IOC racks up storage capacity to 21,000 cylinders

GANGTOK, 16 June:Source: SIKKIM NOW

This monsoon, LPG consumers in the State can expect some relief as the LPG refilling plant at Majitar, Rangpo is now equipped with a capacity to store 21,000 cylinders at a time instead of the earlier 7,000.
Speaking to NOW!, STCS Managing Director, S. Gyamptso Pulger, said, “Now the refilling plant has increased its storing capacity and is also arranging for buffer stocks. There should not be scarcity during monsoon.”
At present, according to Mr. Pulger, the supply is running normal as the refilling plant has almost cleared its backlog carried over from February to April.

“Though there some problems persist for the consumers of West and North districts because of the massive increase in the consumers there,” he said, informing that consumers in West district have now reached the 10,000 marks as compared to 6,000 till last year.
Similarly, North Sikkim now has around 5,000 consumers. This was earlier around 3,500 only. STCS is the only distributor for these districts and this increase as well as transportation hurdles have made it difficult to meet the demand smoothly, he informs.
Towards solutions, he said, “We have put up a proposal with the IOC to depute private distributor for both districts, so that the burden can be distributed and consumers benefitted.”
In this regard, Mr. Pulger claimed that the officials have given a positive signal and also mentioned that the IOC has already advertised seeking distributors for West district.
On the documental hindrances being faced by the consumers to transfer the Blue Book to their respective areas as per the directions of the Food & Civil Supplies Department, he informed that a high level meeting between the distributors, IOC and the Department is scheduled to be held on Friday and he was hopeful that the meeting will definitely work out some relaxations to the consumers.
At present, the formalities to transfer the connection, include issuance of Town Transfer Voucher [TTV] from earlier distributor with Blue Book and Subscription Voucher Receipt. Those consumers who had either lost or misplaced these documents should produce an Indemnity Bond [affidavit] duly signed by a Notarized authority.

Service Tax -FINANCE MINISTRY WANTS TO RAISE TAX WITH RETROSPECTIVE EFFECT, TRAVEL AGENTS WANT 5-YEAR CUSHION INSTEAD

Tourism stakeholders form JAC to challenge Service Tax imposition

FINANCE MINISTRY WANTS TO RAISE TAX WITH RETROSPECTIVE EFFECT, TRAVEL AGENTS WANT 5-YEAR CUSHION INSTEAD

source:SIKKIMNOW

GANGTOK, 14 June: In what is being claimed as the biggest setback for the tourism industry in the region, especially Sikkim, the Finance Ministry has dampened aspirations here by imposing Service Tax on all tourism service providers in the Northeast and demanding that the account be settled with retrospective effect.
Acting on directions of the Ministry, the Office of the Commissioner, Central Excise, Customs and Service Tax Headquarters, Anti Evasion Unit, Siliguri Commissionerate has started issuing summon notices to service providers in Sikkim, directing them to submit details of the service tax with retrospective effect from 01 April 2006 which is also the date the service taxes were extended to all Northeastern states.
Addressing a press conference here today, the newly formed Joint Action Committee for Sikkim Tourism Stakeholders which is an apex committee of representatives of Travel Agents Association of Sikkim [TAAS], Sikkim Association of Adventure Tour Operators [SAATO] and Sikkim Hotel & Restaurant Association [SHRA] has appealed that the Finance Ministry include Service tax exemption under North- East Industrial Investment Promotion Policy (NEIIPP) and further waive the retrospective clause.

Former minister, SB Subedi who is the Chairman of the JAC said today that the issue was so important that the Chief Minister has also made a representation to the Union Finance Minister, Pranab Mukerjee seeking the exemption of the same.
It was further informed that both the Member of Parliaments from Sikkim had also written to the Union minister stating the negative consequences it would have on the tourism sector in Sikkim “which supported almost 60 percent of the total population of the state.”
According to the JAC Chairman, the issue had also been raised in the NE, MPs Forum which in turn had written to the Prime Minister regarding the matter which was also followed-up by a TAAS representation calling on the DONER Minister, BK Handique.
“The Union Finance Minister has also acknowledged the letter from the Lok Sabha MP, PD Rai which means that the impacts are under their knowledge. We have the full support of the state government but this is a central subject and we need to raise the issue at a larger level, thus we have first decided to hold a general meeting of all service providers in the near future which will be followed by meetings with our counterparts in the Northeast,” he informed.
Further, Lukendra Rasaily, president TAAS who shared the dais with the SAATO general secretary, DN Pradhan and SHRA president, Bhanu Pratab Rasaily, also contended that the decision of the ministry was “unfortunate” since it was intended at “killing” the local self employed entrepreneurs of the region. While saying that the service sector in the state and the region was basically a small and middle scale industry which was now the mainstay of the local economy.
“When there are subsidies for big multinational companies in the region who are exempted from almost 80 crores annually, then why are we being targeted here? There was no intimation and no awareness programmes held for us. Suddenly, they ask us for this retrospective clearance. How we can provide them something which we have never knew was required to be filed. There is a big confusion amongst the service providers which should have been cleared before these notices were being served,” he said.
Paljor Lachungpa, former TAAS president and the coordinator of the JAC in his address stated, “We are not saying that we want to evade service tax but want the ministry to give us at least five more years to stabilize our market. We are thus seeking exemption till we understand the issue better, know the logistics and maintain our books of accounts.”
According to Mr. Lachungpa, many of the 400 travel agents in the state still did not know when the Act was implemented and that even if the Act was implemented, none of the travel agents in Sikkim knew about its implications. He further stated that the service providers in Sikkim have never collected service tax from any client nor had maintained books of accounts and details related to service tax.
He also mentioned that almost 180 travel operators in the state would have to down shutters if service taxes were imposed here with retrospective effect. He mentioned that at an average a travel agent from Sikkim would have to pay an estimated Rs. 35 lakh as service tax starting 2006. He also informed that while a hotel whose tariff exceeded Rs.1000 per night has to pay a service tax of 5.15 percent on the gross annual turnover, a travel agent having a turnover of Rs.9 lakh and above would have to shell out 10.30 percent of his gross annual audit.
“If they say that the Act came into effect in 2006 why did it take them so long to send us the notices? Why were the notices not sent in 2006 itself or 2007 so that we could have been prepared for this situation,” he questioned.
It may be informed here that the subject of service tax has hit the service providers so hard that many of them feel that this shall lead to a collapse in the budding tourism sector in the state.
“The side effects of the extension of service tax in the region have started taking their toll, Since we are in the fore- front of the tourism boom in the region, we have taken it as our responsibility to protect the interest of the thousands of unemployed youth engaged with this industry. The ministry should understand that if they want to maintain socioeconomic relations in the region then they should pay immediate heed to our appeal,” stated the TAAS President.

source:equitymaster

Source:LIVEMINT

INDIA- Training 500 million skilled workers by 2022,

India has set a target of training 500 million skilled workers by 2022, says P. C. Chaturvedi Secretary Labour and Employment

Government of India has, taking into account the existing vocational training facilities and realistic demand for skilled workers in the country, introduced a new Skills Policy. The aim of the Policy is to achieve rapid and inclusive growth through enhancing individuals’ employment prospects and ability to adapt to changing technologies and labour market demands, improving productivity and living standards of workers and strengthening global competitiveness of the country. In is expected that the ageing population phenomenon will globally create a skilled manpower shortage of approximately 56.5 million by 2020 and if skill development schemes of India succeed we would have a skilled manpower surplus of about 47 million by this time. India has set a target of creating 500 million skilled workers by 2022.

The Decent Work Agenda of ILO has withstood the test of time to emerge as a universal and successful mandate for protection of interests of workers all over the world. Shri P. C. Chaturvedi, Secretary (Labour & Employment) said this in the 100th Session of ILC on 14th June, 2011 while speaking on the Report of the Director General on ‘A New Era of Social Justice’. Shri Chaturvedi recounted the factors which helped India’s economy to recover swiftly from the financial crisis, that included high level of domestic investment, robust corporate sector, sustained financial sector management and comfortable foreign exchange reserves. He emphasized that providing social security benefits to the unorganized sector workers was the biggest challenge before the Government of India. A number of steps have been taken to achieve this goal, notable among them being the flagship programmes like RSBY and MGNREGA, establishment of Labour Welfare Funds and enactment of legislation to provide Social Security to unorganized workers. In the context of expeditious ratification of ILO Core Conventions he mentioned that overall action taken by member States to implement the provisions of various labour standards should be taken into account, to reach a conclusion about their extent of commitment to labour welfare.

Implementation of well designed social security benefits, promotion of productive employment and emphasis on gender equality can bring about sound economic growth and help to reduce disparities in income and living standards of workers in the long run. This is a commitment required from all member states under the leadership of ILO to make the new era of social justice a reality, Shri Chaturvedi concluded.

YSK
(Release ID :72713)

NE MP’s Forum writes to PM seeking 5-year breather from service tax for tourism sector

source:Sikkim Now

GANGTOK, 12 June: Member of Parliament (Lok Sabha ), PD Rai, interacted with media persons at his residence HEREyesterday and discussed various issues concerning the North Eastern states and the role of DoNER.
“North East MPs Forum is working on larger issues of the region and most of the meetings of the forum are being held in New Delhi at regular intervals,” he informed.
On being asked about the service tax being raised from tourism service providers [an issue raised by TAAS recently], he said that the stakeholders and local operators are now making it a habit to pay their taxes on a prospective basis and not on retrospective. He also ruled out the occurrence of double taxation.
He also shared copies of a letter to the Prime Minister recently in which the NE MP’s Forum has raised the issue and prayed for relaxations.

The letter, dated 25 May, argues that the nascent sector of tourism is being taken advantage of by young people and weaning them away from violence in the region. “This is not the time to tax them with service tax,” the letter argues, pointing out that many of youth, the first generation in the service-sector do not even know how to keep books of accounts.
“Hence, there is a need to give a window of about five years to prepare the young people. There is palpable anger amongst this section of the population. We, as their representatives, have to therefore bring this to your notice,” the letter concludes.
He expressed that he has taken many issues with regard to the development of Sikkim to the Parliament and further pledged to keep in touch with the media persons in the days to come and keep them updated on every proceeding and issue raised by him in the house

source:equitymaster

Singapore firm to develop Sikkim tourism

Singapore firm to develop Sikkim tourism

Aiming at developing a sustainable roadmap that will uphold the culture and spiritualism of the hill state

By Traveltechie Bureau | Mumbai

Singapore-based Master Consult Services Pte Ltd (MCSPL) is charting out a long-term master plan to upgrade tourism facilities in Sikkim. The company is aiming at developing a sustainable roadmap that will uphold the culture and spiritualism of the hill state.

As per a report in the TOI, MCSPL will arrange various workshops to train people and develop connectivity through proper roads and enhanced helicopter services. According to MCSPL managing director Christopher Khoo, the plan will be a 20-year long initiative. "It will upgrade facilities, including hotel services and building up of proper infrastructure, in 11 towns," he said.

In 1997, Sikkim had initiated a 15-year master plan prepared by Tata Consultancy Services (TCS). TCS had estimated domestic tourist flow to touch at 3.5 lakh by 2012. The number of foreign tourists, as estimated by TCS, stood at 35000. But till early 2011, tourist flow surpassed all estimates with 8 lakh domestic tourists visiting the state.

Chinese diplomacy - Good intentions?

Rajeev Ranjan Chaturvedy: Chinese diplomacy - Good intentions?

Rajeev Ranjan Chaturvedy / New Delhi June 12, 2011, 0:16 IST
source: Business Stabdard

The current debate in India over whether to engage with an emerging China is, in many ways, a debate over how to think about China’s future intentions. India is concerned about the expansion of Chinese influence and construction of transport links to South Asia (roads, railways and ports).

However, the perception of Chinese threats that pervades the Indian policy community’s psyche is not shared by the country’s border populations. They think that if the Indian government is serious about developing roads in the region (and thus helping to develop the region itself), this could be done faster by inviting global tenders and by using advanced technologies. Instead, the government is relying on the Border Roads Organisation, which seems incapable of delivering timely projects, particularly in Arunachal Pradesh. Indeed, when Indian policy makers perceived Chinese access diplomacy as a potential threat to Indian interests, they started talking about making the border “irrelevant”. Thus, a sense of insecurity in border areas worked as a catalyst in India’s policy thinking in bringing attention to the socio-economic development of its peripheral regions.




In contrast, China has used border trade as its main instrument to realise the goal of local economic integration. It is estimated that border trade through its 120 inland towns and ports constitutes about half of China’s total foreign trade amounting to $1.3 trillion. The central government has given a high degree of autonomy to provincial governments. China looks at Nathu La Pass in Sikkim as a vital physical economic entry into the 1.3 billion person South Asian market. This is arguably the shortest route (roughly 590 km between Tibet and Sikkim) to the heartland of India, Bangladesh, Bhutan and Nepal. Furthermore, Tibet has huge mineral resources with a potential value of more than $125 billion. Due to the high cost of transportation, raw materials in Tibet cannot be easily transported out of the province. Hence, the Chinese government is significantly improving infrastructure there. Unquestionably, increasing Chinese connectivity has created new opportunities for people of the region.

People in the border areas feel that China is looking for markets and resources on an ever-increasing scale in order to sustain its developmental needs. China’s access diplomacy to South Asia has very abiding and powerful objectives, including expansion of its strategic access; economic and commercial penetration into the huge South Asian market; and tackling its own potential internal instabilities. In the last 30 years, China has transformed itself from an astute proponent of ideological influence and covert supporter of insurgency, to a builder of cross-border modern infrastructures and a market grabber.

China has a conscious policy of engaging South Asian countries at a local level, giving traders a literally free hand to go and negotiate. For example, China has given rights to Tibetan traders to go to Sikkim and negotiate, despite all their other concerns. This grant of autonomy is a distinct instrument of foreign policy.

Even Indian government officials (civilian and military) posted in border regions feel that China’s South Asia ties are dictated by geography, the need for security and stability, mutual economic advantage, shared cultural traditions, common approaches to the management of natural disasters and climate change, and developmental priorities. According to one Indian military official posted in Tawang, “China may be almost a superpower now, but it is not an irrational power. It has as big a stake in stability as India. Its economy, finance and exports are all much more globalised than ours, so do not expect China to take any risks by way of entering into military conflict with India.” The talk of ‘strategic encirclement’ (involving naval installations on India’s periphery) is viewed by many as an overreaction to facts on the ground. China, like India but in keeping with its greater resources, is investing in its military capability and doubtless seeks to extend its strategic reach.

Though there may well be a military component in Chinese activities in countries on India’s borders, it is not the primary one. China’s priorities are to protect its sovereignty and territorial integrity, promote economic development, and generate international respect. Local people see Chinese roads and railways as an opportunity for India. Are Indians much different?

It was long held that an undeveloped border region in the northeast enhanced the security of the heartland as roads and bridges might provide easy connectivity for inimical forces — not necessarily armies but a variety of subversive elements, arms and drug-runners, smugglers and even legitimate traders who might overwhelm the national economy by dumping cheap consumer goods. But for the local population, whose development has lagged painfully, roads and bridges mean fresh possibilities for trade, quick supply of goods, closer linkages with the rest of India and a great expansion of inter-village amity in the interior. Their needs should be recognised and respected by India’s strategic community, while local populations must accept that borders more open to economic intercourse with China will offer some risks to the country as a whole beyond the obvious opportunities involved.

There is a need for greater exchange of ideas and visits between representatives of these two countries. The unprecedented challenges emerging for India from the rise of China require more confidence building measures. China is a “strategic challenge” for India and there is no pragmatic alternative for India other than engaging China.

(The author is a PhD scholar at Jawaharlal Nehru University, New Delhi. This piece is based on the discussions he conducted during his field research)