An excerpt from
The Road To Happiness
by Mac Anderson and BJ Gallagher
A thankful spirit is a healthy spirit. As the twists and turns of life lead to feelings of being out of control, sometimes our attitude is all that we have control over...the following reflection may help you develop a thankful attitude. Sometimes life is all about how we look at it!
I am thankful for...
• the mess to clean after a party because it means I have been surrounded by friends.
• the taxes I pay because it means that I am employed.
• a lawn that needs mowing, windows that need cleaning and gutters that need fixing because it means I have a home.
• my shadow who watches me work because it means I am out in the sunshine.
• the spot I find at the far end of the parking lot because it means I am capable of walking.
• all of the complaining I hear about our government because it means we have freedom of speech.
• my huge heating bill because it means I am warm.
• the lady behind me in church who sings off key because it means that I can hear.
• the alarm that goes off early in the morning hours because it means that I am alive.
• the piles of laundry and ironing because it means my loved ones are nearby.
• weariness and aching muscles at the end of the day because it means I have been productive.
Saturday, January 21, 2012
Vodafone not liable to pay Rs 11,297-cr tax: Apex court
by Arun S.
source;Hindubusinessline
Transaction between two overseas firms falls outside tax jurisdiction
New Delhi, Jan 20:
In a huge relief to Vodafone and a major boost to foreign investor confidence in India, the Supreme Court on Friday held in a landmark verdict that the telecom giant is not liable to be taxed on its $11.2-billion acquisition of Hutchison’s Indian telecom assets.
The Income Tax (I-T) Department had raised a demand of $2.6 billion (Rs 11,297 crore) on the 2007 Vodafone-Hutch deal.
The apex court directed the I-T Department to return to Vodafone Rs 2,500 crore (which was deposited by the company as directed by the apex court) with 4 per cent interest within two months from Friday. The Bench headed by the Chief Justice of India, Mr S H Kapadia, also asked the Supreme Court Registry to give back to Vodafone the bank guarantee of Rs 8,500 crore within four weeks.
The “Offshore Transaction herein is a bona fide structured Foreign Direct Investment into India which fell outside India’s territorial tax jurisdiction, hence not taxable,” the court said.
by Arun S.
source;Hindubusinessline
Transaction between two overseas firms falls outside tax jurisdiction
New Delhi, Jan 20:
In a huge relief to Vodafone and a major boost to foreign investor confidence in India, the Supreme Court on Friday held in a landmark verdict that the telecom giant is not liable to be taxed on its $11.2-billion acquisition of Hutchison’s Indian telecom assets.
The Income Tax (I-T) Department had raised a demand of $2.6 billion (Rs 11,297 crore) on the 2007 Vodafone-Hutch deal.
The apex court directed the I-T Department to return to Vodafone Rs 2,500 crore (which was deposited by the company as directed by the apex court) with 4 per cent interest within two months from Friday. The Bench headed by the Chief Justice of India, Mr S H Kapadia, also asked the Supreme Court Registry to give back to Vodafone the bank guarantee of Rs 8,500 crore within four weeks.
The “Offshore Transaction herein is a bona fide structured Foreign Direct Investment into India which fell outside India’s territorial tax jurisdiction, hence not taxable,” the court said.
China's White Papers on Space: An Analysis
by Ajey Lele and Gunjan Singh
IDSA
January 20, 2012
The three White Papers provide overall, basic information about the Chinese Space agenda. They highlight the fact that China has achieved important breakthroughs in a relatively short time and can be viewed as a rapidly rising Space power. The emphasis in the White Papers is on the civilian aspects of the Chinese Space programme. This could, in a sense, be regarded as the tip of the iceberg, focusing on the civilian aspects of the Space agenda while hiding deeper strategic intentions. China's international alignments and cooperation in the Space arena indicates that it views Space technology as an instrument to boost its soft power status.
It is important not to view the Chinese Space programme in a limited sense as an attempt to demonstrate technological or military superiority. It is as much about showing visionary leadership as an attempt to achieve great power status by putting a Chinese on the Moon, the first country envisaged to do so in the 21st century.
by Ajey Lele and Gunjan Singh
IDSA
January 20, 2012
The three White Papers provide overall, basic information about the Chinese Space agenda. They highlight the fact that China has achieved important breakthroughs in a relatively short time and can be viewed as a rapidly rising Space power. The emphasis in the White Papers is on the civilian aspects of the Chinese Space programme. This could, in a sense, be regarded as the tip of the iceberg, focusing on the civilian aspects of the Space agenda while hiding deeper strategic intentions. China's international alignments and cooperation in the Space arena indicates that it views Space technology as an instrument to boost its soft power status.
It is important not to view the Chinese Space programme in a limited sense as an attempt to demonstrate technological or military superiority. It is as much about showing visionary leadership as an attempt to achieve great power status by putting a Chinese on the Moon, the first country envisaged to do so in the 21st century.
China rail: RS panel raises concern
Pioneer News Service
A Rajya Sabha panel has expressed concern over China bringing railway line to almost Indian borders and has suggested the Defence Ministry to immediately bring to the notice of the Prime Minister the urgency to build a corpus for laying railway network in bordering areas.
It also urged upon the Government to draw up a time-bound plan to execute and implement the strategically important projects in coordination with stakeholders in a “time-bound manner”.
The panel headed by former Uttarakhand Chief Minister Bhagat Singh Koshiyari felt India had to cut a sorry figure in the 1962 war with China for want of adequate infrastructure in border areas.
China has completed its 3,900 km Beijing Lhasa rail link and is pushing ahead with several other rail road projects adjoining the Indian border. China proposes to build 5,000 km of rail link with emphasis on establishing connectivity to Tibetan Autonomous Region.
China is also considering an extension of the Golmu-Lhasa line up to Xigaze, south of Lhasa and from there to Yatung, a trading centre barely a few kilometres from Nathula, a mountain pass that connects Tibet with Sikkim.
Also there is a proposal to extend the line to Nyingchi, an important trading town north of Arunachal Pradesh at the trijunction with Myanmar. These rail lines will bring Chinese trains up to Sikkim and Arunachal Pradesh — two Indian States that figure prominently on the radar of Sino-Indian dispute. It has also proposed to build rail network in Nepal.
“It is a matter of great concern that China has almost encircled Indian border areas through railway and road network. The issues is of great significance in view of the fact that China has grown exponentially in both the economic and the defence areas and (Indian) Government needs to be extremely cautious on both these counts,” a report by the panel has said.
India’s rail network is World’s most extensive but it does not penetrate the border states of J&K, Himachal Pradesh, Uttarakhand, Sikkim and Arunachal Pradesh.
In their petition to the committee in 2010, two MPs and five MLAs from Uttarakhand said, “The British left behind a track lane of 55,596 km, in 62 years since Independence the total railway track stands at 63,940 km. This work around addition of 130km in a year which is very pathetic. The situation in Himalayan States is even worse as not even a single kilometre has been added there since Independence.”
The Bhanupalli-Bilaspur-Beri; Ghanauli-Baddi; Nangal-Talwara and Bilaspur-Manali-Leh rail line in Himachal Pradesh, Rishikesh- Karnaprayag; Tanakpur-Ghat-Bageshwar; Dehradun-Kalsi; Ram Nagar-Chaukhutiya; Haridwar-Kotdwar-Ramnagar-Kathgodam; and Rishikesh-Dehradun in Uttarakhand, Hirumati-Itanagar; and Rupai-Parasuramkund in Arunachal Pradesh, Jammu-Rajauri-Poonch in J&K, Mirik-Gangtok and extension of Sevoke-Rangpu line up to Gangtok in Sikkim are in different phases. Paucity of fund, problem with land acquisition and bureaucratic hurdles have led to delays in their execution.
The Committee deliberated at length on the issue of funding by the State Government and the resultant cost escalation due to delays in allocation of resources by the State Government. The Committee felt that the only way out is to declare these projects as ‘National Projects’ or ‘strategically important projects’ with dedicated financial linkage.
The committee has also suggested the Government that instead of concentrating on all these railway lines, only those which are strategically important should be taken on priority basis.
It also suggested that problem of resource allocation could be addressed in the manner that instead of asking for one time allocation, if it was done in a phased manner then budgetary allocation could be done.
Pioneer News Service
A Rajya Sabha panel has expressed concern over China bringing railway line to almost Indian borders and has suggested the Defence Ministry to immediately bring to the notice of the Prime Minister the urgency to build a corpus for laying railway network in bordering areas.
It also urged upon the Government to draw up a time-bound plan to execute and implement the strategically important projects in coordination with stakeholders in a “time-bound manner”.
The panel headed by former Uttarakhand Chief Minister Bhagat Singh Koshiyari felt India had to cut a sorry figure in the 1962 war with China for want of adequate infrastructure in border areas.
China has completed its 3,900 km Beijing Lhasa rail link and is pushing ahead with several other rail road projects adjoining the Indian border. China proposes to build 5,000 km of rail link with emphasis on establishing connectivity to Tibetan Autonomous Region.
China is also considering an extension of the Golmu-Lhasa line up to Xigaze, south of Lhasa and from there to Yatung, a trading centre barely a few kilometres from Nathula, a mountain pass that connects Tibet with Sikkim.
Also there is a proposal to extend the line to Nyingchi, an important trading town north of Arunachal Pradesh at the trijunction with Myanmar. These rail lines will bring Chinese trains up to Sikkim and Arunachal Pradesh — two Indian States that figure prominently on the radar of Sino-Indian dispute. It has also proposed to build rail network in Nepal.
“It is a matter of great concern that China has almost encircled Indian border areas through railway and road network. The issues is of great significance in view of the fact that China has grown exponentially in both the economic and the defence areas and (Indian) Government needs to be extremely cautious on both these counts,” a report by the panel has said.
India’s rail network is World’s most extensive but it does not penetrate the border states of J&K, Himachal Pradesh, Uttarakhand, Sikkim and Arunachal Pradesh.
In their petition to the committee in 2010, two MPs and five MLAs from Uttarakhand said, “The British left behind a track lane of 55,596 km, in 62 years since Independence the total railway track stands at 63,940 km. This work around addition of 130km in a year which is very pathetic. The situation in Himalayan States is even worse as not even a single kilometre has been added there since Independence.”
The Bhanupalli-Bilaspur-Beri; Ghanauli-Baddi; Nangal-Talwara and Bilaspur-Manali-Leh rail line in Himachal Pradesh, Rishikesh- Karnaprayag; Tanakpur-Ghat-Bageshwar; Dehradun-Kalsi; Ram Nagar-Chaukhutiya; Haridwar-Kotdwar-Ramnagar-Kathgodam; and Rishikesh-Dehradun in Uttarakhand, Hirumati-Itanagar; and Rupai-Parasuramkund in Arunachal Pradesh, Jammu-Rajauri-Poonch in J&K, Mirik-Gangtok and extension of Sevoke-Rangpu line up to Gangtok in Sikkim are in different phases. Paucity of fund, problem with land acquisition and bureaucratic hurdles have led to delays in their execution.
The Committee deliberated at length on the issue of funding by the State Government and the resultant cost escalation due to delays in allocation of resources by the State Government. The Committee felt that the only way out is to declare these projects as ‘National Projects’ or ‘strategically important projects’ with dedicated financial linkage.
The committee has also suggested the Government that instead of concentrating on all these railway lines, only those which are strategically important should be taken on priority basis.
It also suggested that problem of resource allocation could be addressed in the manner that instead of asking for one time allocation, if it was done in a phased manner then budgetary allocation could be done.
Friday, January 20, 2012
Government sets up inter-ministerial coordination committee for Tourism Sector
Government has set up an inter-ministerial coordination committee for Tourism Sector under the chairmanship of the Principal Secretary to the Prime Minister to resolve inter-ministerial and industry issues and promote tourism. Shri Pulok Chatterji presided over the first meeting of the committee in PMO on 19.1.2012. Secretaries to Government of India of important ministries were present. Sh Chatterji said tourism should be seen as development: it should be pro-poor and focus on employment creation. He emphasized the need to give tourism a major fillip during the 12th Plan so as to more than double the number of foreign tourists arriving in India and further encourage domestic tourism.
Some of the important decisions taken in the meeting were:
· A sub-committee under consisting of Member Secretary, Planning Commission, Culture Secretary, Secretary (Environment and Forests), Secretary (Rural Development) and Secretary(Tourism) will identify the potential of tourism in rural, eco and cultural sectors in the country and submit its report within four weeks.
· MOEF should finalise its eco-tourism policy at the earliest possible duly analysing the feedback it has received from different quarters.
· It is imperative that all local stakeholders are involved in promoting eco-tourism.
· Ministry of Culture should adopt a pro-active tourism policy which should promote Museums, cultural and heritage sites, besides monuments. There should be close inter-face between MOC and MOT.
· MHA to take steps to facilitate extension of Tourist Visa on Arrival to GOA, Hyderabad, Kochi and Bengaluru airports within next one year.
· A coordination Committee consisting of Joint Secretaries of MHA, MEA and MoT constituted to resolve day to day visa related complaints.
· In order to promote vocational courses related to tourism it was decided that MHRD will accord High Priority in including maximum schools under the scheme.
· The initiative taken by Ministry of Tourism through Hunar se Rozgar scheme was appreciated by the Committee. It was noted that tourism related activities should become an integral part of relevant poverty alleviation programme of the Ministry of Rural Development including NREGA.
· Ministry of Road Transport and Highways will utilise the funds available under Central Road Fund (CRF) in consultation with concerned State Governments in 13 States in February, 2012 where the roads have already been identified.
· Ministry of Road Transport & Highways will undertake development of essential road infrastructure in the tourism circuits either from its own fund or Central Road Fund.
· Ministry of Defence (Border Road Organisation) will expedite ongoing work at Gangtok and Leh roads which are tentatively scheduled to be completed by 2014 and 2015 respectively.
***
SC/SKS
(Release ID :79770)
Government has set up an inter-ministerial coordination committee for Tourism Sector under the chairmanship of the Principal Secretary to the Prime Minister to resolve inter-ministerial and industry issues and promote tourism. Shri Pulok Chatterji presided over the first meeting of the committee in PMO on 19.1.2012. Secretaries to Government of India of important ministries were present. Sh Chatterji said tourism should be seen as development: it should be pro-poor and focus on employment creation. He emphasized the need to give tourism a major fillip during the 12th Plan so as to more than double the number of foreign tourists arriving in India and further encourage domestic tourism.
Some of the important decisions taken in the meeting were:
· A sub-committee under consisting of Member Secretary, Planning Commission, Culture Secretary, Secretary (Environment and Forests), Secretary (Rural Development) and Secretary(Tourism) will identify the potential of tourism in rural, eco and cultural sectors in the country and submit its report within four weeks.
· MOEF should finalise its eco-tourism policy at the earliest possible duly analysing the feedback it has received from different quarters.
· It is imperative that all local stakeholders are involved in promoting eco-tourism.
· Ministry of Culture should adopt a pro-active tourism policy which should promote Museums, cultural and heritage sites, besides monuments. There should be close inter-face between MOC and MOT.
· MHA to take steps to facilitate extension of Tourist Visa on Arrival to GOA, Hyderabad, Kochi and Bengaluru airports within next one year.
· A coordination Committee consisting of Joint Secretaries of MHA, MEA and MoT constituted to resolve day to day visa related complaints.
· In order to promote vocational courses related to tourism it was decided that MHRD will accord High Priority in including maximum schools under the scheme.
· The initiative taken by Ministry of Tourism through Hunar se Rozgar scheme was appreciated by the Committee. It was noted that tourism related activities should become an integral part of relevant poverty alleviation programme of the Ministry of Rural Development including NREGA.
· Ministry of Road Transport and Highways will utilise the funds available under Central Road Fund (CRF) in consultation with concerned State Governments in 13 States in February, 2012 where the roads have already been identified.
· Ministry of Road Transport & Highways will undertake development of essential road infrastructure in the tourism circuits either from its own fund or Central Road Fund.
· Ministry of Defence (Border Road Organisation) will expedite ongoing work at Gangtok and Leh roads which are tentatively scheduled to be completed by 2014 and 2015 respectively.
***
SC/SKS
(Release ID :79770)
Sikkim not controversial: Gautam
India Blooms News Service\The DVD of the documentary created to portray its namesake, produced by the Royal family of a sovereign Sikkim in 1971 and banned by the Indian Government till 2010, was finally launched by Angel Digital in Kolkata on Thursday.
While occupying the podium during the event Ghosh said, “The documentary was about the sovereign state of Sikkim before India annexed it, so perhaps there were political reasons but I still cannot justify the banning of this film as it contains no infuriating or controversial footage.”
“People had a great curiosity about this film as it was made by the legendary director Satyajit Ray and it is great that they will finally get to see it,” he remarked.
Fellow filmmaker and Satyajit Ray’s son Sandip Ray shared a few anecdotes from his experiences during a shooting trip to Sikkim with his father while affirming to the notion that “Sikkim portrays only the flora and fauna of the land. It only shows the beautiful landscape and I assure you that there are no controversial footages.”
Ray revealed that obtaining a decent print had been a hassle as the owner of the original negative Hope Cooke, the wife of the then Chogyal (King) of Sikkim, could not be contacted.
“It is really lucky that a print of this film was found with one of my father’s old friend and distributor in London because the original negative is no longer available,” Ray remarked.
“Some parts of the movie have been restored and though the original quality of colour was really great, this print is viewable and at least people will get the opportunity to see this,” he said.
Ray urged the distributors to produce compilations of his father’s other short films as this is the high time for their release.
“It would be great if the short films of my father are released because I believe the people are ready to see them now and so I request the producers to do something about it,” Ray said.
(Reporting by Arnab Chakraborty)
Kolkata, Jan 20 (IBNS) Filmmaker Goutam Ghosh on Thursday claimed that Satyajit Ray’s documentary “Sikkim” had been unjustifiably banned since 1975.
FICCI deliberates concept of Third Industrial Revolution
source:thehindubusinessline
Mr Jeremy Rifkin, Founder President, Foundation of Economic Trends, USA. — V. Sudershan
India will add another 241 million in working age population between 2010-2030. In the above context of demographic dividend, FICCI Young Leaders (FYLs) came up with the idea of studying the global Mega Trends and the concept of Third Industrial Revolution (TIR) by Jeremy Rifkin, Founder President of Foundation of Economic Trends, USA.
Speaking at the ‘Conference Mega Trends 2020: Shaping India’s Future’ here, Jeremy Rifkin said that the internet technology and renewable energies would merge to create a powerful new infrastructure for a TIR that would change the world.
He envisaged that in the coming era, hundreds of millions of people will produce their own green energy in their homes, offices, and factories and share it with each other in an “energy Internet”. The democratisation of energy will bring with it a fundamental reordering of human relationships, impacting the way we conduct business, govern society, educate our children, and engage in civic life.
Delivering his inaugural address, Mr Jyotiraditya Scindia, Minister of State for Commerce and Industry, dwelt on the key paradigms likely to shape the next decades – the quest for energy and food security, and the rise of Chindia (China & India) as economic powerhouse.
A White Paper titled “Mega Trends of the Emerging Third Emerging Revolution in India” was released at the conference.
Satyajit Ray's rare documentary 'Sikkim' now in markets
Jan 19, 2012 at 19:33 | Source : PTI
After having dogged controversies ever since it was made four decades ago, Satyajit Ray's rare documentary 'Sikkim' has been released today in the CD format.
After having dogged controversies ever since it was made four decades ago, Satyajit Ray's rare documentary 'Sikkim' has been released today in the CD format.
The 52-minute documentary, commissioned in 1971 by the last Chogyal (king) of Sikkim - Palden Thondup Namgyal - was banned after a few scenes went against the liking of the rulers.
When the Himalayan kingdom merged with India in 1975, the Indian government also banned it.
Two years ago, the ministry of external affairs lifted the ban on the film. Since then, 'Sikkim' has been shown only to restricted audiences at film festivals, including the 2010 Kolkata Film Festival.
"We do not know why the film was banned for so long But it is not a political film and has no propaganda. It is about the flora, fauna, the natural beauty and diversity of the Himalayan kingdom," Ray's son Sandip said.
After releasing the DVD and VCD release of 'Sikkim', he said that the original negative of the film is lost.
A damaged print of the film was restored by the Gangtok-based Art and Culture Trust (ACT) of Sikkim in 2002 with support of The Academy of Motion Pictures, Art and Science in California.
"I remember that the original film had excellent colours. But unfortunately now it is lost. However, the present CD version is viewable," Sandip Ray said.
Jan 19, 2012 at 19:33 | Source : PTI
After having dogged controversies ever since it was made four decades ago, Satyajit Ray's rare documentary 'Sikkim' has been released today in the CD format.
After having dogged controversies ever since it was made four decades ago, Satyajit Ray's rare documentary 'Sikkim' has been released today in the CD format.
The 52-minute documentary, commissioned in 1971 by the last Chogyal (king) of Sikkim - Palden Thondup Namgyal - was banned after a few scenes went against the liking of the rulers.
When the Himalayan kingdom merged with India in 1975, the Indian government also banned it.
Two years ago, the ministry of external affairs lifted the ban on the film. Since then, 'Sikkim' has been shown only to restricted audiences at film festivals, including the 2010 Kolkata Film Festival.
"We do not know why the film was banned for so long But it is not a political film and has no propaganda. It is about the flora, fauna, the natural beauty and diversity of the Himalayan kingdom," Ray's son Sandip said.
After releasing the DVD and VCD release of 'Sikkim', he said that the original negative of the film is lost.
A damaged print of the film was restored by the Gangtok-based Art and Culture Trust (ACT) of Sikkim in 2002 with support of The Academy of Motion Pictures, Art and Science in California.
"I remember that the original film had excellent colours. But unfortunately now it is lost. However, the present CD version is viewable," Sandip Ray said.
Thursday, January 19, 2012
Two-month drive against tax evasion from tomorrow
In a concerted drive against tax evasion in the wake of a shortfall in revenue and a burgeoning fiscal deficit, the Centre has directed the Income Tax Department to launch a two-month special initiative, starting January 20, to trail and verify high value transactions by persons not assessed to tax or those who have not furnished their Permanent Account Number (PAN) cards during such deals.
“The Central Board of Direct Taxes [CBDT] has directed the Income Tax Department to launch a special drive, from 20th January to 20th March 2012, for verifying high value transactions [investments / deposits / expenditure] from persons who are not assessed to income tax or who have not furnished their PAN while entering into such transactions,” the Finance Ministry said in a statement here on Wednesday.
According to the statement, high-value transactions under the tax scanner will include purchase of property, vehicles, shares and bonds, fixed deposits in banks and post offices. For this purpose, “the CBDT has issued pro forma for query letters and responses to be issued to the high-value investors/depositors/spenders,” it said.
As part of the drive to nab tax evaders, while addressees will be required to furnish their PAN if they already have one — or apply immediately for it if they do not — they will also be required to explain the source of the high-value investments/deposits/expenditure, and whether these are properly accounted for and explained in the income tax return filed by them. For furnishing the information required by the Department, a visit to the tax office is not essential as it can be sent by speed/registered post.
“Persons who have not properly accounted for the high-value transactions, are required to pay due taxes and file the income tax return within this financial year, i.e. by 31st March, 2012,” the statement said. It also noted that while there are penal consequences for not obtaining a PAN or not reporting such high-value transactions, a penalty of up to 300 per cent of the unpaid tax can be imposed for not paying proper taxes along with prosecution in some cases.
In some cases, the statement said, the tax officials may also visit the premises of high-value investors/depositors/ spenders. “In such cases, the taxpayer should verify the identity of the tax official before furnishing information in the prescribed pro forma,” it said.
Since July 1 last year, it has been made mandatory for individuals to reveal their PAN for purchase of any jewellery worth Rs. 5 lakh or more. For one, as high-value jewellery purchase is said to be one of the simpler routes for black money circulation, PAN identification is aimed at helping taxmen in tracking such transactions.
Likewise, transactions such as payment of Rs. 50,000 or more as life insurance premium annually, high-value deals such as sale or purchase of any immoveable property worth Rs. 5 lakh or more, sale or purchase of motor vehicles (other than two-wheelers) and bank deposits in excess of Rs. 50,000 require PAN identification.
Ostensibly, apart from the crusade against black money, the special two-month drive this fiscal is aimed at mopping up additional revenue to help the government in bridging the yawning gap in fiscal deficit. As per current calculations, Finance Minister Pranab Mukherjee has already admitted that adhering to the budgeted fiscal deficit target of 4.6 per cent of the gross domestic product remains a big challenge as it is unlikely to be met.
In a concerted drive against tax evasion in the wake of a shortfall in revenue and a burgeoning fiscal deficit, the Centre has directed the Income Tax Department to launch a two-month special initiative, starting January 20, to trail and verify high value transactions by persons not assessed to tax or those who have not furnished their Permanent Account Number (PAN) cards during such deals.
“The Central Board of Direct Taxes [CBDT] has directed the Income Tax Department to launch a special drive, from 20th January to 20th March 2012, for verifying high value transactions [investments / deposits / expenditure] from persons who are not assessed to income tax or who have not furnished their PAN while entering into such transactions,” the Finance Ministry said in a statement here on Wednesday.
According to the statement, high-value transactions under the tax scanner will include purchase of property, vehicles, shares and bonds, fixed deposits in banks and post offices. For this purpose, “the CBDT has issued pro forma for query letters and responses to be issued to the high-value investors/depositors/spenders,” it said.
As part of the drive to nab tax evaders, while addressees will be required to furnish their PAN if they already have one — or apply immediately for it if they do not — they will also be required to explain the source of the high-value investments/deposits/expenditure, and whether these are properly accounted for and explained in the income tax return filed by them. For furnishing the information required by the Department, a visit to the tax office is not essential as it can be sent by speed/registered post.
“Persons who have not properly accounted for the high-value transactions, are required to pay due taxes and file the income tax return within this financial year, i.e. by 31st March, 2012,” the statement said. It also noted that while there are penal consequences for not obtaining a PAN or not reporting such high-value transactions, a penalty of up to 300 per cent of the unpaid tax can be imposed for not paying proper taxes along with prosecution in some cases.
In some cases, the statement said, the tax officials may also visit the premises of high-value investors/depositors/ spenders. “In such cases, the taxpayer should verify the identity of the tax official before furnishing information in the prescribed pro forma,” it said.
Since July 1 last year, it has been made mandatory for individuals to reveal their PAN for purchase of any jewellery worth Rs. 5 lakh or more. For one, as high-value jewellery purchase is said to be one of the simpler routes for black money circulation, PAN identification is aimed at helping taxmen in tracking such transactions.
Likewise, transactions such as payment of Rs. 50,000 or more as life insurance premium annually, high-value deals such as sale or purchase of any immoveable property worth Rs. 5 lakh or more, sale or purchase of motor vehicles (other than two-wheelers) and bank deposits in excess of Rs. 50,000 require PAN identification.
Ostensibly, apart from the crusade against black money, the special two-month drive this fiscal is aimed at mopping up additional revenue to help the government in bridging the yawning gap in fiscal deficit. As per current calculations, Finance Minister Pranab Mukherjee has already admitted that adhering to the budgeted fiscal deficit target of 4.6 per cent of the gross domestic product remains a big challenge as it is unlikely to be met.
Tripura welcomes investment from Bangladesh: Sarkar
Agartala, Jan 19 (IANS): The Left Front government in Tripura will accept investment from Bangladesh, Chief Minister Manik Sarkar said, stressing India and Bangladesh are natural partners in development.
"We must welcome investment from Bangladesh," Sarkar told IANS in an interview, just days after Bangladesh Prime Minister Sheikh Hasina expressed her government's readiness to set up joint ventures in India's northeast during a visit to the state last week.
"India and Bangladesh are natural partners. Both nations are interlinked and co-dependent. The two neighbours must share their resources and advantages."
Hasina expressed her government's readiness to set up power plants in India's northeast and boost trade with India, Nepal and Bhutan.
She said Bangladesh would allow India to use Chittagong and Mongla sea ports as it wanted to improve all types of communication facilities with the adjoining countries to further improve the trade and commerce and people-to-people relations.
Ties between the two countries have shown steady improvement as political and economic engagements between New Delhi and Dhaka have gathered pace. Recent reports said imports, especially textiles and raw jute, from Bangladesh had gone up 85 percent to nearly $300 million during April-September last year.
Hasina said there was a huge potential of Indian investment in Bangladesh in IT, power and healthcare. "Political will is there to carry forward the bilateral ties and the business community of both sides must strive to catch the opportunities," she said during the visit.
Sarkar said India and Bangladesh should share their wealth and resources for the benefit of the people. "I already told Hasina that the Tripura government is ready to give 100 MW (from its share) from the upcoming 726-MW Palatana power project, being commissioned by the ONGC (Oil and Natural Gas Corporation) in southern Tripura."
The 63-year-old Communist leader also asked the Congress-led United Progressive Alliance (UPA) government to be more generous towards Bangladesh and its issues.
"Mountainous northeastern region needs transit route via Bangladesh for ferrying men, material and heavy machinery. The region has abundant natural resources like oil, gas and coal... these have to be exploited in the interest of the region and Bangladesh," Sarkar told IANS.
The northeastern states are surrounded by Bangladesh, Myanmar, Bhutan and China on three sides and the only land route access to these states from within India is through West Bengal-Assam. But this surface route passes through hilly terrain with steep roads and multiple hairpin bends that make transporting goods very difficult. "It would be better if there is no border fencing, erected by India along the 4,095-km border with Bangladesh. In view of terrorism and due to other compulsions, India has to put up the fencing to check trans-border movement of militants, prevent infiltration and check border crimes," Sarkar added.
Sarkar also urged the Indian government to simplify the visa procedures for Bangladesh citizens to visit India for medical treatment, education, business and travel.
"New Delhi and Dhaka must speed up implementation of those agreements already settled and resolve those pending issues with utmost priority," he said, adding that the situation is changing and people's aspirations are also shifting in view of globalisation.
Regarding sheltering of northeast India's militants in Bangladesh, he said, "Once Dhaka was not accepting India's claim. Now they (Bangladesh government) have realised and are taking action against the extremists taking refuge in that country. However, the issue is not yet a closed chapter."
Agartala, Jan 19 (IANS): The Left Front government in Tripura will accept investment from Bangladesh, Chief Minister Manik Sarkar said, stressing India and Bangladesh are natural partners in development.
"We must welcome investment from Bangladesh," Sarkar told IANS in an interview, just days after Bangladesh Prime Minister Sheikh Hasina expressed her government's readiness to set up joint ventures in India's northeast during a visit to the state last week.
"India and Bangladesh are natural partners. Both nations are interlinked and co-dependent. The two neighbours must share their resources and advantages."
Hasina expressed her government's readiness to set up power plants in India's northeast and boost trade with India, Nepal and Bhutan.
She said Bangladesh would allow India to use Chittagong and Mongla sea ports as it wanted to improve all types of communication facilities with the adjoining countries to further improve the trade and commerce and people-to-people relations.
Ties between the two countries have shown steady improvement as political and economic engagements between New Delhi and Dhaka have gathered pace. Recent reports said imports, especially textiles and raw jute, from Bangladesh had gone up 85 percent to nearly $300 million during April-September last year.
Hasina said there was a huge potential of Indian investment in Bangladesh in IT, power and healthcare. "Political will is there to carry forward the bilateral ties and the business community of both sides must strive to catch the opportunities," she said during the visit.
Sarkar said India and Bangladesh should share their wealth and resources for the benefit of the people. "I already told Hasina that the Tripura government is ready to give 100 MW (from its share) from the upcoming 726-MW Palatana power project, being commissioned by the ONGC (Oil and Natural Gas Corporation) in southern Tripura."
The 63-year-old Communist leader also asked the Congress-led United Progressive Alliance (UPA) government to be more generous towards Bangladesh and its issues.
"Mountainous northeastern region needs transit route via Bangladesh for ferrying men, material and heavy machinery. The region has abundant natural resources like oil, gas and coal... these have to be exploited in the interest of the region and Bangladesh," Sarkar told IANS.
The northeastern states are surrounded by Bangladesh, Myanmar, Bhutan and China on three sides and the only land route access to these states from within India is through West Bengal-Assam. But this surface route passes through hilly terrain with steep roads and multiple hairpin bends that make transporting goods very difficult. "It would be better if there is no border fencing, erected by India along the 4,095-km border with Bangladesh. In view of terrorism and due to other compulsions, India has to put up the fencing to check trans-border movement of militants, prevent infiltration and check border crimes," Sarkar added.
Sarkar also urged the Indian government to simplify the visa procedures for Bangladesh citizens to visit India for medical treatment, education, business and travel.
"New Delhi and Dhaka must speed up implementation of those agreements already settled and resolve those pending issues with utmost priority," he said, adding that the situation is changing and people's aspirations are also shifting in view of globalisation.
Regarding sheltering of northeast India's militants in Bangladesh, he said, "Once Dhaka was not accepting India's claim. Now they (Bangladesh government) have realised and are taking action against the extremists taking refuge in that country. However, the issue is not yet a closed chapter."
China's rail network to touch India's border
source;The Hindu
China has announced it will accelerate plans to expand a railway network in Tibet to reach two towns near the border with India and will also consider building a railway line to Nepal, officials said this week.
New railway lines from Lhasa to Xigaze (Shigatse in Tibetan) and the town of Nyingchi, which lies in a prefecture bordering Arunachal Pradesh, will be built as key projects under a five-year development plan (2011-15) for the Tibet Autonomous Region (TAR), which was announced on Wednesday.
Separately, the State-run Xinhua news agency carried a report indicating that the construction of a railway line from Tibet to Nepal was discussed during Premier Wen Jiabao's visit last week to Kathmandu.
“The railway which will join Nepal and the Tibet Autonomous Region of China will further strengthen ties between the two countries,” Xinhua quoted Nepal President Ram Baran Yadav as saying.
The projects will widen the asymmetry in infrastructure across the Himalayas. Jin Shixun, chief of the TAR development and reform commission, said in a statement the railway projects would “pay a vital role in boosting tourism and accelerating the transport of natural resources”.
Chinese officials say the projects are aimed at boosting connectivity to bring development to Tibet's frontier regions. Indian defence officials have, however, voiced concern over the strategic implications of infrastructure projects located near the border.
The statement said the extension of the Qinghai-Tibet railway line, which currently ends in Lhasa, to Xigaze would be completed by 2015. Construction of another line from Lhasa to Nyingchi will also begin under the five-year plan.
By the end of last year, $538 million — or a quarter of the budget — had already been spent since construction on the Xigaze line began in September 2010.
Xinhua said the 253-km line would pass through the 90-km-long Grand Canyon of the Yarlung Zangbo — as the Brahmaputra is known in Tibet.
The line would have a capacity to carry 8.3 million tonnes of freight annually
Wednesday, January 18, 2012
IDSA COMMENT- Chinese PM in Nepal: A short visit but a long trail?
by Nihar Nayak
January 18, 2012
Prime Minister Wen Jiabao of China paid a short visit to Nepal (lasting four and a half hours) on January 14, 2012, stopping over on his way to the Persian Gulf. During the visit China announced an RMB 750 million (US $ 120 million or Nepalese Rs 9.7 billion) grant to Nepal. The amount will be spent on mutually identified projects under a new bilateral Agreement on Economic and Technical Cooperation . China also announced a one-time grant of $20 million, to be spent on the rehabilitation of former Maoist combatants. It also increased its annual assistance to Nepal from RMB 150 million to RMB 200 million. An eight-point joint statement was also issued during the visit. The statement notes that the two countries agreed to “further promote Nepal-China friendly relations of comprehensive partnership of cooperation featuring everlasting friendship on the basis of the five principles of peaceful Coexistence”.
The visit came about at a time when China is concerned about the ongoing political instability in Nepal and is looking for new political partners after the fall of the monarchy. The last Chinese Premier to visit Nepal was Zhu Rongji in May 2001, while Nepal was witnessing an armed struggle by the Maoists and the King was ruling the state. China is apprehensive that the Tibetan refugees may take advantage of Nepal’s instability and strengthen their position within the country. Moreover, the Chinese are not comfortable with the multiparty system of Nepal, with the parties numbering around 32, and would like to have an abiding relationship with any force eager to work with them. India’s successful engagement with the latest Maoist-led government has added to Chinese concerns leading it to cultivate Nepal even more proactively.
This has also led China to realign its foreign policy towards Nepal. It has increased the number of its political, economic, military and academic delegations to Nepal since 2008, posted one of its better diplomats as Ambassador to Kathmandu, increased people-to-people contacts, opened more customs posts at the borders, increased annual grant assistance and, most importantly, strengthened its engagements at the institutional level leading to greater interaction with the Nepalese army, bureaucracy, police and armed police (mostly deployed along the borders). During Wen Jiabao’s visit, the Chinese side pledged RMB 10 million for strengthening the Nepal Police and RMB four million for an Armed Police Force college. According to Xinhua, in 2010, the number of bilateral personnel exchanges with Nepal reached 74,000.
Nepal occupies a special position in Chinese foreign policy, even if it is depicted as a country of ‘peripheral’ concern by Chinese sources. First, because, among the South Asian states, Nepal shares the longest border with China after India and a large part of this border is inadequately guarded due to the nature of the terrain (mountainous). Not surprisingly, the joint statement re-emphasizes strengthening ‘border area management’. Second, geographically, Nepal has remained the southern gateway for Tibet. Since time immemorial, Nepal has been maintaining closer economic and cultural linkages with Tibet than China. Third, India has maintained a strong historical, geographic, cultural and economic relationship with Nepal and both countries share an open and peaceful border.
Therefore, China’s policy towards Nepal has been different from its policies towards the rest of the South Asian countries. China also has three major strategic interests in Nepal: firstly, containing Tibetan refugees south of the Himalayas and stopping their anti-China activities; second, neutralising India’s influence in Nepal and setting up a pro-China regime in Kathmandu, for which China has scaled up its policy of engagement in recent years and adopted even soft diplomatic measures, i.e., people-to-people contacts, cultural relations, scholarships to students, economic aid and spreading of Chinese Buddhism in Nepal; and third, investing in strategically important infrastructure like airports and important highways. Chinese investments in Lumbini, and Pokhara airports are a point of reference in this regard. The Chinese must be happy that they have finally got the Government of Nepal to agree to Chinese investment in the Pokhara airport during Wen Jiabao’s visit.
Strangely, the visit by the Chinese Prime Minster was shrouded in secrecy. The visit was not mentioned by China’s Ministry of Foreign Affairs till the evening of January 15, 2012, while his five-day visit to three Gulf countries – Qatar, Saudi Arabia and United Arab Emirates – was announced earlier. The Foreign Ministry did not also mention the eight-point joint statement even two days after the agreement was signed. The Embassy of China in Kathmandu also chose not to post anything about the visit or this agreement on its website even 48 hours after the visit: it only cited a news report by Xinhua.
Perhaps, the Chinese establishment was apprehensive of protests/demonstrations by Tibetan refuges in Nepal during the Premier’s visit. An earlier scheduled visit, which was to take place on December 20, 2011, was reportedly cancelled because China was not impressed with the security arrangements in Nepal. Chinese intelligence reportedly came up with information that there could be some demonstrations with black flags and attempts at self-immolation by some Tibetan refugees.
Following the cancellation of the earlier visit, the Deputy Prime Minister and Home Minister of Nepal, Bijaya Gachhadar, had visited China to reassure the Chinese establishment that there would be no disturbance by Tibetan refugees during the Chinese Premier’s visit. Special instructions were given by China to the Prime Minister’s Office and the Foreign Ministry of Nepal not to disclose news of the intended visit. China also asked Nepal to allow only a limited numbers of journalists to cover the visit once the visit was announced.
Surprisingly, no media house in Nepal reacted to the decision. There were instructions from the Chinese embassy not to discuss the visit in the media in advance. There was no mention even about the financial and development aid that China was going to give to Nepal. Since the Nepalese government had sent in a request for a credit line of $5 billion (over Rs. 400 billion) from China prior to the scheduled visit in December, China did not perhaps want much discussion on this subject, lest it aroused public expectations and forced China to commit more than it decided to offer. This, in a way, indicates the indifferent and condescending manner in which China wants to behave with its small neighbours like Nepal. All the arrangements for the visit were dictated by China.
Historically, China has behaved as a bully in its dealings with its neighbours, especially when it felt that it cannot actively control developments in its periphery and that this could lead to an eventual reduction of its sphere of influence in the neighbourhood. At present, apart from the election of a pro-China leader in Taiwan, China is not quite comfortable with the developments in its immediate periphery. It is not very happy about political developments in Myanmar. Its assertive policy vis-Ã -vis India has also not been effective. Moreover, Tibet remains China’s soft underbelly, and of late, it has been feeling insecure due to the absence of a credible political partner in Nepal. To add to the Chinese worries, the Tibetan refugees have taken advantage of the situation in Nepal and have undertaken several protests against China in recent years. If the Nepalese political instability prolongs, Chinese micromanagement and intervention in Nepal will increase in future.
Source:Institue of Defence Studies & Analysis
by Nihar Nayak
January 18, 2012
Prime Minister Wen Jiabao of China paid a short visit to Nepal (lasting four and a half hours) on January 14, 2012, stopping over on his way to the Persian Gulf. During the visit China announced an RMB 750 million (US $ 120 million or Nepalese Rs 9.7 billion) grant to Nepal. The amount will be spent on mutually identified projects under a new bilateral Agreement on Economic and Technical Cooperation . China also announced a one-time grant of $20 million, to be spent on the rehabilitation of former Maoist combatants. It also increased its annual assistance to Nepal from RMB 150 million to RMB 200 million. An eight-point joint statement was also issued during the visit. The statement notes that the two countries agreed to “further promote Nepal-China friendly relations of comprehensive partnership of cooperation featuring everlasting friendship on the basis of the five principles of peaceful Coexistence”.
The visit came about at a time when China is concerned about the ongoing political instability in Nepal and is looking for new political partners after the fall of the monarchy. The last Chinese Premier to visit Nepal was Zhu Rongji in May 2001, while Nepal was witnessing an armed struggle by the Maoists and the King was ruling the state. China is apprehensive that the Tibetan refugees may take advantage of Nepal’s instability and strengthen their position within the country. Moreover, the Chinese are not comfortable with the multiparty system of Nepal, with the parties numbering around 32, and would like to have an abiding relationship with any force eager to work with them. India’s successful engagement with the latest Maoist-led government has added to Chinese concerns leading it to cultivate Nepal even more proactively.
This has also led China to realign its foreign policy towards Nepal. It has increased the number of its political, economic, military and academic delegations to Nepal since 2008, posted one of its better diplomats as Ambassador to Kathmandu, increased people-to-people contacts, opened more customs posts at the borders, increased annual grant assistance and, most importantly, strengthened its engagements at the institutional level leading to greater interaction with the Nepalese army, bureaucracy, police and armed police (mostly deployed along the borders). During Wen Jiabao’s visit, the Chinese side pledged RMB 10 million for strengthening the Nepal Police and RMB four million for an Armed Police Force college. According to Xinhua, in 2010, the number of bilateral personnel exchanges with Nepal reached 74,000.
Nepal occupies a special position in Chinese foreign policy, even if it is depicted as a country of ‘peripheral’ concern by Chinese sources. First, because, among the South Asian states, Nepal shares the longest border with China after India and a large part of this border is inadequately guarded due to the nature of the terrain (mountainous). Not surprisingly, the joint statement re-emphasizes strengthening ‘border area management’. Second, geographically, Nepal has remained the southern gateway for Tibet. Since time immemorial, Nepal has been maintaining closer economic and cultural linkages with Tibet than China. Third, India has maintained a strong historical, geographic, cultural and economic relationship with Nepal and both countries share an open and peaceful border.
Therefore, China’s policy towards Nepal has been different from its policies towards the rest of the South Asian countries. China also has three major strategic interests in Nepal: firstly, containing Tibetan refugees south of the Himalayas and stopping their anti-China activities; second, neutralising India’s influence in Nepal and setting up a pro-China regime in Kathmandu, for which China has scaled up its policy of engagement in recent years and adopted even soft diplomatic measures, i.e., people-to-people contacts, cultural relations, scholarships to students, economic aid and spreading of Chinese Buddhism in Nepal; and third, investing in strategically important infrastructure like airports and important highways. Chinese investments in Lumbini, and Pokhara airports are a point of reference in this regard. The Chinese must be happy that they have finally got the Government of Nepal to agree to Chinese investment in the Pokhara airport during Wen Jiabao’s visit.
Strangely, the visit by the Chinese Prime Minster was shrouded in secrecy. The visit was not mentioned by China’s Ministry of Foreign Affairs till the evening of January 15, 2012, while his five-day visit to three Gulf countries – Qatar, Saudi Arabia and United Arab Emirates – was announced earlier. The Foreign Ministry did not also mention the eight-point joint statement even two days after the agreement was signed. The Embassy of China in Kathmandu also chose not to post anything about the visit or this agreement on its website even 48 hours after the visit: it only cited a news report by Xinhua.
Perhaps, the Chinese establishment was apprehensive of protests/demonstrations by Tibetan refuges in Nepal during the Premier’s visit. An earlier scheduled visit, which was to take place on December 20, 2011, was reportedly cancelled because China was not impressed with the security arrangements in Nepal. Chinese intelligence reportedly came up with information that there could be some demonstrations with black flags and attempts at self-immolation by some Tibetan refugees.
Following the cancellation of the earlier visit, the Deputy Prime Minister and Home Minister of Nepal, Bijaya Gachhadar, had visited China to reassure the Chinese establishment that there would be no disturbance by Tibetan refugees during the Chinese Premier’s visit. Special instructions were given by China to the Prime Minister’s Office and the Foreign Ministry of Nepal not to disclose news of the intended visit. China also asked Nepal to allow only a limited numbers of journalists to cover the visit once the visit was announced.
Surprisingly, no media house in Nepal reacted to the decision. There were instructions from the Chinese embassy not to discuss the visit in the media in advance. There was no mention even about the financial and development aid that China was going to give to Nepal. Since the Nepalese government had sent in a request for a credit line of $5 billion (over Rs. 400 billion) from China prior to the scheduled visit in December, China did not perhaps want much discussion on this subject, lest it aroused public expectations and forced China to commit more than it decided to offer. This, in a way, indicates the indifferent and condescending manner in which China wants to behave with its small neighbours like Nepal. All the arrangements for the visit were dictated by China.
Historically, China has behaved as a bully in its dealings with its neighbours, especially when it felt that it cannot actively control developments in its periphery and that this could lead to an eventual reduction of its sphere of influence in the neighbourhood. At present, apart from the election of a pro-China leader in Taiwan, China is not quite comfortable with the developments in its immediate periphery. It is not very happy about political developments in Myanmar. Its assertive policy vis-Ã -vis India has also not been effective. Moreover, Tibet remains China’s soft underbelly, and of late, it has been feeling insecure due to the absence of a credible political partner in Nepal. To add to the Chinese worries, the Tibetan refugees have taken advantage of the situation in Nepal and have undertaken several protests against China in recent years. If the Nepalese political instability prolongs, Chinese micromanagement and intervention in Nepal will increase in future.
Source:Institue of Defence Studies & Analysis
Rlys makes ID proof mandatory for AC class
Press Trust of India
New Delhi, Jan. 18: Faced with increasing incidents of misuse of tickets, Railways have made it mandatory for all passengers travelling in AC classes to carry an identity proof with them.
So far, ID proof was required only for passengers travelling with e-tickets or with tatkal tickets.
The decision will come into effect from February 15 in all trains across the country, said a Railway Ministry official.
The official said any one passenger in a group will be required to carry the ID proof.
The ID proof could be a voter ID, PAN card, passport, driving licence issued by RTO, nationalised bank passbook with photo, credit card issued by banks with laminated photos, student ID card with photo or Aadhaar, the official said.
The decision comes in the backdrop of increasing cases of misuse of tickets like transfer of tickets, black marketing of tickets and growing involvement of touts.
Centre for Railway Information Systems (CRIS) has been asked to make necessary changes in the software so as to incorporate the message in the rail tickets for the benefit of the passengers.
Press Trust of India
New Delhi, Jan. 18: Faced with increasing incidents of misuse of tickets, Railways have made it mandatory for all passengers travelling in AC classes to carry an identity proof with them.
So far, ID proof was required only for passengers travelling with e-tickets or with tatkal tickets.
The decision will come into effect from February 15 in all trains across the country, said a Railway Ministry official.
The official said any one passenger in a group will be required to carry the ID proof.
The ID proof could be a voter ID, PAN card, passport, driving licence issued by RTO, nationalised bank passbook with photo, credit card issued by banks with laminated photos, student ID card with photo or Aadhaar, the official said.
The decision comes in the backdrop of increasing cases of misuse of tickets like transfer of tickets, black marketing of tickets and growing involvement of touts.
Centre for Railway Information Systems (CRIS) has been asked to make necessary changes in the software so as to incorporate the message in the rail tickets for the benefit of the passengers.
Mild Earthquake at Gangtok and around at 7.44PM
Gangtok 18 Jan 2011
Gangtok and around sufferred a mild earthquake at 7.44.PM tonight. Details are awaited.
Gangtok and around sufferred a mild earthquake at 7.44.PM tonight. Details are awaited.
CBDT panel for amnesty scheme to bring back black money
December 28, 2011 08:37 AM |
Moneylife Digital Team
The committee on black money, headed by the CBDT chairman, which met last week, considered among other suggestions, an Offshore Voluntary Compliance scheme on the lines of the one operated by the Internal Revenue Service in the United States
New Delhi: The government may announce an amnesty scheme for citizens having unaccounted wealth abroad and also permit taxmen to dig into income tax filings of past 16 years of suspected assesses, based on the suggestions made by a high-powered panel, reports PTI.
The committee on black money, headed by the CBDT chairman, which met last week, considered among other suggestions, an Offshore Voluntary Compliance scheme on the lines of the one operated by the Internal Revenue Service in the United States.
“We have suggested that an Offshore Voluntary Compliance scheme be brought in like in the US, whereby a person declares money kept in foreign accounts and pays the penalty on it, after which the money can be brought back into the country,” a top finance ministry official told PTI.
“We have also recommended increasing the review period of re-opening tax assessments to 16 years from six years now, but that may be only for money stashed abroad,” the official said.
Besides, the committee, which is slated to submit its report to the finance minister by 31January 2012, could also recommend changes in current laws to curb generation of black money within the country.
“A lot of black money is generated out of activities under the state’s control, like illegal mining, land deals, building construction, and in awarding contracts. We will suggest some changes in current law to tackle this menace,” the official said.
Under the Offshore Voluntary Compliance scheme, eligible taxpayers in the US who step forward do not face civil fraud and information return penalties. However, they still have to pay back taxes, interest and certain accuracy or delinquency penalties.
They can also escape criminal prosecution based on application of the revised voluntary disclosure practice.
Under the scheme in the US, eligible taxpayers have to file or amend their returns and pay interest and certain civil penalties, as well as the tax.
The interest and penalties depend on the amount of the unpaid tax liability, the years involved, whether a return was inaccurate or if a return should have been filed and was not.
Apart from the US, countries including the UK, Germany, France, Greece, Italy and Portugal also have similar voluntary disclosure schemes.
December 28, 2011 08:37 AM |
Moneylife Digital Team
The committee on black money, headed by the CBDT chairman, which met last week, considered among other suggestions, an Offshore Voluntary Compliance scheme on the lines of the one operated by the Internal Revenue Service in the United States
New Delhi: The government may announce an amnesty scheme for citizens having unaccounted wealth abroad and also permit taxmen to dig into income tax filings of past 16 years of suspected assesses, based on the suggestions made by a high-powered panel, reports PTI.
The committee on black money, headed by the CBDT chairman, which met last week, considered among other suggestions, an Offshore Voluntary Compliance scheme on the lines of the one operated by the Internal Revenue Service in the United States.
“We have suggested that an Offshore Voluntary Compliance scheme be brought in like in the US, whereby a person declares money kept in foreign accounts and pays the penalty on it, after which the money can be brought back into the country,” a top finance ministry official told PTI.
“We have also recommended increasing the review period of re-opening tax assessments to 16 years from six years now, but that may be only for money stashed abroad,” the official said.
Besides, the committee, which is slated to submit its report to the finance minister by 31January 2012, could also recommend changes in current laws to curb generation of black money within the country.
“A lot of black money is generated out of activities under the state’s control, like illegal mining, land deals, building construction, and in awarding contracts. We will suggest some changes in current law to tackle this menace,” the official said.
Under the Offshore Voluntary Compliance scheme, eligible taxpayers in the US who step forward do not face civil fraud and information return penalties. However, they still have to pay back taxes, interest and certain accuracy or delinquency penalties.
They can also escape criminal prosecution based on application of the revised voluntary disclosure practice.
Under the scheme in the US, eligible taxpayers have to file or amend their returns and pay interest and certain civil penalties, as well as the tax.
The interest and penalties depend on the amount of the unpaid tax liability, the years involved, whether a return was inaccurate or if a return should have been filed and was not.
Apart from the US, countries including the UK, Germany, France, Greece, Italy and Portugal also have similar voluntary disclosure schemes.
Income Tax Department Directed to Launch Special Drive for Verifying High Value Transactions
The Central Board of Direct Taxes has directed the Income Tax department to launch a special drive, from 20th January to 20th March 2012, for verifying high value transactions (investments / deposits / expenditure) from persons who are not assessed to income tax or who have not furnished their PAN while entering into such transactions.
In an instruction issued today, the CBDT issued proforma for query letters and responses to be issued to the high value investors / depositors / spenders.
Addressees will be required to furnish their PAN if they already have one, or apply immediately for PAN to NSDL / UTIISL if they do not have one. They will also be required to explain the source of the high value investments / deposits / expenditure, and whether these are properly accounted for / explained in the income tax return filed by them.
Persons who have not properly accounted for the high value transactions, are required to pay due taxes and file the income tax return within this financial year, i.e. by 31st March, 2012.
For furnishing the information called for, visit to the tax office is not necessary. Information can be sent by speed / registered post.
In some cases, the tax officials may also visit the premises of the high value investors / depositors / spenders. In such cases, the taxpayer should verify the identity of the tax official before furnishing information in the prescribed proforma. In case of any grievance or complaint, taxpayer may contact the assessing officer or the additional / joint commissioner or the commissioner concerned. The visiting tax official is required to furnish the telephone numbers of his supervisory officers.
There are penal consequences of not obtaining PAN or reporting it. For not paying proper taxes, there can be penalty up to 300% of the unpaid tax, and also prosecution in some cases.
DSM/SS/GN
(Release ID :79684)
The Central Board of Direct Taxes has directed the Income Tax department to launch a special drive, from 20th January to 20th March 2012, for verifying high value transactions (investments / deposits / expenditure) from persons who are not assessed to income tax or who have not furnished their PAN while entering into such transactions.
In an instruction issued today, the CBDT issued proforma for query letters and responses to be issued to the high value investors / depositors / spenders.
Addressees will be required to furnish their PAN if they already have one, or apply immediately for PAN to NSDL / UTIISL if they do not have one. They will also be required to explain the source of the high value investments / deposits / expenditure, and whether these are properly accounted for / explained in the income tax return filed by them.
Persons who have not properly accounted for the high value transactions, are required to pay due taxes and file the income tax return within this financial year, i.e. by 31st March, 2012.
For furnishing the information called for, visit to the tax office is not necessary. Information can be sent by speed / registered post.
In some cases, the tax officials may also visit the premises of the high value investors / depositors / spenders. In such cases, the taxpayer should verify the identity of the tax official before furnishing information in the prescribed proforma. In case of any grievance or complaint, taxpayer may contact the assessing officer or the additional / joint commissioner or the commissioner concerned. The visiting tax official is required to furnish the telephone numbers of his supervisory officers.
There are penal consequences of not obtaining PAN or reporting it. For not paying proper taxes, there can be penalty up to 300% of the unpaid tax, and also prosecution in some cases.
DSM/SS/GN
(Release ID :79684)
Radio stations gung-ho about phase III auctions…
source:thehindubusinessline
…. but worry about overbidding
New Delhi, Jan. 17:
FM radio is expected to make a great leap outward with the third phase of radio licensing, guidelines for which were announced nearly six months ago. Though it may not happen this fiscal, as earlier promised, the good news is that the I&B Ministry is keen to get it rolling in April.
As many as 800 new licences are up for grabs, which will up the coverage almost four times, from the current 240-odd cities and towns to over 800. Radio buffs will be spoilt for choice with the additional frequencies, but players worry whether it will be too much of a good thing.
The bigger concern is over the format for deciding who gets the new licences. The Government has decided to go in for a transparent online auction, like the 3G spectrum auction.
While existing players and prospective entrants welcome the transparency this provides, they worry whether “over-enthusiastic” bidding might end up pushing up the cost of the licences way beyond realistic levels.
Concerns on pricing
“The e-auction is meant to create transparency. However, we do not want a repeat of 3G auction, where there was tremendous over-bidding, which stretched the balance-sheets of the telecom players,” cautions Mr Vineet Singh Hukmani, Managing Director, Radio One.
Echoing him, Mr Harrish Bhatia, CEO, MY FM says: “The participation and expected revenue generation thereof will depend a lot on the floor price being set by the Ministry of Information and Broadcasting.
Taking the previous phase's highest bid price as a benchmark will deter players from bidding.” Advertising revenues hold the key. “The radio industry is only Rs 1,200 crore, while the mobile phone ringtone industry alone is worth Rs 1,400 crore. So, unlike telecom players, we won't be able to absorb rocketing prices. If something goes wrong with e-auction in radio, we will not be able to survive,” cautions Mr Hukmani.
An informed source, however, told Business Line that “the floor pricing is based on the five-year-old bid, and if the prices don't match the industry expectation, then the Group of Ministers might consider lowering the reserve price.
Expected Revenues
The exchequer, however, does not want to lose out on revenue, in case there are enough takers for the set reserve price.” The government expects to gain as much as Rs 1,700 crore from the auction of 800 new licences. The objective of Phase III is to expand the reach of FM radio from the current 240-250 towns to 800-plus towns, mostly category C and D towns.
The expanded market reach is expected to boost earnings as well.
“Three per cent of total media advertising revenue comes from radio. The auction could mean taking this figure to 7-8 per cent,” says Mr Hukmani.
Ashesh Jani, Partner, Deloitte Haskins and Sells, feels that the lure of the growing industry could mean new players vying for these Phase III licences.
“It is expected that these licences will be for Tier 2 and 3 cities and it is excitement enough for the bidders, as in many cities, they could have the ‘first-mover' advantage,” he says.
“For the first time, private FM players will be shoulder-to-shoulder with the national broadcaster All India Radio (AIR). With expansion of FM radio to 300-plus cities, FM radio will now touch 90 per cent of the Indian population,” says Mr Asheesh Chatterjee, CFO, Reliance Broadcast Network, which owns 92.7 Big FM.
Mr Chatterjee adds: “The availability of multiple frequencies will help radio players diversify their offerings. The hike in FDI from 20 to 26 per cent would attract strategic investor interest into the sector and increased tenure of radio licence from 10-15 years, will allow for improved monetisation.”
More Sikkimese Players are also likely to apply for Fm Station in near future
adds sikkim123.
FM assures army funds to create new strike corps
Shishir Gupta, Hindustan Times
New Delhi
Finance minister Pranab Mukherjee has assured army chief General VK Singh that fiscal go-ahead for creation of a new strike corps based at Pannagarh and bolstering up of defence along the 4,057 kilometre Line of Actual Control (LAC) with China will soon be accorded so that the vital matter is taken up for approval by the Cabinet Committee for Security (CCS).
Mukherjee gave this verbal commitment when General Singh called on the finance minister after his return from Myanmar on January 9, and requested him for speedy expedition of the force and weapon accretion process so that orders could be issued for recruitment and raising two more divisions for proposed Pannagarh Corps.
Singh has met Mukherjee thrice on this issue and has written at least once to the Finance Ministry after the latter raised sundry questions on the Indian Army's threat assessment on China owing to significant financial implications involved.
Defence minister AK Antony on his part is confident that the matter would be taken up by the CCS in 2011-2012 financial year and the fiscal impact would be spread over next five years.
While China has resurrected a lean and mean PLA machine with world class infrastructure along the LAC, India is still struggling to improve its road infrastructure and force capability.
However, the Indian Army is struggling for the UPA government support to raise Pannagarh Corps, two armoured brigades in Sikkim (near Nathu La) and Ladakh (Chusul), and an additional infantry brigade in Barahoti plains in the middle sector.
The latest objections have been raised by deputy national security advisor Lt Gen (Retd) Prakash Menon, who has suggested that force accretion and resources should be equally distributed among the three services rather than only focus on the Army.
Gen Menon is learnt to be partial to India enhancing its naval capabilities to tackle China as the latter has in fact reduced number of troops in Tibet by using rapid deployment formations and has beefed up PLA Navy.
The Indian Army, on its part, has made it amply clear that it need force accretion as threat potential of a border flare-up with PLA is omnipresent till the boundary is finally demarcated by the two nations.
Shishir Gupta, Hindustan Times
New Delhi
Finance minister Pranab Mukherjee has assured army chief General VK Singh that fiscal go-ahead for creation of a new strike corps based at Pannagarh and bolstering up of defence along the 4,057 kilometre Line of Actual Control (LAC) with China will soon be accorded so that the vital matter is taken up for approval by the Cabinet Committee for Security (CCS).
Mukherjee gave this verbal commitment when General Singh called on the finance minister after his return from Myanmar on January 9, and requested him for speedy expedition of the force and weapon accretion process so that orders could be issued for recruitment and raising two more divisions for proposed Pannagarh Corps.
Singh has met Mukherjee thrice on this issue and has written at least once to the Finance Ministry after the latter raised sundry questions on the Indian Army's threat assessment on China owing to significant financial implications involved.
Defence minister AK Antony on his part is confident that the matter would be taken up by the CCS in 2011-2012 financial year and the fiscal impact would be spread over next five years.
While China has resurrected a lean and mean PLA machine with world class infrastructure along the LAC, India is still struggling to improve its road infrastructure and force capability.
However, the Indian Army is struggling for the UPA government support to raise Pannagarh Corps, two armoured brigades in Sikkim (near Nathu La) and Ladakh (Chusul), and an additional infantry brigade in Barahoti plains in the middle sector.
The latest objections have been raised by deputy national security advisor Lt Gen (Retd) Prakash Menon, who has suggested that force accretion and resources should be equally distributed among the three services rather than only focus on the Army.
Gen Menon is learnt to be partial to India enhancing its naval capabilities to tackle China as the latter has in fact reduced number of troops in Tibet by using rapid deployment formations and has beefed up PLA Navy.
The Indian Army, on its part, has made it amply clear that it need force accretion as threat potential of a border flare-up with PLA is omnipresent till the boundary is finally demarcated by the two nations.
Needed: Governance revolution
Ranabir Ray Choudhury
Everyone will agree that the Indian system of governance needs a serious shake-up if the nation is to fulfil its true potential on the global stage. If proof were needed for this proposition, one has only to turn to the eighties and nineties of the past century, when the first stirrings were made in the direction to free the productive forces of the country, chiefly relating to regulations binding the system of production, distribution and foreign trade and commerce. There is simply no room for disagreement that those alterations — some would say “tinkering” with the existing system since Independence — led to the unleashing of productive energies, which surprised not only the nation itself, but also the international community at large.
The principal inference from this experience is that, left to themselves, Indians can produce wonders in the realm of innovation generally, adding immeasurably to the corpus of wealth emanating from this part of the globe. The critical phrase here is “left to themselves”, which hasn't been the case since 1947 till the mid-eighties. But clearly, if the phrase is to be operationalised in the best interests of the Republic, the system of governance will have to be re-crafted in such a way that it will produce the best results.
SHAKE-UP NEEDED SOON
Basically, the structure of governance comprises the executive, the legislature and the judiciary. Each arm of the structure will have to be “reformed” to match the ethos of development, founded on the concept of providing every Indian effective independence in the exercise of his or her productive powers. The scale of the reformation is, therefore, Himalayan, the inference being that such a change simply cannot be brought about by “degrees” of reform. What is needed is a huge shake-up, akin to a “revolution”, which will have to be undertaken within the general contours of the Republic's Constitution.
How is this to be accomplished within the shortest possible time? Is it too much to expect people like Ms Sonia Gandhi and Dr Manmohan Singh to take the lead in introducing major changes in the system of governance, which will start paying dividends within a decade?
OVERCOMING BUREAUCRACY
Left to themselves, they would, in all probability, have chosen sweeping changes. But then, they have to contend with, among others, the army of “technicians” — the career administrators — who are certain to put some hurdles in the way, not because they don't have the vision, but also because they are, willy-nilly, prisoners of an ethos which should by now have been dumped in the dustbin of history.
In short, the IAS, which today can in no way be compared with the elite ICS of the British period, will have to be reformed substantially from within and without, before it comes to be identified publicly as the main wrecker of the vision of a vibrant India. For this, its mindset will have to undergo a sea change, and “administration” will have to be seen as a profession instead of an examination-based sinecure.
(This article was published in Hindu on January 17, 2012)
Ranabir Ray Choudhury
Everyone will agree that the Indian system of governance needs a serious shake-up if the nation is to fulfil its true potential on the global stage. If proof were needed for this proposition, one has only to turn to the eighties and nineties of the past century, when the first stirrings were made in the direction to free the productive forces of the country, chiefly relating to regulations binding the system of production, distribution and foreign trade and commerce. There is simply no room for disagreement that those alterations — some would say “tinkering” with the existing system since Independence — led to the unleashing of productive energies, which surprised not only the nation itself, but also the international community at large.
The principal inference from this experience is that, left to themselves, Indians can produce wonders in the realm of innovation generally, adding immeasurably to the corpus of wealth emanating from this part of the globe. The critical phrase here is “left to themselves”, which hasn't been the case since 1947 till the mid-eighties. But clearly, if the phrase is to be operationalised in the best interests of the Republic, the system of governance will have to be re-crafted in such a way that it will produce the best results.
SHAKE-UP NEEDED SOON
Basically, the structure of governance comprises the executive, the legislature and the judiciary. Each arm of the structure will have to be “reformed” to match the ethos of development, founded on the concept of providing every Indian effective independence in the exercise of his or her productive powers. The scale of the reformation is, therefore, Himalayan, the inference being that such a change simply cannot be brought about by “degrees” of reform. What is needed is a huge shake-up, akin to a “revolution”, which will have to be undertaken within the general contours of the Republic's Constitution.
How is this to be accomplished within the shortest possible time? Is it too much to expect people like Ms Sonia Gandhi and Dr Manmohan Singh to take the lead in introducing major changes in the system of governance, which will start paying dividends within a decade?
OVERCOMING BUREAUCRACY
Left to themselves, they would, in all probability, have chosen sweeping changes. But then, they have to contend with, among others, the army of “technicians” — the career administrators — who are certain to put some hurdles in the way, not because they don't have the vision, but also because they are, willy-nilly, prisoners of an ethos which should by now have been dumped in the dustbin of history.
In short, the IAS, which today can in no way be compared with the elite ICS of the British period, will have to be reformed substantially from within and without, before it comes to be identified publicly as the main wrecker of the vision of a vibrant India. For this, its mindset will have to undergo a sea change, and “administration” will have to be seen as a profession instead of an examination-based sinecure.
(This article was published in Hindu on January 17, 2012)
7th Northeast Business Summit held in New Delhi
New Delhi, Tue, 17 Jan 2012 ANI
New Delhi, Jan 17 (ANI): The 7th Northeast Business Summit was recently held in New Delhi on January 6-7, with an aim to discuss the possible opportunities for investment and trade in the region.
The forum provided a platform for a formal interaction between potential investors and government functionaries.
Over the years insurgency posed the biggest hurdle in attracting the investments to the region. But with many groups coming forward for talks now, the fear psychosis among the people has declined and investors are slowly looking forward to invest in the region.
Union Home Minister P Chidambaram, on the occasion, assured the industry stakeholders of state's complete intolerance to any kind of violence.
Chidambaram used the platform to invite other groups to come forward for talks with the government.
"The big take away from 2010 to 2011 is that the most insurgent groups have come realized that violence will not yield the desired result and state will not tolerate any kind of violence and it is through dialogue that all the issues can be resolved amicably," said Chidambaram.
During the event, the participating members discussed the new government schemes and projects in line with the socio economic development of the region.
They stressed on the need for creation of better job opportunities, infrastructure, health facilities, tourism prospects, communication and connectivity, schools, colleges and professional institutions and other aspects that are needed for intensive growth in the region.
"The whole idea is to remove the poverty and generate employment. And for this we need to give importance to education and health sector. These are two important areas that we need to focus," said Chief Minister of Assam Tarun Gogoi.
Promotion of border trade with Myanmar and Bangladesh were among the key points of discussion in the summit.
Representative from both Bangladesh and Myanmar also expressed their concerns with the audiences.
Currently the trade between India and Bangladesh has crossed USD five billion mark in 2011 whereas with Myanmar, it is expected to cross USD three billion mark.
"We have to allow the exchange of goods produced within entire India and Bangladesh mainland, as this is the only way we can understand the intention of the two leaders," said U Tariq Ahmad from Bangladesh.
Ministry of Development of North East Region (DoNER) and Indian Chamber of Commerce jointly organized the summit to channelise these vast resources for the overall growth and development of the northeast region. (ANI)
New Delhi, Tue, 17 Jan 2012 ANI
New Delhi, Jan 17 (ANI): The 7th Northeast Business Summit was recently held in New Delhi on January 6-7, with an aim to discuss the possible opportunities for investment and trade in the region.
The forum provided a platform for a formal interaction between potential investors and government functionaries.
Over the years insurgency posed the biggest hurdle in attracting the investments to the region. But with many groups coming forward for talks now, the fear psychosis among the people has declined and investors are slowly looking forward to invest in the region.
Union Home Minister P Chidambaram, on the occasion, assured the industry stakeholders of state's complete intolerance to any kind of violence.
Chidambaram used the platform to invite other groups to come forward for talks with the government.
"The big take away from 2010 to 2011 is that the most insurgent groups have come realized that violence will not yield the desired result and state will not tolerate any kind of violence and it is through dialogue that all the issues can be resolved amicably," said Chidambaram.
During the event, the participating members discussed the new government schemes and projects in line with the socio economic development of the region.
They stressed on the need for creation of better job opportunities, infrastructure, health facilities, tourism prospects, communication and connectivity, schools, colleges and professional institutions and other aspects that are needed for intensive growth in the region.
"The whole idea is to remove the poverty and generate employment. And for this we need to give importance to education and health sector. These are two important areas that we need to focus," said Chief Minister of Assam Tarun Gogoi.
Promotion of border trade with Myanmar and Bangladesh were among the key points of discussion in the summit.
Representative from both Bangladesh and Myanmar also expressed their concerns with the audiences.
Currently the trade between India and Bangladesh has crossed USD five billion mark in 2011 whereas with Myanmar, it is expected to cross USD three billion mark.
"We have to allow the exchange of goods produced within entire India and Bangladesh mainland, as this is the only way we can understand the intention of the two leaders," said U Tariq Ahmad from Bangladesh.
Ministry of Development of North East Region (DoNER) and Indian Chamber of Commerce jointly organized the summit to channelise these vast resources for the overall growth and development of the northeast region. (ANI)
China ups the ante in Arunachal Pradesh
by Namrata Goswami,IDSA comment
January 17, 2012
China has upped the ante against India once again vis-Ã -vis its territorial claim on the Indian state of Arunachal Pradesh. In early January, China denied visa to Group Captain Mohonto Panging, a senior Indian Air force officer hailing from Arunachal Pradesh, who was to be part of a 30 member Integrated Defence team travelling to China under a bilateral defence exchange programme. Ironically, the visit, starting January 10, was meant to be a Confidence Building Exercise and an offshoot of the Annual Defence Dialogue. India did not cancel the visit per se but instead sent a truncated 15 member military delegation that did not include Mohonto Panging.
It must be noted that this is not the first time that China has signalled its territorial claim on Arunachal Pradesh by denying visa to an Indian citizen from the state. In May 2007, China denied visa to Ganesh Koyu, an Indian Administrative Service (IAS) officer from Arunachal Pradesh, who was to be a part of a 107 member IAS officer study visit to Beijing and Shanghai. China pointed out that Koyu is a Chinese citizen since he belongs to Arunachal Pradesh and hence could visit China without a visa! The same logic appears to have motivated the Chinese action this time around as well.
It is disturbing that China’s increasingly assertive posture on Arunachal Pradesh is being carried out against the backdrop of its increased militarization in Tibet. According to a 2010 US Department of Defense report, China has replaced its old liquid fuelled, nuclear capable CSS-3 intermediate range ballistic missile with “more advanced CSS-5 MRBMs” and has vastly improved its border roads in the eastern sector bordering India, which will considerably enhance PLA movement. Intercontinental missiles such as the DF-31 and DF-31A have also been deployed by China at Delingha, north of Tibet. On the border with India, China has deployed 13 Border Defence Regiments totalling around 300,000 troops. Airfields have also been established at Hoping, Pangta and Kong Ka, which are in addition to the existing six airfields in the Tibetan Autonomous Region, for supporting fighter aircraft and enhance the PLA’s airlift capability.
In response, India has upgraded its own military presence in the eastern sector by its decision to deploy the 290 km-range Brahmos supersonic cruise missile in order to strengthen its defence posture vis-Ã -vis China there. A five year expansion plan to induct 90,000 more troops and deploy four more divisions in the eastern sector is also underway. Already, there are 120,000 Indian troops stationed in the eastern sector, supported by two Sukhoi 30 MKI squadrons from Tezpur in Assam (See Figure I).
In an article in the PLA Daily last year, China had expressed concern about this Indian military upgrade in the eastern sector viewing it as directed at China. If that be indeed the case, refusing a visa to an Indian Air Force officer from Arunachal Pradesh, while aimed at scoring a political point with India, creates obstacles towards the very confidence-building that China hopes to see in the eastern sector.
It is to be noted that the India-China territorial dispute in the eastern sector had led to a border war in 1962 which resulted in India’s defeat by China. The memories of that defeat continue to linger in the psyche of the Indian military establishment. While both countries have avoided a conflict since then, the cause of that border war – a disputed 1,080km border and China’s territorial claim on Arunachal Pradesh – stands unresolved.
Figure I: India-China Military Position: Eastern Sector
Many strategic analysts argue that the Chinese claim on Arunachal Pradesh coupled with the unresolved eastern border could result in a future conflict between India and China. Such a scenario is, however, unlikely for three fundamental reasons. First, China and India are nuclear weapon states with 340 nuclear weapons between them (China with 240 and India with 100). Nuclear deterrence will play a critical role in averting all out war. Second, leaders of both countries would be cautious about any “war talk” due to the physical proximity between the two countries and realise that the consequences of any war would be tragic for both. Third, even conventional land warfare between India and China would be difficult due to the high mountainous landscape. The only caveat here is the possibility of aerial warfare, but nuclear weapons’ deterrence dynamics will play a role here as well.
To be sure, one of the main irritants in India-China relations, and closely tied to China’s territorial claim on Arunachal Pradesh, is the presence of the Dalai Lama and the “Tibetan government-in-exile” in India. The Tawang monastery in Arunachal Pradesh was the birthplace of the sixth Dalai Lama in the 17th century and is the second largest Tibetan monastery after the one in Lhasa. It could well be that the 14th Dalai Lama may choose his successor from the Tawang monastery. If this were to happen, the international questioning of China’s legitimacy over Tibet will continue. Consequently, China perhaps believes that its aggressive posture on Arunachal Pradesh will deter India from overplaying its Tibet card, which includes 120,000 Tibetan refugees living in India.
If the Dalai Lama factor is indeed propelling China’s recent posture on Arunachal Pradesh, it has all the makings of becoming a self fulfilling prophesy. It is well known that India provided asylum to the Dalai Lama in 1959 for purely moral reasons and has consistently expressed its recognition of Tibet as part of China. Yet, it appears that China suspects that there is some diabolical Indian plan to use the Dalai Lama to undermine China. As a result, it has turned aggressive on Arunachal Pradesh. This in turn has led some Indian strategic analysts to argue that India should develop the Dalai Lama card to counter China. Thus, the situation has the potential to come full circle.
It is however important for the peace and prosperity of both India and China that they do not descend into such a negative dynamic. It is in the interest of both countries that the 2005 India-China framework agreement is the most viable framework to negotiate a peaceful resolution to the territorial dispute.
by Namrata Goswami,IDSA comment
January 17, 2012
China has upped the ante against India once again vis-Ã -vis its territorial claim on the Indian state of Arunachal Pradesh. In early January, China denied visa to Group Captain Mohonto Panging, a senior Indian Air force officer hailing from Arunachal Pradesh, who was to be part of a 30 member Integrated Defence team travelling to China under a bilateral defence exchange programme. Ironically, the visit, starting January 10, was meant to be a Confidence Building Exercise and an offshoot of the Annual Defence Dialogue. India did not cancel the visit per se but instead sent a truncated 15 member military delegation that did not include Mohonto Panging.
It must be noted that this is not the first time that China has signalled its territorial claim on Arunachal Pradesh by denying visa to an Indian citizen from the state. In May 2007, China denied visa to Ganesh Koyu, an Indian Administrative Service (IAS) officer from Arunachal Pradesh, who was to be a part of a 107 member IAS officer study visit to Beijing and Shanghai. China pointed out that Koyu is a Chinese citizen since he belongs to Arunachal Pradesh and hence could visit China without a visa! The same logic appears to have motivated the Chinese action this time around as well.
It is disturbing that China’s increasingly assertive posture on Arunachal Pradesh is being carried out against the backdrop of its increased militarization in Tibet. According to a 2010 US Department of Defense report, China has replaced its old liquid fuelled, nuclear capable CSS-3 intermediate range ballistic missile with “more advanced CSS-5 MRBMs” and has vastly improved its border roads in the eastern sector bordering India, which will considerably enhance PLA movement. Intercontinental missiles such as the DF-31 and DF-31A have also been deployed by China at Delingha, north of Tibet. On the border with India, China has deployed 13 Border Defence Regiments totalling around 300,000 troops. Airfields have also been established at Hoping, Pangta and Kong Ka, which are in addition to the existing six airfields in the Tibetan Autonomous Region, for supporting fighter aircraft and enhance the PLA’s airlift capability.
In response, India has upgraded its own military presence in the eastern sector by its decision to deploy the 290 km-range Brahmos supersonic cruise missile in order to strengthen its defence posture vis-Ã -vis China there. A five year expansion plan to induct 90,000 more troops and deploy four more divisions in the eastern sector is also underway. Already, there are 120,000 Indian troops stationed in the eastern sector, supported by two Sukhoi 30 MKI squadrons from Tezpur in Assam (See Figure I).
In an article in the PLA Daily last year, China had expressed concern about this Indian military upgrade in the eastern sector viewing it as directed at China. If that be indeed the case, refusing a visa to an Indian Air Force officer from Arunachal Pradesh, while aimed at scoring a political point with India, creates obstacles towards the very confidence-building that China hopes to see in the eastern sector.
It is to be noted that the India-China territorial dispute in the eastern sector had led to a border war in 1962 which resulted in India’s defeat by China. The memories of that defeat continue to linger in the psyche of the Indian military establishment. While both countries have avoided a conflict since then, the cause of that border war – a disputed 1,080km border and China’s territorial claim on Arunachal Pradesh – stands unresolved.
Figure I: India-China Military Position: Eastern Sector
Many strategic analysts argue that the Chinese claim on Arunachal Pradesh coupled with the unresolved eastern border could result in a future conflict between India and China. Such a scenario is, however, unlikely for three fundamental reasons. First, China and India are nuclear weapon states with 340 nuclear weapons between them (China with 240 and India with 100). Nuclear deterrence will play a critical role in averting all out war. Second, leaders of both countries would be cautious about any “war talk” due to the physical proximity between the two countries and realise that the consequences of any war would be tragic for both. Third, even conventional land warfare between India and China would be difficult due to the high mountainous landscape. The only caveat here is the possibility of aerial warfare, but nuclear weapons’ deterrence dynamics will play a role here as well.
To be sure, one of the main irritants in India-China relations, and closely tied to China’s territorial claim on Arunachal Pradesh, is the presence of the Dalai Lama and the “Tibetan government-in-exile” in India. The Tawang monastery in Arunachal Pradesh was the birthplace of the sixth Dalai Lama in the 17th century and is the second largest Tibetan monastery after the one in Lhasa. It could well be that the 14th Dalai Lama may choose his successor from the Tawang monastery. If this were to happen, the international questioning of China’s legitimacy over Tibet will continue. Consequently, China perhaps believes that its aggressive posture on Arunachal Pradesh will deter India from overplaying its Tibet card, which includes 120,000 Tibetan refugees living in India.
If the Dalai Lama factor is indeed propelling China’s recent posture on Arunachal Pradesh, it has all the makings of becoming a self fulfilling prophesy. It is well known that India provided asylum to the Dalai Lama in 1959 for purely moral reasons and has consistently expressed its recognition of Tibet as part of China. Yet, it appears that China suspects that there is some diabolical Indian plan to use the Dalai Lama to undermine China. As a result, it has turned aggressive on Arunachal Pradesh. This in turn has led some Indian strategic analysts to argue that India should develop the Dalai Lama card to counter China. Thus, the situation has the potential to come full circle.
It is however important for the peace and prosperity of both India and China that they do not descend into such a negative dynamic. It is in the interest of both countries that the 2005 India-China framework agreement is the most viable framework to negotiate a peaceful resolution to the territorial dispute.
Contours of a Possible Indian Riposte to Chinese Aggressiveness
by Lalit Kumar
January 17, 2012
It is being prophesied that conflict with China is imminent and could come as soon as 2012-2014, and that such a conflict could quickly erupt into an all-out war in which India would be thoroughly outclassed and outnumbered leading to a massive defeat. Such a scenario is, however, unlikely to unfold for several reasons. Firstly, the Chinese are inadequately equipped at this time to gain an asymmetric advantage for prosecuting an all out war. They are also likely to be disinclined to pursue such an option for political and economic reasons, given that their priorities for the foreseeable future is economic development, coping with the effects of the global recession and ensuring the smooth transition to a new generation of leaders in 2012. Further, the Chinese at this point in time are quite vulnerable on several grounds. After assessing the weaknesses and gaps in Chinese capabilities and highlighting the positions of advantage that India enjoys, this essay proposes a strategy for a strong riposte against any Chinese adventurism.
by Lalit Kumar
January 17, 2012
It is being prophesied that conflict with China is imminent and could come as soon as 2012-2014, and that such a conflict could quickly erupt into an all-out war in which India would be thoroughly outclassed and outnumbered leading to a massive defeat. Such a scenario is, however, unlikely to unfold for several reasons. Firstly, the Chinese are inadequately equipped at this time to gain an asymmetric advantage for prosecuting an all out war. They are also likely to be disinclined to pursue such an option for political and economic reasons, given that their priorities for the foreseeable future is economic development, coping with the effects of the global recession and ensuring the smooth transition to a new generation of leaders in 2012. Further, the Chinese at this point in time are quite vulnerable on several grounds. After assessing the weaknesses and gaps in Chinese capabilities and highlighting the positions of advantage that India enjoys, this essay proposes a strategy for a strong riposte against any Chinese adventurism.
Chinese rail link to Tibetan town near India to be completed in three years
PTI | Jan 17, 2012, 09.56PM IST
The extension of a landmark railway line from Tibet's capital Lhasa to its second-largest city Xigaze, located close to Indian border, is in full swing and will be completed by 2015.
BEIJING: The extension of a landmark railway line from Tibet's capital Lhasa to its second-largest city Xigaze, located close to Indian border, is in full swing and will be completed by 2015, Chinese officials said on Tuesday.
As of the end of 2011, 3.4 billion yuan (USD 538 million) had been poured into the Lhasa-Xigaze railway, about a quarter of the total budget for the project, Tibet's regional development and reform commission said in a statement.
The railway line, the first extension of the Qinghai-Tibet Railway that opened in July 2006, is one of the plateau region's key construction projects during the 2011-2015 period, state-run Xinhua news agency reported.
Construction workers have finished laying 14.08 million cubic metres of roadbed, about 77 per cent of the total, and built 40 per cent of the tunnels along the road, Jin Shixun, the chief of the commission, was quoted as saying by Xinhua.
The 253-km new line will pass through five counties and the 90-km-long Yarlung Zangbo (Brahmaputra river) Grand Canyon.
Construction began in September 2010, with a budget of 13.3 billion yuan (USD 2.1 billion).
It is designed to have a transport capacity of 8.3 million tonnes of freight annually and will allow trains to travel at a minimum speed of 120-km per hour.
Xigaze, with a history of more than 600 years, is Tibet's second-largest city and the traditional seat of the Panchen Lamas. Xigaze City is the administrative centre of the Tibetan prefecture of the same name, which covers 182,000 square km bordering India, Nepal and Bhutan and includes Mt. Everest.
Jin said the new rail link will play a vital role in boosting tourism and accelerating the transport of natural resources. Tibet will start building another extension of the plateau railway, from Lhasa to Nyingchi, in the next five years, according to the region's plan for economic and social development in the 2011-2015 period.
Adds Sikkim123
The line will finally reach Nathu la on Indo China Border to facilitate future trade through Sikkim into the plains of India.
PTI | Jan 17, 2012, 09.56PM IST
The extension of a landmark railway line from Tibet's capital Lhasa to its second-largest city Xigaze, located close to Indian border, is in full swing and will be completed by 2015.
BEIJING: The extension of a landmark railway line from Tibet's capital Lhasa to its second-largest city Xigaze, located close to Indian border, is in full swing and will be completed by 2015, Chinese officials said on Tuesday.
As of the end of 2011, 3.4 billion yuan (USD 538 million) had been poured into the Lhasa-Xigaze railway, about a quarter of the total budget for the project, Tibet's regional development and reform commission said in a statement.
The railway line, the first extension of the Qinghai-Tibet Railway that opened in July 2006, is one of the plateau region's key construction projects during the 2011-2015 period, state-run Xinhua news agency reported.
Construction workers have finished laying 14.08 million cubic metres of roadbed, about 77 per cent of the total, and built 40 per cent of the tunnels along the road, Jin Shixun, the chief of the commission, was quoted as saying by Xinhua.
The 253-km new line will pass through five counties and the 90-km-long Yarlung Zangbo (Brahmaputra river) Grand Canyon.
Construction began in September 2010, with a budget of 13.3 billion yuan (USD 2.1 billion).
It is designed to have a transport capacity of 8.3 million tonnes of freight annually and will allow trains to travel at a minimum speed of 120-km per hour.
Xigaze, with a history of more than 600 years, is Tibet's second-largest city and the traditional seat of the Panchen Lamas. Xigaze City is the administrative centre of the Tibetan prefecture of the same name, which covers 182,000 square km bordering India, Nepal and Bhutan and includes Mt. Everest.
Jin said the new rail link will play a vital role in boosting tourism and accelerating the transport of natural resources. Tibet will start building another extension of the plateau railway, from Lhasa to Nyingchi, in the next five years, according to the region's plan for economic and social development in the 2011-2015 period.
Adds Sikkim123
The line will finally reach Nathu la on Indo China Border to facilitate future trade through Sikkim into the plains of India.
Tuesday, January 17, 2012
The Big Mac index
Currency comparisons, to go
source: The Economist online
A beefed-up version of the Big Mac index suggests that the Chinese yuan
is now close to its fair value against the dollar
THE Economist’s Big Mac index is a fun guide to whether currencies are at their “correct” level. It is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of a basket of goods and services around the world. At market exchange rates, a burger is 44% cheaper in China than in America. In other words, the raw Big Mac index suggests that the yuan is 44% undervalued against the dollar. But we have long warned that cheap burgers in China do not prove that the yuan is massively undervalued. Average prices should be lower in poor countries than in rich ones because labour costs are lower. The chart above shows a strong positive relationship between the dollar price of a Big Mac and GDP per person.
is now close to its fair value against the dollar
THE Economist’s Big Mac index is a fun guide to whether currencies are at their “correct” level. It is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of a basket of goods and services around the world. At market exchange rates, a burger is 44% cheaper in China than in America. In other words, the raw Big Mac index suggests that the yuan is 44% undervalued against the dollar. But we have long warned that cheap burgers in China do not prove that the yuan is massively undervalued. Average prices should be lower in poor countries than in rich ones because labour costs are lower. The chart above shows a strong positive relationship between the dollar price of a Big Mac and GDP per person.
PPP signals where exchange rates should move in the long run. To estimate the current fair value of a currency we use the “line of best fit” between Big Mac prices and GDP per person. The difference between the price predicted for each country, given its average income, and its actual price offers a better guide to currency under- and overvaluation than the “raw” index. The beefed-up index suggests that the Brazilian real is the most overvalued currency in the world; the euro is also significantly overvalued. But the yuan now appears to be close to its fair value against the dollar—something for American politicians to chew over
Laxman Das appointed CBDT Member (Revenue)
PTI
New Delhi, Jan 17: Senior IRS officer Laxman Das has been appointed as the new Member (Revenue) in the Central Board of Direct Taxes (CBDT).
Mr Das is a 1974-batch Indian Revenue Service (IRS) officer and has held senior positions like that of Chief Commissioner (Income-Tax) in the past.
The portfolio was till now being handled by Member (Investigation) in the CBDT — S.S. Rana for the last few months. Mr Das will also look after the revenue collection work of states like Gujarat, Maharashtra and Andhra Pradesh.
The CBDT is a seven-member body headed by the Chairman and it formulates policies and looks after the administration of Direct Taxes in the country and that of the Income-Tax Department.
PTI
New Delhi, Jan 17: Senior IRS officer Laxman Das has been appointed as the new Member (Revenue) in the Central Board of Direct Taxes (CBDT).
Mr Das is a 1974-batch Indian Revenue Service (IRS) officer and has held senior positions like that of Chief Commissioner (Income-Tax) in the past.
The portfolio was till now being handled by Member (Investigation) in the CBDT — S.S. Rana for the last few months. Mr Das will also look after the revenue collection work of states like Gujarat, Maharashtra and Andhra Pradesh.
The CBDT is a seven-member body headed by the Chairman and it formulates policies and looks after the administration of Direct Taxes in the country and that of the Income-Tax Department.
Jaiprakash to train Bhutanese youth in construction
Jaiprakash Associates Limited (JAL), a construction company in India, has agreed to train 300 Bhutanese youth a year in construction, for two years.
Last week JAL signed a Memorandum of Understanding with the labour ministry to provide such a training.
The ministry has similar MoUs earlier with three major construction companies of India involved in hydro power projects in Bhutan. The companies are Larsen & Tourbo (L&T), Gamon and the Hindustan Construction company (HCC) to train Bhutanese youths in construction.
This, according to labour officials, is an attempt to produce skilled human resource for hydro power projects in the country by tying up with the major construction companies involved in hydro power projects in Bhutan.
According to the MoU, JAL will provide the assistance in establishing a training unit at the Technical Training Institute (TTI) identified by the ministry earlier known as the vocational training Institutes.
While the ministry will mobilise the agreed number of youths for training, JAL will provide trainings in their engineering institutes or through direct attachment at project sites for on job training.
“Besides the company have also agreed to support in upgrading one of the TTIs in the country which means the company would provide support in either improving infrastructure or providing equipment for upgraded trainings,” labour’s human resource director, Sonam Rinchen, said.
While some batches of youths were already engaged in training with L&T and the Gamon, the detail of training plans are still under discussion with HCC to implement the agreed understanding. “We will also now sit with JAL and work out the training plans,” Sonam Rinchen said. “We’ll be ready to send the youths any time when the company asks us to send.”
According to a fact sheet released on the website of the economic affairs ministry there are a total of 7,371 employees engaged in Punatsangchu Hydro power project I and II out of which 2,167 are Bhutanese employees.
Out of the 2,167 Bhutanese employees, 1,134 work with PHPA-I & II while 1,033 are engaged with contractors involved in the project works.
“The Bhutanese human resource in hydro power projects have seen some improvements from the past and such initiative could bring more improvements in the field of constructions,” officials of PHPA said.
The training would be in the fields of form works, bar bending, wielding and operation of construction equipment.
Jaiprakash Associates Limited (JAL), a construction company in India, has agreed to train 300 Bhutanese youth a year in construction, for two years.
Last week JAL signed a Memorandum of Understanding with the labour ministry to provide such a training.
The ministry has similar MoUs earlier with three major construction companies of India involved in hydro power projects in Bhutan. The companies are Larsen & Tourbo (L&T), Gamon and the Hindustan Construction company (HCC) to train Bhutanese youths in construction.
This, according to labour officials, is an attempt to produce skilled human resource for hydro power projects in the country by tying up with the major construction companies involved in hydro power projects in Bhutan.
According to the MoU, JAL will provide the assistance in establishing a training unit at the Technical Training Institute (TTI) identified by the ministry earlier known as the vocational training Institutes.
While the ministry will mobilise the agreed number of youths for training, JAL will provide trainings in their engineering institutes or through direct attachment at project sites for on job training.
“Besides the company have also agreed to support in upgrading one of the TTIs in the country which means the company would provide support in either improving infrastructure or providing equipment for upgraded trainings,” labour’s human resource director, Sonam Rinchen, said.
While some batches of youths were already engaged in training with L&T and the Gamon, the detail of training plans are still under discussion with HCC to implement the agreed understanding. “We will also now sit with JAL and work out the training plans,” Sonam Rinchen said. “We’ll be ready to send the youths any time when the company asks us to send.”
According to a fact sheet released on the website of the economic affairs ministry there are a total of 7,371 employees engaged in Punatsangchu Hydro power project I and II out of which 2,167 are Bhutanese employees.
Out of the 2,167 Bhutanese employees, 1,134 work with PHPA-I & II while 1,033 are engaged with contractors involved in the project works.
“The Bhutanese human resource in hydro power projects have seen some improvements from the past and such initiative could bring more improvements in the field of constructions,” officials of PHPA said.
The training would be in the fields of form works, bar bending, wielding and operation of construction equipment.
Monday, January 16, 2012
Taj to open two hotels in China’s Kunming Expo Garden
Monday, January 16, 2012
The Indian Hotels Company Limited (IHCL) has signed a Memorandum of Co-operation for a Joint Venture with Yunnan Tourism Co. Ltd to engage in development, construction, operation and management of two hotels in Kunming Expo Garden, situated in Yunnan province of southwest China. Kunming is a gateway to China, connecting Southeast Asia, South Asia, Middle East, Europe and Africa, and is just a two-hour flight from Kolkata, India.
"The Indian Hotel Company's presence in Kunming is critical for our selective global expansion plan because of its strategic location with access to key markets like Vietnam, Thailand, Cambodia, Myanmar, Bangladesh and Laos. It is a major communication and transport hub in China having good connectivity with the domestic Chinese tourism circuit. The entry of Taj and Vivanta by Taj brands in Kunming offers an exciting opportunity to establish the brands in the Chinese market," said Mr. Abhijit Mukerji, Executive Director, IHCL.
The IHCL and its subsidiaries, collectively known as Taj Hotels Resorts and Palaces, is one of Asia's largest group of hotels. Taj already has management contracts in place for a landmark hotel, Taj Temple of Heaven Beijing, in close proximity to the Temple of Heaven Park in Beijing. A key tourist destination, The Temple of Heaven Park is a UNESCO World Heritage Site. It was constructed between 1406 and 1420 and used by Emperors of the Ming and Qing dynasties.
Taj will also manage a luxury resort in Hainan Island, the premium resort destination in China. Apart from the renowned Taj hospitality, both the hotels will offer high-end accommodations, signature restaurants, banqueting facilities and Jiva Spa, Taj's acclaimed Indian and all natural spa.
Mr. Ge Bao-rong, General Manager, Yunnan Tourism Co. Ltd said, "We are delighted to partner with The Indian Hotels Company Limited to bring the Taj legendary service to the Yunnan province and China. We are confident that their expertise of the Indian and international markets combined with our understanding of the Chinese market will be immensely helpful in developing world class hotels at the historical Kunming Expo
Monday, January 16, 2012
The Indian Hotels Company Limited (IHCL) has signed a Memorandum of Co-operation for a Joint Venture with Yunnan Tourism Co. Ltd to engage in development, construction, operation and management of two hotels in Kunming Expo Garden, situated in Yunnan province of southwest China. Kunming is a gateway to China, connecting Southeast Asia, South Asia, Middle East, Europe and Africa, and is just a two-hour flight from Kolkata, India.
"The Indian Hotel Company's presence in Kunming is critical for our selective global expansion plan because of its strategic location with access to key markets like Vietnam, Thailand, Cambodia, Myanmar, Bangladesh and Laos. It is a major communication and transport hub in China having good connectivity with the domestic Chinese tourism circuit. The entry of Taj and Vivanta by Taj brands in Kunming offers an exciting opportunity to establish the brands in the Chinese market," said Mr. Abhijit Mukerji, Executive Director, IHCL.
The IHCL and its subsidiaries, collectively known as Taj Hotels Resorts and Palaces, is one of Asia's largest group of hotels. Taj already has management contracts in place for a landmark hotel, Taj Temple of Heaven Beijing, in close proximity to the Temple of Heaven Park in Beijing. A key tourist destination, The Temple of Heaven Park is a UNESCO World Heritage Site. It was constructed between 1406 and 1420 and used by Emperors of the Ming and Qing dynasties.
Taj will also manage a luxury resort in Hainan Island, the premium resort destination in China. Apart from the renowned Taj hospitality, both the hotels will offer high-end accommodations, signature restaurants, banqueting facilities and Jiva Spa, Taj's acclaimed Indian and all natural spa.
Mr. Ge Bao-rong, General Manager, Yunnan Tourism Co. Ltd said, "We are delighted to partner with The Indian Hotels Company Limited to bring the Taj legendary service to the Yunnan province and China. We are confident that their expertise of the Indian and international markets combined with our understanding of the Chinese market will be immensely helpful in developing world class hotels at the historical Kunming Expo
Accurpress takes shape in India
By Narayanan Madhavan
For Accurpress Tooling Systems Inc., based in Surrey, B.C., India has been a sweet spot right from the word go.
India is, no doubt, a huge and inviting market, but for a small- or medium-sized company looking at a different culture, size is not everything, and the hurdles can be many.
Accurpress, however, can knock on wood. The company’s India unit, Accurpress International Sales Ltd., reported sales of about $20-million in the year that ended last March, says its sales manager, Gaurav Srivastava. That is significant, considering the company entered the Indian market just four years ago.
More related to this storyClimate unpredictable for weather company
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Big Canadian telecom player starts small in India
Mr. Srivastava, a vibrant 26-year-old, is one of the five-member team in India for the company, which makes a wide range of metal-forming machines that help industries craft machine tools. Its machines range in cost between two million and 300 million rupees (about $44,000 to $6.7-million Canadian).
Perhaps what makes the company special in India is that its goods cater to a wide array of industries. Furniture makers, auto makers, ship builders, aircraft makers, railroad manufacturers, electrical goods firms and even kitchen equipment makers are among the company’s 100 customers in India.
As Indian firms refurbish their machinery and the country builds infrastructure and new industries to match growth rates with China, the market is just right for Accurpress. The privately held company, which has decades of technological experience that give it an edge, currently imports into India from its overseas plants, including Canada, but mainly in China. It does have competitors, including one Indian firm and others from Belgium and Japan, but Mr. Srivastava said that Accurpress has a clear advantage because it classifies customers into tiers one, two and three, and backs up its technology with sound after-sales services.
“We do direct servicing and we send service engineers by air,” Mr. Srivastava said.
Air travel for service technicians is not really common in India – like Canada, a sprawling country, with a very cost-sensitive culture – but it obviously works for Accurpress.
“India being a developing economy, we expect 100-per-cent growth over five years,” Mr. Srivastava said.
“Earlier, the machinery sales were at a nascent stage. Now things are moving like anything, especially in southern and western India.”
Mr. Srivastava is based in Ahmedabad, the business town of the booming western state of Gujarat, which counts textiles, pharmaceuticals, ship-building and oil refining among its key industries. Addressing small “tier three” customers is a challenge, he admits. These are companies that are short of working capital. Accurpress holds their hands by working out letters of credit from the Bank of China. It takes 25 per cent of its price in advance and sweetens financing for the remainder by tieing into some smart bank deals.
The company also minimizes dealings with government or tender-related work to avoid getting caught in red tape. “We are not interested in government tenders. We are more interested in corporate sales,” Mr. Srivastava said.
Also, while its goods are imported into India, Accurpress lets its buyers deal with customs authorities, which are somewhat notorious for inefficiency and working ways that do not exclude corruption.
“You have no idea the trouble they [customs] can give,” Mr. Srivastava said.
Customers are increasingly willing to pay for the right stuff. The Accurpress approach is to help customers select the right machines, and develop or modify products, including some “reverse engineering,” to keep them happy.
“We eventually plan an assembly and then manufacture in India. But it will take more time,” Mr. Srivastava said.
By Narayanan Madhavan
For Accurpress Tooling Systems Inc., based in Surrey, B.C., India has been a sweet spot right from the word go.
India is, no doubt, a huge and inviting market, but for a small- or medium-sized company looking at a different culture, size is not everything, and the hurdles can be many.
Accurpress, however, can knock on wood. The company’s India unit, Accurpress International Sales Ltd., reported sales of about $20-million in the year that ended last March, says its sales manager, Gaurav Srivastava. That is significant, considering the company entered the Indian market just four years ago.
More related to this storyClimate unpredictable for weather company
Vancouver miner digs deep in India
Big Canadian telecom player starts small in India
Mr. Srivastava, a vibrant 26-year-old, is one of the five-member team in India for the company, which makes a wide range of metal-forming machines that help industries craft machine tools. Its machines range in cost between two million and 300 million rupees (about $44,000 to $6.7-million Canadian).
Perhaps what makes the company special in India is that its goods cater to a wide array of industries. Furniture makers, auto makers, ship builders, aircraft makers, railroad manufacturers, electrical goods firms and even kitchen equipment makers are among the company’s 100 customers in India.
As Indian firms refurbish their machinery and the country builds infrastructure and new industries to match growth rates with China, the market is just right for Accurpress. The privately held company, which has decades of technological experience that give it an edge, currently imports into India from its overseas plants, including Canada, but mainly in China. It does have competitors, including one Indian firm and others from Belgium and Japan, but Mr. Srivastava said that Accurpress has a clear advantage because it classifies customers into tiers one, two and three, and backs up its technology with sound after-sales services.
“We do direct servicing and we send service engineers by air,” Mr. Srivastava said.
Air travel for service technicians is not really common in India – like Canada, a sprawling country, with a very cost-sensitive culture – but it obviously works for Accurpress.
“India being a developing economy, we expect 100-per-cent growth over five years,” Mr. Srivastava said.
“Earlier, the machinery sales were at a nascent stage. Now things are moving like anything, especially in southern and western India.”
Mr. Srivastava is based in Ahmedabad, the business town of the booming western state of Gujarat, which counts textiles, pharmaceuticals, ship-building and oil refining among its key industries. Addressing small “tier three” customers is a challenge, he admits. These are companies that are short of working capital. Accurpress holds their hands by working out letters of credit from the Bank of China. It takes 25 per cent of its price in advance and sweetens financing for the remainder by tieing into some smart bank deals.
The company also minimizes dealings with government or tender-related work to avoid getting caught in red tape. “We are not interested in government tenders. We are more interested in corporate sales,” Mr. Srivastava said.
Also, while its goods are imported into India, Accurpress lets its buyers deal with customs authorities, which are somewhat notorious for inefficiency and working ways that do not exclude corruption.
“You have no idea the trouble they [customs] can give,” Mr. Srivastava said.
Customers are increasingly willing to pay for the right stuff. The Accurpress approach is to help customers select the right machines, and develop or modify products, including some “reverse engineering,” to keep them happy.
“We eventually plan an assembly and then manufacture in India. But it will take more time,” Mr. Srivastava said.
Big fat deal: MP to foot bill for obesity surgery
Amrita U. Kadam, Hindustan Times
Indore, January 16, 2012
This is largesse, literally. In a fitness fit, Madhya Pradesh government has decided to reimburse the cost of obesity surgery for the government employees, their dependents and even needy private individuals. It is first Indian state to do so.
The BJP government seems to be taking the cue from party president Nitin Gadkari, who had undergone this surgery in September last year in Mumbai. To some, the irony of the state which has rampant malnutrition — according to the India State Hunger Index made by the International Food Policy Research Institute in 2008, MP falls in the 'extremely alarming' level of hunger category — reimbursing the obese for their treatment is not lost.
The state has recognised Bhandari group of hospitals for such surgeries. The state would reimburse the cost of the surgery performed there. The order in this regard has been passed by the state with effect from January 10, 2012, for a year and is subject to renewal.
The state had formed a committee to look into the need of the surgery in the state and the decision has been taken after the committee of experts gave its nod. By the end of the year, the hospital will have to submit the video recordings of the entire procedure to this committee.
So far, none of the insurance companies have come forward to include bariatric surgery under the medical cover which makes this move by the government even more significant.
According to the Indian Council of Medical Research MP was ranked at 21 for obesity and diabetes in 2009 and is now ranked at 8 in 2011. This surgery is recommended for severely obese who have one or more weight related problems. What is bariatric surgery?
Sleeve gastrectomy (Rs 1.10 lakh) – a restrictive procedure- stomach is stapled and the size of the pouch is reduced. A 2-2.5 litre capacity stomach can be reduced to as much as 20 ml hence reducing the total food intake.
Gastric Bypass (Rs 1.80 lakh) - a malabsorptive procedure- bypassing of the intestine segments so that the food remains in the intestine for lesser time and leads to lesser absorption.
Gastric Banding (Rs 1.50 lakh) - a band is placed around the stomach to reduce its size.
The duodenal switch (DS) procedure (Rs 1.80 lakh) - involves a combination of a restrictive and a malabsorptive aspect.
State health minister Narottam Mishra said, "We want all our employees and the state to be fit and in good health. Obesity leads to a lot of other complications too and hence we thought of bearing the cost of this surgery to nip in the problem in the bud."
Director of Bhandari group of hospitals Dr Mohit Bhandari told HT that nearly 300 bariatric and metabolic surgeries for obesity and diabetes have been performed at the hospital in the last year.
"Obesity is the root cause of many ailments like diabetes, cardiac troubles, stroke, infertility, joint problems amongst others. If the problem of obesity is addressed all these diseases are taken care of," said Dr Bhandari who has recently been awarded by Indian Association of Gastrointestinal Endosurgeons President Dr Suresh Deshpande for his distinguished contribution in the field of Advanced Laproscopy.
"The patients can even give us post-dated cheques which we would keep till the patient gets the money in their account," said Dr Bhandari.
Amrita U. Kadam, Hindustan Times
Indore, January 16, 2012
This is largesse, literally. In a fitness fit, Madhya Pradesh government has decided to reimburse the cost of obesity surgery for the government employees, their dependents and even needy private individuals. It is first Indian state to do so.
The BJP government seems to be taking the cue from party president Nitin Gadkari, who had undergone this surgery in September last year in Mumbai. To some, the irony of the state which has rampant malnutrition — according to the India State Hunger Index made by the International Food Policy Research Institute in 2008, MP falls in the 'extremely alarming' level of hunger category — reimbursing the obese for their treatment is not lost.
The state has recognised Bhandari group of hospitals for such surgeries. The state would reimburse the cost of the surgery performed there. The order in this regard has been passed by the state with effect from January 10, 2012, for a year and is subject to renewal.
The state had formed a committee to look into the need of the surgery in the state and the decision has been taken after the committee of experts gave its nod. By the end of the year, the hospital will have to submit the video recordings of the entire procedure to this committee.
So far, none of the insurance companies have come forward to include bariatric surgery under the medical cover which makes this move by the government even more significant.
According to the Indian Council of Medical Research MP was ranked at 21 for obesity and diabetes in 2009 and is now ranked at 8 in 2011. This surgery is recommended for severely obese who have one or more weight related problems. What is bariatric surgery?
Sleeve gastrectomy (Rs 1.10 lakh) – a restrictive procedure- stomach is stapled and the size of the pouch is reduced. A 2-2.5 litre capacity stomach can be reduced to as much as 20 ml hence reducing the total food intake.
Gastric Bypass (Rs 1.80 lakh) - a malabsorptive procedure- bypassing of the intestine segments so that the food remains in the intestine for lesser time and leads to lesser absorption.
Gastric Banding (Rs 1.50 lakh) - a band is placed around the stomach to reduce its size.
The duodenal switch (DS) procedure (Rs 1.80 lakh) - involves a combination of a restrictive and a malabsorptive aspect.
State health minister Narottam Mishra said, "We want all our employees and the state to be fit and in good health. Obesity leads to a lot of other complications too and hence we thought of bearing the cost of this surgery to nip in the problem in the bud."
Director of Bhandari group of hospitals Dr Mohit Bhandari told HT that nearly 300 bariatric and metabolic surgeries for obesity and diabetes have been performed at the hospital in the last year.
"Obesity is the root cause of many ailments like diabetes, cardiac troubles, stroke, infertility, joint problems amongst others. If the problem of obesity is addressed all these diseases are taken care of," said Dr Bhandari who has recently been awarded by Indian Association of Gastrointestinal Endosurgeons President Dr Suresh Deshpande for his distinguished contribution in the field of Advanced Laproscopy.
"The patients can even give us post-dated cheques which we would keep till the patient gets the money in their account," said Dr Bhandari.
(CNN) – India is Asia’s third largest economy, the world’s tenth largest by nominal GDP and is dubbed as the world’s largest democracy. So why does India still skulk in the shadows of the world’s other rising superpower China? One reason could be that India is hamstrung by its bureaucracy.
As the Economic Times stated, India needs to reform its bureaucracy and curb widespread corruption so it can fix its global image and achieve economic growth.
A recent report from the Hong Kong based Political and Economic Risk Consultancy Ltd ranked India the lowest on a bureaucracy rating in Asia. The report shows that the country runs an inefficient bureaucracy because of corruption and inadequate infrastructure. Business executives complain about how top officials are willing to accept under-the-table payments and how in turn, companies are tempted to make such payments in order to overcome bureaucratic inertia and gain government favors, the report says.
India ranked the worse in Asia, scoring 9.21 out of 10; next worse was Vietnam (8.54), Philippines (7.57) and China (7.11). Singapore’s bureaucracy had the best ranking (2.25) followed by Hong Kong (3.53).
The report defines a bureaucratic system as “one where workers in the public sector view themselves as officials in a hierarchical structure in which the higher you are on the organization chart, the more important you are.”
Onerous and fickle tax, environmental and other regulations that could make business in India “frustrating and expensive,” the report says. Dealing with the court system in India is “such an unattractive one in terms of time and costs that most companies avoid it.”
Bureaucrats are rarely held accountable for wrong decisions, the report says, and it’s extremely difficult to challenge them as they wield “terrific powers.” This could be one of the main reasons why average Indians as well as existing and would-be-foreign investors perceive India’s bureaucrats as negatively as they do, the report concluded.
The report showed that nothing has changed since the survey was carried out in 2010 where India fared the worst again. It is also this corruption and bureaucracy that has kept non resident Indians (NRIs) away from investing in India.
However, it was not all doom and gloom for India. The report did mention that India was better than the other BRIC nations, Brazil, Russia and China, as the fastest place to set up a new business and to deal with construction permits. India was the second fastest place to deal with export and import procedures.
As the Economic Times stated, India needs to reform its bureaucracy and curb widespread corruption so it can fix its global image and achieve economic growth.
A recent report from the Hong Kong based Political and Economic Risk Consultancy Ltd ranked India the lowest on a bureaucracy rating in Asia. The report shows that the country runs an inefficient bureaucracy because of corruption and inadequate infrastructure. Business executives complain about how top officials are willing to accept under-the-table payments and how in turn, companies are tempted to make such payments in order to overcome bureaucratic inertia and gain government favors, the report says.
India ranked the worse in Asia, scoring 9.21 out of 10; next worse was Vietnam (8.54), Philippines (7.57) and China (7.11). Singapore’s bureaucracy had the best ranking (2.25) followed by Hong Kong (3.53).
The report defines a bureaucratic system as “one where workers in the public sector view themselves as officials in a hierarchical structure in which the higher you are on the organization chart, the more important you are.”
Onerous and fickle tax, environmental and other regulations that could make business in India “frustrating and expensive,” the report says. Dealing with the court system in India is “such an unattractive one in terms of time and costs that most companies avoid it.”
Bureaucrats are rarely held accountable for wrong decisions, the report says, and it’s extremely difficult to challenge them as they wield “terrific powers.” This could be one of the main reasons why average Indians as well as existing and would-be-foreign investors perceive India’s bureaucrats as negatively as they do, the report concluded.
The report showed that nothing has changed since the survey was carried out in 2010 where India fared the worst again. It is also this corruption and bureaucracy that has kept non resident Indians (NRIs) away from investing in India.
However, it was not all doom and gloom for India. The report did mention that India was better than the other BRIC nations, Brazil, Russia and China, as the fastest place to set up a new business and to deal with construction permits. India was the second fastest place to deal with export and import procedures.
Hasina recalls support from Indian northeast  | ||
“As we touched down at Agartala airport last evening, a flush of emotions overwhelmed me as I recalled the tremendous sacrifices you made during our glorious struggle for independence,” she said. The Tripura University conferred the honorary D. Litt degree (honoris causa) to Sheikh Hasina in recognition of her statesmanship, visionary leadership and resolute commitment to peace and democracy. Indian Vice-President Mohamed Hamid Ansari conferred the degree on Bangladesh PM at the 9th convocation of the university. Sheikh Hasina is the first foreign leader who received the honorary D.Litt by the university after its establishment in 1987. Many people in Tripura are viewing Sheikh Hasina’s visit as mark of recognition of Tripura for its outstanding contribution to the Bangladesh’s Liberation War in 1971, according to a report reaching Dhaka yesterday. Receiving the D.Litt degree, Sheikh Hasina said the honour would inspire and encourage her further in dedicating life for the service of the people. “As our hapless people streamed across the border with only their lives, starving and lost, they were welcomed by you with open arms,” she said adding, “We vividly remember those tragic days and the love and support our people received from you.” Sheikh Hasina recalled that Tripura state was flooded with refugees which were more than its own population in 1971. “The freedom fighters of Bangladesh received training and all support, and eventually fought together with Indian friends to force the occupation forces to surrender,” she said. Referring to the close historical, cultural, linguistic and traditional affinity between peoples of Bangladesh and Tripura, she said, “This is why our people migrated en masse for refuge to Tripura during the horrifying days of 1971.” Indian Vice-President Hamid Ansari, Bangladesh’s Foreign Minister Dr Dipu Moni, Governor of Tripura state Dr DY Patil, state Chief Minister Manik Sarkar, Indian Federal Minister for HRD and Science and ICT Kapil Sibal, Vice-Chancellor Prof Arunoday Saha also spoke at the function presided over by Chancellor Prof Amiya Kumar Bagchi. Sheikh Hasina said: “To be here, is the realisation of a long awaited dream. I thank the people of Tripura and the Tripura University for making this possible”. She appreciated the role of Tripura University in inspiring students with the philosophy of values of love, equality, justice and freedom. “So, with much pride, I accept this prestigious Doctor of Literature,” she said. Earlier, the Bangladesh Prime Minister unveiled the statue of Nobel Laureate Rabindranath Tagore on the university campus which was used as a camp during Bangladesh’s Liberation War. |
GI tag to boost Darjeeling tea exports
source:the Hindu
Workers plucking tea leaves in the Dagapur garden on the outskirts of Siliguri. File photo
Darjeeling tea exports are set to increase by volume and value, following its registration as a protected geographical indication (PGI) product from India.
S. S. Bagaria, Chairman of Darjeeling Tea Association (DTA) told The Hindu that the industry closed 2011 by registering a 10 per cent increase in total Darjeeling tea exports.
“In value terms, the rise has been 20 per cent. This will rise further following the GI registration,” he said. Exports of Darjeeling tea stood at around 6.9 million kg in 2011, when production was around 9.2 million kg.
He said Darjeeling Tea was the first Indian product to be recognised by the European Union as a protected GI. “This has been a historical achievement for all the stakeholders and consumers of this globally famous product.”
He said that the DTA would launch a campaign during the XII Plan to create awareness about this in international markets, especially Europe and the U.S.
Alongside, meetings are being lined up with senior EU officials and later with the trade to highlight this aspect.
It is said that more Darjeeling tea was sold in the international markets than was produced on the slopes of Darjeeling, as often only a small portion of the authentic product was put in a packet which contained blends of teas from many other origins. As per the new registration, now, the teas sold in the EU would have to be 100 per cent Darjeeling tea, a Tea Board official said. “We expect exports to increase as till now blends carrying very little of authentic Darjeeling was passed off as the unique brew,” Mr. Bagaria said.
The unique ‘muscatel' flavour of the Darjeeling teas is preferred by tea-drinkers across the EU, which now accounts for 60 per cent of exports of Darjeeling tea.
Only around 10 million kg of this premium agricultural produce is grown on the slopes of the eastern Himalayas in some 87 gardens spread over 17,500 acres with some gardens being located at an altitude of 5,000 metres above sea-level. The PGI covers agricultural products and food stuffs which are closely linked to the geographical area, with at least one of the stages of production, processing or preparation taking place in the protected area.
Germany and Japan are some of the most lucrative markets for Darjeeling tea, although the U.S. too is emerging as an important market riding on the wellness-beverage plank that many companies were positioning tea on.
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