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Saturday, July 7, 2012

Sikkim Planning Commission Deputy Chairman addresses at India Habitat Cnetre,New Delhi


Shri Sanchaman Limboo, Deputy Chairman, Sikkim State Planning Commission attended a Conference of Deputy & Vice Chairpersons of State Planning Commission/ Boards on 6th July, 2012 at India Habitat Centre, New Delhi.



            In his address Shri Sanchaman Limboo, Deputy Chairman , Sikkim State Planning Commission informed the house about the developmental progress being made by the State Government since 1994. He highlighted State Government’s policy of providing measures for poverty alleviation and converting the State from consumer to a producer State leading towards self reliance. He pointed out that during the year 2010-11 the State’s Gross Domestic Product growth at constant prices was 8.95% which was higher than all India growth of 8.6%. Furthermore, he also pointed out that the per capita income at the current   prices for Sikkim was Rs. 92,808/-  against  all  India    figure  of Rs. 54,527/-.  This socio economic indicators shows that State economy has steadily improved during the past years.



            In conformity with the National Policy of inclusive growth the State Government has taken steps to focus on the need to improve all the vulnerable groups like the SC, ST and OBC.  In fact Poverty Free State Mission has been declared by the HCM as one of the focus areas of Government Policy.



            In the 12th Five Year Plan the State plans to consolidate on the projects and infrastructure development that have been achieved in the 11th Five Year Plan. While the State Government plans to complete all the ongoing projects in the infrastructure sector, development in the social sector such as health for all, universal access for children to school, improved standards of education and skill development are to be given due focus.



            Shri Sanchaman Limboo also informed the House about the disastrous earthquake that shook the State on 18th of September, 2011 and the extensive damages that have been caused to infrastructure such as roads, bridges, power, Government buildings, water supply and sanitation.  He informed the members of the meeting that as a consequence of the earthquake the development clock of the State Government has been set back by at least 10 – 15 years and that during the 12th Five Year Plan substantial amount of resources would have to be allocated for rehabilitation and reconstruction of the damaged infrastructure.  He also focused on the need to have 100% dependability of road connectivity as this was the only lifeline in the landlocked State.



            The geographical location of the State had proved to be a great disadvantage to developmental plan and due to high cost of transportation of essential goods the cost of living in the State is on the higher side.  Geographically, Sikkim is surrounded by three international borders and the geopolitical importance of the State cannot be adequately underlined.  The Deputy Chairman also informed the House of the various innovative programmes that have been initiated by the State and also informed the meeting about the Chief Minister’s Comprehensive Annual & Total Check (CATCH) up for Healthy Sikkim programme and the Chief Minister’s Special Meritorious Scholarship schemes.



            On the subject of governance Sikkim has ranked 3rd in decentralization of performance and  accountability  to Panchayati Raj Institutions.  Shri Limboo also talked about the need to bridge the urban rural divide so as to ensure equity in development.  In the rural development sector Sikkim has been allocating 70% of its plan outlay and achieved 100% total sanitation under the Government of India’s Total Sanitation Campaign.



            The Deputy Chairman informed the House that during the 12th Five Year Plan the State of Sikkim plans to move on the path of sustainable economic development by harnessing its natural resources. Priority is also to be given to horticulture and agriculture sector and organic growth of agricultural produce.


DOTTED LINES: An untitled painting at the exhibition in New Delhi


An exhibition of paintings evokes the colours of Rajasthan via the motif of a fish


source:http://india.blogs.nytimes.com

For the Indian Father of the ‘God Particle,’ a Long Journey from Dhaka

Satyendra Nath Bose at Dacca University (now Dhaka) in Bangladesh in the 1930s.
Courtesy of Falguni Sarkar/The S.N. Bose ProjectSatyendra Nath Bose at Dacca University (now Dhaka) in Bangladesh in the 1930s.

In the word “boson,” as media reports have plentifully pointed out during the past two days, is contained the surname of Satyendra Nath Bose, the Calcutta physicist who first mathematically described the class of particles to which he gave his name. As was common with Indian scientists in the early 20th century, however, his work might easily have eluded international recognition. Like the mathematician Srinivasa Ramanujam, Mr. Bose was saved from obscurity by a generous and influential mentor in Europe. In Mr. Bose’s case, that mentor turned out to be one of the greatest physicists of them all: Albert Einstein.

In 1921, Mr. Bose moved from the faculty of the University of Calcutta to that of the University of Dhaka. He had already published papers with his friend and colleague Meghnad Saha, working particularly equations of state, which describe how matter behaves under differing sets of physical conditions. Mr. Bose was not entirely happy in Dhaka at first. A month after he moved, he wrote to Mr. Saha:

Work has not yet started. [The university has] quite a few things but due to utter neglect they are in a bad way. Perhaps I need not elaborate. On the table of the sahibs are scattered lots of Nicol prisms, lens and eye-pieces. It would require a lot of research to determine which one belongs to which apparatus. We do suffer from a lack of journals here, but the authorities of the new university have promised to place orders for some of them along with their back numbers. Talk is going on about having a separate science library.
After he settled in, Mr. Bose began to worry away at the intricacies of black-body radiation. In 1918, Max Planck had won the Nobel Prize in physics for discovering that objects emit radiation in discrete packets of energy, called quanta; he had also set down an equation governing this process. But as C.S. Unnikrishnan, a professor at the Tata Institute of Fundamental Research told me, Mr. Bose was troubled by a perceived inconsistency in Mr. Planck’s process. “These quanta were treated as particles of light, but the equation simultaneously assumed that radiation was behaving like waves,” Mr. Unnikrishnan said. “Somewhere this was cheating – that was Bose’s impression. So he had to invent a way of counting the particles in a ‘gas’ of light, at various possible energy states, and still have Planck’s law hold good. He was reverse-engineering Planck’s equation, in a way.”
Much later, in 1970, Mr. Bose would tell an interviewer named Jagdish Mehra:
As a teacher who had to make these things clear to his students, I was aware of the conflicts involved and had thought about them. I wanted to know how to grapple with the difficulty in my own way. It was not some teacher who asked me to go and solve this little problem. I wanted to know. And that led me to apply statistics.
The paper he wrote, titled “Planck’s Law and the Light-Quantum Hypothesis,” was first rejected by a referee at the London-based journal named Philosophical Magazine, which had published some of Mr. Bose’s previous papers. Undeterred, Mr. Bose sent it, in the summer of 1924, to Berlin, to the desk of Mr. Einstein, who had won his own Nobel three years earlier. Mr. Einstein received dozens of such manuscripts every day, and he was already turning away from the field of quantum mechanics to work out larger unified theories. (In “Subtle is the Lord,” Abraham Pais noted that “Einstein said of his work in quantum statistics, ‘That’s only by the way.’”) But perhaps something about Mr. Bose’s accompanying letter caught Einstein’s eye:
Respected Master,
I have ventured to send you the accompanying article for your perusal and opinion. I am anxious to know what you think of it… I do not know sufficient German to translate the paper. If you think the paper worth publication I shall be grateful if you arrange for its publication in Zeitschrift fur Physik. Though a complete stranger to you, I do not feel any hesitation in making such a request. Because we are all your pupils though profiting only by your teachings through your writings. I do not know whether you still remember that somebody from Calcutta asked your permission to translate your papers on Relativity in English. You acceded to the request. The book has since been published. I was the one who translated your paper on Generalised Relativity.
Yours faithfully
S. N. Bose
A passport photograph of Satyendra Nath Bose taken before he left for Europe in 1924 where he met Albert Einstein.

Courtesy of Falguni Sarkar/The S.N. Bose ProjectA passport photograph of Satyendra Nath Bose taken before he left for Europe in 1924 where he met Albert Einstein.

Mr. Einstein did indeed think the paper worth publication. Within a month, he had translated and submitted it to Zeitschrift für Physik, appending a note at the end of its four concise, equation-filled pages: “In my opinion Bose’s derivation signifies an important advance.” Mr. Einstein would take Mr. Bose’s work further still, applying his statistical techniques to “count” atoms in an ordinary gas, and to discover the low-energy states of particles in the supercooled gases known now as Bose-Einstein Condensates.
The publication of this paper – and Mr. Einstein’s championing of it – earned Mr. Bose a two-year leave of absence to conduct research in Europe. His university had been reluctant to grant him this leave, but when Mr. Einstein sent him a hand-written postcard acknowledging the importance of his contribution, “it solved all problems,” Mr. Bose told Mr. Mehra, who wrote a short biography of him for the Royal Society in 1975. “That little thing gave me a sort of passport to the study leave. They gave me leave for two years and rather generous terms. I received a good stipend. They also gave a separation allowance for the family, otherwise I would not have been able to go abroad at all. … Then I also got a visa from the German Consulate just by showing them Einstein’s card. They did not require me to pay the fee for the visa!”
In Paris, Mr. Bose worked with Maurice de Broglie and Marie Curie, armed with letters of introduction from a French Indologist named Paul Langevin. “She was very nice,” he told Mr. Mehra about Ms. Curie. “I told her that I would remain in Paris about six months and learn French well, but I wasn’t able to tell her that I knew sufficient French already and could manage to work in her laboratory. She preferred to have her own ideas and told me that I better be around a long time, not hurry, and concentrate on the language.”
Former prime minister Jawaharlal Nehru, left, and Satyendra Nath Bose at the Visva-Bharati University, Santiniketan, West Bengal. Mr. Bose was the vice chancellor of the university between 1956-1959.
Courtesy of Falguni Sarkar/The S.N. Bose ProjectFormer prime minister Jawaharlal Nehru, left, and Satyendra Nath Bose at the Visva-Bharati University, Santiniketan, West Bengal. Mr. Bose was the vice chancellor of the university between 1956-1959.

Mr. Bose met Mr. Einstein only in late 1925, in Berlin. That meeting, he recalled, “was most interesting. He wanted to know how I had hit upon the idea of deriving Planck’s law in this way. Then he challenged me. He wanted to find out whether my hypothesis…did really mean something novel about the interaction of quanta, and whether I could work out the details of this business.” These were momentous meetings for Mr. Bose. In 1972, in the American Journal of Physics, William Blanpied wrote after an interview with Mr. Bose: “Even more than forty years later, one still has the impression that the young Bose was terribly intimidated by Europeans… The nature of British rule in India…had the effect of making the subject people believe that they really were inferior.”

Returning to Dhaka in 1926, Mr. Bose earned a professorship in physics, but he did not publish for a long time thereafter. His interests wandered – over the constantly shifting terrain of physics, but also into other fields, such as philosophy, anthropology, literature and the surging Indian independence movement. Only in 1937 did he publish his next physics paper; in the early 1950s, he worked on unified field theories, into which Mr. Einstein had thrown himself so completely, but these were hardly groundbreaking. “I was not really in science anymore,” Mr. Bose would tell Mr. Mehra, “I was like a comet, a comet which came once and never returned again.”

India frets as Bhutan falls in China Teacup


by Jabin T Jacob | Agency: DNA | Friday, July 6, 2012

l
News of Chinese Premier Wen Jiabao meeting his Bhutanese counterpart Jigme Yoser Thinley, on the sidelines of the UN Conference on Sustainable Development at Rio de Janeiro last month, grabbed considerable attention in India. The Chinese state-owned Global Times announced that the Bhutanese leader had expressed willingness to establish diplomatic ties with China.

While the news was later denied by the Bhutanese, there are a number of issues that the incident raises about India’s relations with its smaller neighbours and specifically with Bhutan and China. It would appear that neither New Delhi nor ordinary Indians pay much attention to their smaller neighbours unless the Chinese get involved.

Why are Bhutan’s relations with China of such importance to India? The tiny Himalayan constitutional monarchy happens to be the only other country besides India that has a land boundary dispute with China. While Bhutan and China began direct negotiations on the boundary dispute in 1984, they are yet to establish full diplomatic relations, thwarted so far by Indian pressure on the Himalayan nation.

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Despite Thimphu’s recent denial that it was seeking diplomatic relations with Beijing, it has been evident for some time now that Bhutanese authorities including both the monarchy and elected representatives are interested in precisely this — Bhutan for example, has had a one-China policy and Chinese representatives were invited to the coronations of both the former and current kings.

While the economic reasons are self-evident, the desire to maintain a little more distance from New Delhi is also attractive politically for Bhutan. Despite being a small nation, Bhutan is not short of ambitions for a more active role internationally. And such a role demands greater freedom of action in the foreign policy domain including the assertion of its sovereignty vis-à-vis India and the mending of fences with the Chinese.

India and Bhutan have long shared a ‘special’ relationship signified by their treaty of friendship first signed in 1949 and later revised in 2007. The revised treaty, it might be noted, was occasioned by the impending turn to parliamentary democracy in Bhutan and places the two countries on a substantially more equal footing with both sides agreeing to “cooperate closely with each other on issues relating to their national interests” instead of Bhutan being “guided” by India “in regard to its external relations.”
Indeed, as parliamentary democracy takes roots in Bhutan, questions will be increasingly asked about Thimphu maintaining such ‘special’ ties with India, and about Indian military presence in the country.

The trend will be towards greater balance and neutrality. Thus, the Bhutanese opening up to China is to be expected, even if Thimphu will probably be careful not to play the card as disastrously as Kathmandu has.

Meanwhile, the boundary dispute with China is a major national concern for Bhutan. It has apparently already lost a substantial chunk of the area under dispute including the Kula Kangri peak, to slow encroachment by the Chinese. However, the Chinese record on boundary settlements so far, shows a substantial willingness to make territorial concessions to smaller neighbours and Bhutan’s association with India in the dispute has probably disadvantaged the smaller nation.

Thimphu for its part seems willing to accept the Chinese offer of conceding Bhutanese claims in its north in return for letting China have disputed areas in the Chumbi Valley in the west.

However, such a concession in the Chumbi has huge security implications for India. Any widening of the Chumbi salient in China’s favour threatens the narrow Siliguri corridor, not very far away, that connects India to its northeast.

There are limits however, to how much pressure India can bring to bear on Bhutan especially in the era of parliamentary democracy in Bhutan. And given its rather poor record of relations with democratic governments in the neighbourhood, India can ill-afford to alienate another neighbour. New Delhi will therefore, need to tread very carefully here.

Meanwhile, owing to Bhutan’s close historical ties to Tibet and its identity as a Buddhist nation, it will continue to be concerned and wary about Chinese actions in general and in Tibet and on the religious front, in particular.

To these must be added, its desire to preserve its unique model of development. It would appear therefore, that even as Bhutan seeks greater freedom of manoeuver in its ties with India, there remain plenty of reasons that should allow the two countries to continue coordinating their foreign policies.

Sikkim government scraps Teesta-I hydel project awarded to NCCL

source: Economic Times

.HYDERABAD: In a setback to NCC Limited, formerly Nagarjuna Construction Company Limited, the Sikkim government is believed to have cancelled the proposed Teesta-I hydel power project that was bagged by the company. 

According to a senior official of the Sikkim government, the state home department has issued a notification cancelling the 280 MW power project.

"The project was cancelled for two reasons. Firstly, continuous opposition from locals on the project and secondly, environmental issues. However, it was cancelled due to public resistance," the official told PTI.

Along with Teesta-I, the state government has also cancelled three other Hydel Power Projects- the 99-MW project at Bop, the 99-MW project at Bhimkang, 99-MW project at Lachung, the official added.

The four projects were planned at Lachen and Lachung in North Sikkim on three tributaries of the Teesta and Lachen rivers.

When contacted, KV Rao, CEO, Power Division, NCCL said they have not received any official intimation from the Sikkim government.

"We have been asking the government to allow us to conduct studies about the project. We were not allowed and we hear this news (cancellation of project). We will appeal to the government to allow us to conduct studies first and based on that they can take decision," Rao said.

The government of Sikkim had signed Memorandums of Understanding (MoUs) in 2005 for Teesta Stage-I.

Meanwhile, NCC has submitted Expression of Interest to develop part of 1000 megawatt Hydel power projects in Bhutan, according to sources.

Bhutan, which has large untapped hydro-electric potential, has been seeking technical and financial support from the Indian government and companies to exploit these resources.

Under the current policy, such developmental support is routed through state-owned companies such as NHPC.

"It would cost anywhere between Rs 6000 crore to Rs 10,000 crore to develop a 1,000 megawatt Hydel power project in Bhutan. As many as 35 companies are in the fray," sources said.

NCCL did not comment on the Bhutan projects. In case of Sorang, the company has to give 12 percent of the power produced, to Himachal Pradesh Government, sources added.



PE investors breathe easy as Sikkim settles Teesta dispute 

Reghu Balakrishnan / Mumbai Jul 06, 2012, 00:16 IST
source:Business Standard


The $425-million private equity investment in Asian Genco was in the headlines three years ago, as it was the largest deal in an Indian power company. Then, the company came again in the headlines for a less fortunate reason — its dispute with the Sikkim government over the 1,200-Mw Teesta-III hydropower project.

Now, after months of battle, the government of Sikkim has decided to reach a settlement with Teesta Urja Ltd, developer of the project, by paying Rs 296 crore for a 26 per cent stake in the company. Early this year, Teesta Urja Ltd, which sold 50.9 per cent stake in the company to Asian Genco, and the government of Sikkim had locked horns as Teesta Urja did not dilute a 26 per cent stake in the company to the government, a pre-condition in the memorandum of understanding signed between the two.


The government approached the State Electricity Regulatory Commission against Teesta Urja and got an order for appointing a sole arbitrator. Teesta Urja had obtained a stay on the order by approaching the Central Electricity Regulatory Commission.

A K Giri, secretary of the state’s power and energy department, said, "We are reaching the settlement as we have already paid about Rs 162 crore out of a total payment of Rs 296 crore. We have received a small stake and will receive about 26 per cent stake once the payment is completed." According to him, the project is expected to be commissioned by September 2013. Athena Projects holds about 29 per cent stake in Teesta Urja Ltd.

In March 2010, a group of investors, led by Morgan Stanley Infrastructure Partners, had bought about 44 per cent stake in Singapore-based Asian Genco for $425 million. The other investors include Everstone Capital, General Atlantic, Goldman Sachs Investment Management and Norwest Venture Partners.

Mails sent to Morgan Stanley Infrastructure Partners and General Atlantic did not elicit any response.

At the time of investment, the company had projected Teesta-III as its largest project. The company, in which former Union power secretary R V Shahi is a consultant, had earlier raised funds from power trading firm PTC and Tiger Global Management. Apart from Teesta-III, it owns a coal-based thermal project in Andhra Pradesh, with a 1,320 Mw capacity.


NCC fell as much as 4.44% intraday on Friday after the Sikkim government official said they have scrapped 280 MW Teesta-1 hydel project due to local issues. The project was received by company's subsidiary.

At 15:08 hours IST, the share was trading at Rs 43.30, down 3.78% with volumes of 4,16,847 equity shares.

Market capitalisation of the company currently stands at Rs 1,111.01 crore.





Friday, July 6, 2012


PRESS RELEASE



INAUGURATION OF MANAN KENDRA


A long felt need of the people of Sikkim is over as “Manan Kendra” (Old Community Hall),Jeevan Thing Marg, Development Area, Gangtok is being inaugurated by the Hon’ble Chief Minister Shri Pawan Chamling on 11th July 2012 at 3.30 p.m.
This “Manan Kendra” has housed one of the biggest theatre hall (within Sikkim )with a capacity of 1050 seats, fully air conditioned and has installed latest sound & light system. Another mini theatre hall of 150 capacity is also available in this Kendra. Besides, the State Central Library is also setup on the 1st floor of this building where separate children’s reading section as well as general reading section has been created by the Department.

The Cultural Affairs & Heritage Department who is organizing this historical inaugural function will also be organizing a grand cultural programme inside the big theater hall after the inauguration.

A CANTATA “Aeota Nilo Suryastha”, an epic musical choir followed by musical performances by local artists as well as eminent artists like Shanti Thatal, Bimla Rai, Hemanta Rana, Satya Raj Acharya, Ram Chandra Kafley from Darjeeling & Nepal is also organized to mesmerize the audience. Entry by invitation only.

On 12th July 2012 on the occasion of 198 Bhanu Jayanti celebration a separate grand cultural programme has been organized by 198 Bhanu Jayanti Samiti in coordination with the Cultural Affairs & Heritage Department for general public inside the big theatre hall at 4 p.m. Entry will be free.




Nalini G Pradhan,
Commissioner-Cum-Secretary
Cultural Affairs & Heritage Department

Wednesday, July 4, 2012


China – India: Reopening The Demchuk-Mansarovar Route: Exploring Possibilities – Analysis



By: IPCS

By Zainab Akhter
source:Eurasia Review

There are two routes in Ladakh, which connect India to China: the Karakoram pass in the Nubra Valley and the second through Leh-Demchuk to Kailash Mansarovar. The Leh-Damchuk route runs through the Demchuk village in Leh and further connects India to western Tibet in China, where the Line of Actual Control (LAC) between the two countries lies. This route has historical significance as it was used to facilitate trade between India and China.

Domestic Pressure

China – India Relations

For a long time there has been a demand from the Indian side to reopen the Leh-Demchuk route to western Tibet. This route is seen as a potential route towards the economic development of both India and China.It is expected to serve the same purpose as the Nathu La Pass, which connects Sikkim with Tibet and was thrown open for trade in 2006 following numerous bilateral trade agreements. Every year the Indian government organises the Kailash-Manasarovar Yatra to Mansarovar Lake, which lies in western Tibet. Manasarovar Lake has religious significance as it is a place of pilgrimage and attracts devotees from India, Nepal, Tibet and the neighbouring countries.

At present, it takes 27 days to complete the yatra, trekking through rocks via Uttaranchal which is prone to landslides and other risks. Opening of the Demchuk-Mansarovar route will drastically reduce the journey time of the pilgrims to two hours by road transportation. On the other hand, if one decides to trek to the Mansoravar Lake along the Sindu River, it will take only four days for the completion of the yatra. The Demchuk-Mansarovar route will be the shortest and safest way to access the Mansoravar Lake, and it will also be more economical for the pilgrims, which will consequently increase the number of visitors.

Security Concerns

Chinese incursions, ingressions and violation of airspace in the Demchuk sector have reported for a couple of years. The development work on the Chinese side is taking place rapidly and the Chinese have built an airport and a metalled road to their border villages, while on the Indian side in Demchuk there is no mobile connectivity or electricity, and the roads are in a poor condition. The Indian side suspects China of using these infrastructures for a dual purpose -both civil and military.

With the building of Chinese forces along the border, India has increased its vigil as a pre-emptive measure. The opening of the Demchuk-Mansarovar route will open this border village to the outside world, which will lead to infrastructure development on the Indian side. This will help India to keep a check on the activities on the Chinese side. It is hoped that theintrusions and hovering across the LAC by the Chinese will decrease to a great extent.

The Ladakh Hill Development Council (LHDC) is hopeful of reopening the Leh-Kailash Mansarovar route. The “Ladakh 2025 Vision Document”, which is a road map of the developmental projects to be carried out by the LHDC, also talks about the opening of the Leh-Demchuk-Mansoravar route and how it can bring developmental changes in the border areas of Ladakh.

The Chinese are reluctant to the idea of reopening the route. The reopening of the route can interfere in the incursion activities and it will expose the true nature of the developmental work they are carrying out in the area.

Economic Boost To The Region

Demchok is a small village and military encampment in the Leh district of Ladakh .The Leh-Demchuk-Mansarovar route would further open the frontier regions of Ladakh to tourism. More infrastructure and shops will come up on both sides of the border, thereby increasing the employment opportunities for these otherwise inaccessible villagers.

Besides, the Demchuk village is famous for its hot water spring, and the hydro-therapy centre has become a major attraction for people from other parts of Ladakh, who throng the place in large numbers to take a dip in the spring. The pilgrims can also explore the hot springs in Ladakh, which will make it a major tourist spot in the region.

The Future Course
The people of Ladakh are insisting on the reopening of this route for years due to the economic benefits that such a move would bring to the region.

The Leh-Demchuk-Mansoravar route will be operational only when the governments of both the countries come to a concurrence. The Government of Jammu and Kashmir has convinced the Union Government of India about the potentialities of reopening the route. However, the Chinese government has not yet responded to the proposal for the reopening of this route. India needs to diplomatically negotiate with the Chinese government in order to implement this proposal.

The problem of connectivity between India and China can only be solved through a cooperative and inclusive approach as against a competitive and exclusive one. Geoeconomics and geoculture must take priority over competitive geopolitics to address the problem of connectivity between the two important Asian countries.

Zainab Akhter
Research Intern, IPCS
email: zainab9059@gmail.com
About the author:
IPCS

IPCS (Institute for Peace and Conflict Studies) conducts independent research on conventional and non-conventional security issues in the region and shares its findings with policy makers and the public. It provides a forum for discussion with the strategic community on strategic issues and strives to explore alternatives. Moreover, it works towards building capacity among young scholars for greater refinement of their analyses of South Asian security.

Do not forget to claim these lesser-known tax deductions



by VidyalaxmiVidyalaxmi,ET Bureau




For most individuals tax deductions are all about investing in Public Provident Fund or life insurance policy. However, there are a host of other deductions which many taxpayers are eligible to claim but don't do so because they are not aware of them.

"Many tax payers buy health insurance, but many are not aware that they can seek tax exemption up to 15,000 under Section 80 D on health insurance premium payments. They can also seek an additional exemption of 15,000 for their dependent parents and 20,000 if one of their parents is a senior citizen," says Saakar S Yadav, managing director, myitreturn.com, a tax portal.

Take a look at some lesser-known deductions which may help you save some more.

Medical expenses for specified diseases like AIDS, Cancer

"The actual expenditure incurred on treatment of specified disease such as AIDS, cancer, neurological diseases, etc., is deductable to the extent of 40,000 or the actual expense whichever is lower. The limit is increased to 60,000 in case of expense incurred for a senior citizen," says Vineet Agarwal, director, KPMG.

The expenditure may be incurred by the taxpayer or an eligible dependent. The tax payer has to obtain a certificate from the doctor to claim the tax deduction.

Deduction for medical expenses incurred on disability

If you have incurred expenditure for medical treatment of a disabled dependant or have deposited any amount under a prescribed scheme for the maintenance of the dependent, you can seek a tax deduction.

"In such cases, tax payers are allowed a deduction of 50,000. The deduction increases to 1,00,000 in case of severe disability. The above deductions are also available if the taxpayer himself is a person with some disability," says Vineet Agarwal.

Deduction for rent paid if you are not availing HRA

You can claim a deduction for rent paid to the extent of 2,000 per month even if you don't receive HRA from your employer or you are self-employed. This deduction, available under Section 80GG, is subject to some conditions.

"Neither the taxpayer nor the spouse should own a house at the place of employment. They cannot be self employed, which includes businessmen or professionals. Lastly, the tax payer should not self-occupy his/her house at any other place," says Vaibhav Sankla, director H&R Block India.

Amount paid under National Pension System

"The contributions made by an employee to the NPS qualify for a deduction under 80CCD and the upper limit of 1,00,000 under Section 80C of the Act. However, effective April 2011, employer contributions to NPS up to 10% of the employee's salary would qualify for an additional deduction which is a good saving," says Vineet Agarwal.

Foreign taxes

Many individuals take up overseas assignments and as a result earn income both in India and abroad. In the event they face taxation in both countries, they may avail credit of taxes paid overseas while filing their tax returns in India.

The Indian tax laws as well as tax treaties signed by India with other countries prescribe provisions for claiming credit of foreign taxes.

"In case, the individual is going abroad on a company transfer/secondment, he should check if his company has a tax equalisation/protection policy. A tax equalisation policy ensures that the employee does not pay more taxes in the host country than what he would have paid in his home country. He should also check if his company tax equalises income from other sources as well," says Amitabh Singh, tax partner, Ernst & Young.

Repairs and maintenance of house property

You will never forget to claim deduction of interest on repayment of your home loan, but not many people know that any interest paid on home loan for reconstruction or repair of the "house property" qualifies for deduction of up to 30,000, subject to the overall limit of 1,50,000.

Exemption from capital gains

If you have made any capital gains on the sale of residential house property, such capital gains shall be exempt from tax, provided you purchase a new residential house one year before or within two years after the date of transfer; or you incur expenditure on construction of house property within three years from the date of transfer.

Alternatively, to avail exemption, a tax payer may also invest the gains in REC / NHAI bonds, subject to specified conditions.

Filing for these deductions

If you have incurred any of these expenses or made investments and have not declared it in the investment return, you can still claim for the deductions for financial year 2011-12 at the time of filing income tax returns.

"You cannot attach any receipts of investments, donations or even expenses along with the returns. However, you can still mention any fresh expense, investment etc. on the ITR. The Income Tax Department can ask for a copy of the receipts if required," says Saakar S Yadav.


US had the highest healthcare expenditure in 2010

US had the highest healthcare expenditure in 2010



High healthcare expenditure in the developed countries is a goldmine for Indian pharma companies. Given that most of these countries are saddled with rising deficits, many of them are keen to bring the overall cost of healthcare down. And one way to do this is allowing the launch of generic versions of patented drugs. Today's chart of the day shows that US had the highest healthcare expenditure as a percentage of GDP in 2010. And with many branded drugs scheduled to see patents expire, the US generics market is expected to grow at a faster rate than the overall pharma industry in the US. And given that Indian pharma companies are well entrenched in this market, most of them are looking to capitalise on this opportunity.

*in 2009
Data Source: The Economist
source;Equitymaster


Tuesday, July 3, 2012


North Eastern Council meet to boost development in region


By IANS,

Agartala : The 61st meeting of the North Eastern Council (NEC), a regional planning body, would be held in New Delhi Wednesday to finalise strategies for improving connectivity and other infrastructure in the region, officials said Tuesday.

The crucial summit would also draw an outline regarding the 12th five-year plan period (2012-17). The governors and chief ministers of all the eight northeastern states, including Sikkim, who are members of the council, would attend the summit.

"The NEC meeting would discuss and take decisions on issues pertaining to development of transport, connectivity, telecommunications, civil aviation, railways, fresh investment and other key sectors which are crucial to the economic growth of the region," a Tripura planning department official told IANS.

He said: "The ministries of tourism, railways, road transport and highways, civil aviation, and development of northeastern region (DoNER) would make special presentations in the meeting about their ongoing projects and future planning."

The NEC, now under the DoNER ministry that looks after both physical and social infrastructure development of the region, had released Rs.693 crore out of the total budgetary allocation of Rs.700 crore during the last fiscal, accounting for over 99 per cent release to the constituent states.

The 'NER Vision 2020' document, announced by Prime Minister Manmohan Singh in July 2009, sought to spur investment, reduce poverty, enhance connectivity and bring the backward northeastern region on par with the rest of the country by 2020.

A total of Rs.14 trillion will be required to implement the giant project.

Chief ministers of the northeastern states have expressed their unhappiness on a number of occasions about the non-implementation of the 'NER Vision 2020'.


Sikkim IT exemption certificates to be issued from Gangtok


source: Sikkim Mail

New Delhi,  29 June 2012:
Debashish Dasgupta (IRS, CCIT, Kolkata) informed the Lok Sabha MP , PD Rai that the issue of posting of an appropriate person to take care of IT and IT Exemption issues for Sikkimese persons at Gangtok has been done.
Earlier, on the 21 June, an informal meeting of the CCIT was conducted in Kolkata with the Parliamentary Standing Committee on Finance.
In the meeting the issue of Sikkimese being directed to go to Siliguri for exemption and other tax related purposes was brought up. PD Rai had raised this issue at that time pressing for immediate resolution. He was well supported by the Chairman, Yashwant Sinha, MP, and former Finance Minister of India, along with other members.
Dasgupta mentioned that he was seized of the matter. He had met the Chief Secretary and other officials of the Government of Sikkim.
On Tuesday MP Rai was informed by the CCIT that the matter had been resolved.