be filled on all India merit basis.
Presently there are 20 National Institutes of Technology (NITs), located at Agartala, Allahabad, Bhopal, Calicut, Durgapur, Hamirpur, Jaipur, Jalandhar, Jamshedpur, Kurukshetra, Nagpur, Patna, Raipur, Rourkela, Silchar, Srinagar, Surat, Surathkal, Tiruchirapalli and Warangal. Seventeen of these NITs were earlier known as regional Engineering Colleges (RECs). These RECs were set up as joint and co-operative ventures of the Central and State Governments with an aim to meet the increased demand for technically qualified manpower. In 2003, the Seventeen erstwhile Regional Engineering Colleges (RECs) were rechristened as National Institution of Technology (NITs) and taken over as fully funded institutes of the Central Government and granted deemed university status. Subsequently, Bihar College of Engineering, Patna; Government Engineering College, Raipur; and Tripura Engineering College, Agartala, were also converted into NITs in 2004, 2005 and 2006 respectively. NITs are governed by National Institutes of Technology Act, 2007 which came into force w.e.f. 15th August 2007. The NIT Act 2007 declares these NITs as institutions of national importance.
50% of the seats in NITs at Under Graduate level are filled from the eligible students of the State where the NIT is located. Remaining seats are filled on all India merit basis. However, Students of States/UTs which are not having NITs have complained being at a disadvantage, though this Ministry if compensating such States/UTs by way of allocating supernumerary seats in NITs. To address this problem, MHRD has proposed to set up new NITs, provision for which is available in the 11th Five Year Plan, so as to cater to the needs of non-NIT States/UTs.
*****
AKT/AD/SH/VK
PLAN FOR SINGLE RATE GST SUFFERRED SETBACK
16.9.2009
The efforts to stitch togethr a common market in India through the introduction of a single goods and services tax (GST) by 1 April suffered a serious jolt on 16.9.2009, after 35 states and Union territories agreed on three rates for transactions of goods.
In a move that has more to do with politics than economics, the states proposed a lower GST rate for items of mass consumption, a regular rate for other goods and a nominal charge of 1% on precious metals. There will also be a small list of goods exempted from this tax.
Announcing this, West Bengal finance minister (FM) Asim Dasgupta added that the agreement between state governments did not cover services.
A single GST was to replace a tangled web of national, state and local taxes and would have been the culmination of a long process of indirect tax reforms that began in 1991. GST in its pristine form was expected to help firms produce more efficiently and give consumers more clarity about the taxes they paid on goods and services.
The new tax structure proposed on Wednesday is similar to the value-added taxes (VAT) that states currently impose, though GST was envisaged as an improvement over the current system.
The states want multiple rates to stem revenue losses as well to hold the price line of some goods.
Dasgupta, chairman of the empowered committee of state finance ministers, the group that has to chart out the roadmap for GST, declined to disclose the rates for different categories of goods. However, FMs who participated in Wednesday's meeting said the normal rate was likely to be around 5% and the standard rate could be anything between 8% and 12.5%.
Besides the states, the Union government too will charge its GST rate, which was earlier expected to be 8%.
In the past few months, negotiations among states have run into difficulties as richer states such as Maharashtra did not always have the same interests as poorer ones such as Madhya Pradesh or Sikkim.
According to a state FM, Wednesday's compromises reflected Dasgupta's aim to narrow the differences and get GST off the ground. Subsequently, GST could be reformed to achieve the original objective, the minister added.
"We don't have any time to lose," Dasgupta told the media, after announcing that bureaucrats from the Centre and states would assemble into working groups to prepare a framework for constitutional amendments and a "model GST legislation".
There is no process yet for working out operational details," said Satya Poddar, partner at audit and consultancy firm Ernst and Young.
A negative implication of Wednesday's decision by the empowered committee is that it may become difficult to counter litigation arising out of disputes on categorization of goods and services, he said.
Currently, some of the outstanding disputes are on prepaid mobile phone cards and packaged software where the tax department and firms differ on categorization, which attracts different tax rates. In "value-added services" such as these, a single GST would have removed the root cause of disputes, Poddar said.
With states asking for three rates, "the best thing to do (would be) to have items at standard rates, which can be blended into services", he said.
Now, states are open to charging 8% as a uniform tax rate for services. If the Union government adds the same rate on services, they will be taxed at 16%, compared with the current level of 10%.
Today, service tax is levied exclusively by the Union government, but a part of the proceeds is shared with states according to the formula fixed by the Twelfth Finance Commission.
Identifying the items of mass consumption that would attract the "lower rate" is expected to be tricky, as each state has unique needs.
For instance, Madhya Pradesh FM Raghavji (who goes by one name) pointed out in the meeting that the state has kept cereals, pulses and sugar out of the VAT net "despite incurring substantial revenue loss to give relief to the poor".
A written copy of Raghavji's speech pointed out the proceedings of the empowered committee have given an impression that foodgrain would be taxed under GST.
After the meeting, Dasgupta said foodgrain were discussed, but there is no consensus on its categorization as yet.
To mitigate fears of some states that they would be steamrolled into accepting categorizations that would harm their interests, Dasgupta said states would be allowed to choose goods of local importance, which could be kept out of GST.
-----------
New Delhi:31 aUG 2009:
To sell the concept of goods and services tax (GST) to the electorate, some states are pushing for two tax rates: a low one for items of mass consumption and a higher rate for the others.
While it could complicate the structure by allowing for more sets of tax rates, politicians believe it will be easier to implement and push through their respective constituencies. The Union government and states are negotiating the contours of a GST that the Congress-led United Progressive Alliance is committed to launching by 1 April.
GST is an attempt to economically integrate all the states. Currently, states have the power to independently levy indirect taxes on some goods. As a result, some of the decisions made by companies have more to do with tax avoidance than operating efficiency, say analysts. Under GST, there will be uniform tax rates on almost all important goods and services across states.
Negotiations among states on the two rates are expected to start at 5% on items of mass consumption, to be levied separately by the Centre and states. Similarly, states are expected to discuss a rate of 10% levied independently by the Centre and states for the residual items.
Before some states floated the idea of segregating consumables and charging different rates, many states were veering towards a GST rate of 16%, with 8% levied separately by the Centre and states.
The finance minister of a Bharatiya Janata Party (BJP)-ruled state, who did not want to be identified, told Mint recently that some of the ministers had an ideological problem with a single GST rate on all consumables. How does a politician convince a voter that a bicycle and car would be taxed at the same rate, the minister wondered.
At the other end of the ideological spectrum, T.M. Thomas Isaac, finance minister of Kerala’s Left Democratic Front government, which is made up of different Communist parties, said he would like a lower GST rate on items of mass consumption.
This would, however, require a uniform rate across the country. For manufacturers and service providers, the biggest advantage of GST would be the right to offset state taxes paid on inputs sourced from another state. Therefore, the items of mass consumption chosen to be taxed at a lower rate would have to be uniform across states for companies to offset state taxes on inputs sourced from different parts of the country.
Negotiations on a uniform list of items of mass consumption are likely to be tough.
The recent twist in the GST negotiations did not come as a surprise. “The more you get into details, you realize it is a mammoth task, even conceptually,” said Vivek Mishra, who deals with the subject of indirect taxes at consultancy Ernst and Young. Mishra said the recent developments were just the beginning. “It is the latest example of how difficult or how long the haul is going to be. This (two rates) is a significant departure, but it is only the first of the many we will see,” Mishra added.
The state finance ministers have been negotiating the GST blueprint under an umbrella group dubbed empowered committee of state finance ministers, which meets at regular intervals. Representatives of the Central government also take part in the meetings.
Currently, the empowered committee is working on a deadline of 1 April, but since June, there have been signs that it might not be easy to make this transition.
Based on reactions from finance ministers of different states and officials in both state and Central bureaucracies after recent meetings of the empowered committee, differences seem to have arisen on account of a conflict of interest among states and the risk of making the transition without a robust nationwide information technology (IT) network.
Soon after transitioning to GST, some of the economically weaker states might see a dip in revenue as GST is a consumption tax. Therefore, some states such as Assam have asked for open-ended compensation from the Centre till their revenues stabilize as a price for giving up the states’ power to independently change tax rates.
Among economically stronger states, Gujarat has asked for an IT backbone to be in place before transitioning to the GST regime, while Tamil Nadu’s representatives have said the April deadline is premature.
India had an opportunity to implement a tax code that would limit market distortions, be transparent, and keep compliance costs low. But that opportunity may now be lost.
--------------------------------------------------------------------------------
A uniform, single-rate GST was the opportunity for Indian companies to move beyond the complexities of disparate tax regimes; and the economy would have been unified under a single Indian market, with limited distortions.
The major issue is that different tiers of tax rates create a host of market distortions. This problem stems from the complexities associated with classifying goods. What will be classified as a mass consumption good, and what will be taxed at a normal rate?
If similar, and competing goods are set at different rates, that will create market inefficiencies. Consumers may be inclined to substitute to the product that is cheaper—after taxes.
And these distortions from classification will exist in other realms as well. Composite goods—or a bundle of different goods—will be difficult to parse across different tax rates. For example, how will a mobile phone with a camera be taxed? As a camera, a phone, or as a different category altogether?
The point of a GST was to give Indian firms respite from the distortions and complexities of India’s tax regime—and the complicated webs of tax codes, which are vastly disparate across states and regions. Not only could GST have simplified compliance costs, but it would have also limited the market distortions caused by taxes.
Different states had different stakes in GST because of their levels of consumption, and because of the perceived fear that essential goods would become costlier under a GST regime. What is most troubling about the GST plan is that states will be given free rein to exempt goods—that they perceive of local importance—from GST, some of which are major tax revenue generators.
It remains to be seen what GST for services will look like. But hopefully, GST reforms can be reconsidered in the near future so that the imperative of a unified market in India can actually be realized.
--------------------------------------------------------------------------------- Sep 17 05:34 AM
The states today decided to have two rates for the proposed Goods and Services Tax — one standard rate and another a lower rate for essential items — scheduled to be introduced from April 1, 2010. "We have reached a consensus so far as states' GST is concerned. There will be two rates, one standard rate and the other a lower rate for essential items," Value Added Tax Panel (VAT) chairman Asim Dasgupta told reporters after an empowered group of state finance ministers and officials of the union finance ministry met here.
He said there would be a list of exempted items and a special GST rate for precious metals. However, there is no clarity on whether the centre would also have two GST rates. Dasgupta said he cannot speak on behalf of the central government but it would likely have a "good deal of conformity" with state-level GST. Consensus is already there on having a dual model of GST — separate GST for the centre and the states. GST proposes to create a common market and replace excise duty and service tax at the centre and VAT and local taxes at the states' level.
Another important decision taken at today's meeting was forming a joint working group comprising officials of the finance and other concerned ministries at the centre and finance secretaries or commissioners of commercial taxes at the state level to decide on a framework for the constitutional amendment and model legislation on GST for the centre and states in a time-bound manner. Dasgupta said the joint working group would submit a report in about two months. "We think we do not have any time to lose. Therefore, the framework for a constitutional amendment is necessary as soon as possible, in a time-bound manner," he said.
However, while Dasgupta exuded confidence and commitment for introducing GST as slated, various states including Madhya Pradesh expressed reservations over it, saying it should not be introduced in haste.
ENS Economic Bureau
The efforts to stitch togethr a common market in India through the introduction of a single goods and services tax (GST) by 1 April suffered a serious jolt on 16.9.2009, after 35 states and Union territories agreed on three rates for transactions of goods.
In a move that has more to do with politics than economics, the states proposed a lower GST rate for items of mass consumption, a regular rate for other goods and a nominal charge of 1% on precious metals. There will also be a small list of goods exempted from this tax.
Announcing this, West Bengal finance minister (FM) Asim Dasgupta added that the agreement between state governments did not cover services.
A single GST was to replace a tangled web of national, state and local taxes and would have been the culmination of a long process of indirect tax reforms that began in 1991. GST in its pristine form was expected to help firms produce more efficiently and give consumers more clarity about the taxes they paid on goods and services.
The new tax structure proposed on Wednesday is similar to the value-added taxes (VAT) that states currently impose, though GST was envisaged as an improvement over the current system.
The states want multiple rates to stem revenue losses as well to hold the price line of some goods.
Dasgupta, chairman of the empowered committee of state finance ministers, the group that has to chart out the roadmap for GST, declined to disclose the rates for different categories of goods. However, FMs who participated in Wednesday's meeting said the normal rate was likely to be around 5% and the standard rate could be anything between 8% and 12.5%.
Besides the states, the Union government too will charge its GST rate, which was earlier expected to be 8%.
In the past few months, negotiations among states have run into difficulties as richer states such as Maharashtra did not always have the same interests as poorer ones such as Madhya Pradesh or Sikkim.
According to a state FM, Wednesday's compromises reflected Dasgupta's aim to narrow the differences and get GST off the ground. Subsequently, GST could be reformed to achieve the original objective, the minister added.
"We don't have any time to lose," Dasgupta told the media, after announcing that bureaucrats from the Centre and states would assemble into working groups to prepare a framework for constitutional amendments and a "model GST legislation".
There is no process yet for working out operational details," said Satya Poddar, partner at audit and consultancy firm Ernst and Young.
A negative implication of Wednesday's decision by the empowered committee is that it may become difficult to counter litigation arising out of disputes on categorization of goods and services, he said.
Currently, some of the outstanding disputes are on prepaid mobile phone cards and packaged software where the tax department and firms differ on categorization, which attracts different tax rates. In "value-added services" such as these, a single GST would have removed the root cause of disputes, Poddar said.
With states asking for three rates, "the best thing to do (would be) to have items at standard rates, which can be blended into services", he said.
Now, states are open to charging 8% as a uniform tax rate for services. If the Union government adds the same rate on services, they will be taxed at 16%, compared with the current level of 10%.
Today, service tax is levied exclusively by the Union government, but a part of the proceeds is shared with states according to the formula fixed by the Twelfth Finance Commission.
Identifying the items of mass consumption that would attract the "lower rate" is expected to be tricky, as each state has unique needs.
For instance, Madhya Pradesh FM Raghavji (who goes by one name) pointed out in the meeting that the state has kept cereals, pulses and sugar out of the VAT net "despite incurring substantial revenue loss to give relief to the poor".
A written copy of Raghavji's speech pointed out the proceedings of the empowered committee have given an impression that foodgrain would be taxed under GST.
After the meeting, Dasgupta said foodgrain were discussed, but there is no consensus on its categorization as yet.
To mitigate fears of some states that they would be steamrolled into accepting categorizations that would harm their interests, Dasgupta said states would be allowed to choose goods of local importance, which could be kept out of GST.
-----------
New Delhi:31 aUG 2009:
To sell the concept of goods and services tax (GST) to the electorate, some states are pushing for two tax rates: a low one for items of mass consumption and a higher rate for the others.
While it could complicate the structure by allowing for more sets of tax rates, politicians believe it will be easier to implement and push through their respective constituencies. The Union government and states are negotiating the contours of a GST that the Congress-led United Progressive Alliance is committed to launching by 1 April.
GST is an attempt to economically integrate all the states. Currently, states have the power to independently levy indirect taxes on some goods. As a result, some of the decisions made by companies have more to do with tax avoidance than operating efficiency, say analysts. Under GST, there will be uniform tax rates on almost all important goods and services across states.
Negotiations among states on the two rates are expected to start at 5% on items of mass consumption, to be levied separately by the Centre and states. Similarly, states are expected to discuss a rate of 10% levied independently by the Centre and states for the residual items.
Before some states floated the idea of segregating consumables and charging different rates, many states were veering towards a GST rate of 16%, with 8% levied separately by the Centre and states.
The finance minister of a Bharatiya Janata Party (BJP)-ruled state, who did not want to be identified, told Mint recently that some of the ministers had an ideological problem with a single GST rate on all consumables. How does a politician convince a voter that a bicycle and car would be taxed at the same rate, the minister wondered.
At the other end of the ideological spectrum, T.M. Thomas Isaac, finance minister of Kerala’s Left Democratic Front government, which is made up of different Communist parties, said he would like a lower GST rate on items of mass consumption.
This would, however, require a uniform rate across the country. For manufacturers and service providers, the biggest advantage of GST would be the right to offset state taxes paid on inputs sourced from another state. Therefore, the items of mass consumption chosen to be taxed at a lower rate would have to be uniform across states for companies to offset state taxes on inputs sourced from different parts of the country.
Negotiations on a uniform list of items of mass consumption are likely to be tough.
The recent twist in the GST negotiations did not come as a surprise. “The more you get into details, you realize it is a mammoth task, even conceptually,” said Vivek Mishra, who deals with the subject of indirect taxes at consultancy Ernst and Young. Mishra said the recent developments were just the beginning. “It is the latest example of how difficult or how long the haul is going to be. This (two rates) is a significant departure, but it is only the first of the many we will see,” Mishra added.
The state finance ministers have been negotiating the GST blueprint under an umbrella group dubbed empowered committee of state finance ministers, which meets at regular intervals. Representatives of the Central government also take part in the meetings.
Currently, the empowered committee is working on a deadline of 1 April, but since June, there have been signs that it might not be easy to make this transition.
Based on reactions from finance ministers of different states and officials in both state and Central bureaucracies after recent meetings of the empowered committee, differences seem to have arisen on account of a conflict of interest among states and the risk of making the transition without a robust nationwide information technology (IT) network.
Soon after transitioning to GST, some of the economically weaker states might see a dip in revenue as GST is a consumption tax. Therefore, some states such as Assam have asked for open-ended compensation from the Centre till their revenues stabilize as a price for giving up the states’ power to independently change tax rates.
Among economically stronger states, Gujarat has asked for an IT backbone to be in place before transitioning to the GST regime, while Tamil Nadu’s representatives have said the April deadline is premature.
India had an opportunity to implement a tax code that would limit market distortions, be transparent, and keep compliance costs low. But that opportunity may now be lost.
--------------------------------------------------------------------------------
A uniform, single-rate GST was the opportunity for Indian companies to move beyond the complexities of disparate tax regimes; and the economy would have been unified under a single Indian market, with limited distortions.
The major issue is that different tiers of tax rates create a host of market distortions. This problem stems from the complexities associated with classifying goods. What will be classified as a mass consumption good, and what will be taxed at a normal rate?
If similar, and competing goods are set at different rates, that will create market inefficiencies. Consumers may be inclined to substitute to the product that is cheaper—after taxes.
And these distortions from classification will exist in other realms as well. Composite goods—or a bundle of different goods—will be difficult to parse across different tax rates. For example, how will a mobile phone with a camera be taxed? As a camera, a phone, or as a different category altogether?
The point of a GST was to give Indian firms respite from the distortions and complexities of India’s tax regime—and the complicated webs of tax codes, which are vastly disparate across states and regions. Not only could GST have simplified compliance costs, but it would have also limited the market distortions caused by taxes.
Different states had different stakes in GST because of their levels of consumption, and because of the perceived fear that essential goods would become costlier under a GST regime. What is most troubling about the GST plan is that states will be given free rein to exempt goods—that they perceive of local importance—from GST, some of which are major tax revenue generators.
It remains to be seen what GST for services will look like. But hopefully, GST reforms can be reconsidered in the near future so that the imperative of a unified market in India can actually be realized.
--------------------------------------------------------------------------------- Sep 17 05:34 AM
The states today decided to have two rates for the proposed Goods and Services Tax — one standard rate and another a lower rate for essential items — scheduled to be introduced from April 1, 2010. "We have reached a consensus so far as states' GST is concerned. There will be two rates, one standard rate and the other a lower rate for essential items," Value Added Tax Panel (VAT) chairman Asim Dasgupta told reporters after an empowered group of state finance ministers and officials of the union finance ministry met here.
He said there would be a list of exempted items and a special GST rate for precious metals. However, there is no clarity on whether the centre would also have two GST rates. Dasgupta said he cannot speak on behalf of the central government but it would likely have a "good deal of conformity" with state-level GST. Consensus is already there on having a dual model of GST — separate GST for the centre and the states. GST proposes to create a common market and replace excise duty and service tax at the centre and VAT and local taxes at the states' level.
Another important decision taken at today's meeting was forming a joint working group comprising officials of the finance and other concerned ministries at the centre and finance secretaries or commissioners of commercial taxes at the state level to decide on a framework for the constitutional amendment and model legislation on GST for the centre and states in a time-bound manner. Dasgupta said the joint working group would submit a report in about two months. "We think we do not have any time to lose. Therefore, the framework for a constitutional amendment is necessary as soon as possible, in a time-bound manner," he said.
However, while Dasgupta exuded confidence and commitment for introducing GST as slated, various states including Madhya Pradesh expressed reservations over it, saying it should not be introduced in haste.
ENS Economic Bureau
Wednesday, September 16, 2009
RESTORE INSURANCE COVER OF INDIAN RAILWAY PASSENGERS
Press Release
Dt 16 Sept 2009
SIKKIM CHAMBER OF COMMERCE OPPOSES WITHDRAWL OF INSURANCE COVER FOR INDIAN RAIWAY PASSENGERS
We are surprised to learn that Indian Railways have stopped the coverage of Railway Passengers from accidents.
Currently more than 18 million passengers travel in the Indian railways on some 10700 trains. We came to understand that the insurance cover was not renewed for the period 2008-2009 which means we are traveling without insurance cover.
It saved the railways a sum of Rs.34 crores which it used to pay to Insurance Companies to cover the risk of accidents leading to injuries, deaths,etc. In the past passengers suffering accidents were entitled to receive Rs.4 lacs as claims for death and at least 32,000 for major fractures.
The reason put by the railways is that a large number of false claims comes up and it is for this reason that they want to withdraw cover for passengers.
The reason does not hold ground. If somebody puts false claims, it is the duty of the officer concerned to verify the truth, but based on this silly ground, Railways cannot and should not withdraw insurance cover for genuine passengers.
We urge Mrs Mamta Banerjee, Hon’ble Railway Minister to look into the matter with human touch and restore insurance coverage of passengers immdly.
Rs.34 crores premium amount is miniscule in the light of huge revenue that Indian Railway is earning.
S.K.Sarda
President
Sikkim Chamber of Commerce
Gangtok
Dt 16 Sept 2009
Dt 16 Sept 2009
SIKKIM CHAMBER OF COMMERCE OPPOSES WITHDRAWL OF INSURANCE COVER FOR INDIAN RAIWAY PASSENGERS
We are surprised to learn that Indian Railways have stopped the coverage of Railway Passengers from accidents.
Currently more than 18 million passengers travel in the Indian railways on some 10700 trains. We came to understand that the insurance cover was not renewed for the period 2008-2009 which means we are traveling without insurance cover.
It saved the railways a sum of Rs.34 crores which it used to pay to Insurance Companies to cover the risk of accidents leading to injuries, deaths,etc. In the past passengers suffering accidents were entitled to receive Rs.4 lacs as claims for death and at least 32,000 for major fractures.
The reason put by the railways is that a large number of false claims comes up and it is for this reason that they want to withdraw cover for passengers.
The reason does not hold ground. If somebody puts false claims, it is the duty of the officer concerned to verify the truth, but based on this silly ground, Railways cannot and should not withdraw insurance cover for genuine passengers.
We urge Mrs Mamta Banerjee, Hon’ble Railway Minister to look into the matter with human touch and restore insurance coverage of passengers immdly.
Rs.34 crores premium amount is miniscule in the light of huge revenue that Indian Railway is earning.
S.K.Sarda
President
Sikkim Chamber of Commerce
Gangtok
Dt 16 Sept 2009
Agriculture output to decline in India- World Bank
According to a World Bank report, agriculture output in India is likely to dip by upto 9% in the next 30 years due to climate change. The reason why India is so venerable is because of its geography as well as high level of poverty and population density. The Chief Economist of the World Bank believes that developing countries face 75-80% of the potential damage from climate change and that they urgently need help to prepare for drought, floods, and rising sea levels. It is estimated that global warming of 2 degrees celsius above pre-industrial temperatures - the minimum the world is likely to experience - could result in permanent reductions in GDP of 4% to 5% for South Asia. With the population growing at 1.5% annually the government needs to take urgent steps if India is to be a major player on the world stage.
According to a World Bank report, agriculture output in India is likely to dip by upto 9% in the next 30 years due to climate change. The reason why India is so venerable is because of its geography as well as high level of poverty and population density. The Chief Economist of the World Bank believes that developing countries face 75-80% of the potential damage from climate change and that they urgently need help to prepare for drought, floods, and rising sea levels. It is estimated that global warming of 2 degrees celsius above pre-industrial temperatures - the minimum the world is likely to experience - could result in permanent reductions in GDP of 4% to 5% for South Asia. With the population growing at 1.5% annually the government needs to take urgent steps if India is to be a major player on the world stage.
3G mobile services in Gangtok
GANGTOK, September 15:
The state-owned major Bharat Sanchar Nigam Ltd (BSNL) on Wednesday launched its upgraded telephony service 3G in Sikkim to provide various entertainment contents on its mobile telephony.
The 3G service has been extended to all four district headquarters Gangtok (East Sikkim), Namchi (South Sikkim), Mangan (North Sikkim) and Geyzing (West Sikkim) with immediate effect following the official launch, BSNL General Manager (Mobile), West Ben gal telecom circle Mr Amit Bhattacharjee, told reporters here.
The BSNL customers can watch the news and entertainment programmes from a host of cable channels with videographic description of the surroundings from where the contacts have been made, he said.
Adequate infrastructure has been laid down for providing quality service to the 3G customers in Sikkim, but some constraints did remain at a few places on the highways where it would be difficult for the customers to use video contact and their availabil ity on the audio remains all the time, Mr Bhattacharjee said.
Sikkim Chamber of Commerce appreciates the move of BSNL on 3G services.
GANGTOK, September 15:
The state-owned major Bharat Sanchar Nigam Ltd (BSNL) on Wednesday launched its upgraded telephony service 3G in Sikkim to provide various entertainment contents on its mobile telephony.
The 3G service has been extended to all four district headquarters Gangtok (East Sikkim), Namchi (South Sikkim), Mangan (North Sikkim) and Geyzing (West Sikkim) with immediate effect following the official launch, BSNL General Manager (Mobile), West Ben gal telecom circle Mr Amit Bhattacharjee, told reporters here.
The BSNL customers can watch the news and entertainment programmes from a host of cable channels with videographic description of the surroundings from where the contacts have been made, he said.
Adequate infrastructure has been laid down for providing quality service to the 3G customers in Sikkim, but some constraints did remain at a few places on the highways where it would be difficult for the customers to use video contact and their availabil ity on the audio remains all the time, Mr Bhattacharjee said.
Sikkim Chamber of Commerce appreciates the move of BSNL on 3G services.
Centre decentralizes, relaxes ILP system for Sikkim
Melli, Darjeeling TICs authorized to issue PAPs
KLIRDASON
GANGTOK, September 15: In a positive development for promotion of international tourism here, the Centre has accorded significant relaxation to the Protected Area regime in Sikkim besides decentralizing the powers to issue Protect Area Permits (PAP)/Restricted Area Permits (RAP).
Foreigners require an Inner Line Permit (ILP) to enter the border State of Sikkim and special permits are required to visit tourism spots like Guru Dongmar or trek along Dzongri areas near the border in West Sikkim which are declared as Restricted Areas. The whole of Sikkim is covered by the Protected Area Regime under Foreigners (Protected Areas) Order of 1958 and Foreigners (Restricted Areas) Order, 1963 respectively.
Chief Minister Pawan Chamling has been demanding the Centre for lifting the ILP formality for attracting more foreign tourists to Sikkim. The proposal of the State Government which has been under the consideration of the Centre has finally seen some endorsement.
In a recent communiqué with the State Government, the Ministry of Home Affairs has informed its decision to delegate additional powers to Sikkim government for the issues of PAP and RAP.
The State Government is now empowered to issue PAP/RAP to foreign tourists in group of two or above ‘with a recognized travel agent’ who would act as an escort. Earlier, the permits were given only to foreign tourists in group of four or above.
However, the existing restrictions on the visit of Rumtek Monastery and restriction on the movement of Tibetan refugees need to be enforced, the Centre said.
In another noteworthy relaxation, the Centre has also allowed the State government to issue the permits to foreign tourists initially for a period of 30 days extendable to another spell of 30 days.
Earlier, only 15 days permit used to be given for foreign tourists visiting Sikkim extendable to another 15 days following an application.
Further decentralizing the permit system, the Centre has informed the State Government of its decision to entrust power for RAP/PAP to Tourist Information Centre (TIC) at Darjeeling and Melli in South Sikkim
Before this, PAP/RAP to foreign tourists was issued only from Rangpo, Siliguri, Delhi and Kolkata.
The demand for allowing Darjeeling and Melli TICs to issue permits was a major demand of the State Government keeping in view of the importance of these two centres for tourism promotion.
Once all the above relaxations are officially notified by the State Government where formal delegation of permit powers to Melli TIC will open up South and West districts for foreign tourists.
Usually, foreign tourists have to come to Rangpo TIC for the permits and then detour back to Melli for visiting South and West Districts.
The State government has been putting pressure on the Centre for relaxation on the permit system. It had explicitly told the Centre that restrictive regime imposed by the ILP formality has discouraged many of the prospective tourists to visit Sikkim.
The relaxation as intimidated to the State by the Centre is expected to make the visit of foreign tourists comfortable and could enable them to reach the interiors of rural Sikkim where rural tourism are being promoted.
Melli, Darjeeling TICs authorized to issue PAPs
KLIRDASON
GANGTOK, September 15: In a positive development for promotion of international tourism here, the Centre has accorded significant relaxation to the Protected Area regime in Sikkim besides decentralizing the powers to issue Protect Area Permits (PAP)/Restricted Area Permits (RAP).
Foreigners require an Inner Line Permit (ILP) to enter the border State of Sikkim and special permits are required to visit tourism spots like Guru Dongmar or trek along Dzongri areas near the border in West Sikkim which are declared as Restricted Areas. The whole of Sikkim is covered by the Protected Area Regime under Foreigners (Protected Areas) Order of 1958 and Foreigners (Restricted Areas) Order, 1963 respectively.
Chief Minister Pawan Chamling has been demanding the Centre for lifting the ILP formality for attracting more foreign tourists to Sikkim. The proposal of the State Government which has been under the consideration of the Centre has finally seen some endorsement.
In a recent communiqué with the State Government, the Ministry of Home Affairs has informed its decision to delegate additional powers to Sikkim government for the issues of PAP and RAP.
The State Government is now empowered to issue PAP/RAP to foreign tourists in group of two or above ‘with a recognized travel agent’ who would act as an escort. Earlier, the permits were given only to foreign tourists in group of four or above.
However, the existing restrictions on the visit of Rumtek Monastery and restriction on the movement of Tibetan refugees need to be enforced, the Centre said.
In another noteworthy relaxation, the Centre has also allowed the State government to issue the permits to foreign tourists initially for a period of 30 days extendable to another spell of 30 days.
Earlier, only 15 days permit used to be given for foreign tourists visiting Sikkim extendable to another 15 days following an application.
Further decentralizing the permit system, the Centre has informed the State Government of its decision to entrust power for RAP/PAP to Tourist Information Centre (TIC) at Darjeeling and Melli in South Sikkim
Before this, PAP/RAP to foreign tourists was issued only from Rangpo, Siliguri, Delhi and Kolkata.
The demand for allowing Darjeeling and Melli TICs to issue permits was a major demand of the State Government keeping in view of the importance of these two centres for tourism promotion.
Once all the above relaxations are officially notified by the State Government where formal delegation of permit powers to Melli TIC will open up South and West districts for foreign tourists.
Usually, foreign tourists have to come to Rangpo TIC for the permits and then detour back to Melli for visiting South and West Districts.
The State government has been putting pressure on the Centre for relaxation on the permit system. It had explicitly told the Centre that restrictive regime imposed by the ILP formality has discouraged many of the prospective tourists to visit Sikkim.
The relaxation as intimidated to the State by the Centre is expected to make the visit of foreign tourists comfortable and could enable them to reach the interiors of rural Sikkim where rural tourism are being promoted.
PROPOSAL TO SCRAP AGENT COMMISSION IN LIC POLICIES
15 Sept 2009
The way life insurance policies are sold in India may change forever following a recommendation by the Insurance Regulatory and Development Authority of India, or Irda, to scrap agent commissions that customers have to pay even when they buy insurance directly from companies, either online or by walking into an insurance company office.
A senior Irda official told Mint that customers who buy policies directly from life insurance firms should not be charged such commission.
This game-changing recommendation follows two similar investor-friendly moves in the past few weeks. The Securities and Exchange Board of India, or Sebi, discontinued distribu
tor commissions in the mutual fund industry after August. A committee headed by pension regulator D. Swarup has recommended that all upfront commissions paid to distributors of financial products should be scrapped by April 2011.
The average commission, according to Irda's latest annual report, is 16.25% but can go as high as 40% in some plans such as unit-linked insurance products, or Ulips, and endowment plans.
The move to abolish agent commissions for direct applications will ensure that the entire premium paid by investors is put to work, thus increasing total returns on the investment.
"Irda recommended in July that following the amendment of the Insurance Act, the regulator must get the power to make it mandatory for life insurance companies not to charge agent's commission to a customer who buys a policy directly," said the Irda official, who did not want to be named.
"There is a clear case that customers who apply directly to buy a policy should not be charged the same way as others who come through agents.
Lowering the charges for direct customers will also ensure a healthy relationship between the customers and their insurance companies," said R. Kannan, member (actuary), Irda.
"The matter is before Parliament at the moment."
This is one of the proposals made by Irda in a draft Bill in the Rajya Sabha, the upper house of Parliament.
Irda chairman J. Hari Narayan said, "Indeed, such a suggestion has been made in the draft proposal. In fact the proposal also talks about conferring power to the regulator to determine the commission structure for intermediaries."
At present, a section of the Insurance Act prevents any rebate on commission charges or on premium paid by customers either directly or indirectly.
Even though removal of commission is different from rebating, Irda has recommended changes in this section to ensure no agent commission for direct sales.
The development assumes significance in the context of the draft recommendations of a six-member committee headed by Swarup, chairman, Pension Fund Regulatory and Development Authority, early this month. In a bid to curb mis-selling of all financial products, the panel has proposed a phased elimination of upfront commissions paid to the agents by April 2011.
The committee has recommended that the upfront commissions included in the premium paid should be reduced to 15% of the premium immediately from the current commission of up to 40%. In 2010, this should be brought down to 7% and a zero-commission structure should be ready by April 2011.
"The interim period should be used by insurance companies to help their agents make the transition to a more mature way of selling and advising," the Swarup committee consultation paper said.
Investments in Ulips involve several charges such as an initial administration charge or premium allocation charge, a regular administration charge, a policy administration fee and an investment management charge. Collectively these charges may eat up to 70% of the premium paid in the first year, including up to 40% of the premium as agent's commission.
Even in the case of direct applications, the charges remain the same. This means, if a customer pays a premium of Rs1 lakh in the first year, about Rs40,000 of this is deducted as agent's commission. From the second year onwards, the charges can be in the range of 5-10%. At least a few firms, including ICICI Prudential Life Insurance Co. Ltd and Max New York Life Insurance Co.
Ltd, have started offering certain policies that levy lower commission if a customer buys the product directly. Bajaj Allianz Life Insurance Co. Ltd too recently launched a product where customers can have the benefit of lower premium allocation charges when they buy online, said Kamesh Goyal, CEO, Bajaj Allianz. "The objective is to make available products suited for various channels and the customer then decides which channel they prefer to buy from."
Alpesh Shah, partner and director of consultancy firm Boston Consulting Group, said the cost of distribution, around 15-20% on average, is very high and there definitely is scope to bring it down.
At the same time, he pointed out that a pure insurance product is difficult to sell, being a "push product". But investment products wrapped with insurance are relatively easier to sell. According to S.B. Mathur, secretary general of Life Insurance Council, the representative body of all life insurers in India, the proposed changes will empower customers. He pointed out that since agents bring a lot of value to a product sale by ensuring lower risk of lapses, the know-your-customer norm has to be strengthened by insurers if the commission is removed.
Puneet Nanda, executive vice-president of ICICI Prudential Life Insurance, said theoretically, it was a good proposal but may be difficult to implement. "This is because agents play a crucial role in ensuring quality sales. Insurance is a complex subject and agents play a vital role in educating customers before selling a policy."
Mathur does not see any immediate impact on business as only a "small portion of sales comes from direct applications".
India has 22 life insurance companies, including staterun Life Insurance Corp. of India Ltd, the country's biggest.
The largest private sector life insurer in India collected a total premium of Rs15,356 crore in the last fiscal.
In the June quarter, total premium for the industry grew 11.11% to Rs47,169 crore from Rs42,452 crore a year earlier, according to data provided by Life Insurance Council.
In July, Irda capped fees that insurers could charge Ulip customers, following which some of the firms may have to cut commissions they pay to agents to control costs.
The objective behind Irda's move is to encourage longterm business and enable policyholders to earn additional returns. The new norms are effective 1 October.
A recent report from Mumbai-based brokerage Edelweiss Securities Ltd said significant cuts in commission rates are required to maintain profitability.
The Edelweiss report said: "As per our estimates, for a typical back-loaded policy, the difference between gross and net yields to the policyholder ranges between 2.1% and 4%.
This difference is likely to be higher for high-charge, frontloaded policies (4-4.5%)."
As per the new guidelines, insurers will have to reduce this difference to the prescribed range, resulting in lower revenue generation on new business written, in turn raising dependence on capacity utilization and persistency to generate profitability.
The way life insurance policies are sold in India may change forever following a recommendation by the Insurance Regulatory and Development Authority of India, or Irda, to scrap agent commissions that customers have to pay even when they buy insurance directly from companies, either online or by walking into an insurance company office.
A senior Irda official told Mint that customers who buy policies directly from life insurance firms should not be charged such commission.
This game-changing recommendation follows two similar investor-friendly moves in the past few weeks. The Securities and Exchange Board of India, or Sebi, discontinued distribu
tor commissions in the mutual fund industry after August. A committee headed by pension regulator D. Swarup has recommended that all upfront commissions paid to distributors of financial products should be scrapped by April 2011.
The average commission, according to Irda's latest annual report, is 16.25% but can go as high as 40% in some plans such as unit-linked insurance products, or Ulips, and endowment plans.
The move to abolish agent commissions for direct applications will ensure that the entire premium paid by investors is put to work, thus increasing total returns on the investment.
"Irda recommended in July that following the amendment of the Insurance Act, the regulator must get the power to make it mandatory for life insurance companies not to charge agent's commission to a customer who buys a policy directly," said the Irda official, who did not want to be named.
"There is a clear case that customers who apply directly to buy a policy should not be charged the same way as others who come through agents.
Lowering the charges for direct customers will also ensure a healthy relationship between the customers and their insurance companies," said R. Kannan, member (actuary), Irda.
"The matter is before Parliament at the moment."
This is one of the proposals made by Irda in a draft Bill in the Rajya Sabha, the upper house of Parliament.
Irda chairman J. Hari Narayan said, "Indeed, such a suggestion has been made in the draft proposal. In fact the proposal also talks about conferring power to the regulator to determine the commission structure for intermediaries."
At present, a section of the Insurance Act prevents any rebate on commission charges or on premium paid by customers either directly or indirectly.
Even though removal of commission is different from rebating, Irda has recommended changes in this section to ensure no agent commission for direct sales.
The development assumes significance in the context of the draft recommendations of a six-member committee headed by Swarup, chairman, Pension Fund Regulatory and Development Authority, early this month. In a bid to curb mis-selling of all financial products, the panel has proposed a phased elimination of upfront commissions paid to the agents by April 2011.
The committee has recommended that the upfront commissions included in the premium paid should be reduced to 15% of the premium immediately from the current commission of up to 40%. In 2010, this should be brought down to 7% and a zero-commission structure should be ready by April 2011.
"The interim period should be used by insurance companies to help their agents make the transition to a more mature way of selling and advising," the Swarup committee consultation paper said.
Investments in Ulips involve several charges such as an initial administration charge or premium allocation charge, a regular administration charge, a policy administration fee and an investment management charge. Collectively these charges may eat up to 70% of the premium paid in the first year, including up to 40% of the premium as agent's commission.
Even in the case of direct applications, the charges remain the same. This means, if a customer pays a premium of Rs1 lakh in the first year, about Rs40,000 of this is deducted as agent's commission. From the second year onwards, the charges can be in the range of 5-10%. At least a few firms, including ICICI Prudential Life Insurance Co. Ltd and Max New York Life Insurance Co.
Ltd, have started offering certain policies that levy lower commission if a customer buys the product directly. Bajaj Allianz Life Insurance Co. Ltd too recently launched a product where customers can have the benefit of lower premium allocation charges when they buy online, said Kamesh Goyal, CEO, Bajaj Allianz. "The objective is to make available products suited for various channels and the customer then decides which channel they prefer to buy from."
Alpesh Shah, partner and director of consultancy firm Boston Consulting Group, said the cost of distribution, around 15-20% on average, is very high and there definitely is scope to bring it down.
At the same time, he pointed out that a pure insurance product is difficult to sell, being a "push product". But investment products wrapped with insurance are relatively easier to sell. According to S.B. Mathur, secretary general of Life Insurance Council, the representative body of all life insurers in India, the proposed changes will empower customers. He pointed out that since agents bring a lot of value to a product sale by ensuring lower risk of lapses, the know-your-customer norm has to be strengthened by insurers if the commission is removed.
Puneet Nanda, executive vice-president of ICICI Prudential Life Insurance, said theoretically, it was a good proposal but may be difficult to implement. "This is because agents play a crucial role in ensuring quality sales. Insurance is a complex subject and agents play a vital role in educating customers before selling a policy."
Mathur does not see any immediate impact on business as only a "small portion of sales comes from direct applications".
India has 22 life insurance companies, including staterun Life Insurance Corp. of India Ltd, the country's biggest.
The largest private sector life insurer in India collected a total premium of Rs15,356 crore in the last fiscal.
In the June quarter, total premium for the industry grew 11.11% to Rs47,169 crore from Rs42,452 crore a year earlier, according to data provided by Life Insurance Council.
In July, Irda capped fees that insurers could charge Ulip customers, following which some of the firms may have to cut commissions they pay to agents to control costs.
The objective behind Irda's move is to encourage longterm business and enable policyholders to earn additional returns. The new norms are effective 1 October.
A recent report from Mumbai-based brokerage Edelweiss Securities Ltd said significant cuts in commission rates are required to maintain profitability.
The Edelweiss report said: "As per our estimates, for a typical back-loaded policy, the difference between gross and net yields to the policyholder ranges between 2.1% and 4%.
This difference is likely to be higher for high-charge, frontloaded policies (4-4.5%)."
As per the new guidelines, insurers will have to reduce this difference to the prescribed range, resulting in lower revenue generation on new business written, in turn raising dependence on capacity utilization and persistency to generate profitability.
FBD: India's EXIM Bank: "Sikkim honey has good export potential"
By Sabyasachi Samajdar, FoodBizDaily.com Bureau Chief – New Delhi
September 14, 2009 – Considering that Sikkim, a hill state of India, is home to a wide range of medicinal plants grown in the wild, honey produced in Sikkim has been found to have medicinal properties and at times, rare ingredients. Further, honey produced from high altitude flora is being considered to be of better quality. These factors need to be leveraged upon by the State as its USP,'' according to Export and Import Bank of India (EXIM Bank) in its study report 'Sikkim-Export Potential and Prospects' released recently.
EXIM Bank report says that China was by far the largest producer of natural honey with a share of 21.2% of global production of 1438.3 thousand tons while in India, production of honey has remained stagnant at 52,000 tons in post 2000 era.
Estimated figures for 2007 indicated that Chinese production has slipped dramatically from 305000 tons to 6000 tons which has impacted the global production levels negatively and this is an area which the country in general and Sikkim in particular needs to leverage upon so as to cater to the increasing international demand for natural honey, the report says.
The EXIM bank has pointed out Singapore as a good export market for Sikkim considering its proximity.
The report states, ''Bees in Sikkim are reared for production of honey for local consumption and for pollination of orange, passion fruit, beans and mustard crop. The honey is superior medicinally because the bee collects nectar from the rich flora of Sikkim''.
The report further accepts that considering that Sikkim is by and large organic, there is immense potential for its exports especially to the discernible markets of the west where demand for anything organic has been rising at an appreciable rate. Further, these countries would not import honey from countries where the use of pesticides is not regulated and where samples are not specifically tested for insecticidal residues.
The EXIM Bank report says that the export of honey from Sikkim needs to be encouraged in light of their negligible insecticide and pesticide content. Honey industry in the state can well be a major foreign exchange earner if appropriate strategies are adopted.
The strategies recommended by the EXIM Bank to Sikkim government were to establish bee-keeping nurseries for multiplication of colonies along with setting up a composite training cum demonstration unit for rendering training to prospective entrepreneurs.
-----------------------------------------------------------------------------------
(S E Report)
GANGTOK, September 14: The Export Import Bank of India (EXIM Bank) has suggested the State government to leverage the medicinal properties of honey produced in Sikkim as its ‘Unique Selling Proposition’.
“Considering that Sikkim is home to a wide range of medicinal plants grown in the wild, honey produced in Sikkim has been found to have medicinal properties and at times, rare ingredients. Further honey produced from high altitude flora is being considered to be of better quality. These factors need to be leveraged upon by the State as its USP,” said the EXIM Bank in its study report ‘Sikkim-Export Potential and Prospects’ released recently.
In its report, the Bank has stated that China was by far the largest producer of natural honey with a share of 21.2 percent of global production of 1438.3 thousand tonnes while in India, production of honey has remained stagnant at 52,000 tonnes in post 2000 era.
Estimated figures for 2007 indicated that Chinese production has slipped dramatically from 305 thousand tones to 6 thousand tones which has impacted the global production levels negatively and this is an area which the country in general and Sikkim in particular needs to leverage upon so as to cater to the increasing international demand for natural honey, the report said.
The EXIM bank has pointed out Singapore as a good export market for Sikkim considering its proximity.
“Bees in Sikkim are reared for production of honey for local consumption and for pollination of orange, passion fruit, beans and mustard crop. The honey is superior medicinally because the bee collects nectar from the rich flora of Sikkim”.
The report further accepts that considering that Sikkim is by and large organic, there is immense potential for its exports especially to the discernible markets of the west where demand for anything organic has been rising at an appreciable rate. Further these countries would not import honey from countries where the use of pesticides is not regulated and where samples are not specifically tested for insecticidal residues, the report mentioned.
Highlight allied factors in the global honey market, the EXIM Bank strongly stated that the export of honey from Sikkim needs to be encouraged in light of their negligible insecticide and pesticide content. Honey industry in the State can well be a major foreign exchange earner if appropriate strategies are adopted, the bank said.
The strategies recommended by the EXIM Bank to Sikkim government were to establish bee-keeping nurseries for multiplication of colonies along with setting up a composite training cum demonstration unit for rendering training to prospective entrepreneurs.
The State government has also been suggested to endeavour to get a Fairtrade certification to facilitate better pricing and global recognition
By Sabyasachi Samajdar, FoodBizDaily.com Bureau Chief – New Delhi
September 14, 2009 – Considering that Sikkim, a hill state of India, is home to a wide range of medicinal plants grown in the wild, honey produced in Sikkim has been found to have medicinal properties and at times, rare ingredients. Further, honey produced from high altitude flora is being considered to be of better quality. These factors need to be leveraged upon by the State as its USP,'' according to Export and Import Bank of India (EXIM Bank) in its study report 'Sikkim-Export Potential and Prospects' released recently.
EXIM Bank report says that China was by far the largest producer of natural honey with a share of 21.2% of global production of 1438.3 thousand tons while in India, production of honey has remained stagnant at 52,000 tons in post 2000 era.
Estimated figures for 2007 indicated that Chinese production has slipped dramatically from 305000 tons to 6000 tons which has impacted the global production levels negatively and this is an area which the country in general and Sikkim in particular needs to leverage upon so as to cater to the increasing international demand for natural honey, the report says.
The EXIM bank has pointed out Singapore as a good export market for Sikkim considering its proximity.
The report states, ''Bees in Sikkim are reared for production of honey for local consumption and for pollination of orange, passion fruit, beans and mustard crop. The honey is superior medicinally because the bee collects nectar from the rich flora of Sikkim''.
The report further accepts that considering that Sikkim is by and large organic, there is immense potential for its exports especially to the discernible markets of the west where demand for anything organic has been rising at an appreciable rate. Further, these countries would not import honey from countries where the use of pesticides is not regulated and where samples are not specifically tested for insecticidal residues.
The EXIM Bank report says that the export of honey from Sikkim needs to be encouraged in light of their negligible insecticide and pesticide content. Honey industry in the state can well be a major foreign exchange earner if appropriate strategies are adopted.
The strategies recommended by the EXIM Bank to Sikkim government were to establish bee-keeping nurseries for multiplication of colonies along with setting up a composite training cum demonstration unit for rendering training to prospective entrepreneurs.
-----------------------------------------------------------------------------------
(S E Report)
GANGTOK, September 14: The Export Import Bank of India (EXIM Bank) has suggested the State government to leverage the medicinal properties of honey produced in Sikkim as its ‘Unique Selling Proposition’.
“Considering that Sikkim is home to a wide range of medicinal plants grown in the wild, honey produced in Sikkim has been found to have medicinal properties and at times, rare ingredients. Further honey produced from high altitude flora is being considered to be of better quality. These factors need to be leveraged upon by the State as its USP,” said the EXIM Bank in its study report ‘Sikkim-Export Potential and Prospects’ released recently.
In its report, the Bank has stated that China was by far the largest producer of natural honey with a share of 21.2 percent of global production of 1438.3 thousand tonnes while in India, production of honey has remained stagnant at 52,000 tonnes in post 2000 era.
Estimated figures for 2007 indicated that Chinese production has slipped dramatically from 305 thousand tones to 6 thousand tones which has impacted the global production levels negatively and this is an area which the country in general and Sikkim in particular needs to leverage upon so as to cater to the increasing international demand for natural honey, the report said.
The EXIM bank has pointed out Singapore as a good export market for Sikkim considering its proximity.
“Bees in Sikkim are reared for production of honey for local consumption and for pollination of orange, passion fruit, beans and mustard crop. The honey is superior medicinally because the bee collects nectar from the rich flora of Sikkim”.
The report further accepts that considering that Sikkim is by and large organic, there is immense potential for its exports especially to the discernible markets of the west where demand for anything organic has been rising at an appreciable rate. Further these countries would not import honey from countries where the use of pesticides is not regulated and where samples are not specifically tested for insecticidal residues, the report mentioned.
Highlight allied factors in the global honey market, the EXIM Bank strongly stated that the export of honey from Sikkim needs to be encouraged in light of their negligible insecticide and pesticide content. Honey industry in the State can well be a major foreign exchange earner if appropriate strategies are adopted, the bank said.
The strategies recommended by the EXIM Bank to Sikkim government were to establish bee-keeping nurseries for multiplication of colonies along with setting up a composite training cum demonstration unit for rendering training to prospective entrepreneurs.
The State government has also been suggested to endeavour to get a Fairtrade certification to facilitate better pricing and global recognition
Tuesday, September 15, 2009
PM Addresses the DGPs and IGPs Conference - 2009
--------------------------------------------------------------------------------
15 sept 2009 11:35 IST
Text of the Prime Minister’s address on the occasion:
“Let me begin by saying that I consider your Conference a valuable opportunity to interact with the leaders of the Police, Intelligence and Security Agencies on vital issues relating to internal security. I hope you have been having discussions which will enhance and deepen our understanding of internal security matters and will also lead to a consensus on what needs to be done to strengthen the country’s internal security. I very much look forward to concrete, implementable recommendations emerging out of your deliberations on this very important subject. I congratulate all those officers who have been presented with the President's Police Medal for distinguished and meritorious service and I wish them greater success in the years to come.
I would also like to take this opportunity to interact our Police forces, our Intelligence Agencies and our Security Forces in general for their contribution to the free and fair conduct of the recently held general for their. The relative peace that prevailed both during and before the polls was in large measure facilitated by your vigilant efforts. You deserve our country’s sincere thanks for this excellent performance.
My colleague, the Home Minister would have outlined the internal security challenges our country faces. I would therefore briefly touch upon only a few of these issues. As far as terrorism is concerned, during the past year we have achieved some major successes. Many terrorist modules have been dismantled and arrests of several important terrorists have taken place. It is on account of your alertness that we have not had a serious terrorist attack since November last year. But our success in preventing terrorist attacks can be sustained only at the price of unrelenting vigilance. There are many developments taking place in our country and outside which have a bearing on our internal security. It is important to understand their true nature and the exact way they can and they could affect us. We also need to understand better why many more local youth are being induced into participating in terrorist activities and how they are being recruited, indoctrinated and trained. The factors that cause social disharmony and alienation should be clearly known so that we can work to eliminate them. I urge you to pay particular attention to these aspects.
I have consistently held that in many ways, the Left Wing Extremism is, perhaps, the gravest internal security threat our country faces. We have discussed this in the last five years and I would like to say frankly that we have not achieved as much success as we would have liked in containing this menace. It is a matter of concern that despite our efforts, the level of violence in the affected States continues to rise.
As I have stated before, dealing with Left Wing extremism requires a nuanced strategy, a holistic approach Рit cannot be treated simply as a law and order problem. Despite its sanguinary nature, the movement manages to retain the support of a section of the tribal communities and the poorest of the poor in many affected areas. It has influence among certain sections of the civil society, the intelligentsia and the youth. It still retains a certain ̩lan. All this adds to the complexity of the problem. I expect you to keep this in mind as you devise newer and better strategies to deal with this problem.
The situation in the North-Eastern parts of our country is also far from comfortable. In two of the States, viz., Manipur and Assam, current levels of violence give us cause for concern. In addition, extortion and intimidation have become a menace across most of the States in the region and they have reached a point where they constitute a serious hampering of the implementation of a number of development projects in these States. I believe, it should be possible, to bring about a substantial improvement in the situation if there is better security management. I would, therefore, enjoin upon the DGPs of the States in the North-East to insist upon, and achieve, higher levels of professionalism from the Forces they command. Firm but compassionate handling of law and order matters, can certainly bring about substantial improvement in the prevailing state of affairs. Particularly so, as in terms of number, we are dealing with a very limited number of people who have gone stray. If we do not and we cannot deal with them at the present stage of our development, it might be more difficult at a later date to tame these evil forces.
In the case of Jammu & Kashmir, we have reasons to be satisfied that elections to both the State Assembly and our Parliament during the past year were held in a peaceful atmosphere. The level of violence in the State has also come down and is perhaps at its lowest level since the beginning of insurgency in the late 80s.
But there is no scope for complacency. There are certain developments that are worrisome. Infiltration across the Line of Control and also via other routes such as Nepal, Bangladesh and the sea is going up. Encounters with armed militants have become more frequent in recent weeks and months. Secessionist and militant groups within the State are once again attempting to make common cause with outside elements and have embarked on a series of protest movements. The intention apparently is to create an impression of widespread turmoil in the State. We must not and I repeat we must not allow such a situation to develop. It is imperative that these disruptive efforts are contained, controlled and effectively checked.
I would like to compliment my friend, the Home Minister and his team for the efforts they have made in the last many months to improve our internal security situation. I am happy that action is being taken on the report of the task force that I had announced in this very last conference. This, together with the Action Plans drawn up by the Home Ministry, should go a long way to improve police performance, make the security Agencies more responsive to terrorist threats and improve their overall efficiency.
I would particularly like to commend to you the idea of our agencies developing strategic foresight to anticipate future surprise attacks like the one that took place in Mumbai in November last year. Improved intelligence generation and coordination are critical to developing such a capability. Also, like in other areas of governance, new technology and technological innovations can go a very long way in improving our performance in all dimensions of the internal security challenges. I am confident that the establishment of a secure net-centric information command structure would substantially improve the capabilities of our Agencies to deal with the internal security challenges.
Let me now move to certain areas in which the Central and State Governments need to take quick action. It is absolutely imperative that we strengthen policing at the grassroots level. The Police Station has to be the fulcrum around which this needs to take place. A large increase in the number of Police Stations along with raising the strength of Police Stations has to be undertaken. We need far higher numbers of policemen and policewomen to improve the present low police-population ratio of 145 per hundred thousand of population. As a first step, I would urge all of you to do everything possible to fill up the large number of vacancies that exist today at various levels in our police force. At the same time greater attention has to be paid to the provision of adequate amenities for the constables and I would like to particularly emphasize a provision of housing facilities for our policemen. A situation that a large number of policemen are compelled to make private arrangements for renting houses is fraught with serious problems, particularly, from the view point of enforcement of effective law and order.
But increasing numbers will not be enough. We need a new-age Policeman who is more professional, better-motivated, suitably empowered, well-trained, one who places greater emphasis on technology for investigation and other tasks. Emphasis should be on capacity building from the police station level itself, so that the police is better equipped. Each police station should aim at being self-sufficient and needs to be given the required resources in terms of anti-riot gear, better weapons, the nucleus of a mobile forensic unit and be connected to a networked criminal data base management system. Every city should have a modern police control room with digitized maps. The key here lies in the plans for the modernization of our Police force. I am aware that the Police modernization framework is being substantially enlarged, but I would still urge that modernization of the Police should receive the highest priority. Our police forces must operate on the frontiers of modern technology. We must also design systems and procedures which will minimize scope for corruption. We should have a sufficiently long-term perspective in this area and also the required amount of funds should be made available for the purpose.
I must specially emphasize here the critical importance of training for policemen. I understand that on the average a Police officer is retrained only once in about twenty years. This is totally inadequate in the changed circumstances and this must be rectified. It would also help if the police were to benchmark their training curricula with the syllabi and training methodologies of Police training institutions elsewhere in the world to ensure better quality. The world is changing and changing very rapidly and Police training must keep pace with the best practices being followed in the world.
Today, there is little research in subjects related to the police and policing. An analytical approach to the problems and difficulties that come in the way of better policing could prove extremely useful. I would like the proposals for the setting up of a National Police University and also of a National Institute for Law and Order-related subjects to be pursued more vigorously. We need first-rate institutions to come up, which are capable of looking at all such issues in a truly holistic manner paying particular attention to problems of effective policing in rural areas as well as in major metropolitan cities and thereby create a body of literature on all these vital subjects.
I conclude by reminding you of your solemn obligation towards the common citizen, someone who has little by way of resources to defend himself or herself against crime and criminals. Indeed, it is your solemn duty to protect the weak and the defenceless. Those who seek to promote communal violence and discord have to be dealt with firmly. Special efforts must be made to establish a relationship of trust and confidence between our police forces and the minority communities. You must not fail in this aspect. The underprivileged and weaker sections of our society- the minorities, the SCs and STs, women and senior citizens- should feel adequate confidence in the ability of our police force to protect. The common man should go about his daily life with a sense of security. He should have faith in the policeman and the police station. And this I believe is the real test of our efforts, a test that we cannot afford to fail.
As I conclude, I wish you all the very best practices being efforts to strengthen India’s internal security. I am confident that we will collectively succeed in meeting this enormous challenge. May God bless your paths.”
--------------------------------------------------------------------------------
15 sept 2009 11:35 IST
Text of the Prime Minister’s address on the occasion:
“Let me begin by saying that I consider your Conference a valuable opportunity to interact with the leaders of the Police, Intelligence and Security Agencies on vital issues relating to internal security. I hope you have been having discussions which will enhance and deepen our understanding of internal security matters and will also lead to a consensus on what needs to be done to strengthen the country’s internal security. I very much look forward to concrete, implementable recommendations emerging out of your deliberations on this very important subject. I congratulate all those officers who have been presented with the President's Police Medal for distinguished and meritorious service and I wish them greater success in the years to come.
I would also like to take this opportunity to interact our Police forces, our Intelligence Agencies and our Security Forces in general for their contribution to the free and fair conduct of the recently held general for their. The relative peace that prevailed both during and before the polls was in large measure facilitated by your vigilant efforts. You deserve our country’s sincere thanks for this excellent performance.
My colleague, the Home Minister would have outlined the internal security challenges our country faces. I would therefore briefly touch upon only a few of these issues. As far as terrorism is concerned, during the past year we have achieved some major successes. Many terrorist modules have been dismantled and arrests of several important terrorists have taken place. It is on account of your alertness that we have not had a serious terrorist attack since November last year. But our success in preventing terrorist attacks can be sustained only at the price of unrelenting vigilance. There are many developments taking place in our country and outside which have a bearing on our internal security. It is important to understand their true nature and the exact way they can and they could affect us. We also need to understand better why many more local youth are being induced into participating in terrorist activities and how they are being recruited, indoctrinated and trained. The factors that cause social disharmony and alienation should be clearly known so that we can work to eliminate them. I urge you to pay particular attention to these aspects.
I have consistently held that in many ways, the Left Wing Extremism is, perhaps, the gravest internal security threat our country faces. We have discussed this in the last five years and I would like to say frankly that we have not achieved as much success as we would have liked in containing this menace. It is a matter of concern that despite our efforts, the level of violence in the affected States continues to rise.
As I have stated before, dealing with Left Wing extremism requires a nuanced strategy, a holistic approach Рit cannot be treated simply as a law and order problem. Despite its sanguinary nature, the movement manages to retain the support of a section of the tribal communities and the poorest of the poor in many affected areas. It has influence among certain sections of the civil society, the intelligentsia and the youth. It still retains a certain ̩lan. All this adds to the complexity of the problem. I expect you to keep this in mind as you devise newer and better strategies to deal with this problem.
The situation in the North-Eastern parts of our country is also far from comfortable. In two of the States, viz., Manipur and Assam, current levels of violence give us cause for concern. In addition, extortion and intimidation have become a menace across most of the States in the region and they have reached a point where they constitute a serious hampering of the implementation of a number of development projects in these States. I believe, it should be possible, to bring about a substantial improvement in the situation if there is better security management. I would, therefore, enjoin upon the DGPs of the States in the North-East to insist upon, and achieve, higher levels of professionalism from the Forces they command. Firm but compassionate handling of law and order matters, can certainly bring about substantial improvement in the prevailing state of affairs. Particularly so, as in terms of number, we are dealing with a very limited number of people who have gone stray. If we do not and we cannot deal with them at the present stage of our development, it might be more difficult at a later date to tame these evil forces.
In the case of Jammu & Kashmir, we have reasons to be satisfied that elections to both the State Assembly and our Parliament during the past year were held in a peaceful atmosphere. The level of violence in the State has also come down and is perhaps at its lowest level since the beginning of insurgency in the late 80s.
But there is no scope for complacency. There are certain developments that are worrisome. Infiltration across the Line of Control and also via other routes such as Nepal, Bangladesh and the sea is going up. Encounters with armed militants have become more frequent in recent weeks and months. Secessionist and militant groups within the State are once again attempting to make common cause with outside elements and have embarked on a series of protest movements. The intention apparently is to create an impression of widespread turmoil in the State. We must not and I repeat we must not allow such a situation to develop. It is imperative that these disruptive efforts are contained, controlled and effectively checked.
I would like to compliment my friend, the Home Minister and his team for the efforts they have made in the last many months to improve our internal security situation. I am happy that action is being taken on the report of the task force that I had announced in this very last conference. This, together with the Action Plans drawn up by the Home Ministry, should go a long way to improve police performance, make the security Agencies more responsive to terrorist threats and improve their overall efficiency.
I would particularly like to commend to you the idea of our agencies developing strategic foresight to anticipate future surprise attacks like the one that took place in Mumbai in November last year. Improved intelligence generation and coordination are critical to developing such a capability. Also, like in other areas of governance, new technology and technological innovations can go a very long way in improving our performance in all dimensions of the internal security challenges. I am confident that the establishment of a secure net-centric information command structure would substantially improve the capabilities of our Agencies to deal with the internal security challenges.
Let me now move to certain areas in which the Central and State Governments need to take quick action. It is absolutely imperative that we strengthen policing at the grassroots level. The Police Station has to be the fulcrum around which this needs to take place. A large increase in the number of Police Stations along with raising the strength of Police Stations has to be undertaken. We need far higher numbers of policemen and policewomen to improve the present low police-population ratio of 145 per hundred thousand of population. As a first step, I would urge all of you to do everything possible to fill up the large number of vacancies that exist today at various levels in our police force. At the same time greater attention has to be paid to the provision of adequate amenities for the constables and I would like to particularly emphasize a provision of housing facilities for our policemen. A situation that a large number of policemen are compelled to make private arrangements for renting houses is fraught with serious problems, particularly, from the view point of enforcement of effective law and order.
But increasing numbers will not be enough. We need a new-age Policeman who is more professional, better-motivated, suitably empowered, well-trained, one who places greater emphasis on technology for investigation and other tasks. Emphasis should be on capacity building from the police station level itself, so that the police is better equipped. Each police station should aim at being self-sufficient and needs to be given the required resources in terms of anti-riot gear, better weapons, the nucleus of a mobile forensic unit and be connected to a networked criminal data base management system. Every city should have a modern police control room with digitized maps. The key here lies in the plans for the modernization of our Police force. I am aware that the Police modernization framework is being substantially enlarged, but I would still urge that modernization of the Police should receive the highest priority. Our police forces must operate on the frontiers of modern technology. We must also design systems and procedures which will minimize scope for corruption. We should have a sufficiently long-term perspective in this area and also the required amount of funds should be made available for the purpose.
I must specially emphasize here the critical importance of training for policemen. I understand that on the average a Police officer is retrained only once in about twenty years. This is totally inadequate in the changed circumstances and this must be rectified. It would also help if the police were to benchmark their training curricula with the syllabi and training methodologies of Police training institutions elsewhere in the world to ensure better quality. The world is changing and changing very rapidly and Police training must keep pace with the best practices being followed in the world.
Today, there is little research in subjects related to the police and policing. An analytical approach to the problems and difficulties that come in the way of better policing could prove extremely useful. I would like the proposals for the setting up of a National Police University and also of a National Institute for Law and Order-related subjects to be pursued more vigorously. We need first-rate institutions to come up, which are capable of looking at all such issues in a truly holistic manner paying particular attention to problems of effective policing in rural areas as well as in major metropolitan cities and thereby create a body of literature on all these vital subjects.
I conclude by reminding you of your solemn obligation towards the common citizen, someone who has little by way of resources to defend himself or herself against crime and criminals. Indeed, it is your solemn duty to protect the weak and the defenceless. Those who seek to promote communal violence and discord have to be dealt with firmly. Special efforts must be made to establish a relationship of trust and confidence between our police forces and the minority communities. You must not fail in this aspect. The underprivileged and weaker sections of our society- the minorities, the SCs and STs, women and senior citizens- should feel adequate confidence in the ability of our police force to protect. The common man should go about his daily life with a sense of security. He should have faith in the policeman and the police station. And this I believe is the real test of our efforts, a test that we cannot afford to fail.
As I conclude, I wish you all the very best practices being efforts to strengthen India’s internal security. I am confident that we will collectively succeed in meeting this enormous challenge. May God bless your paths.”
7TH INDIA TODAY STATE OF STATES CONCLAVE
Sikkim honoured with four awards
Punjab, Delhi are best performing states
New Delhi, Sept 14: Punjab and Delhi were honoured as the overall best performing big and small states respectively at the 7th India Today State of States Conclave held in New Delhi today.
Among the small states, Delhi's performance in consumer markets and infrastructure was adjudged the best while Goa was honoured for health, investment and macro economy.
Sikkim was honoured with four awards. It has ranked first in Education in the small State category .For the India Today Bharat Nirman Awards among the small State category Sikkim was ranked highest in the rural roads, E-governance and rural electrification. The awards were presented by the chief guest, Union Minister Agriculture and Food, Sharad Pawar. Chief Minister Pawan Chamling was present on this occasion to receive the awards.
The 2009 edition of the Conclave saw Punjab walk away with best performance among big states in agriculture, consumer markets and infrastructure. Himachal ranked the highest among the big states in education, health and investment.
For the India Today Bharat Nirman Awards, Uttar Pradesh and Tamil Nadu were the best big states in Rural Roads and Irrigation respectively. Andhra Pradesh was adjudged the best big state in Rural Electrification.
The full list of rankings is as follows:
INDIA TODAY STATE OF THE STATES 2009
Overall Performance
• Best Big State: Punjab
• Best Small State: Delhi
• Fastest Mover: Himachal Pradesh
Agriculture
• Best Big State: Punjab
• Best Small State: Puducherry
• Fastest Mover (2003-09): Punjab
Consumer Markets
• Best Big State: Punjab
• Best Small State: Delhi
• Fastest Mover (2003-09): Maharashtra
Education
• Best Big State: Himachal Pradesh
• Best Small State: Sikkim
• Fastest Mover (2003-09): Uttarakhand
Law and Order
• Best Big State: Kerala
• Best Small State: Puducherry
• Fastest Mover (2003-09): Karnataka
Health
• Best Big State: Himachal Pradesh
• Best Small State: Goa
• Fastest Mover (2003-09): Uttarakhand
Infrastructure
• Best Big State: Punjab
• Best Small State: Delhi
• Fastest Mover (2003-09): Punjab
Investment
• Best Big State: Himachal Pradesh
• Best Small State: Goa
• Fastest Mover (2003-09): Himachal Pradesh
Macro Economy
• Best Big State: Himachal Pradesh
• Best Small State: Goa
• Fastest Mover (2003-09): Himachal Pradesh
INDIA TODAY BHARAT NIRMAN AWARDS
NREGA
• Best Big State: Rajasthan
• Best Small State: Mizoram
Rural Roads
• Best Big State: Uttar Pradesh
• Best Small State: Sikkim
Irrigation
• Best Big State: Tamil Nadu
• Best Small State: Arunachal Pradesh
Housing for Poor
• Best Big State: Uttarakhand
• Best Small State: Nagaland
Rural Electrification
• Best Big State: Andhra Pradesh
• Best Small State: Sikkim
Drinking Water
• Best Big State: Kerala
• Best Small State: Arunachal Pradesh
E-Governance
• Best Big State: Haryana
• Best Small State: Sikkim
Sikkim honoured with four awards
Punjab, Delhi are best performing states
New Delhi, Sept 14: Punjab and Delhi were honoured as the overall best performing big and small states respectively at the 7th India Today State of States Conclave held in New Delhi today.
Among the small states, Delhi's performance in consumer markets and infrastructure was adjudged the best while Goa was honoured for health, investment and macro economy.
Sikkim was honoured with four awards. It has ranked first in Education in the small State category .For the India Today Bharat Nirman Awards among the small State category Sikkim was ranked highest in the rural roads, E-governance and rural electrification. The awards were presented by the chief guest, Union Minister Agriculture and Food, Sharad Pawar. Chief Minister Pawan Chamling was present on this occasion to receive the awards.
The 2009 edition of the Conclave saw Punjab walk away with best performance among big states in agriculture, consumer markets and infrastructure. Himachal ranked the highest among the big states in education, health and investment.
For the India Today Bharat Nirman Awards, Uttar Pradesh and Tamil Nadu were the best big states in Rural Roads and Irrigation respectively. Andhra Pradesh was adjudged the best big state in Rural Electrification.
The full list of rankings is as follows:
INDIA TODAY STATE OF THE STATES 2009
Overall Performance
• Best Big State: Punjab
• Best Small State: Delhi
• Fastest Mover: Himachal Pradesh
Agriculture
• Best Big State: Punjab
• Best Small State: Puducherry
• Fastest Mover (2003-09): Punjab
Consumer Markets
• Best Big State: Punjab
• Best Small State: Delhi
• Fastest Mover (2003-09): Maharashtra
Education
• Best Big State: Himachal Pradesh
• Best Small State: Sikkim
• Fastest Mover (2003-09): Uttarakhand
Law and Order
• Best Big State: Kerala
• Best Small State: Puducherry
• Fastest Mover (2003-09): Karnataka
Health
• Best Big State: Himachal Pradesh
• Best Small State: Goa
• Fastest Mover (2003-09): Uttarakhand
Infrastructure
• Best Big State: Punjab
• Best Small State: Delhi
• Fastest Mover (2003-09): Punjab
Investment
• Best Big State: Himachal Pradesh
• Best Small State: Goa
• Fastest Mover (2003-09): Himachal Pradesh
Macro Economy
• Best Big State: Himachal Pradesh
• Best Small State: Goa
• Fastest Mover (2003-09): Himachal Pradesh
INDIA TODAY BHARAT NIRMAN AWARDS
NREGA
• Best Big State: Rajasthan
• Best Small State: Mizoram
Rural Roads
• Best Big State: Uttar Pradesh
• Best Small State: Sikkim
Irrigation
• Best Big State: Tamil Nadu
• Best Small State: Arunachal Pradesh
Housing for Poor
• Best Big State: Uttarakhand
• Best Small State: Nagaland
Rural Electrification
• Best Big State: Andhra Pradesh
• Best Small State: Sikkim
Drinking Water
• Best Big State: Kerala
• Best Small State: Arunachal Pradesh
E-Governance
• Best Big State: Haryana
• Best Small State: Sikkim
India Retail Market Statistics
2009
720 million Indians to join consuming age by 2010
55% of the Indian population will be under 20 years of age by 2015
32% rise in urbanisation by 2008
10% annual growth in Retail market since 2000
7% of the population is engaged in retailing
A booming US$ 300 billion retail market in India
5.5 retail outlets per 1000 population, highest in the world
25-30% annual growth in retail loans and credit cards
2009
720 million Indians to join consuming age by 2010
55% of the Indian population will be under 20 years of age by 2015
32% rise in urbanisation by 2008
10% annual growth in Retail market since 2000
7% of the population is engaged in retailing
A booming US$ 300 billion retail market in India
5.5 retail outlets per 1000 population, highest in the world
25-30% annual growth in retail loans and credit cards
Task Force constituted to address issues of MSME Sector
--------------------------------------------------------------------------------
3 SEPT 2009
The Prime Minister has constituted a High Level Task Force to draw up an agenda for action to consider various issues raised by the MSME Associations, within three months, under the Chairmanship of the Principal Secretary to PM.
The Composition of Task Force is as follows:
(i) Principal Secretary to PM, Shri T.K.A. Nair : Chairman
(ii)Shri Arun Maira, Member, Planning Commission : Member
(iii)Secretary, Ministry of Finance – Shri Ashok Chawla : Member
(iv Secretary, Ministry of Labour – Shri P.C. Chaturvedi: Member
(v) Secretary, Ministry of MSME – Shri Dinesh Rai : Member-Convener
(vi)Deputy Governor-RBI : Member
(vii)CMD,IDBI : Member
The Nominated Members are:
(viii) Shri D.E. Ramakrishnan, President, Industrial and Financial Reconstruction Association for Small and Tiny Enterprises (IFRASTE)
(ix) Shri Anil Gupta, President, Indian Industries Association (IIA)
(x) Shri R. S. Joshi, Chairman, Federation of Industries and Commerce of North Eastern Region (FINER) (representing North-East region)
(xi) Ms. K. Ramadevi, President, Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP) (representing Women Organisations)
The Chairman will be free to invite any other person associated/concerned with the MSME to any meeting of the Task Force.
The constituted Task Force will consider various issues raised by the Micro, Small and Medium Entrepreneurs Associations and will hold discussions with all stake holders.
--------------------------------------------------------------------------------
3 SEPT 2009
The Prime Minister has constituted a High Level Task Force to draw up an agenda for action to consider various issues raised by the MSME Associations, within three months, under the Chairmanship of the Principal Secretary to PM.
The Composition of Task Force is as follows:
(i) Principal Secretary to PM, Shri T.K.A. Nair : Chairman
(ii)Shri Arun Maira, Member, Planning Commission : Member
(iii)Secretary, Ministry of Finance – Shri Ashok Chawla : Member
(iv Secretary, Ministry of Labour – Shri P.C. Chaturvedi: Member
(v) Secretary, Ministry of MSME – Shri Dinesh Rai : Member-Convener
(vi)Deputy Governor-RBI : Member
(vii)CMD,IDBI : Member
The Nominated Members are:
(viii) Shri D.E. Ramakrishnan, President, Industrial and Financial Reconstruction Association for Small and Tiny Enterprises (IFRASTE)
(ix) Shri Anil Gupta, President, Indian Industries Association (IIA)
(x) Shri R. S. Joshi, Chairman, Federation of Industries and Commerce of North Eastern Region (FINER) (representing North-East region)
(xi) Ms. K. Ramadevi, President, Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP) (representing Women Organisations)
The Chairman will be free to invite any other person associated/concerned with the MSME to any meeting of the Task Force.
The constituted Task Force will consider various issues raised by the Micro, Small and Medium Entrepreneurs Associations and will hold discussions with all stake holders.
Defence Ministry official visits Sikkim to review progress in road widening projects
Monday, 09.14.2009
The Additional Defence Secretary Shekhar Agarwal paid a three-day visit to Sikkim from September 12-14 to review the progress in the road widening projects and repair of the National Highway 31A, the sole road link of the Himalayan State with the rest of the country, a BRO release said today.
Agrawal visited the sites of the widening of Jawahar Lal Nehru road between Gangtok and Nathu La and was briefed by the officials of the Project Swastik about the progress in the works, the release said.
The Defence Ministry official was also apprised about the repair works on NH-31A, including proposed tunnel planned at Bardang, it said.
Monday, 09.14.2009
The Additional Defence Secretary Shekhar Agarwal paid a three-day visit to Sikkim from September 12-14 to review the progress in the road widening projects and repair of the National Highway 31A, the sole road link of the Himalayan State with the rest of the country, a BRO release said today.
Agrawal visited the sites of the widening of Jawahar Lal Nehru road between Gangtok and Nathu La and was briefed by the officials of the Project Swastik about the progress in the works, the release said.
The Defence Ministry official was also apprised about the repair works on NH-31A, including proposed tunnel planned at Bardang, it said.
Monday, September 14, 2009
^^^^^ D A T A S B A N K ^^^^^
• In India in 2008 there are:
271 recognised medical colleges
104 dental colleges
1600 nursing institutions
460 pharmacy colleges
Shortfall of 20 lacs trained nurses in India.
Rural India has 1,52,736 beds
Urban India has 3,27,570 beds
• In Sikkim:
SSCs population in Sikkim:
(“Now” report dt 7 Sept 2009)
As per survey conducted by DESME 2005-2206 census: 4,34,982
As per data of Land Revenue Dept,Govt of Sikkim: 3,15,693
• In India in 2008 there are:
271 recognised medical colleges
104 dental colleges
1600 nursing institutions
460 pharmacy colleges
Shortfall of 20 lacs trained nurses in India.
Rural India has 1,52,736 beds
Urban India has 3,27,570 beds
• In Sikkim:
SSCs population in Sikkim:
(“Now” report dt 7 Sept 2009)
As per survey conducted by DESME 2005-2206 census: 4,34,982
As per data of Land Revenue Dept,Govt of Sikkim: 3,15,693
India poised for a US$1 trillion economy
India is poised to go from a US$ 1 trillion economy to not just a 2 or 3 trillion dollar one, but in fact something far greater. If renowned investor Ramesh Damani is to be believed, that is the mouthwatering fate that awaits India over the next few years. In fact, he had many other interesting views to share in a recent interview with a business news channel, including his opinion that in one generation's time, we will take the population of India from affliction to affluence, from poverty to prosperity, would probably go from 100 m people in the middle class right now, to 1 bn people in the middle class, thus having profound implications for investors and companies alike.
All in all, he believes that the way the market has snapped back suggests that the recent fall in the market was just a very severe correction in an ongoing bull market, and that Indian markets are now on the cusp of a multiyear bull run.
India is poised to go from a US$ 1 trillion economy to not just a 2 or 3 trillion dollar one, but in fact something far greater. If renowned investor Ramesh Damani is to be believed, that is the mouthwatering fate that awaits India over the next few years. In fact, he had many other interesting views to share in a recent interview with a business news channel, including his opinion that in one generation's time, we will take the population of India from affliction to affluence, from poverty to prosperity, would probably go from 100 m people in the middle class right now, to 1 bn people in the middle class, thus having profound implications for investors and companies alike.
All in all, he believes that the way the market has snapped back suggests that the recent fall in the market was just a very severe correction in an ongoing bull market, and that Indian markets are now on the cusp of a multiyear bull run.
Poor credit-deposit ratio of banks in Sikkim
Fake currency problem discussed at cutomers meet.
GANGTOK, September 13: The Reserve Bank of India has expressed is dissatisfaction over the credit-deposit ratio of banks in Sikkim which stands at 43:100 only.
The RBI has attributed this to poor loan recovery rate in the agriculture sector, accounting for the largest portion of bank loans in the State. However, it is informed that only 22 percent of agriculture loan in Sikkim is not recovered as compared to 40 percent in the national level. Besides, the private sector banks operating in the State do not maintain their Statewise record about the loans advanced by them in various sectors which also attributes to a lower credit deposit ration in Sikkim.
Addressing a press meet yesterday evening, the general manager of Kolkata base regional office of the RBI, CD Sriniwasan added that the loan recovery rate in industrial sector in Sikkim is better in comparison to other States. He informed that RBI is going to take up at least one village in each of four districts in the State where it will have a direct involvement to monitor the utilization of loans advanced under various Centrally Sponsored Schemes. At the same time, the RBI general manager said that farmers who have benefited from loan waiver scheme of the government have not approached the bank for fresh loans.
“If necessary, the bank will also arrange for training and capacity building of the beneficiaries with a view to convert these villages into a model of development,” he informed.
Mr. Sriniwasan said that the programme, being undertaken as a part of the RBI Platinum Jubilee Out Reach programme, was launched in the State from Samdur Village in East District yesterday.
With regard to prevention of circulation of fake currency notes, Mr. Sriniwasan observed that though the problem is almost nil in Sikkim, the RBI is not taking any chances and arranging for wide spread awareness campaign throughout identifying fake notes at grass-root level throughout the State. He told that almost all the bank branches in the State are equipped with ultra-violet machines to scan such notes.
Later in the evening, a get toghether was organised by bank customers at Hotel Plaza where discussions took place in length on Fake Note issue, delay in loan sanction, etc.
S.K.Sarda, President, Sikkim Chamber of Commerce congratulated RBI for having adopted a village Samdur in Gangtok Locality on the occassion of its 75th Anniversary.He stressed the need for dispersal of nationalised bank branches all over Sikkim instead of just concentrating in Gangtok and around.He urge bankers to make customers more aware about fake note detection.
Fake currency problem discussed at cutomers meet.
GANGTOK, September 13: The Reserve Bank of India has expressed is dissatisfaction over the credit-deposit ratio of banks in Sikkim which stands at 43:100 only.
The RBI has attributed this to poor loan recovery rate in the agriculture sector, accounting for the largest portion of bank loans in the State. However, it is informed that only 22 percent of agriculture loan in Sikkim is not recovered as compared to 40 percent in the national level. Besides, the private sector banks operating in the State do not maintain their Statewise record about the loans advanced by them in various sectors which also attributes to a lower credit deposit ration in Sikkim.
Addressing a press meet yesterday evening, the general manager of Kolkata base regional office of the RBI, CD Sriniwasan added that the loan recovery rate in industrial sector in Sikkim is better in comparison to other States. He informed that RBI is going to take up at least one village in each of four districts in the State where it will have a direct involvement to monitor the utilization of loans advanced under various Centrally Sponsored Schemes. At the same time, the RBI general manager said that farmers who have benefited from loan waiver scheme of the government have not approached the bank for fresh loans.
“If necessary, the bank will also arrange for training and capacity building of the beneficiaries with a view to convert these villages into a model of development,” he informed.
Mr. Sriniwasan said that the programme, being undertaken as a part of the RBI Platinum Jubilee Out Reach programme, was launched in the State from Samdur Village in East District yesterday.
With regard to prevention of circulation of fake currency notes, Mr. Sriniwasan observed that though the problem is almost nil in Sikkim, the RBI is not taking any chances and arranging for wide spread awareness campaign throughout identifying fake notes at grass-root level throughout the State. He told that almost all the bank branches in the State are equipped with ultra-violet machines to scan such notes.
Later in the evening, a get toghether was organised by bank customers at Hotel Plaza where discussions took place in length on Fake Note issue, delay in loan sanction, etc.
S.K.Sarda, President, Sikkim Chamber of Commerce congratulated RBI for having adopted a village Samdur in Gangtok Locality on the occassion of its 75th Anniversary.He stressed the need for dispersal of nationalised bank branches all over Sikkim instead of just concentrating in Gangtok and around.He urge bankers to make customers more aware about fake note detection.
21,000 unemployed youth of Sikkim
Youth need to change viewpoint on Sarkari Jagira: Draft report
GANGTOK, September 13: Pegging a figure of 21,000 unemployed youth in Sikkim, the Directorate of Capacity Building has stressed the need to set up an autonomous body Youth Empowerment Directorate (YED) to directly intervene in the building of capacity and capability of young people and place them in the opportunities that are ‘otherwise going to the people from outside the State’.
“This will be one of the arms of the government in its overall Livelihood Mission’, states a draft policy document on Chief Minister’s Youth Empowerment Scheme released on Saturday by Chief Minister Pawan Chamling.
Targeting to solve the 21,000 unemployed youth problem by 2015, the YED is proposed to be an integral part of the State government’s policy of zero tolerance toward youth unemployment which it has identified as a scourge of the society.
Apart from setting up YED, the policy proposed is to constantly monitor the laws and legal requirements to regulate the employment scenario in the State and interact with private, Centre and other players to see that opportunities are made available to local youth who are well positioned to do it as well as facilitate such proactive action.
The policy is also to constantly monitor the remuneration and other facilities that the private and public sector units offer to the youth of the State and see to it that there is no discrimination in this with respect to that on offer to other States in the country.
“Make available every year a state of Employment Status Report and table it in the Legislative Assembly”, the draft policy says recommending adequate financial resources for the first five years to the proposed YED.
The YED is expected to fully functionally by July 2010 with the proposed budget of Rs. 5130 lakhs. It is proposed to be an autonomous body governed by select body of eminent people from both government and civil society with independent financial powers. It will also select trainees in collaboration with decentralized grass root organizations and civil society.
The need to restructure Directorate of Capacity Building (DCB) set up in 2007 was justified with the rising unemployment in the State.
“In view of the new policy initiative and the Socio Economic Census 2006 conducted by DESME which shows that the total number of unemployed youth as 17620, now estimated to be around 21000, there is a need to restructure the DCB”, says the report.
The majority of the 21,000 unemployed youth is from rural areas and is school dropouts from Class V to Class VIII with modest sources of household income and a change in perspective is required to make significant inroads in tackling and eliminating the high rates of unemployment, the draft report outlines. It is necessary to categorize the youth broadly as per their qualification and adequate opportunities have to be provided for youth with disabilities and as well as gender sensitivity, the report observes.
Regarding the reasons for high rate of unemployment, the draft report states that though formal education system has reached the villages, it is widely accepted that the education system of the country is not related to the skills required in the labour market. Also, the youth of the State view ‘Sarkari Jagira’ as prestigious and secure and that there lies a perception that private sector jobs for people with lower skill levels do not offer adequate security and payment, the report says.
“An intensive campaign is required to educate the public that there is a limit to the number of jobs the government can create and that the youth must prepare themselves for private sector employment and or establish business enterprises”, the report states. It also underlined the need to develop the agriculture sector which will employ most of the rural young people.
The draft policy offers the strategy for mitigation of youth unemployment where by 2014, the State government shall utilize the services of YED and allied agencies to substantially reduce the number of unemployed youth from ages 15-35 by providing a range of free and paid for services to create a highly skilled workforce. The services proposed were counseling, education, skill development and training, business incubation, entrepreneurship, mentoring, market linkage and other livelihood options.
The YED also proposed to provide placement assistance by creating an IT enabled employed portal, apprenticeship opportunities in partnership with business houses, seed capital for small business enterprises through SIDICO, SABCCO and other financial institutions and entrepreneurship training to teach business survival skills.
--------------------------------------------------------------------------------
Youth need to change viewpoint on Sarkari Jagira: Draft report
GANGTOK, September 13: Pegging a figure of 21,000 unemployed youth in Sikkim, the Directorate of Capacity Building has stressed the need to set up an autonomous body Youth Empowerment Directorate (YED) to directly intervene in the building of capacity and capability of young people and place them in the opportunities that are ‘otherwise going to the people from outside the State’.
“This will be one of the arms of the government in its overall Livelihood Mission’, states a draft policy document on Chief Minister’s Youth Empowerment Scheme released on Saturday by Chief Minister Pawan Chamling.
Targeting to solve the 21,000 unemployed youth problem by 2015, the YED is proposed to be an integral part of the State government’s policy of zero tolerance toward youth unemployment which it has identified as a scourge of the society.
Apart from setting up YED, the policy proposed is to constantly monitor the laws and legal requirements to regulate the employment scenario in the State and interact with private, Centre and other players to see that opportunities are made available to local youth who are well positioned to do it as well as facilitate such proactive action.
The policy is also to constantly monitor the remuneration and other facilities that the private and public sector units offer to the youth of the State and see to it that there is no discrimination in this with respect to that on offer to other States in the country.
“Make available every year a state of Employment Status Report and table it in the Legislative Assembly”, the draft policy says recommending adequate financial resources for the first five years to the proposed YED.
The YED is expected to fully functionally by July 2010 with the proposed budget of Rs. 5130 lakhs. It is proposed to be an autonomous body governed by select body of eminent people from both government and civil society with independent financial powers. It will also select trainees in collaboration with decentralized grass root organizations and civil society.
The need to restructure Directorate of Capacity Building (DCB) set up in 2007 was justified with the rising unemployment in the State.
“In view of the new policy initiative and the Socio Economic Census 2006 conducted by DESME which shows that the total number of unemployed youth as 17620, now estimated to be around 21000, there is a need to restructure the DCB”, says the report.
The majority of the 21,000 unemployed youth is from rural areas and is school dropouts from Class V to Class VIII with modest sources of household income and a change in perspective is required to make significant inroads in tackling and eliminating the high rates of unemployment, the draft report outlines. It is necessary to categorize the youth broadly as per their qualification and adequate opportunities have to be provided for youth with disabilities and as well as gender sensitivity, the report observes.
Regarding the reasons for high rate of unemployment, the draft report states that though formal education system has reached the villages, it is widely accepted that the education system of the country is not related to the skills required in the labour market. Also, the youth of the State view ‘Sarkari Jagira’ as prestigious and secure and that there lies a perception that private sector jobs for people with lower skill levels do not offer adequate security and payment, the report says.
“An intensive campaign is required to educate the public that there is a limit to the number of jobs the government can create and that the youth must prepare themselves for private sector employment and or establish business enterprises”, the report states. It also underlined the need to develop the agriculture sector which will employ most of the rural young people.
The draft policy offers the strategy for mitigation of youth unemployment where by 2014, the State government shall utilize the services of YED and allied agencies to substantially reduce the number of unemployed youth from ages 15-35 by providing a range of free and paid for services to create a highly skilled workforce. The services proposed were counseling, education, skill development and training, business incubation, entrepreneurship, mentoring, market linkage and other livelihood options.
The YED also proposed to provide placement assistance by creating an IT enabled employed portal, apprenticeship opportunities in partnership with business houses, seed capital for small business enterprises through SIDICO, SABCCO and other financial institutions and entrepreneurship training to teach business survival skills.
--------------------------------------------------------------------------------
INTERPRETING CHINA'S ATTITUDE
It would be a huge strategic blunder for China to get into a military conflict with India--less initiate one--for two big reasons. One, nuclear deterrence imposes limits on how much a conventional military conflict can escalate. A 1962-like invasion is highly unlikely in 2009--even if the Chinese People's Liberation Army (PLA) were to incorrectly assess the conventional military balance prevailing across the border, the Chinese leadership is highly unlikely to want to gamble on whether India's steadfast doctrinal commitment to non-first use of nuclear weapons is rhetorical or real.
Two, a direct military conflict--whether or not initiated by China--would have the inevitable consequence of pushing India unequivocally into an alliance with the US. This would not only consolidate two of China's biggest strategic adversaries, but also completely blow the myth of a "peaceful rise" that is behind the success of Chinese diplomacy in East and Central Asia.
Why would China want to risk that?
So a war is extremely unlikely, but it is in China's interests to keep the border dispute alive at the present time. The dispute is an instrument to contain India geopolitically at a time when the two Asian giants are emerging as regional and global powers.
Also, the corollary to the existence of a dispute is the hope of a settlement. As long as Beijing manages to keep the border-related tensions within a certain bound, it can hold out the promise of an eventual settlement to prevent India from leaning too far away from China.
The use of military force to settle the boundary question would immediately propel India into an antiChina alliance. The broad contours of the border dispute are clear: it involves accepting the status quo. In other words, with some adjustments, India keeps Arunachal Pradesh, China keeps Aksai Chin and the two countries renounce their claim to the parts they do not control. While it was India that refused to even consider such a deal in April 1960--when Zhou Enlai offered it to Jawaharlal Nehru and Govind Ballabh Pant--it is China now that is unwilling to move forward.
Chinese scholars have suggested that this is due to Beijing's assessment that no Indian political leader will be able to sell the compromise to the public. While this might be true, it certainly is self-serving. If the leadership in Beijing were merely waiting for Indian public opinion to hit the Goldilocks moment for a territorial compromise, they would hardly be backtracking on their own prior commitments, not least by amplifying China's claims to Tawang in Arunachal Pradesh.
While the risk of even a limited military conflict is overstated, it is true that there is indeed a state of armed coexistence--to use Mao Zedong's phrase--along the line of actual control (LAC). "You wave a gun," Mao said, referring to Nehru, "and I'll wave a gun. We'll stand n face to face and can each practise our courage."
The Great Helmsman was speak ing metaphorically. In reality, this means that each side must expect incursions from the other. At the same time each side must ensure - that these don't get out of hand.
- This is one lesson from October 1962 and there are signs that it is a lesson that has been learnt. Note that much of the recent furore over red-painted boulders and helicop ter-dropped canned food in Ladakh was mainly due to a hyperventilat ing media--the official reaction from both the Indian foreign minis try and the Armed Forces played down the incidents.
While eschewing paranoia, alarmism and irresponsible rheto ric, a state of armed coexistence re quires astute management. First, In dian and Chinese officials--civilian and military--must communicate across all levels. The establishment of a hotline between the heads of government must be followed up with communication links and better contacts between military commanders at operational levels. Despite appearances, the Chinese government is not monolithic and India must develop independent links to its various power centres.
Second, India must continue to invest in conventional defences to ensure that the military balance across the Himalayan frontier remains stable in the face of the PLA's rapid modernization. This calls for careful planning as to the type of military assets used and the areas where they are deployed, to minimize the risk of miscalculation by either side. Also, as Admiral Sureesh Mehta said in an important speech a few days before he stepped down as navy chief, "On the military front, our strategy to deal with China must include reducing the military gap and countering the growing Chinese footprint in the Indian Ocean Region. The traditional or `attritionist' approach of matching `Division for Division' must give way to harnessing modern technology for developing high situational awareness and creating a reliable stand-off deterrent."
Third, India must avoid creating needless suspicions in Beijing over its Tibet policy. John Garver, a noted scholar of India-China relations, determines that Mao's profound misreading of Nehru's strategic intentions over Tibet was one of the main drivers of China's decision to go to war with India in 1962. New Delhi must not allow the Tibetans' struggle to unduly determine how it is perceived by the Chinese leadership.
Finally, not everything about the India-China border issue lies in the domain of foreign policy. It's not only about the "development" of Arunachal Pradesh, Sikkim and Ladakh. It is about making them part of the political, economic and social mainstream.
Nitin Pai and Sushant K. Singh are editors of Pragati--The Indian National Interest Review, a publication on strategic affairs, public policy and governance.
Two, a direct military conflict--whether or not initiated by China--would have the inevitable consequence of pushing India unequivocally into an alliance with the US. This would not only consolidate two of China's biggest strategic adversaries, but also completely blow the myth of a "peaceful rise" that is behind the success of Chinese diplomacy in East and Central Asia.
Why would China want to risk that?
So a war is extremely unlikely, but it is in China's interests to keep the border dispute alive at the present time. The dispute is an instrument to contain India geopolitically at a time when the two Asian giants are emerging as regional and global powers.
Also, the corollary to the existence of a dispute is the hope of a settlement. As long as Beijing manages to keep the border-related tensions within a certain bound, it can hold out the promise of an eventual settlement to prevent India from leaning too far away from China.
The use of military force to settle the boundary question would immediately propel India into an antiChina alliance. The broad contours of the border dispute are clear: it involves accepting the status quo. In other words, with some adjustments, India keeps Arunachal Pradesh, China keeps Aksai Chin and the two countries renounce their claim to the parts they do not control. While it was India that refused to even consider such a deal in April 1960--when Zhou Enlai offered it to Jawaharlal Nehru and Govind Ballabh Pant--it is China now that is unwilling to move forward.
Chinese scholars have suggested that this is due to Beijing's assessment that no Indian political leader will be able to sell the compromise to the public. While this might be true, it certainly is self-serving. If the leadership in Beijing were merely waiting for Indian public opinion to hit the Goldilocks moment for a territorial compromise, they would hardly be backtracking on their own prior commitments, not least by amplifying China's claims to Tawang in Arunachal Pradesh.
While the risk of even a limited military conflict is overstated, it is true that there is indeed a state of armed coexistence--to use Mao Zedong's phrase--along the line of actual control (LAC). "You wave a gun," Mao said, referring to Nehru, "and I'll wave a gun. We'll stand n face to face and can each practise our courage."
The Great Helmsman was speak ing metaphorically. In reality, this means that each side must expect incursions from the other. At the same time each side must ensure - that these don't get out of hand.
- This is one lesson from October 1962 and there are signs that it is a lesson that has been learnt. Note that much of the recent furore over red-painted boulders and helicop ter-dropped canned food in Ladakh was mainly due to a hyperventilat ing media--the official reaction from both the Indian foreign minis try and the Armed Forces played down the incidents.
While eschewing paranoia, alarmism and irresponsible rheto ric, a state of armed coexistence re quires astute management. First, In dian and Chinese officials--civilian and military--must communicate across all levels. The establishment of a hotline between the heads of government must be followed up with communication links and better contacts between military commanders at operational levels. Despite appearances, the Chinese government is not monolithic and India must develop independent links to its various power centres.
Second, India must continue to invest in conventional defences to ensure that the military balance across the Himalayan frontier remains stable in the face of the PLA's rapid modernization. This calls for careful planning as to the type of military assets used and the areas where they are deployed, to minimize the risk of miscalculation by either side. Also, as Admiral Sureesh Mehta said in an important speech a few days before he stepped down as navy chief, "On the military front, our strategy to deal with China must include reducing the military gap and countering the growing Chinese footprint in the Indian Ocean Region. The traditional or `attritionist' approach of matching `Division for Division' must give way to harnessing modern technology for developing high situational awareness and creating a reliable stand-off deterrent."
Third, India must avoid creating needless suspicions in Beijing over its Tibet policy. John Garver, a noted scholar of India-China relations, determines that Mao's profound misreading of Nehru's strategic intentions over Tibet was one of the main drivers of China's decision to go to war with India in 1962. New Delhi must not allow the Tibetans' struggle to unduly determine how it is perceived by the Chinese leadership.
Finally, not everything about the India-China border issue lies in the domain of foreign policy. It's not only about the "development" of Arunachal Pradesh, Sikkim and Ladakh. It is about making them part of the political, economic and social mainstream.
Nitin Pai and Sushant K. Singh are editors of Pragati--The Indian National Interest Review, a publication on strategic affairs, public policy and governance.
Sunday, September 13, 2009
We want to build Sikkim as a source of skilled human resource: CM
New industries to use cent per cent local employment, modifications in licenses
CM targets to attract Rs. 1 lakh crores investment in Sikkim
GANGTOK, September 12: With official figures of unemployed youth in Sikkim pegged at twenty one thousand, Chief Minister Pawan Chamling today announced a capacity building blitz sweetened with the government’s latest decision to ink new industries and hotels into 100 percent use of local manpower.
Forget 21,000 people, today there are sufficient job opportunities for 50,000 people in Sikkim but our biggest challenge is how to empower our people to fulfil these jop opportunities, said Mr. Chamling while releasing the draft policy and action plan of Chief Minister’s Youth Empowerment Scheme here at Chintan Bhavan.
The Chief Minister’s Youth Empowerment Scheme seeks to build a skilled and capable human resource in the State to take benefits of the slew of employment opportunities lying in the State.
“We want to build Sikkim as a source of capable skilled human resource”, said Mr. Chamling giving the departments targets for using their expertise and funds towards this objective.
Capacity building was the mantra offered by Chief Minister to overcome the unemployment hurdle.
Sikkim is the producer of the novel idea of capacity building, said Mr. Chamling adding that it was a though born out of necessity. From today, we have made it the main programme of the State government, he said. He appealed all the heads of the departments, legislatures and panchayats to make the capacity building programme of the State government into a successful venture.
With unemployment on the rise in Sikkim partly due to lack of skilled local manpower and partly due to ‘white collar job’ mentality among the locals, the Chief Minister called for a paradigm shift in the mindset of the Sikkimese youth and to accept dignity of labour.
Mr. Chamling further announced that new companies coming to Sikkim will have to ensure cent per cent local employment.
“While signing agreements with new companies or hotels, we will ensure that the companies must use 100 percent local manpower. If they need skilled manpower, the companies have to recruit locals and train them at their own expenses”.
Regarding the Bill that seeks reservation of 80 percent jobs in private industries and business establishments in Sikkim, Mr. Chamling said that Bill is presently under the consideration of the President of India. We are confident that the Centre will understand and value the contributions of Sikkimese people who have changed the definition of border State, he said underling the need of employment to local people.
The Chief Minister also opined the need for some modifications while giving licenses to open up business establishments in towns so that the locals can benefit in terms of entrepreneurship and employment.
Some people may not like it, but we are helpless, said Mr. Chamling.
At the same time, the Chief Minister also raised the bars for investment expressing his government’s target to attract Rs. 1 lakh crores investment in Sikkim within the fourth term of his government.
“A sum of Rs. 3,000 crores has been already invested in Sikkim. We have a target to attract an investment of one lakh crores rupees in Sikkim in the next five years. It may sound ambitious but it remains the target of the State government. The investment brings opportunities but if our people are not ready, others will take the opportunities”.
As an example of greater things in store for Sikkim, the Chief Minister informed that the State government is procuring land in Ranka belt of East Sikkim for five, seven star hotels. We are trying to buy 500 acres of land in Ranka area for five and seven star hotels, he said. We will give casino licenses to these high end hotels, amusement parks, IT parks and shopping malls and we will be giving job oriented trainings to our youth, he said.
Mr. Chamling tasked all the departments to submit a report to him within a month detailing how much skilled manpower, employable manpower and training are required them. He also announced that polytechnic type institutes will be set up in each constituency of the State for providing training to the local youth. He said that focus should be given only for high flier careers like pilot and hotel management.
The capacity building programmes should be as per demand and Sikkim sorely needs local trained and skilled masons, electricians, craftsman, tailors and other manpower, said the Chief Minister. Our target is to have 100 percent capable employable highly skilled workforce, he said adding the need to highlight success stories of the capacity building programme.
New industries to use cent per cent local employment, modifications in licenses
CM targets to attract Rs. 1 lakh crores investment in Sikkim
GANGTOK, September 12: With official figures of unemployed youth in Sikkim pegged at twenty one thousand, Chief Minister Pawan Chamling today announced a capacity building blitz sweetened with the government’s latest decision to ink new industries and hotels into 100 percent use of local manpower.
Forget 21,000 people, today there are sufficient job opportunities for 50,000 people in Sikkim but our biggest challenge is how to empower our people to fulfil these jop opportunities, said Mr. Chamling while releasing the draft policy and action plan of Chief Minister’s Youth Empowerment Scheme here at Chintan Bhavan.
The Chief Minister’s Youth Empowerment Scheme seeks to build a skilled and capable human resource in the State to take benefits of the slew of employment opportunities lying in the State.
“We want to build Sikkim as a source of capable skilled human resource”, said Mr. Chamling giving the departments targets for using their expertise and funds towards this objective.
Capacity building was the mantra offered by Chief Minister to overcome the unemployment hurdle.
Sikkim is the producer of the novel idea of capacity building, said Mr. Chamling adding that it was a though born out of necessity. From today, we have made it the main programme of the State government, he said. He appealed all the heads of the departments, legislatures and panchayats to make the capacity building programme of the State government into a successful venture.
With unemployment on the rise in Sikkim partly due to lack of skilled local manpower and partly due to ‘white collar job’ mentality among the locals, the Chief Minister called for a paradigm shift in the mindset of the Sikkimese youth and to accept dignity of labour.
Mr. Chamling further announced that new companies coming to Sikkim will have to ensure cent per cent local employment.
“While signing agreements with new companies or hotels, we will ensure that the companies must use 100 percent local manpower. If they need skilled manpower, the companies have to recruit locals and train them at their own expenses”.
Regarding the Bill that seeks reservation of 80 percent jobs in private industries and business establishments in Sikkim, Mr. Chamling said that Bill is presently under the consideration of the President of India. We are confident that the Centre will understand and value the contributions of Sikkimese people who have changed the definition of border State, he said underling the need of employment to local people.
The Chief Minister also opined the need for some modifications while giving licenses to open up business establishments in towns so that the locals can benefit in terms of entrepreneurship and employment.
Some people may not like it, but we are helpless, said Mr. Chamling.
At the same time, the Chief Minister also raised the bars for investment expressing his government’s target to attract Rs. 1 lakh crores investment in Sikkim within the fourth term of his government.
“A sum of Rs. 3,000 crores has been already invested in Sikkim. We have a target to attract an investment of one lakh crores rupees in Sikkim in the next five years. It may sound ambitious but it remains the target of the State government. The investment brings opportunities but if our people are not ready, others will take the opportunities”.
As an example of greater things in store for Sikkim, the Chief Minister informed that the State government is procuring land in Ranka belt of East Sikkim for five, seven star hotels. We are trying to buy 500 acres of land in Ranka area for five and seven star hotels, he said. We will give casino licenses to these high end hotels, amusement parks, IT parks and shopping malls and we will be giving job oriented trainings to our youth, he said.
Mr. Chamling tasked all the departments to submit a report to him within a month detailing how much skilled manpower, employable manpower and training are required them. He also announced that polytechnic type institutes will be set up in each constituency of the State for providing training to the local youth. He said that focus should be given only for high flier careers like pilot and hotel management.
The capacity building programmes should be as per demand and Sikkim sorely needs local trained and skilled masons, electricians, craftsman, tailors and other manpower, said the Chief Minister. Our target is to have 100 percent capable employable highly skilled workforce, he said adding the need to highlight success stories of the capacity building programme.
NORTH EAST FOOD PROCESSING SUMMIT 2009 AT GANGTOK
CALLING SIKKIM ENTREPRENURS TO ATTEND
Indian Chamber of Commerce co-sponsored by Ministry of Food Processing Industries, Government of India is organizing a summit cum exhibition focusing North East Agri Business- NORTH EAST FOOD PRO 2009 at Chintan Bhawan, Gangtok on September 22-23, 2009.
ICC has asked Sikkim Chamber of Commerce to send a strong delegation comprising of local entrepreneurs, would be entrepreneurs, traders in bakeries, packagers,etc, Unemployed who like to take up entrepreneurship and existing industrial units, farmers, Horticulturists.
This meet will be addressed by experts on food processing and provides a platform for interaction and knowledge sharing. Their will be a round table discussion of representatives of all North East States.
Shri Subodh K Sahai, Hon’ble minister for Food Processing Industries, Government of India will also bless the Summit with inaugural address by Dr.Pawan Chamling, Hon’ble Chief Minister of Sikkim.
Issues related to Project Financing, success stories, presentation by NERAMAC, Cold Chain and question Answers sessions will be another highlights of the Summit.
Sikkim Chamber of Commerce, therefore, urges all interested to get them registered with SCC to enable them to attend the summit. This is a golden opportunity not to be missed.
For registration:
Pl contact Mobile No 94340 23594
Or visit out site: www.sikkimchamberofcommerce.blogspot.com
Or E mail to: sikkimchamberofcommerce@yahoo.com
Or drop in at following address: Converse, near Gandhi Statute ,M.G.Road,Gangtok, Sikkim
S.K.Sarda
President
Sikkim Chamber Of Commerce
Form for Registration:
NORTH EAST FOOD PROCESSING SUMMIT 2009
( 22ND & 23RD SEPT 2009- Chintan Bhawan,Gangtok)
REGISTRATION FORM
DELEGATES OF SIKKIM CHAMBER OF COMMERCE
Name:Shri/Smt/Miss
Organisation Representating ( if any)
Full Address: House No/Name:
Road
Locality
P.O.
Phone Nos: Mobile:
Landline:
Category: ( mention here):
TRADER/ ENTREPRENUR/ UNEMPLOYED/FARMER/HORTICULTRIST/ OTHERS
Dt: ( Signature)
Gangtok
CALLING SIKKIM ENTREPRENURS TO ATTEND
Indian Chamber of Commerce co-sponsored by Ministry of Food Processing Industries, Government of India is organizing a summit cum exhibition focusing North East Agri Business- NORTH EAST FOOD PRO 2009 at Chintan Bhawan, Gangtok on September 22-23, 2009.
ICC has asked Sikkim Chamber of Commerce to send a strong delegation comprising of local entrepreneurs, would be entrepreneurs, traders in bakeries, packagers,etc, Unemployed who like to take up entrepreneurship and existing industrial units, farmers, Horticulturists.
This meet will be addressed by experts on food processing and provides a platform for interaction and knowledge sharing. Their will be a round table discussion of representatives of all North East States.
Shri Subodh K Sahai, Hon’ble minister for Food Processing Industries, Government of India will also bless the Summit with inaugural address by Dr.Pawan Chamling, Hon’ble Chief Minister of Sikkim.
Issues related to Project Financing, success stories, presentation by NERAMAC, Cold Chain and question Answers sessions will be another highlights of the Summit.
Sikkim Chamber of Commerce, therefore, urges all interested to get them registered with SCC to enable them to attend the summit. This is a golden opportunity not to be missed.
For registration:
Pl contact Mobile No 94340 23594
Or visit out site: www.sikkimchamberofcommerce.blogspot.com
Or E mail to: sikkimchamberofcommerce@yahoo.com
Or drop in at following address: Converse, near Gandhi Statute ,M.G.Road,Gangtok, Sikkim
S.K.Sarda
President
Sikkim Chamber Of Commerce
Form for Registration:
NORTH EAST FOOD PROCESSING SUMMIT 2009
( 22ND & 23RD SEPT 2009- Chintan Bhawan,Gangtok)
REGISTRATION FORM
DELEGATES OF SIKKIM CHAMBER OF COMMERCE
Name:Shri/Smt/Miss
Organisation Representating ( if any)
Full Address: House No/Name:
Road
Locality
P.O.
Phone Nos: Mobile:
Landline:
Category: ( mention here):
TRADER/ ENTREPRENUR/ UNEMPLOYED/FARMER/HORTICULTRIST/ OTHERS
Dt: ( Signature)
Gangtok
NATIONAL SEMINAR ON ‘FIGHTING CRIMES RELATED TO CORRUPTION’ INAUGURATED.
--------------------------------------------------------------------------------
12 Sept 2009
Chief Justice of India has said that “the real costs are difficult to measure since they involve the loss of opportunities for business and investment as well as the diversion of man-power, when it may be usefully employed elsewhere. In some instances, corruption poses a threat to national security and law & order. We are all aware of how smuggled arms and explosives were used for the bomb blasts in Bombay in 1993, as well as the financing of terrorist operations through the ‘Hawala’ currency racket. All in all, the pervasive culture of graft provokes pessimism about the quality of governance”. Hon’ble Justice K. G. Balakrishnan said this while inaugurating a two days’ National Seminar on ‘Fighting Crimes Related to Corruption’ here at Vigyan Bhawan today. This National Seminar was jointly organised by LNJN National Institute of Criminology and Forensic Science and CBI.
Hon’ble Justice K. G. Balakrishnan also underlined the idea that our deliberations should focus on how to strengthen the investigation and prosecution of corruption cases, so that the courts of first instance are able to improve the conviction rate. He also gave ideas to working sessions for deliberations. He suggested that while the substantive definition of offences (under Prevention of Corruption Act) appears to be quite adequate, there have been persistent demands for enhancing the penalties and punishments under the Act. Secondly, he suggested that we should turn our attention to the obstructions in the investigation and trial process. He said that in many cases aggrieved parties have approached the higher judiciary when the requisite sanctions have been denied despite the production of incriminating materials. Thirdly, he touched upon the controversial issue of separation of prosecution functions from the investigative functions of the CBI. ‘Having a specialised team of lawyers will also ensure that they thoroughly scrutinise the investigators efforts in evidence-gathering, thereby improving the presentation of cases’, he added.
Shri Prithviraj Chavan, Union Minister of State Personal and Public Grievances (PP), in his welcome address said that “at this seminar, where the key functionaries of the criminal justice system have gathered, the question that needs to be posed is how to ensure that corrupt are punished severally and swiftly so as to create deterrence in the minds of would be criminals. What is also needed, however, over and beyond the punitive aspects of corruption, is an effective preventive strategy by bringing about systemic changes with your vast experience and personal knowledge of the Institutional Lacunae that promote corruption”. ‘Unless corruption is controlled, it will threaten national security and economic development’ he added.
In his vote of thanks, Shri Ashwani Kumar, Director, CBI recalled the initiative taken by Hon’ble Chief Justice of India in setting up 71 exclusive CBI Courts. He also expressed his gratitude to the PM in accepting the proposal from Chief Justice of India. The Director said that these exclusive CBI Courts should be model and fast track courts with all facilities. He desired that can we think of reducing the number of cases being given to these courts in order to avoid delays in the trial. Earlier, Director, National Institute of Criminology and Forensic Science, in his introductory remarks said that “widespread poverty continues to be a major challenge despite the economic strides we have made since 1951. According to World Bank studies corruption adversely affects public sector productivity and distributive justice. Corruption also increases income inequality, weakens governance and reduces citizens trust in effectiveness of their Government”.
Judges from Supreme Court, High Court of Delhi and distinguished legal luminaries including over 60 Special Judges dealing with anti-corruption cases from the entire country are participating in this Seminar. Director:CFSL, 60 Prosecutors / Dy. Legal Advisors as well as investigators of CBI and 6 Delegates from State Vigilance / Anti-Corruption Bureaus are also attending the Seminar.
Four working sessions have been planned for today and tomorrow to discuss the contemporary legal issues. These are (i) Session-I : Facilitating Speedy Trial; (ii) Session-II : Investigation and Trial of Anti-Corruption Cases : Legal Lacunae and other Constraints; (iii) Session-III : How to Improve Presentation / Prosecution of cases by CBI and (iv) Session-IV : Appreciating and Evaluating Electronic Evidence. Each Session is scheduled to be Chaired by Hon’ble Judge of the Supreme Court of India.
****
--------------------------------------------------------------------------------
12 Sept 2009
Chief Justice of India has said that “the real costs are difficult to measure since they involve the loss of opportunities for business and investment as well as the diversion of man-power, when it may be usefully employed elsewhere. In some instances, corruption poses a threat to national security and law & order. We are all aware of how smuggled arms and explosives were used for the bomb blasts in Bombay in 1993, as well as the financing of terrorist operations through the ‘Hawala’ currency racket. All in all, the pervasive culture of graft provokes pessimism about the quality of governance”. Hon’ble Justice K. G. Balakrishnan said this while inaugurating a two days’ National Seminar on ‘Fighting Crimes Related to Corruption’ here at Vigyan Bhawan today. This National Seminar was jointly organised by LNJN National Institute of Criminology and Forensic Science and CBI.
Hon’ble Justice K. G. Balakrishnan also underlined the idea that our deliberations should focus on how to strengthen the investigation and prosecution of corruption cases, so that the courts of first instance are able to improve the conviction rate. He also gave ideas to working sessions for deliberations. He suggested that while the substantive definition of offences (under Prevention of Corruption Act) appears to be quite adequate, there have been persistent demands for enhancing the penalties and punishments under the Act. Secondly, he suggested that we should turn our attention to the obstructions in the investigation and trial process. He said that in many cases aggrieved parties have approached the higher judiciary when the requisite sanctions have been denied despite the production of incriminating materials. Thirdly, he touched upon the controversial issue of separation of prosecution functions from the investigative functions of the CBI. ‘Having a specialised team of lawyers will also ensure that they thoroughly scrutinise the investigators efforts in evidence-gathering, thereby improving the presentation of cases’, he added.
Shri Prithviraj Chavan, Union Minister of State Personal and Public Grievances (PP), in his welcome address said that “at this seminar, where the key functionaries of the criminal justice system have gathered, the question that needs to be posed is how to ensure that corrupt are punished severally and swiftly so as to create deterrence in the minds of would be criminals. What is also needed, however, over and beyond the punitive aspects of corruption, is an effective preventive strategy by bringing about systemic changes with your vast experience and personal knowledge of the Institutional Lacunae that promote corruption”. ‘Unless corruption is controlled, it will threaten national security and economic development’ he added.
In his vote of thanks, Shri Ashwani Kumar, Director, CBI recalled the initiative taken by Hon’ble Chief Justice of India in setting up 71 exclusive CBI Courts. He also expressed his gratitude to the PM in accepting the proposal from Chief Justice of India. The Director said that these exclusive CBI Courts should be model and fast track courts with all facilities. He desired that can we think of reducing the number of cases being given to these courts in order to avoid delays in the trial. Earlier, Director, National Institute of Criminology and Forensic Science, in his introductory remarks said that “widespread poverty continues to be a major challenge despite the economic strides we have made since 1951. According to World Bank studies corruption adversely affects public sector productivity and distributive justice. Corruption also increases income inequality, weakens governance and reduces citizens trust in effectiveness of their Government”.
Judges from Supreme Court, High Court of Delhi and distinguished legal luminaries including over 60 Special Judges dealing with anti-corruption cases from the entire country are participating in this Seminar. Director:CFSL, 60 Prosecutors / Dy. Legal Advisors as well as investigators of CBI and 6 Delegates from State Vigilance / Anti-Corruption Bureaus are also attending the Seminar.
Four working sessions have been planned for today and tomorrow to discuss the contemporary legal issues. These are (i) Session-I : Facilitating Speedy Trial; (ii) Session-II : Investigation and Trial of Anti-Corruption Cases : Legal Lacunae and other Constraints; (iii) Session-III : How to Improve Presentation / Prosecution of cases by CBI and (iv) Session-IV : Appreciating and Evaluating Electronic Evidence. Each Session is scheduled to be Chaired by Hon’ble Judge of the Supreme Court of India.
****
Rs. 80.56 crore released under technology mission for north eastern states as first installment
--------------------------------------------------------------------------------
12 Sept 2009
The Centre has released Rs. 80.56 crore as the first installment in 2009-10 under Technology Mission for North Eastern States, a Centrally Sponsored Scheme implemented by the Ministry of Agriculture. Of this, Rs. 57.46 crore are for North Eastern States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Tripura and Sikkim and Rs. 23.10 crores for three Himalayan states of Jammu and Kashmir, Himachal Pradesh and Uttarakhand. Rs. 349 crores have been earmarked during the current fiscal, of which Rs. 280 crores are for North Eastern States and Rs. 69 crores for three Himalayan states.
Funds to the tune of Rs. 1538.60 crores have been released during the last eight years since 2001-02 leading to overall development of horticulture in the region. An additional area of about 4.9 lakh hectares has been brought under cultivation of various horticulture crops in these ten states. Forty seven Wholesale markets, 267 Rural Primary Markets, 64 Apni Mandies, 18 State grading laboratories, 31 Rope ways and 49 processing units have been established so far under the scheme. Infrastructure facilities have also been created in significant numbers. They include 935 model nurseries, 10032 community tanks, 11106 tube wells and 2,49,6025 squire meters of greenhouses. Training has also been imparted to 1,64,960 farmers/trainers and 67,329 women under the scheme.
MP:SB:CP:mission(12.9.2009)
--------------------------------------------------------------------------------
12 Sept 2009
The Centre has released Rs. 80.56 crore as the first installment in 2009-10 under Technology Mission for North Eastern States, a Centrally Sponsored Scheme implemented by the Ministry of Agriculture. Of this, Rs. 57.46 crore are for North Eastern States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Tripura and Sikkim and Rs. 23.10 crores for three Himalayan states of Jammu and Kashmir, Himachal Pradesh and Uttarakhand. Rs. 349 crores have been earmarked during the current fiscal, of which Rs. 280 crores are for North Eastern States and Rs. 69 crores for three Himalayan states.
Funds to the tune of Rs. 1538.60 crores have been released during the last eight years since 2001-02 leading to overall development of horticulture in the region. An additional area of about 4.9 lakh hectares has been brought under cultivation of various horticulture crops in these ten states. Forty seven Wholesale markets, 267 Rural Primary Markets, 64 Apni Mandies, 18 State grading laboratories, 31 Rope ways and 49 processing units have been established so far under the scheme. Infrastructure facilities have also been created in significant numbers. They include 935 model nurseries, 10032 community tanks, 11106 tube wells and 2,49,6025 squire meters of greenhouses. Training has also been imparted to 1,64,960 farmers/trainers and 67,329 women under the scheme.
MP:SB:CP:mission(12.9.2009)
Dhaka to sign Teesta water-sharing deal soon
Dhaka, Sept 11: Foreign minister Dipu Moni has said the government will “soon” sign a deal with India on sharing water of the common river Teesta over which Bangladesh has the largest irrigation project.
She told journalists at a news briefing on Friday on her just-concluded India visit that Indian separatist ULFA leader Anup Chetia would not be handed over to India as per an extradition treaty the government was going to sign with New Delhi.
She said India would allow products from the land-locked Nepal and Bhutan to reach Bangladesh via Indian territories and the two countries would be able to use Mongla port.
“Both the countries want to sign a deal on sharing water of the river Teesta as soon as possible,” said Moni, who toured India from Sep 7 to 9.
The minister said the agreement would be inked as soon as joint hydrological observation team, comprising experts from Bangladesh and India, prepared the draft on water availability and other related issues.
“The joint hydrological observation team will meet this month.
“We want to expedite the negotiation on Teesta water-sharing and strike a deal on it,” Moni told bdnews24.com after the news conference.
Bangladesh and India have been engaged in dialogue on the sharing of the Teesta for years, according to water resources ministry sources.
During dry season, the river faces water crunch as India has constructed Gozaldoba Barrage in the upstream and diverts water from the river that enters Bangladesh’s greater Rangpur region.
Bangladesh’s Teesta barrage (first phase) in the downstream covers irrigation projects on 7,50,000 hectares of land, as per the Water Development Board.
Water shortage in the Teesta very often disrupts irrigation in the vast tracts of land and put Bangladesh’s agriculture in trouble.
Dhaka, Sept 11: Foreign minister Dipu Moni has said the government will “soon” sign a deal with India on sharing water of the common river Teesta over which Bangladesh has the largest irrigation project.
She told journalists at a news briefing on Friday on her just-concluded India visit that Indian separatist ULFA leader Anup Chetia would not be handed over to India as per an extradition treaty the government was going to sign with New Delhi.
She said India would allow products from the land-locked Nepal and Bhutan to reach Bangladesh via Indian territories and the two countries would be able to use Mongla port.
“Both the countries want to sign a deal on sharing water of the river Teesta as soon as possible,” said Moni, who toured India from Sep 7 to 9.
The minister said the agreement would be inked as soon as joint hydrological observation team, comprising experts from Bangladesh and India, prepared the draft on water availability and other related issues.
“The joint hydrological observation team will meet this month.
“We want to expedite the negotiation on Teesta water-sharing and strike a deal on it,” Moni told bdnews24.com after the news conference.
Bangladesh and India have been engaged in dialogue on the sharing of the Teesta for years, according to water resources ministry sources.
During dry season, the river faces water crunch as India has constructed Gozaldoba Barrage in the upstream and diverts water from the river that enters Bangladesh’s greater Rangpur region.
Bangladesh’s Teesta barrage (first phase) in the downstream covers irrigation projects on 7,50,000 hectares of land, as per the Water Development Board.
Water shortage in the Teesta very often disrupts irrigation in the vast tracts of land and put Bangladesh’s agriculture in trouble.
Tourism Ministry to promote domestic tourism in Sikkim
New Delhi, Sep 12 (IANS) Tourism Minister Kumari Selja announced the guidelines that includes financial packages for states that intend to develop such projects.
While caravan tourism involves the use of a specially equipped vehicle deployed on a tourist circuit, helipad tourism is aimed at promoting tourism in hilly and remote areas by making helipads at select destinations.
The concept of caravan tourism will be popularised and promoted by developing caravan parks. This will be done through the public private partnership route.
The ministry will approve these parks only after states provide facilities like parking bays, tourist amenities centre, toilets and adequate safety measures.
According to the guidelines, the caravan parks will have electricity, water and sewage disposal facilities for the caravans which are parked.
Also, these parks should take environment friendly steps.
For this, the ministry will provide central assistance of up to Rs.5 crore per destination to state governments.
The ministry added that it would extend financial assistance of up to Rs.75 lakh to state governments for construction of heliports.
The guidelines specify that the projects for construction of heliports will have to conform to the technical requirements laid down by the Director General of Civil Aviation.
Already, the ministry has approved two projects in Sikkim - Mangan and Geetang Khola.
Apart from providing central financial assistance for the heliport, the government will also give aid for developing the area as a tourist hub.
For development of Mangan Tourist Axis in north Sikkim, the tourism ministry will provide Rs.3.03 crore and for Geetang Khola waterfall in West Sikkim Rs.3.02 crore will be sanctioned, officials said.
As India is known for its wellness tourism, especially because of its traditional systems of medicine — ayurveda, yoga, Unani and Siddha — the ministry plans to promote this key area too.
For this, it has revised its earlier guidelines of marketing development assistance (MDA).
Under this scheme, the wellness centres accredited by states, and travel agents and tour operators will be qualified for financial assistance to participate in wellness tourism fairs abroad.
New Delhi, Sep 12 (IANS) Tourism Minister Kumari Selja announced the guidelines that includes financial packages for states that intend to develop such projects.
While caravan tourism involves the use of a specially equipped vehicle deployed on a tourist circuit, helipad tourism is aimed at promoting tourism in hilly and remote areas by making helipads at select destinations.
The concept of caravan tourism will be popularised and promoted by developing caravan parks. This will be done through the public private partnership route.
The ministry will approve these parks only after states provide facilities like parking bays, tourist amenities centre, toilets and adequate safety measures.
According to the guidelines, the caravan parks will have electricity, water and sewage disposal facilities for the caravans which are parked.
Also, these parks should take environment friendly steps.
For this, the ministry will provide central assistance of up to Rs.5 crore per destination to state governments.
The ministry added that it would extend financial assistance of up to Rs.75 lakh to state governments for construction of heliports.
The guidelines specify that the projects for construction of heliports will have to conform to the technical requirements laid down by the Director General of Civil Aviation.
Already, the ministry has approved two projects in Sikkim - Mangan and Geetang Khola.
Apart from providing central financial assistance for the heliport, the government will also give aid for developing the area as a tourist hub.
For development of Mangan Tourist Axis in north Sikkim, the tourism ministry will provide Rs.3.03 crore and for Geetang Khola waterfall in West Sikkim Rs.3.02 crore will be sanctioned, officials said.
As India is known for its wellness tourism, especially because of its traditional systems of medicine — ayurveda, yoga, Unani and Siddha — the ministry plans to promote this key area too.
For this, it has revised its earlier guidelines of marketing development assistance (MDA).
Under this scheme, the wellness centres accredited by states, and travel agents and tour operators will be qualified for financial assistance to participate in wellness tourism fairs abroad.
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