Chamber of Commerce submits memorandum to IT commissioner
SE Report
GANGTOK, March 8: A 30-member delegation of Sikkim Chamber of Commerce drawn from all the four districts of Sikkim today submitted a memorandum to Income Tax Commissioner CL Denzongpa in his office at Matigara, Siliguri
In the memorandum signed by 6000 persons, SCC has requested Ministry of Finance, Government of India to grant IT exemption like that of Sikkim Subjects to about 400 families of Sikkimese of Indian origin who are settled in Sikkim, prior to the date of Sikkim’s Merger with the Indian Union in 1975.
The business association has also requested the ministry to allow some time to enable people and persons to understand the new system of Indian Income Tax and its forms, formats, rules, regulations, documentations, accounting procedures, compliance formalities, datelines, penalties etc and further to declare the prospective effect of the Act to commence from Assessment year 2010-11 vide memo no GOS/IT&CT/2005-06/11-I (B) (96) 193 dated August 18, 2006.
“A survey of the said 400 families as advised is in progress, to be submitted for consideration by both the State and Union Governments,” reads the memorandum.
The memorandum further states that the people are unable to adapt the Income Tax Act 1961 so suddenly being besieged with a fear psychosis and completely innocent of the Act and need extensive education on book keeping to match the requirements of the Income Tax Act 1961 by way of workshops, awareness camps and training programmes.
It was also conveyed to the Government of India through the Commissioner that the State Government under the leadership Pawan Chamling was fully sympathetic on the matter and was doing its best to solve both the issues raised by the Chamber. “The Chief Minister has personally taken up the matter with the authorities in the Centre and also been kind enough to adopt a resolution to such effect in his Party’s foundation day on March 4. SCC and the business community of Sikkim are grateful to all the people of Sikkim and especially Dr Pawan Chamling, Chief Minister for their sincere efforts in this direction,” the memorandum further reads.
Meanwhile, SCC president SK Sarda thanked Government of India for having exempted the Sikkim Subjects and COI holders from Income Tax.
( Source: Sikkim Express)
Tuesday, March 10, 2009
Monday, March 9, 2009
SCC SUBMITS MEMORANDUM TO COMMISSIONER INCOME TAX
PRESS RELEASE
SCC SUBMITS MEMORANDUM TO COMMISSIONER INCOME TAX AT SILIGURI SIGNED BY SIX THOUSAND PEOPLE
A 30 member delegation of Sikkim Chamber of Commerce drawn from all the four districts of Sikkim visited Income tax Commissioner’s office at Matigara, Siliguri and submitted a memorandum signed by around six thousand persons in support thereof on 6th March 2009.
The Memorandum was submitted to the Commissioner Shri C L Denzongpa who also holds additional charge of Sikkim region .
SCC President S.K.Sarda thanked Government of India for having exempted the Sikkim Subjects and COI holders from Income Tax. He drew attention of the Union Government that 400 families ( as on the date of merger ) of Sikkimese of Indian Origin who are settled in Sikkim since four to five generations have inadvertently been left out from the same even while they qualified, as the criteria adopted was residence immediately before 26th April 1975, the date of merger of the erstwhile kingdom into the Union..
The memorandum requested Ministry of Finance, Government of India to:
1. Grant similar exemption to these left out people residing in Sikkim prior to the date of merger i.e., 26th April 1975.
2. To allow some time to enable people and persons to understand the new system of Indian Income Tax and its forms, formats, rules, regulations, documentations, accounting procedures, compliance formalities, datelines, penalties etc and further to declare the prospective effect of the Act to commence from Assessment year 2010-11 as also recommended in para 3 (l) by the Government of Sikkim vide memo no GOS/IT&CT/2005-06/11-I (B)(96) 193 dt 18th August 2006, with immunity from penalties for a reasonable period making the system workable and acceptable at large in respect of others.
It was also submitted that a survey of the said 400 families as advised is in progress, to be submitted for consideration by both the State and Union Governments.
The memorandum states that the people are unable to adapt the Income Tax Act 1961 so suddenly being besieged with a fear psychosis and completely innocent of the Act and need extensive education on book keeping to match the requirements of the Income Tax Act 1961 by way of workshops, awareness camps and training programmes.
It was also conveyed to the Government of India through the Commissioner Shri C L Denzongpa that the State Governnment under the leadership of Dr Pawan Chamling is fully sympathetic on the matter and doing its best to solve both the issues raised by the Chamber . The Chief Minister Hon’ble Dr Pawan Chamling has personally taken up the matter with the authorities in the Centre and also been kind enough to adopt a resolution to such effect in his Party’s foundation day on 4th March 2009.
Sikkim Chamber of Commerce and the business community of Sikkim is grateful to all the people of Sikkim and especially Dr Pawan Chamling, Chief Minister for their sincere efforts in this direction.
(Suresh Agarwal)
General Secretary
Sikkim Chamber of Commerce
Gangtok
Dated Gangtok the 6th March 2009
SCC SUBMITS MEMORANDUM TO COMMISSIONER INCOME TAX AT SILIGURI SIGNED BY SIX THOUSAND PEOPLE
A 30 member delegation of Sikkim Chamber of Commerce drawn from all the four districts of Sikkim visited Income tax Commissioner’s office at Matigara, Siliguri and submitted a memorandum signed by around six thousand persons in support thereof on 6th March 2009.
The Memorandum was submitted to the Commissioner Shri C L Denzongpa who also holds additional charge of Sikkim region .
SCC President S.K.Sarda thanked Government of India for having exempted the Sikkim Subjects and COI holders from Income Tax. He drew attention of the Union Government that 400 families ( as on the date of merger ) of Sikkimese of Indian Origin who are settled in Sikkim since four to five generations have inadvertently been left out from the same even while they qualified, as the criteria adopted was residence immediately before 26th April 1975, the date of merger of the erstwhile kingdom into the Union..
The memorandum requested Ministry of Finance, Government of India to:
1. Grant similar exemption to these left out people residing in Sikkim prior to the date of merger i.e., 26th April 1975.
2. To allow some time to enable people and persons to understand the new system of Indian Income Tax and its forms, formats, rules, regulations, documentations, accounting procedures, compliance formalities, datelines, penalties etc and further to declare the prospective effect of the Act to commence from Assessment year 2010-11 as also recommended in para 3 (l) by the Government of Sikkim vide memo no GOS/IT&CT/2005-06/11-I (B)(96) 193 dt 18th August 2006, with immunity from penalties for a reasonable period making the system workable and acceptable at large in respect of others.
It was also submitted that a survey of the said 400 families as advised is in progress, to be submitted for consideration by both the State and Union Governments.
The memorandum states that the people are unable to adapt the Income Tax Act 1961 so suddenly being besieged with a fear psychosis and completely innocent of the Act and need extensive education on book keeping to match the requirements of the Income Tax Act 1961 by way of workshops, awareness camps and training programmes.
It was also conveyed to the Government of India through the Commissioner Shri C L Denzongpa that the State Governnment under the leadership of Dr Pawan Chamling is fully sympathetic on the matter and doing its best to solve both the issues raised by the Chamber . The Chief Minister Hon’ble Dr Pawan Chamling has personally taken up the matter with the authorities in the Centre and also been kind enough to adopt a resolution to such effect in his Party’s foundation day on 4th March 2009.
Sikkim Chamber of Commerce and the business community of Sikkim is grateful to all the people of Sikkim and especially Dr Pawan Chamling, Chief Minister for their sincere efforts in this direction.
(Suresh Agarwal)
General Secretary
Sikkim Chamber of Commerce
Gangtok
Dated Gangtok the 6th March 2009
Saturday, February 28, 2009
income tax exemption to all Sikkimese people
AICC promises uniform income tax exemption to all Sikkimese people
Gangtok | Friday, Feb 27 2009 IST
Aiming to score over the ruling Sikkim Democratic Front (SDF) over the Income Tax exemption issue in the coming Assembly elections, a top AICC functionary today said the party will ensure ''exemption for all Sikkimese people''.
''Presently the exemption from paying income taxes is going to only 30 per cent of people in Sikkim. We will like to get the rest of the population to get similar relief. Others non-exempted should also get same benefits,'' Luizino Faleriaro, AICC leader and party in-charge of Sikkim, Mizoram and Meghalaya, said during a press meet here.
The Centre had last year granted exemption to all Sikkimese people with Sikkim subject certificates from paying income taxes.
Though this exemption has been warmly welcomed by Sikkimese people, there has been resentment from other people, especially the old business community living in the state for generations, as they were left out of the exemption because they did not posses the Sikkim subject certificates.
''I am taking up this issue with the party high command and Union Ministry of Finance,'' Mr Faleriaro said. He arrived yesterday at Gangtok to consult with the state leaders of Congress on the coming Assembly elections in Sikkim. His assurances over Income Tax issue sets the tone on which the party will campaign in the forthcoming elections.
The Income Tax issue is slowly becoming a major election issue with both the ruling and opposition parties making a strong pitch on this to woo the masses.
Chief Minister Pawan Chamling had recently claimed in the Assembly that Income Tax exemption to Sikkimese people with Sikkim subject certificates was the biggest achievement of his government.
He had also assured to leave no stone unturned in delivering similar exemptions to those Sikkimese people left out from this purview.
On the other hand, Sikkim Pradesh Congress Committee (SPCC) president Nar Bahadur Bhandari has been reiterating that once his party comes to power in Sikkim, all those living here with voter cards will be granted exemption from paying income taxes.
Meanwhile, the old business community, numbering around 400 families in Sikkim, has been lobbying hard both with the Centre and state for income tax exemption at par with the Sikkimese people.
Recently, some members of the business community had toured Delhi over this issue, which was not well received by the Chief Minister who accused them of working against the interests of Sikkim and Sikkimese people.
-- (UNI) -- 27CA16.xml
Gangtok | Friday, Feb 27 2009 IST
Aiming to score over the ruling Sikkim Democratic Front (SDF) over the Income Tax exemption issue in the coming Assembly elections, a top AICC functionary today said the party will ensure ''exemption for all Sikkimese people''.
''Presently the exemption from paying income taxes is going to only 30 per cent of people in Sikkim. We will like to get the rest of the population to get similar relief. Others non-exempted should also get same benefits,'' Luizino Faleriaro, AICC leader and party in-charge of Sikkim, Mizoram and Meghalaya, said during a press meet here.
The Centre had last year granted exemption to all Sikkimese people with Sikkim subject certificates from paying income taxes.
Though this exemption has been warmly welcomed by Sikkimese people, there has been resentment from other people, especially the old business community living in the state for generations, as they were left out of the exemption because they did not posses the Sikkim subject certificates.
''I am taking up this issue with the party high command and Union Ministry of Finance,'' Mr Faleriaro said. He arrived yesterday at Gangtok to consult with the state leaders of Congress on the coming Assembly elections in Sikkim. His assurances over Income Tax issue sets the tone on which the party will campaign in the forthcoming elections.
The Income Tax issue is slowly becoming a major election issue with both the ruling and opposition parties making a strong pitch on this to woo the masses.
Chief Minister Pawan Chamling had recently claimed in the Assembly that Income Tax exemption to Sikkimese people with Sikkim subject certificates was the biggest achievement of his government.
He had also assured to leave no stone unturned in delivering similar exemptions to those Sikkimese people left out from this purview.
On the other hand, Sikkim Pradesh Congress Committee (SPCC) president Nar Bahadur Bhandari has been reiterating that once his party comes to power in Sikkim, all those living here with voter cards will be granted exemption from paying income taxes.
Meanwhile, the old business community, numbering around 400 families in Sikkim, has been lobbying hard both with the Centre and state for income tax exemption at par with the Sikkimese people.
Recently, some members of the business community had toured Delhi over this issue, which was not well received by the Chief Minister who accused them of working against the interests of Sikkim and Sikkimese people.
-- (UNI) -- 27CA16.xml
Thursday, February 26, 2009
INDIA FM REPLY TO RAJYA SABHA ON INTERIM BUDGET 2009-2010
FINANCE MINISTER’S REPLY IN RAJYA SABHA ON INTERIM BUDGET 2009-10
Following is the text of Finance Minister Shri Pranab Mukherjee’s reply in the Rajya Sabha on the Interim Budget 2009-10:
“Mr. Chairman, Sir,
It is important to recognize that the Union Budget statement is just one of the instruments for addressing economic policy concerns. Indeed, right from the day when the financial crisis erupted in the middle of September 2008, the Government has been alert and responsive to the fast changing developments. Government has undertaken the required administrative and fiscal measures in tandem with the monetary policy initiatives of the RBI by announcing two stimulus packages on December 7, 2008 and January 2, 2009.
The Government’s approach has been to ensure that our domestic growth drivers retain their momentum and for the present compensate for the difficult international environment. The fiscal stimulus measures have focused on supporting aggregate demand through emphasis on both investment and private consumption growth.
They have also addressed some of the sector-specific concerns such as those of our exporters, farmers, Medium, Small and Micro Enterprises, manufacturing sector and the service sector. The increased public spending, enhanced credit flows to the needy sectors, along with the excise and service tax relief are steps that would help in this context.
A Committee of Secretaries has been set up to address, on continuing basis, procedural problems being faced by exporters. A number of notifications simplifying the procedures have since been issued.
I now turn to Plan expenditure.
• The Plan expenditure in 2008-09 was increased by Rs 39,571 crore and the Non-Plan by Rs. 1,10,498 crore. The additional plan spending of Rs.39,571 crores is on account of an increase in Central Plan by Rs.24,174 crores and an increase of Rs.15,397 crores in the Central Assistance to State and UT Plans.
• In the BE for 2009-10 we have protected the increased spending of 2008-09. In addition, even without having any recourse to additional resource mobilization, I have found some resources to maintain the momentum on priority programme spending, with a view to sustain an early recovery of the economy.
• To ensure that the banking system does not suffer from capital inadequacy constraints in order to provide credit growth needed to sustain the economic momentum in 2009-10, the recapitalization of banks will be undertaken.
As a part of the two fiscal packages, a number of Tax and other fiscal measures have been undertaken. These include:
• An across the board cut in CENVAT by 4 percentage points benefitting all sectors;
• Reduction of the rate of duty on cotton textiles and textile articles from 4% to Nil.
• Provision of additional funds of Rs.1100 crore to ensure full refund of Terminal Excise duty/CST.
• Specific measures on customs duties on sectors such as steel and cement through restoration of the levels of protection;
• Service tax concessions and enhancement of drawback rates for exports.
• Interest subvention on pre and post shipment credit for labour intensive exports like textiles, leather, gem and jewellery, carpets and handicrafts; and
• Extension of a Line of Credit (LoC) by Rs.5000 crore to EXIM Bank from RBI to provide pre-shipment and post-shipment credit, in rupees or dollars, to Indian exporters at competitive rates.
• Refinance facilities respectively of Rs.4000 crore for the National Housing Bank for housing sector.
• Announcement of a package by Public sector banks for borrowers of home loans of up to 20 lakhs. This sector will be kept under a close watch and additional measures would be taken as necessary to promote an accelerated growth trajectory.
• Provision of additional allocation of Rs.1400 crore to clear the entire backlog in Technology Upgration Fund (TUF) Scheme in the textile sector.
• Inclusion of all items of handicrafts under 'Vishesh Krishi & Gram Udyog Yojana'.
We fully recognize the importance of Medium, Small and Micro Enterprises (MSMEs) in employment generation. To facilitate the flow of credit to MSMEs, RBI has announced a refinance facility of Rs.7000 crore for SIDBI which will be available to support incremental lending, either directly to MSMEs or indirectly via banks, NBFCs and SFCs. In addition, the following steps are being taken:
(a) To boost collateral free lending, the current guarantee cover under Credit Guarantee Scheme for Micro and Small enterprises on loans is being extended from Rs.50 lakh to Rs.1 crore with guarantee cover of 50 percent.
(b) The lock in period for loans covered under the existing credit guarantee scheme is being reduced from 24 to 18 months, to encourage banks to cover more loans under the guarantee scheme.
(c) Public Sector Banks have announced a reduction of interest rates on existing as well as new loans to MSME sectors.
(d) Special monthly meetings of State Level Bankers’ Committees are being held to oversee the resolution of credit issues of micro, small and medium enterprises by banks. Department of MSME and Department of Financial Services have been asked to jointly set up a Cell to monitor progress on this front.
• To provide a measure of security to unorganized workers, we have enacted the Unorganized Worker Sector Social Security Bill, 2008. The National Commission of Enterprises in the Unorganized Sector (NCEUS) has been asked to work out the detailed schemes in this regard.
• The recommendations of the Committee of Governors for speedy socio economic development and empowerment of Women is under the active consideration of the Government. Meanwhile, the UPA Government has decided to set up a High Power Committee of eminent persons and experts to study the Status of Women of India and to set up a ‘National Mission for Empowerment of Women’. Rashtriya Mahila Kosh (RMK) will also be restructured and revitalized.
• The UPA Government is making all possible efforts to turnaround the loss making Central PSE’s like Indian Telephone Industries (ITI) through the infusion of funds and superior techno-managerial practices.
• In my Budget speech on 16.2.2009, I had announced that teaching is expected to commence in four of the six new Indian Institutes of Management (IIMs), proposed for the Eleventh Plan, during 2009-10. These are in Haryana, Rajasthan, Jharkhand and Tamil Nadu. I have since been informed that there was a typographical mistake made by the Ministry of Human Resource Development and the Institutes that will start functioning during 2009-10 will be in Haryana, Chattisgarh, Jharkhand and Tamil Nadu. HRD Ministry has rectified the mistake. However, as announced we will now take action to set up an IIM in Rajasthan also.
Monetary Policy Measures
RBI took a number of liquidity enhancing measures to deal with the global crisis. These include:
• Reduction of the repo rate from 9 per cent in August 2008 to 5.50 per cent in January 2009.
• Reduction of the reverse repo rate which remained at 6 per cent from mid 2006 in December 2008 and January 2009 respectively by 1 per cent each to bring it to a level of 4 per cent.
• Reduction of the Cash Reserve Ratio from 9 per cent as on August 30, 2008 to 5 per cent with effect from January 17, 2009.
Taking into account the above measures, RBI has estimated the actual/potential release of primary liquidity since mid September 2008 as Rs.3,88,045 crore .
It is important to recognize that there is always some time lag between the announcement of a measure, be it fiscal or monetary, its implementation and its intended impact on the economy and financial parameters of the economy.
Latest figures confirm that our two fiscal packages are steps in the right direction. The data available for the month of December 2008 shows that some of the key sectors of manufacture are exhibiting early signs of recovery compared to November 2008. Cement production has gone up by 8 per cent in December- January and Steel has recorded a production of 22.8 million Metric Tons which is equivalent to the production in May 2008. For the quarter ending December 2008, FMCG registered a growth of more than 25 per cent and Food and Beverages 28 per cent. Railway freight which had declined to 2.2 per cent in October-November 2008 has recovered to a growth of 7 per cent in December, 2008. With good Rabi crop, much higher Minimum Support Prices and considerable increase in rural employment programmes, the rural demand should help in supporting the revival of industrial growth in the coming months. These are encouraging signs considering that all forecasts point towards a much bleaker 2009 as far as international economy is concerned.
I. Even though the signals are encouraging, the full impact of the recession in other parts of the world specially Europe and Asia is yet to unfold. Due to the strong export linkages with these economies, it is likely that the Indian economy may feel further impact in coming months. To counter any such effects, I announced the following concessions in Lok Sabha yesterday:
Central Excise
(a) General reduction in Excise Duty rates by 4 per cent points was made with effect from 7.12.2008. It is now being extended beyond 31 March, 2009. In addition, it has now been decided to:
(i) reduce the general rate of Central Excise duty from 10 per cent to 8 per cent.
(ii) retain the rate of central excise duty on goods currently attracting ad valorem rates of 8 per cent and 4 per cent respectively;
(iii) reduce the rate of central excise duty on bulk cement from 10 per cent or Rs. 290 PMT, whichever is higher to 8 per cent or Rs.230 PMT, whichever is higher.
Service Tax
2. The Government is keen that the business confidence in the Services sector is restored. It is also our objective that the dispersal between CENVAT rate and the Service Tax rate is reduced with a view to move towards the stated goal of a Uniform Goods and Service Tax. In line with this objective, it has been decided to reduce the rate of service tax on taxable services from 12 percent to 10 per cent.
3. To provide relief to the power sector, Naptha imported for generation of electric energy has been fully exempted from basic Customs Duty. This exemption which was available upto 31 March 2009, is now being extended beyond that date.
4. Section 10 AA of the Income Tax provides for exemption in respect of export profits of a unit located in a Special Economic Zone (SEZ). The export profits are required to be computed with reference to the total turn over of the assessee. This has resulted in discriminatory treatment of assessees having units located both in SEZ and the Domestic Tariff Area (DTA) vis-à-vis assessees having units located only within the SEZs. It has now been decided to remove this anomaly through necessary changes in the Act.
5. Hon’ble Members may recall that in my Budget Speech, I had indicated that we may have to review the ceiling of fiscal deficit that the States can incur in 2009-10 in terms of the debt consolidation and relief facility. As a part of the first stimulus package, it was increased by 0.5 per cent to 3.5 per cent of the Gross State Domestic Product (GSDP) for 2008-09. To spur the development of infrastructure and employment generation, this arrangement is being extended to 2009-10 with the possibility of further review, if required, in the coming months.
6. I am fully conscious that the increased public spending may put pressure on Governments borrowing programme and the overall of credit in the economy. There is, however, scope for appropriate compensatory monetary policy options that I am sure will be exercised by the RBI at the right time. Our medium term objective must be to revert to the path of fiscal consolidation at the earliest. In my view, it has to be as early as 2010-11, provided the US and OECD economies come out of their contractionary phase by the year end.”
*****
BSC/SS/MRS
Following is the text of Finance Minister Shri Pranab Mukherjee’s reply in the Rajya Sabha on the Interim Budget 2009-10:
“Mr. Chairman, Sir,
It is important to recognize that the Union Budget statement is just one of the instruments for addressing economic policy concerns. Indeed, right from the day when the financial crisis erupted in the middle of September 2008, the Government has been alert and responsive to the fast changing developments. Government has undertaken the required administrative and fiscal measures in tandem with the monetary policy initiatives of the RBI by announcing two stimulus packages on December 7, 2008 and January 2, 2009.
The Government’s approach has been to ensure that our domestic growth drivers retain their momentum and for the present compensate for the difficult international environment. The fiscal stimulus measures have focused on supporting aggregate demand through emphasis on both investment and private consumption growth.
They have also addressed some of the sector-specific concerns such as those of our exporters, farmers, Medium, Small and Micro Enterprises, manufacturing sector and the service sector. The increased public spending, enhanced credit flows to the needy sectors, along with the excise and service tax relief are steps that would help in this context.
A Committee of Secretaries has been set up to address, on continuing basis, procedural problems being faced by exporters. A number of notifications simplifying the procedures have since been issued.
I now turn to Plan expenditure.
• The Plan expenditure in 2008-09 was increased by Rs 39,571 crore and the Non-Plan by Rs. 1,10,498 crore. The additional plan spending of Rs.39,571 crores is on account of an increase in Central Plan by Rs.24,174 crores and an increase of Rs.15,397 crores in the Central Assistance to State and UT Plans.
• In the BE for 2009-10 we have protected the increased spending of 2008-09. In addition, even without having any recourse to additional resource mobilization, I have found some resources to maintain the momentum on priority programme spending, with a view to sustain an early recovery of the economy.
• To ensure that the banking system does not suffer from capital inadequacy constraints in order to provide credit growth needed to sustain the economic momentum in 2009-10, the recapitalization of banks will be undertaken.
As a part of the two fiscal packages, a number of Tax and other fiscal measures have been undertaken. These include:
• An across the board cut in CENVAT by 4 percentage points benefitting all sectors;
• Reduction of the rate of duty on cotton textiles and textile articles from 4% to Nil.
• Provision of additional funds of Rs.1100 crore to ensure full refund of Terminal Excise duty/CST.
• Specific measures on customs duties on sectors such as steel and cement through restoration of the levels of protection;
• Service tax concessions and enhancement of drawback rates for exports.
• Interest subvention on pre and post shipment credit for labour intensive exports like textiles, leather, gem and jewellery, carpets and handicrafts; and
• Extension of a Line of Credit (LoC) by Rs.5000 crore to EXIM Bank from RBI to provide pre-shipment and post-shipment credit, in rupees or dollars, to Indian exporters at competitive rates.
• Refinance facilities respectively of Rs.4000 crore for the National Housing Bank for housing sector.
• Announcement of a package by Public sector banks for borrowers of home loans of up to 20 lakhs. This sector will be kept under a close watch and additional measures would be taken as necessary to promote an accelerated growth trajectory.
• Provision of additional allocation of Rs.1400 crore to clear the entire backlog in Technology Upgration Fund (TUF) Scheme in the textile sector.
• Inclusion of all items of handicrafts under 'Vishesh Krishi & Gram Udyog Yojana'.
We fully recognize the importance of Medium, Small and Micro Enterprises (MSMEs) in employment generation. To facilitate the flow of credit to MSMEs, RBI has announced a refinance facility of Rs.7000 crore for SIDBI which will be available to support incremental lending, either directly to MSMEs or indirectly via banks, NBFCs and SFCs. In addition, the following steps are being taken:
(a) To boost collateral free lending, the current guarantee cover under Credit Guarantee Scheme for Micro and Small enterprises on loans is being extended from Rs.50 lakh to Rs.1 crore with guarantee cover of 50 percent.
(b) The lock in period for loans covered under the existing credit guarantee scheme is being reduced from 24 to 18 months, to encourage banks to cover more loans under the guarantee scheme.
(c) Public Sector Banks have announced a reduction of interest rates on existing as well as new loans to MSME sectors.
(d) Special monthly meetings of State Level Bankers’ Committees are being held to oversee the resolution of credit issues of micro, small and medium enterprises by banks. Department of MSME and Department of Financial Services have been asked to jointly set up a Cell to monitor progress on this front.
• To provide a measure of security to unorganized workers, we have enacted the Unorganized Worker Sector Social Security Bill, 2008. The National Commission of Enterprises in the Unorganized Sector (NCEUS) has been asked to work out the detailed schemes in this regard.
• The recommendations of the Committee of Governors for speedy socio economic development and empowerment of Women is under the active consideration of the Government. Meanwhile, the UPA Government has decided to set up a High Power Committee of eminent persons and experts to study the Status of Women of India and to set up a ‘National Mission for Empowerment of Women’. Rashtriya Mahila Kosh (RMK) will also be restructured and revitalized.
• The UPA Government is making all possible efforts to turnaround the loss making Central PSE’s like Indian Telephone Industries (ITI) through the infusion of funds and superior techno-managerial practices.
• In my Budget speech on 16.2.2009, I had announced that teaching is expected to commence in four of the six new Indian Institutes of Management (IIMs), proposed for the Eleventh Plan, during 2009-10. These are in Haryana, Rajasthan, Jharkhand and Tamil Nadu. I have since been informed that there was a typographical mistake made by the Ministry of Human Resource Development and the Institutes that will start functioning during 2009-10 will be in Haryana, Chattisgarh, Jharkhand and Tamil Nadu. HRD Ministry has rectified the mistake. However, as announced we will now take action to set up an IIM in Rajasthan also.
Monetary Policy Measures
RBI took a number of liquidity enhancing measures to deal with the global crisis. These include:
• Reduction of the repo rate from 9 per cent in August 2008 to 5.50 per cent in January 2009.
• Reduction of the reverse repo rate which remained at 6 per cent from mid 2006 in December 2008 and January 2009 respectively by 1 per cent each to bring it to a level of 4 per cent.
• Reduction of the Cash Reserve Ratio from 9 per cent as on August 30, 2008 to 5 per cent with effect from January 17, 2009.
Taking into account the above measures, RBI has estimated the actual/potential release of primary liquidity since mid September 2008 as Rs.3,88,045 crore .
It is important to recognize that there is always some time lag between the announcement of a measure, be it fiscal or monetary, its implementation and its intended impact on the economy and financial parameters of the economy.
Latest figures confirm that our two fiscal packages are steps in the right direction. The data available for the month of December 2008 shows that some of the key sectors of manufacture are exhibiting early signs of recovery compared to November 2008. Cement production has gone up by 8 per cent in December- January and Steel has recorded a production of 22.8 million Metric Tons which is equivalent to the production in May 2008. For the quarter ending December 2008, FMCG registered a growth of more than 25 per cent and Food and Beverages 28 per cent. Railway freight which had declined to 2.2 per cent in October-November 2008 has recovered to a growth of 7 per cent in December, 2008. With good Rabi crop, much higher Minimum Support Prices and considerable increase in rural employment programmes, the rural demand should help in supporting the revival of industrial growth in the coming months. These are encouraging signs considering that all forecasts point towards a much bleaker 2009 as far as international economy is concerned.
I. Even though the signals are encouraging, the full impact of the recession in other parts of the world specially Europe and Asia is yet to unfold. Due to the strong export linkages with these economies, it is likely that the Indian economy may feel further impact in coming months. To counter any such effects, I announced the following concessions in Lok Sabha yesterday:
Central Excise
(a) General reduction in Excise Duty rates by 4 per cent points was made with effect from 7.12.2008. It is now being extended beyond 31 March, 2009. In addition, it has now been decided to:
(i) reduce the general rate of Central Excise duty from 10 per cent to 8 per cent.
(ii) retain the rate of central excise duty on goods currently attracting ad valorem rates of 8 per cent and 4 per cent respectively;
(iii) reduce the rate of central excise duty on bulk cement from 10 per cent or Rs. 290 PMT, whichever is higher to 8 per cent or Rs.230 PMT, whichever is higher.
Service Tax
2. The Government is keen that the business confidence in the Services sector is restored. It is also our objective that the dispersal between CENVAT rate and the Service Tax rate is reduced with a view to move towards the stated goal of a Uniform Goods and Service Tax. In line with this objective, it has been decided to reduce the rate of service tax on taxable services from 12 percent to 10 per cent.
3. To provide relief to the power sector, Naptha imported for generation of electric energy has been fully exempted from basic Customs Duty. This exemption which was available upto 31 March 2009, is now being extended beyond that date.
4. Section 10 AA of the Income Tax provides for exemption in respect of export profits of a unit located in a Special Economic Zone (SEZ). The export profits are required to be computed with reference to the total turn over of the assessee. This has resulted in discriminatory treatment of assessees having units located both in SEZ and the Domestic Tariff Area (DTA) vis-à-vis assessees having units located only within the SEZs. It has now been decided to remove this anomaly through necessary changes in the Act.
5. Hon’ble Members may recall that in my Budget Speech, I had indicated that we may have to review the ceiling of fiscal deficit that the States can incur in 2009-10 in terms of the debt consolidation and relief facility. As a part of the first stimulus package, it was increased by 0.5 per cent to 3.5 per cent of the Gross State Domestic Product (GSDP) for 2008-09. To spur the development of infrastructure and employment generation, this arrangement is being extended to 2009-10 with the possibility of further review, if required, in the coming months.
6. I am fully conscious that the increased public spending may put pressure on Governments borrowing programme and the overall of credit in the economy. There is, however, scope for appropriate compensatory monetary policy options that I am sure will be exercised by the RBI at the right time. Our medium term objective must be to revert to the path of fiscal consolidation at the earliest. In my view, it has to be as early as 2010-11, provided the US and OECD economies come out of their contractionary phase by the year end.”
*****
BSC/SS/MRS
SWAMINATHAN AS CHANCELLOR SIKKIM UNIVERSITY
S Swaminathan appointed Sikkim Uty Chancellor
Wednesday, February 25, 2009
Gangtok:
Acclaimed agriculture scientist Prof M S Swaminathan, also famous as 'Father of Green Revolution in India', has been announced by Sikkim University as its chancellor.
Sikkim University, the 23rd varsity in India, announced the appointment of Prof MS Swaminathan today in a communique.''A trained plant geneticist, Professor Swaminathan's advocacy of sustainable agricultural has led to the Green Revolution in India.
it made him an acknowledged world leader in the field of sustainable food security,'' the communique said.Prof Swaminathan is currently a Rajya Sabha member, a position to which he was nominated by the Centre in recognition to his outstanding contribution towards the sphere of agriculture.
Prof Swaminathan, also the chairman of the National Commission on Agriculture, Food and Nutrition Security of India (National Commission on Farmers), is also holding the UNESCO-Cousteau Chair in Ecotechnology at the M S Swaminathan Research Foundation in Chennai.
Wednesday, February 25, 2009
Gangtok:
Acclaimed agriculture scientist Prof M S Swaminathan, also famous as 'Father of Green Revolution in India', has been announced by Sikkim University as its chancellor.
Sikkim University, the 23rd varsity in India, announced the appointment of Prof MS Swaminathan today in a communique.''A trained plant geneticist, Professor Swaminathan's advocacy of sustainable agricultural has led to the Green Revolution in India.
it made him an acknowledged world leader in the field of sustainable food security,'' the communique said.Prof Swaminathan is currently a Rajya Sabha member, a position to which he was nominated by the Centre in recognition to his outstanding contribution towards the sphere of agriculture.
Prof Swaminathan, also the chairman of the National Commission on Agriculture, Food and Nutrition Security of India (National Commission on Farmers), is also holding the UNESCO-Cousteau Chair in Ecotechnology at the M S Swaminathan Research Foundation in Chennai.
SIKKIM- A wonderful Place
Sikkim - Gateway to China
February 25th, 2009 in India |
So much has been written about the crumbling decadence, insurgency, AIDS, the poverty and hostile nature of North Eastern India that it is impossible to visit the region without pre-conceived idea. According to a friend who had recently returned, “There isn’t any” seemed to be the current in-phrase. This included riot, ransom, violence, communication gap,… extremists. People are peace loving and world class in hospitality. Determined, I faced the prospect of a somewhat adventurous mission to taste the unexplored land and culture, with some stoic philosophic abandon!
I rested in Sikkim as my first itenerary. It is simultaneously touching and heart warming - a coupling with which I became very familiar, for the Sikkimese understand my urband accent - they have mastered the art of easy communication.
The state is enormously optimistic and investors would surely love to expand their ventures in this news destination. As the legendary Nathu-La pass has been re-opened for trade with China, visiting Sikkim is derigueur. Today, Sikkim becomes the gateway to China!
The hub of life is centred on the main city, Gangtok. Here, it is possible to buy anything - from laughing Buddha to wooden sculptures, from Chow-mein to pork momo and from local wine to strong beer. It’s always busy - an inevitable tourist haunt that somehow never seems touristy.
From the high wall of the Rumtek monastry, there is a sensational panaromic view of the city. The magnificiant Mount Kanchengjunga can also be seen covered with silver white from here. In Gangtok, hotel prices were quite reasonable. As a visitor, eating out in the city can be surprisingly cheap and believe it or not I did not hear “There isn’t any” once!
Indian journalist working for as Executive Editor for lifestyle magazine.
February 25th, 2009 in India |
So much has been written about the crumbling decadence, insurgency, AIDS, the poverty and hostile nature of North Eastern India that it is impossible to visit the region without pre-conceived idea. According to a friend who had recently returned, “There isn’t any” seemed to be the current in-phrase. This included riot, ransom, violence, communication gap,… extremists. People are peace loving and world class in hospitality. Determined, I faced the prospect of a somewhat adventurous mission to taste the unexplored land and culture, with some stoic philosophic abandon!
I rested in Sikkim as my first itenerary. It is simultaneously touching and heart warming - a coupling with which I became very familiar, for the Sikkimese understand my urband accent - they have mastered the art of easy communication.
The state is enormously optimistic and investors would surely love to expand their ventures in this news destination. As the legendary Nathu-La pass has been re-opened for trade with China, visiting Sikkim is derigueur. Today, Sikkim becomes the gateway to China!
The hub of life is centred on the main city, Gangtok. Here, it is possible to buy anything - from laughing Buddha to wooden sculptures, from Chow-mein to pork momo and from local wine to strong beer. It’s always busy - an inevitable tourist haunt that somehow never seems touristy.
From the high wall of the Rumtek monastry, there is a sensational panaromic view of the city. The magnificiant Mount Kanchengjunga can also be seen covered with silver white from here. In Gangtok, hotel prices were quite reasonable. As a visitor, eating out in the city can be surprisingly cheap and believe it or not I did not hear “There isn’t any” once!
Indian journalist working for as Executive Editor for lifestyle magazine.
Wednesday, February 25, 2009
INCOME TAX COLLECTION UP IN BENGAL CIRCLE
Bengal tax mop-up on the rise
Calcutta, Feb. 24: Income tax collection (net of refund) in the Bengal circle, which includes Sikkim and the Andaman and Nicobar islands, has gone up 23.8 per cent to Rs 10,316 crore till the end of January in the current fiscal.
“Income tax collection in the circle has trebled in the last five years,” chief commissioner T. K. Chatterjee said.
“The growth in tax collection in the current financial year so far came on the back of a 22 per cent increase in corporate tax collection and a 32 per cent growth in personal income tax collection,” he said.
Companies paid Rs 7,022 crore tax on their profit earnings in the first 10 months of the current fiscal, an increase of 22 per cent over the year-ago period. “We made a tax refund of Rs 1,307 crore to the corporate sector till December 2008 compared with Rs 1,148 crore in the previous corresponding period,” Chatterjee said.
He said personal income tax collection in the current fiscal so far had grown 32 per cent to Rs 2,954 crore. “The primary reason for this is wider applicability of TDS (tax deducted at source),” Chatterjee said. TDS collection rose 35.07 per cent to Rs 3,714 crore against Rs 2,750 crore in the same period in 2007-08.
However, tax refunds to individual income tax-payers were lower at Rs 234 crore against Rs 333 crore in 2007-08.
“Advance tax payment and tax paid through self-assessment grew significantly. Advance tax payment till January 31, 2009 was higher at Rs 5,237 crore (Rs 4,807 crore), while tax paid under self-assessment was Rs 1,349 crore (Rs 898 crore),” the chief commissioner said. The total number of tax-payers in Bengal circle is around 24 lakh and is growing at the rate of 10 per cent every year.
But the income tax department is facing a severe shortage of manpower. “The sanctioned number of joint and additional commissioners for the Bengal circle is 128. But the number of joint and additional commissioners is only 42. Similarly, the sanctioned number of assistant and deputy commissioners for the circle is 220 while we have only 141 of them working at present,” Chatterjee said.
Calcutta, Feb. 24: Income tax collection (net of refund) in the Bengal circle, which includes Sikkim and the Andaman and Nicobar islands, has gone up 23.8 per cent to Rs 10,316 crore till the end of January in the current fiscal.
“Income tax collection in the circle has trebled in the last five years,” chief commissioner T. K. Chatterjee said.
“The growth in tax collection in the current financial year so far came on the back of a 22 per cent increase in corporate tax collection and a 32 per cent growth in personal income tax collection,” he said.
Companies paid Rs 7,022 crore tax on their profit earnings in the first 10 months of the current fiscal, an increase of 22 per cent over the year-ago period. “We made a tax refund of Rs 1,307 crore to the corporate sector till December 2008 compared with Rs 1,148 crore in the previous corresponding period,” Chatterjee said.
He said personal income tax collection in the current fiscal so far had grown 32 per cent to Rs 2,954 crore. “The primary reason for this is wider applicability of TDS (tax deducted at source),” Chatterjee said. TDS collection rose 35.07 per cent to Rs 3,714 crore against Rs 2,750 crore in the same period in 2007-08.
However, tax refunds to individual income tax-payers were lower at Rs 234 crore against Rs 333 crore in 2007-08.
“Advance tax payment and tax paid through self-assessment grew significantly. Advance tax payment till January 31, 2009 was higher at Rs 5,237 crore (Rs 4,807 crore), while tax paid under self-assessment was Rs 1,349 crore (Rs 898 crore),” the chief commissioner said. The total number of tax-payers in Bengal circle is around 24 lakh and is growing at the rate of 10 per cent every year.
But the income tax department is facing a severe shortage of manpower. “The sanctioned number of joint and additional commissioners for the Bengal circle is 128. But the number of joint and additional commissioners is only 42. Similarly, the sanctioned number of assistant and deputy commissioners for the circle is 220 while we have only 141 of them working at present,” Chatterjee said.
Monday, February 16, 2009
CHAMBER CONGRATULATE CM FOR HIGHER PLAN OUTLAY
GANGTOK, February 15: Sikkim Chamber of Commerce (SCC) on behalf of the business community of Sikkim has congratulated Chief Minister Pawan Chamling for getting higher annual plan outlay to the tune of Rs 1045 Crores.
SCC general secretary Suresh Agarwal said that it was an achievement of the Chief Minister to get a four digit annual plan outlay for the first time, which has been increased by a hefty 193 crores over the previous year.
“The Planning commission of India has lauded the Chief Minister for vigorously taking up with the Centre the need for infrastructure and better connectivity for this Himalayan State which has resulted in the sanction of Pakyong Airport, Alternate Highway and Railway connectivity,” general secretary SCC. Suresh Agarwal said in a press release.
He added that with massive increase of outlay, Sikkim would move faster in the overall economic development and social upliftment. Besides, the people will get more opportunities particularly in the Health, Agriculture, floriculture and Tourism Sector, he said.
( sOURCE: SIKKIM EXPRESS)
SCC general secretary Suresh Agarwal said that it was an achievement of the Chief Minister to get a four digit annual plan outlay for the first time, which has been increased by a hefty 193 crores over the previous year.
“The Planning commission of India has lauded the Chief Minister for vigorously taking up with the Centre the need for infrastructure and better connectivity for this Himalayan State which has resulted in the sanction of Pakyong Airport, Alternate Highway and Railway connectivity,” general secretary SCC. Suresh Agarwal said in a press release.
He added that with massive increase of outlay, Sikkim would move faster in the overall economic development and social upliftment. Besides, the people will get more opportunities particularly in the Health, Agriculture, floriculture and Tourism Sector, he said.
( sOURCE: SIKKIM EXPRESS)
AOS DEMANDS FOR RESOLUTION IN SIKKIM ASSEMBLY
Association of Old Settlers of Sikkim urges CM to place their demands during upcoming Assembly session
GANGTOK, February 15: The Association of Old Settlers of Sikkim has urged Chief Minister Pawan Chamling to bring a resolution in the coming session of Sikkim Legislative Assembly for recommending to the Union Government, the demands of the Pre Merger Old Settlers including businessmen, servicemen and others for inclusion in the beneficiaries of Income Tax exemption.
They have also requested the Chief Minister to make the Act applicable from April 1, 2010 for the post merger settlers so as to enable them to get sufficient time to understand the intricacies of accounting system and practices under the new regime.
In a press release issued by president, Anjuman-E-Islamia Abdul Majid Ansari, working president, Sikkim Bihari Jagaran Manch Anil Gupta and president, Sikkim Chamber of Commerce SK Sarda, the association has also thanked Governor Balmiki Prasad Singh and the Chief Minister for honouring four members of the community in appreciation to their contribution to Sikkim in the fields of social, sports, economic and education.
While stating that such recognition would inspire them to work more aggressively for the development of the State, the association members said that the same was been made to members of the business community in Sikkim for the first time since their settlement in Sikkim for over four to five generations.
“It was the honour and recognition of the entire community settled in Sikkim since more than four to five generations,” they added.
Kundanmull Sarda, Swaminath Prasad, Hari Prasad Agarwal and Noor Hasan Ansari were conferred with the Rol of Honour on the occasion of Republic Day this year.
Source Sikkim Express
GANGTOK, February 15: The Association of Old Settlers of Sikkim has urged Chief Minister Pawan Chamling to bring a resolution in the coming session of Sikkim Legislative Assembly for recommending to the Union Government, the demands of the Pre Merger Old Settlers including businessmen, servicemen and others for inclusion in the beneficiaries of Income Tax exemption.
They have also requested the Chief Minister to make the Act applicable from April 1, 2010 for the post merger settlers so as to enable them to get sufficient time to understand the intricacies of accounting system and practices under the new regime.
In a press release issued by president, Anjuman-E-Islamia Abdul Majid Ansari, working president, Sikkim Bihari Jagaran Manch Anil Gupta and president, Sikkim Chamber of Commerce SK Sarda, the association has also thanked Governor Balmiki Prasad Singh and the Chief Minister for honouring four members of the community in appreciation to their contribution to Sikkim in the fields of social, sports, economic and education.
While stating that such recognition would inspire them to work more aggressively for the development of the State, the association members said that the same was been made to members of the business community in Sikkim for the first time since their settlement in Sikkim for over four to five generations.
“It was the honour and recognition of the entire community settled in Sikkim since more than four to five generations,” they added.
Kundanmull Sarda, Swaminath Prasad, Hari Prasad Agarwal and Noor Hasan Ansari were conferred with the Rol of Honour on the occasion of Republic Day this year.
Source Sikkim Express
Saturday, February 14, 2009
TOURISM BOOM IN SIKKIM
Tourist inflow in Sikkim rises by over ten per cent annually till last year
Gangtok 11 Feb 2009
According to a PTI report, the economic slowdown across the world may hit the tourism industry in other parts of the country, but the tourism sector in the Himalayan state of Sikkim has risen by over ten per cent till last year, according to figure compiled by the tourism department. As per the release by state tourism department, the state received 3.87 lakh tourists in 2008 in comparison to 3.49 lakh tourists in the year before.
The number of visiting domestic tourists stood at 3.68 lakh last year as against 3.31 lakh in 2007, while the foreign tourists' intake last year was 19,154 as against the corresponding figure of 17,837. Sikkim, which has a favourable climate making people visit the state, has become a tourist destination round the year with even the rainy months of May and June luring about 20,000 tourists. The months of April and May have been booming period in terms of tourism-related business with about 70,000 visiting the state in each of these two months.
The tourist inflow from the foreign countries, mostly from Europe and America, have shown significant rise in the last quarter of 2007 with over 6,300 of them visiting the state, almost the same as the year before. The high number of arriving tourist has apparently belied the state government's concern about its tourism industry being hit badly due to the breakdown in the road network via NH 31A frequently due to political agitations in Darjeeling Hills or other natural calamities.
S B S Bhadauria, Tourism Secretary, Sikkim has set a target to make Sikkim a round-the-year tourist destination by development of infrastructure for promotion of the natural resources like hydel projects, socio-cultural life of the indigenous people, green ecology and religious structures throughout the state. “We expect at least ten lakh tourists to visit the state annually for which the hospitality sector is also expanding its accommodation and putting in place recreational activities like casino in the hotels,” said Bhadauria. Similarly, the tourism department has explored adventure sports like mountain biking, mountain climbing, water rafting and skiing facilities in partnership with private stakeholders to give further filip to the tourism industry in the state.
Gangtok 11 Feb 2009
According to a PTI report, the economic slowdown across the world may hit the tourism industry in other parts of the country, but the tourism sector in the Himalayan state of Sikkim has risen by over ten per cent till last year, according to figure compiled by the tourism department. As per the release by state tourism department, the state received 3.87 lakh tourists in 2008 in comparison to 3.49 lakh tourists in the year before.
The number of visiting domestic tourists stood at 3.68 lakh last year as against 3.31 lakh in 2007, while the foreign tourists' intake last year was 19,154 as against the corresponding figure of 17,837. Sikkim, which has a favourable climate making people visit the state, has become a tourist destination round the year with even the rainy months of May and June luring about 20,000 tourists. The months of April and May have been booming period in terms of tourism-related business with about 70,000 visiting the state in each of these two months.
The tourist inflow from the foreign countries, mostly from Europe and America, have shown significant rise in the last quarter of 2007 with over 6,300 of them visiting the state, almost the same as the year before. The high number of arriving tourist has apparently belied the state government's concern about its tourism industry being hit badly due to the breakdown in the road network via NH 31A frequently due to political agitations in Darjeeling Hills or other natural calamities.
S B S Bhadauria, Tourism Secretary, Sikkim has set a target to make Sikkim a round-the-year tourist destination by development of infrastructure for promotion of the natural resources like hydel projects, socio-cultural life of the indigenous people, green ecology and religious structures throughout the state. “We expect at least ten lakh tourists to visit the state annually for which the hospitality sector is also expanding its accommodation and putting in place recreational activities like casino in the hotels,” said Bhadauria. Similarly, the tourism department has explored adventure sports like mountain biking, mountain climbing, water rafting and skiing facilities in partnership with private stakeholders to give further filip to the tourism industry in the state.
Saturday, February 7, 2009
BHUTAN AIR TO FLY THRU BAGDOGRA
Drukair to fly from Bagdogra - Airbase stopover for international flights
Siliguri, Feb.5: Come March 29, the Bagdogra Airport will see for the first time an international flight landing and taking off.
Drukair, the Royal Bhutan Airlines, has chosen the airport for a stopover of its flights from Bhutan to Bangkok and back. “We are pleased to inform you that taking our cordial relations with India a little further, Drukair, the national airlines of Bhutan, will operate its services from Bagdogra. Our first flight from here to Bangkok will be on March 29 and we are eagerly looking forward for that day when we will see our flag fluttering at this airport,” Tshering Penjore, the general-manager of the airlines said at Bagdogra today.
An agreement with the civil aviation ministry of India last year allows the airline to operate its services from Bagdogra. Penjore was part of a four-member team from the Drukair that inspected the aerodrome today. “This is a strategic location sharing proximity to Nepal, Bangladesh and China. It has prospects as a regional hub for Saarc activities in future,” said Penjore.
The airline will operate out of Bagdogra four days a week. “While flights from Bhutan will land and take off in Bagdogra - en route to Bangkok - on Tuesday and Saturday, those from the Thai capital will arrive on Sunday and Wednesday. We will use an Airbus with 30 seats in first class and 94 in economy class. As we are not here with any commercial interest, there will be services even with a single passenger on board,” he added.
The airline said the flights would help promote tourism in north Bengal and Bhutan. Penjore also said the flights from Paro (the only airport in Bhutan) to Bagdogra would take only 30 minutes, whereas the time for travel by road from one place to the other would be 14-15 hours.
Welcoming the new airline, the airport authority officials at Bagdogra said arrangements would be made soon to upgrade the airport to one with international standard. “Immigration and customs facilities will be set up soon before the airline starts operating from here. After that, we hope other neighbouring countries, too, will opt for Bagdogra for flight service,” said K.K. Bhowmik, the airport director.
Bagdogra, the only functional airport in the state apart from Dum Dum, is an Indian Air Force base with limited access for civilians. Squadron Leader, IAF, A.A. Khan, said as the ministry of aviation had given its permission, they had no objection, but there were some formalities which needed to be fulfilled.
Siliguri, Feb.5: Come March 29, the Bagdogra Airport will see for the first time an international flight landing and taking off.
Drukair, the Royal Bhutan Airlines, has chosen the airport for a stopover of its flights from Bhutan to Bangkok and back. “We are pleased to inform you that taking our cordial relations with India a little further, Drukair, the national airlines of Bhutan, will operate its services from Bagdogra. Our first flight from here to Bangkok will be on March 29 and we are eagerly looking forward for that day when we will see our flag fluttering at this airport,” Tshering Penjore, the general-manager of the airlines said at Bagdogra today.
An agreement with the civil aviation ministry of India last year allows the airline to operate its services from Bagdogra. Penjore was part of a four-member team from the Drukair that inspected the aerodrome today. “This is a strategic location sharing proximity to Nepal, Bangladesh and China. It has prospects as a regional hub for Saarc activities in future,” said Penjore.
The airline will operate out of Bagdogra four days a week. “While flights from Bhutan will land and take off in Bagdogra - en route to Bangkok - on Tuesday and Saturday, those from the Thai capital will arrive on Sunday and Wednesday. We will use an Airbus with 30 seats in first class and 94 in economy class. As we are not here with any commercial interest, there will be services even with a single passenger on board,” he added.
The airline said the flights would help promote tourism in north Bengal and Bhutan. Penjore also said the flights from Paro (the only airport in Bhutan) to Bagdogra would take only 30 minutes, whereas the time for travel by road from one place to the other would be 14-15 hours.
Welcoming the new airline, the airport authority officials at Bagdogra said arrangements would be made soon to upgrade the airport to one with international standard. “Immigration and customs facilities will be set up soon before the airline starts operating from here. After that, we hope other neighbouring countries, too, will opt for Bagdogra for flight service,” said K.K. Bhowmik, the airport director.
Bagdogra, the only functional airport in the state apart from Dum Dum, is an Indian Air Force base with limited access for civilians. Squadron Leader, IAF, A.A. Khan, said as the ministry of aviation had given its permission, they had no objection, but there were some formalities which needed to be fulfilled.
Friday, February 6, 2009
FILM ON SIKKIM SINCE 1642
Short documentary on Sikkim’s saga from 1642 to present times
Thursday, 05 February 2009 06:29 SANJAY AGARWAL
RANGPO, February 4: A dedicated local filmmaker has completed a documentary that captures the history of this Himalayan State from 1642 till this present era.
The 60 minute documentary has been made by Kishore Rai Dungmali for the interest of the coming generation.
The documentary is titled ‘Parivartan-Journey with a Dream’ with a catch line of ‘A documentary about ‘The Man’ and his dream for Sikkim’ and is of one hour duration.
Mr. Dungmali has produced and shot the documentary and was assisted by Radha Thapa (production manager), Smriti Rai and Shena Rai (production controller). Binod Serang has narrated, written and directed the project while music coordinator and assistant director is Vibek Serang. The editor is Rajendra Khadka while Rita Subba has given the English narration.
The filmmaker said that a sum of Rs. 2.5 lakhs were spent in making the documentary and all the expenses were borne by himself. The documentary includes the history of Sikkim from 1962 to the present times, he said.
Mr. Dungmali expressed his thanks to Nirman Publications who have provided him with relevant documents and data.
MLAs KB Chamling, CB Karki and AS Baraily had also extend their full support and encouragement to the filmmaker for this project. Similar support was also received from former MP Bhim Dahal, former MLA SK Pradhan and Prem Karik, he said.
Thursday, 05 February 2009 06:29 SANJAY AGARWAL
RANGPO, February 4: A dedicated local filmmaker has completed a documentary that captures the history of this Himalayan State from 1642 till this present era.
The 60 minute documentary has been made by Kishore Rai Dungmali for the interest of the coming generation.
The documentary is titled ‘Parivartan-Journey with a Dream’ with a catch line of ‘A documentary about ‘The Man’ and his dream for Sikkim’ and is of one hour duration.
Mr. Dungmali has produced and shot the documentary and was assisted by Radha Thapa (production manager), Smriti Rai and Shena Rai (production controller). Binod Serang has narrated, written and directed the project while music coordinator and assistant director is Vibek Serang. The editor is Rajendra Khadka while Rita Subba has given the English narration.
The filmmaker said that a sum of Rs. 2.5 lakhs were spent in making the documentary and all the expenses were borne by himself. The documentary includes the history of Sikkim from 1962 to the present times, he said.
Mr. Dungmali expressed his thanks to Nirman Publications who have provided him with relevant documents and data.
MLAs KB Chamling, CB Karki and AS Baraily had also extend their full support and encouragement to the filmmaker for this project. Similar support was also received from former MP Bhim Dahal, former MLA SK Pradhan and Prem Karik, he said.
MOU WITH JAPAN ON DEVELOPMENT OF SIKKIM FORESTS
Sikkim signs MoU with Japan for sustainable development of forest resources
Thursday, 05 February 2009 06:38 SIKKIM EXPRESS
GANGTOK, February 4: Sikkim government has signed a MoU with a Japanese agency for carrying out feasibility study for ‘Integrated Project for Sustainable Development of Forest Resources in Sikkim’.
The MoU was signed between the State forest department and Japan International Cooperation Agency (JICA) yesterday.
A JICA team lead by Ryotaro Hayashi who is the deputy assistant director, South Asia division of JICA Tokyo office had visited Gangtok to finalize the terms of reference for the preparatory study and signed the document, informs an IPR release.
Nami Shinohara and Vanit Sarin from JICA (Delhi Office) were also in the team.
The project submitted by the State forest department has already been officially listed in the rolling plan for Japanese assistance after obtaining clearance from the Union Forest Ministry and Department of North Eastern Region (DONER), Department of Economic Affairs and other Central agencies, the release adds.
“The main objective of the study that will commence early in next financial year is to formulate the scope of the work and details for the forthcoming project. The main project on implementation would uplift the living standard of the local inhabitants as well as conserve forest resources and biodiversity by supporting entry point activities, eco-tourism and participatory biodiversity conservation and forest protection, thereby contributing to the environmental protection and poverty reduction in Sikkim”, the release states.
The project will thus envisage improving the economic status of communities living in fringe forest areas through non-consumptive management of the forest areas under their control.
The sense of ownership among the communities has already been developed through ongoing projects of the State forest department and Joint Forest Management (JFM) committees and Eco Development Committee (EDC) functioning in various areas.
The externally aided project which is proposed to be implemented soon is further set to revive the pride and interest of the people in their rich natural and cultural heritage thereby steering them towards the conservation and preservation of these common resources, the release said.
Thursday, 05 February 2009 06:38 SIKKIM EXPRESS
GANGTOK, February 4: Sikkim government has signed a MoU with a Japanese agency for carrying out feasibility study for ‘Integrated Project for Sustainable Development of Forest Resources in Sikkim’.
The MoU was signed between the State forest department and Japan International Cooperation Agency (JICA) yesterday.
A JICA team lead by Ryotaro Hayashi who is the deputy assistant director, South Asia division of JICA Tokyo office had visited Gangtok to finalize the terms of reference for the preparatory study and signed the document, informs an IPR release.
Nami Shinohara and Vanit Sarin from JICA (Delhi Office) were also in the team.
The project submitted by the State forest department has already been officially listed in the rolling plan for Japanese assistance after obtaining clearance from the Union Forest Ministry and Department of North Eastern Region (DONER), Department of Economic Affairs and other Central agencies, the release adds.
“The main objective of the study that will commence early in next financial year is to formulate the scope of the work and details for the forthcoming project. The main project on implementation would uplift the living standard of the local inhabitants as well as conserve forest resources and biodiversity by supporting entry point activities, eco-tourism and participatory biodiversity conservation and forest protection, thereby contributing to the environmental protection and poverty reduction in Sikkim”, the release states.
The project will thus envisage improving the economic status of communities living in fringe forest areas through non-consumptive management of the forest areas under their control.
The sense of ownership among the communities has already been developed through ongoing projects of the State forest department and Joint Forest Management (JFM) committees and Eco Development Committee (EDC) functioning in various areas.
The externally aided project which is proposed to be implemented soon is further set to revive the pride and interest of the people in their rich natural and cultural heritage thereby steering them towards the conservation and preservation of these common resources, the release said.
SKILL DEVELOPMENT IN SIKKIM
Commission concerned over low skills development
By chennaivision at 5 February, 2009, 5:45 pm
Gangtok, A high-level Commission on Human Development of Sikkim today expressed concern over the low entrepreneurship growth despite human development measures adopted by the state government.
”Several departments have been imparting training to develop entrepreneurship skills. However, only 20 per cent of the trainees have been able to make use of the training,” rued Prof BK Roy Burman, chairman of the Commission for Review of Environmental and Social Sector Policies, Plans and Programmes for Human Development (CRESP-HuD) here at Chintan Bhavan.
The noted social scientist heads CRESP-HuD, constituted in December last, for recommending measures to strengthen the state plan for human development.
Special funds have been set up towards this end since 2007, besides each department allocating at least 2 per cent of the annual expenditure for their respective capacity building programmes.
Expressing his concern over the low delivery of the entrepreneurship development, Prof Burman said that the Union government has set up a committee with him as its chairman to coordinate entrepreneurship studies by seven northeastern Universities.
”The study reveals that the position of all other states and northeast India in not better than Sikkim . We propose to introduce an action research programme in the state to gain more insight,” Prof Burman said.
According to Prof Burman, most of the industries had set up their establishments in Sikkim by being attracted by the incentive of tax holiday under North East Industrial Promotion and Policy package. Some of them had their establishments in other states from where they moved out when tax holiday period was expiring, he said.
Except for unskilled labour, they hardly employ any local people at administrative and skilled labour levels, said the CRESP-HuD chairman adding the position is same in other NE states.
He also pointed out at the problem of food grain security in Sikkim which has limited storage capacity and disruptive communication links.
The Prof also proposed the Sikkim government to host an international level discourse on ‘war and peace’ with involvement of religious and educational institutions.
UNI
By chennaivision at 5 February, 2009, 5:45 pm
Gangtok, A high-level Commission on Human Development of Sikkim today expressed concern over the low entrepreneurship growth despite human development measures adopted by the state government.
”Several departments have been imparting training to develop entrepreneurship skills. However, only 20 per cent of the trainees have been able to make use of the training,” rued Prof BK Roy Burman, chairman of the Commission for Review of Environmental and Social Sector Policies, Plans and Programmes for Human Development (CRESP-HuD) here at Chintan Bhavan.
The noted social scientist heads CRESP-HuD, constituted in December last, for recommending measures to strengthen the state plan for human development.
Special funds have been set up towards this end since 2007, besides each department allocating at least 2 per cent of the annual expenditure for their respective capacity building programmes.
Expressing his concern over the low delivery of the entrepreneurship development, Prof Burman said that the Union government has set up a committee with him as its chairman to coordinate entrepreneurship studies by seven northeastern Universities.
”The study reveals that the position of all other states and northeast India in not better than Sikkim . We propose to introduce an action research programme in the state to gain more insight,” Prof Burman said.
According to Prof Burman, most of the industries had set up their establishments in Sikkim by being attracted by the incentive of tax holiday under North East Industrial Promotion and Policy package. Some of them had their establishments in other states from where they moved out when tax holiday period was expiring, he said.
Except for unskilled labour, they hardly employ any local people at administrative and skilled labour levels, said the CRESP-HuD chairman adding the position is same in other NE states.
He also pointed out at the problem of food grain security in Sikkim which has limited storage capacity and disruptive communication links.
The Prof also proposed the Sikkim government to host an international level discourse on ‘war and peace’ with involvement of religious and educational institutions.
UNI
Tourism in Sikkim gets a leg up
Tourism in northeast gets a leg up, courtesy govt employees
5 Feb 2009, 0550 hrs IST, Himanshi Dhawan, TNN
NEW DELHI: At a time when domestic tourism is experiencing sluggish growth, central government employees have bucked the trend to make the northeast
a much sought after tourism destination. About 3 lakh government employees — nearly 8% of the workforce — visited the northeast region (NER) between May 2008-January 2009 taking advantage of facilities like complimentary airfare and leave encashment.
The relaxation in the leave travel concession (LTC) rules introduced in May 2008 has contributed in the increased traffic in states that had otherwise been marred by violence, poverty and lack of development.
The ministry of development of northeast region has relaxed leave travel allowance for central government employees so that group A and B are entitled to travel from their place of posting or nearest airport to a city in the northeast region or nearest airport.
All other categories of employees are entitled to travel by air to a city in northeast from Guwahati or Kolkata. There were subsequent alterations in the policy by which only the cheapest economy sector airfare for that sector was to be reimbursed.
Not to be left behind, foreign tourist arrivals have been increasing steadily. Foreign travellers in Assam -- a major gateway -- have increased from 12,899 in 2007 to 14,426 while Sikkim has seen an increase from 17,498 to 19,154 for the same period. Mizoram has also seen a 35% jump in tourism in just the past year.
Tourism joint secretary Leena Nandan said, "The northeast region is using tourism to realise great economic potential. In fact, Sikkim and Arunachal Pradesh have reported a 20% increase in tourism since last year."
But statistics apart, visitors are floored by the untouched natural beauty and the depth of experience. A central government employee who travelled to Sikkim under the scheme said, "It was a wonderful holiday at such a reasonable expense. After the visit I recommended the trip to other colleagues."
In fact, travellers speak of not only spending a quiet time at the Rumtek monastery in Sikkim but also enjoying a `plantation holiday' in Arunachal Pradesh amidst apple, kiwi and asparagus orchards. Mizoram and Manipur have, on the other hand, opened up rivers for rafting, kayaking and other adventure sports. Aggressive promotion and better air connectivity has also given a positive push to the region.
Avinash Kohli, a pioneer in adventure tourism and currently advisor to the Assam government, said the northeast had tremendous potential. "We are training people in rafting and kayaking. There is great future in the high end value tourism," Kohli said.
However, this influx has led to a severe shortage of accommodation and lack of infrastructure. A northeast council member said, "Since October 2008, the number of visitors has increased to a large extent. In fact, very often accommodation becomes a problem as most of the hotels are packed."
Kohli added that the lack of infrastructure and leadership could kill the destination. "We need to keep the backpackers out who are looking for drugs and cheap fun. They have ruined Goa and they will spoil the beauty of the northeast also," he said.
5 Feb 2009, 0550 hrs IST, Himanshi Dhawan, TNN
NEW DELHI: At a time when domestic tourism is experiencing sluggish growth, central government employees have bucked the trend to make the northeast
a much sought after tourism destination. About 3 lakh government employees — nearly 8% of the workforce — visited the northeast region (NER) between May 2008-January 2009 taking advantage of facilities like complimentary airfare and leave encashment.
The relaxation in the leave travel concession (LTC) rules introduced in May 2008 has contributed in the increased traffic in states that had otherwise been marred by violence, poverty and lack of development.
The ministry of development of northeast region has relaxed leave travel allowance for central government employees so that group A and B are entitled to travel from their place of posting or nearest airport to a city in the northeast region or nearest airport.
All other categories of employees are entitled to travel by air to a city in northeast from Guwahati or Kolkata. There were subsequent alterations in the policy by which only the cheapest economy sector airfare for that sector was to be reimbursed.
Not to be left behind, foreign tourist arrivals have been increasing steadily. Foreign travellers in Assam -- a major gateway -- have increased from 12,899 in 2007 to 14,426 while Sikkim has seen an increase from 17,498 to 19,154 for the same period. Mizoram has also seen a 35% jump in tourism in just the past year.
Tourism joint secretary Leena Nandan said, "The northeast region is using tourism to realise great economic potential. In fact, Sikkim and Arunachal Pradesh have reported a 20% increase in tourism since last year."
But statistics apart, visitors are floored by the untouched natural beauty and the depth of experience. A central government employee who travelled to Sikkim under the scheme said, "It was a wonderful holiday at such a reasonable expense. After the visit I recommended the trip to other colleagues."
In fact, travellers speak of not only spending a quiet time at the Rumtek monastery in Sikkim but also enjoying a `plantation holiday' in Arunachal Pradesh amidst apple, kiwi and asparagus orchards. Mizoram and Manipur have, on the other hand, opened up rivers for rafting, kayaking and other adventure sports. Aggressive promotion and better air connectivity has also given a positive push to the region.
Avinash Kohli, a pioneer in adventure tourism and currently advisor to the Assam government, said the northeast had tremendous potential. "We are training people in rafting and kayaking. There is great future in the high end value tourism," Kohli said.
However, this influx has led to a severe shortage of accommodation and lack of infrastructure. A northeast council member said, "Since October 2008, the number of visitors has increased to a large extent. In fact, very often accommodation becomes a problem as most of the hotels are packed."
Kohli added that the lack of infrastructure and leadership could kill the destination. "We need to keep the backpackers out who are looking for drugs and cheap fun. They have ruined Goa and they will spoil the beauty of the northeast also," he said.
TAAS SEEKS RECOGNITION FROM MOT
Thursday, February 05, 2009, 11:00 Hrs [IST]
TAAS seeks recognition from MoT and affiliation from travel trade associations
Sikkim government to celebrate 2010 as Tourism Year
By Anish V Punnackattu | New Delhi
The Travel Agents Association of Sikkim (TAAS) is in a process to seek recognition from the Ministry of Tourism (MoT), Government of India. It has decided to have a discussion, on receiving recognition from MoT for TAAS, with Roma Singh, Regional Director, India Tourism, Kolkata, in her upcoming visit to Sikkim. This was informed by Palzor Lachungpa, President, Travel Agents Association of Sikkim (TAAS), who is also the Managing Director of Blue Sky Tours and Travels located in Sikkim.
Lachungpa further informed that TAAS is also opting for membership from India’s national travel trade associations such as IATO, ADTOI, ATOAI and IMF along with the recognition from MoT. Currently, TAAS has the recognition of Sikkim government. Apart from this, TAAS plans to organise an annual convention in the month of September this year in Sikkim. The main idea of organising the convention in the state is to promote domestic tourism in the state in a bigger way and draw attention of the tourism officials and national and international travel trade associations for promoting tourism in Sikkim. This year, TAAS will invite large number of delegates to the convention,
TAAS seeks recognition from MoT and affiliation from travel trade associations
Sikkim government to celebrate 2010 as Tourism Year
By Anish V Punnackattu | New Delhi
The Travel Agents Association of Sikkim (TAAS) is in a process to seek recognition from the Ministry of Tourism (MoT), Government of India. It has decided to have a discussion, on receiving recognition from MoT for TAAS, with Roma Singh, Regional Director, India Tourism, Kolkata, in her upcoming visit to Sikkim. This was informed by Palzor Lachungpa, President, Travel Agents Association of Sikkim (TAAS), who is also the Managing Director of Blue Sky Tours and Travels located in Sikkim.
Lachungpa further informed that TAAS is also opting for membership from India’s national travel trade associations such as IATO, ADTOI, ATOAI and IMF along with the recognition from MoT. Currently, TAAS has the recognition of Sikkim government. Apart from this, TAAS plans to organise an annual convention in the month of September this year in Sikkim. The main idea of organising the convention in the state is to promote domestic tourism in the state in a bigger way and draw attention of the tourism officials and national and international travel trade associations for promoting tourism in Sikkim. This year, TAAS will invite large number of delegates to the convention,
Sunday, February 1, 2009
NEW CBDT CHAIRMAN- S S N MOORTHY
Moorthy appointed CBDT chairman
New Delhi, Jan 31: S S N Moorthy, a 1973 batch Indian Revenue Service (IRS) Officer has taken over as the chairman of the Central Board of Direct Taxes (CBDT) following the retirement of N B Singh.
Moorthy has also served as the Director General of Income Tax (Investigation) for over two years. He has worked for the Income Tax Department in Kerala, Tamil nadu and Maharashtra.
He has also worked with the Kerala Sales Tax Appellate Tribunal.
Sudhir Chandra, also a 1973 Indian Revenue Service (IRS) officer, has taken over as a CBDT member.
Chandra has served in various capacities in the department in Mumbai, Delhi, Tamil nadu and in North Western region.
--- ANI
New Delhi, Jan 31: S S N Moorthy, a 1973 batch Indian Revenue Service (IRS) Officer has taken over as the chairman of the Central Board of Direct Taxes (CBDT) following the retirement of N B Singh.
Moorthy has also served as the Director General of Income Tax (Investigation) for over two years. He has worked for the Income Tax Department in Kerala, Tamil nadu and Maharashtra.
He has also worked with the Kerala Sales Tax Appellate Tribunal.
Sudhir Chandra, also a 1973 Indian Revenue Service (IRS) officer, has taken over as a CBDT member.
Chandra has served in various capacities in the department in Mumbai, Delhi, Tamil nadu and in North Western region.
--- ANI
SAY IT FLOWERS IN SIKKIM
Say it with flowers in Sikkim
GANGTOK, Jan. 30: Floriculture is picking up in Sikkim both in the rural and the urban areas. Many Sikkim residents are now taking to floriculture in the urban areas, growing orchids on terraces, while some are developing nurseries on a commercial scale. Cut orchids are proving to be an alternative source of income. A spike of cymbidium orchid can fetch as much as Rs 1,000 locally.
The government Model Floriculture Centre at Namli is also flourishing. Four greenhouses have been added to it to cultivate flowers like gerbera, rose and phalaenopsis, which, when sold as cut flowers, should fetch decent prices for the growers.
In addition, three large low-cost bamboo poly greenhouses have been set up at Namli to rear rose and lilium. A number of plots have been covered with several varieties of flowers like the bird of paradise, wax ginges and heliconia.
The state government has also set up a cymbidium orchid centre at Rumtek and a model floriculture centre is under way in South District. Gladiolus is the most sought after flower by the small farmers. Peruvian lily is becoming the most popular flower in the higher altitudes. Daramdin in West Sikkim has been developed into a rose village. The rose growers sell their produce in Kolkata and New Delhi, each farmer earning anything between Rs 4,000 to Rs 12,000 per month.
Assam Linjey in East has been declared as a cymbidium village. Once known as the Valley of Rice, Skkim is now turning into a Valley of Flowers. n SNS
GANGTOK, Jan. 30: Floriculture is picking up in Sikkim both in the rural and the urban areas. Many Sikkim residents are now taking to floriculture in the urban areas, growing orchids on terraces, while some are developing nurseries on a commercial scale. Cut orchids are proving to be an alternative source of income. A spike of cymbidium orchid can fetch as much as Rs 1,000 locally.
The government Model Floriculture Centre at Namli is also flourishing. Four greenhouses have been added to it to cultivate flowers like gerbera, rose and phalaenopsis, which, when sold as cut flowers, should fetch decent prices for the growers.
In addition, three large low-cost bamboo poly greenhouses have been set up at Namli to rear rose and lilium. A number of plots have been covered with several varieties of flowers like the bird of paradise, wax ginges and heliconia.
The state government has also set up a cymbidium orchid centre at Rumtek and a model floriculture centre is under way in South District. Gladiolus is the most sought after flower by the small farmers. Peruvian lily is becoming the most popular flower in the higher altitudes. Daramdin in West Sikkim has been developed into a rose village. The rose growers sell their produce in Kolkata and New Delhi, each farmer earning anything between Rs 4,000 to Rs 12,000 per month.
Assam Linjey in East has been declared as a cymbidium village. Once known as the Valley of Rice, Skkim is now turning into a Valley of Flowers. n SNS
Friday, January 30, 2009
REVIVING GLOBAL RECESSION-KAMALNATH SPEAKS OUT
Text of Kamal Nath’s Speech on Reviving Global Economic Growth
--------------------------------------------------------------------------------
31 Jan 2009
Following is the full text of speech of Shri Kamal Nath, Union Minister for Commerce and Industry’, on “Reviving Global Economic Growth” at World Economic Forum in Davos today:
“The global economic crisis started impacting India from the beginning of last year. Rising crude prices, along with the global food grain shortage, caused a spillover into the real economy. As inflation rose, India was forced to repeatedly tighten credit and money supply.
By the middle of September 2008, it became apparent that the global credit crisis had deepened and key financial institutions were in need of help. Governments and central banks across the world started intervening to cut interest rates, inject liquidity and recapitalize weakening banks and financial institutions.
The scale of intervention — through the various bailouts and other fiscal and monetary measures — has been unparalleled in the history of the global financial system.
Of course, the priority now is to ensure financial stability and lessen turmoil in the capital and money markets. But once a certain amount of stability in financial markets is achieved, there are bound to be long-lasting changes in the way financial, commodity and consumer markets are regulated.
In the new framework, there will be calls for much greater transparency required from banks and other financial institutions, restrictions on the extent of leverage, restrictions on the use of complex financial products and a mandate to build reserves when times are good.
The issues of government and corporate accountability have taken centre stage once again. There can be no other way forward but for increasing the ethical standards of corporate and capitalist behavior. It is important to start an international movement for identifying a core set of ethical values that will be expected to become the operating norm for capitalism as we go forward.
Another question facing us today, specially after the financial crisis, is that often the national regulatory process is found wanting and this can result in collateral damage far beyond the geographic borders of the country where the errant firms/corporations are based and under whose national regulatory jurisdiction they operate. With corporates becoming truly global and without borders, should we not try and move towards a global regulatory mechanism? This is not a call for creating a ‘supra international regulator’ which some may find desirable, but for designing a system of regulatory norms that are then followed in all national jurisdictions, or it could, for example, alert national regulators of risks building in the financial system, have influence over the alignment of exchange rates or oversee global financial institutions whose activities spill across borders.
For such an institution to have credibility and political legitimacy, it must have representation not only from advanced economies but also from emerging ones, which have so far not had a fair say in the Bretton Woods institutions.
The G-20 is the best forum to discuss the setting up of such a body. The G-20 has already shown that it is a voice to reckon with. It has issued a joint statement demanding a bigger role in shaping the new global financial architecture. It has called for wholesale reform of global financial institutions, affording them stronger representation within the World Bank and the IMF.
Already, the BRIC nations (Brazil, Russia, India and China) have secured a greater voice for emerging economies at the recent G-20 summit in Washington. The final communiqué stated that emerging and developing economies “should have a greater voice and representation” and called for an urgent expansion of the Financial Stability Forum (FSF) to allow “a broader membership of emerging economies”. Finally at this critical juncture in the global economic history we must guard against protectionism. Trade has grown spectacularly over the last two decades bringing prosperity to the world. History is witness that whenever countries try to prop up protectionism, it intensifies depression. The Great Depression of 1930’s is a case in point; economists think that America’s Smoot – Hawley tariff, which increased nearly 900 import duties is regarded as one of the major contributors of the Great Depression. The world needs to ensure that protectionist tendencies are avoided.”
*************
--------------------------------------------------------------------------------
31 Jan 2009
Following is the full text of speech of Shri Kamal Nath, Union Minister for Commerce and Industry’, on “Reviving Global Economic Growth” at World Economic Forum in Davos today:
“The global economic crisis started impacting India from the beginning of last year. Rising crude prices, along with the global food grain shortage, caused a spillover into the real economy. As inflation rose, India was forced to repeatedly tighten credit and money supply.
By the middle of September 2008, it became apparent that the global credit crisis had deepened and key financial institutions were in need of help. Governments and central banks across the world started intervening to cut interest rates, inject liquidity and recapitalize weakening banks and financial institutions.
The scale of intervention — through the various bailouts and other fiscal and monetary measures — has been unparalleled in the history of the global financial system.
Of course, the priority now is to ensure financial stability and lessen turmoil in the capital and money markets. But once a certain amount of stability in financial markets is achieved, there are bound to be long-lasting changes in the way financial, commodity and consumer markets are regulated.
In the new framework, there will be calls for much greater transparency required from banks and other financial institutions, restrictions on the extent of leverage, restrictions on the use of complex financial products and a mandate to build reserves when times are good.
The issues of government and corporate accountability have taken centre stage once again. There can be no other way forward but for increasing the ethical standards of corporate and capitalist behavior. It is important to start an international movement for identifying a core set of ethical values that will be expected to become the operating norm for capitalism as we go forward.
Another question facing us today, specially after the financial crisis, is that often the national regulatory process is found wanting and this can result in collateral damage far beyond the geographic borders of the country where the errant firms/corporations are based and under whose national regulatory jurisdiction they operate. With corporates becoming truly global and without borders, should we not try and move towards a global regulatory mechanism? This is not a call for creating a ‘supra international regulator’ which some may find desirable, but for designing a system of regulatory norms that are then followed in all national jurisdictions, or it could, for example, alert national regulators of risks building in the financial system, have influence over the alignment of exchange rates or oversee global financial institutions whose activities spill across borders.
For such an institution to have credibility and political legitimacy, it must have representation not only from advanced economies but also from emerging ones, which have so far not had a fair say in the Bretton Woods institutions.
The G-20 is the best forum to discuss the setting up of such a body. The G-20 has already shown that it is a voice to reckon with. It has issued a joint statement demanding a bigger role in shaping the new global financial architecture. It has called for wholesale reform of global financial institutions, affording them stronger representation within the World Bank and the IMF.
Already, the BRIC nations (Brazil, Russia, India and China) have secured a greater voice for emerging economies at the recent G-20 summit in Washington. The final communiqué stated that emerging and developing economies “should have a greater voice and representation” and called for an urgent expansion of the Financial Stability Forum (FSF) to allow “a broader membership of emerging economies”. Finally at this critical juncture in the global economic history we must guard against protectionism. Trade has grown spectacularly over the last two decades bringing prosperity to the world. History is witness that whenever countries try to prop up protectionism, it intensifies depression. The Great Depression of 1930’s is a case in point; economists think that America’s Smoot – Hawley tariff, which increased nearly 900 import duties is regarded as one of the major contributors of the Great Depression. The world needs to ensure that protectionist tendencies are avoided.”
*************
Monday, January 12, 2009
sikkim and garden of five senses
nEW dELHI 11 jAN 2009
A trip to the Garden of Five Senses this weekend for the Sikkim Festival jointly organised by the state government and the Times of India group made
me think of one of life's most essential luxuries: flowers.
Whether it's a simple buttercup on a sylvan meadow or an anthurium's red curves livening up a minimalist room, there's no indulgence quite as delicately ephemeral and yet so strongly uplifting as a flower! And among them, since we are talking about luxuries, the orchid has to be the queen of flowers, as it requires careful rearing and handling.
Why Sikkim? Well, because I have never seen such gorgeous orchids before! Nodding in the winter Delhi breeze like the more usual gladioli, chrysanthemum and dahlia, the orchids exuded a mesmeric charm that most flowers would be hard-pressed to match.
Glistening with moisture, its velvetty sheen burnished by the mild winter sun, they looked so perfect as to seem unreal. It's easy to understand why these flowers command such prices around the world!
Which wedding decor is complete without flowers? Even if the humble by-the-weight saffron marigold can cut a dash, there is nothing quite like orchids to emphasise both rarity and breeding. That orchids have caught the imagination is evident as now the 'ordinary' ones are available for even Rs 30 per stalk, imported by the plane load from Thailand, in the usual shades of white, violet or yellow. And then there are the ones dyed turquoise to catch the eye!
Actually the sheer variety of orchids boggles the mind, both in its natural and hybrid avatars. Would it surprise you to learn that orchids are among the largest species of flowering plants? It is believed that orchids outnumber mammals as a species four-to-one, and they are more than double the number of bird species? Even so, they are rare because they either flourish deep in the rainforests and temperate wildernesses or in horticultural gardens. They aren't found in the average park or nursery!
Many a chic New York apartment has an orchid plant — usually a plain black pot with the almost bare, leafless stalk crowned by a magnificent spray of flowers. As a statement, it speaks far louder than even a barrel-ful of less exotic flowers. Increasingly India has also woken up to the orchids' less-is-more appeal, even if they don't know that some of the most beautiful species are grown right here in India.
Sadly, they are pretty difficult to maintain in the usual environment of our cities — which are either too hot, too cold or too dry for this moisture and temperate humidity loving flower! Ah, but that's precisely what makes it an essential luxury!
( sOURCE: ET)
A trip to the Garden of Five Senses this weekend for the Sikkim Festival jointly organised by the state government and the Times of India group made
me think of one of life's most essential luxuries: flowers.
Whether it's a simple buttercup on a sylvan meadow or an anthurium's red curves livening up a minimalist room, there's no indulgence quite as delicately ephemeral and yet so strongly uplifting as a flower! And among them, since we are talking about luxuries, the orchid has to be the queen of flowers, as it requires careful rearing and handling.
Why Sikkim? Well, because I have never seen such gorgeous orchids before! Nodding in the winter Delhi breeze like the more usual gladioli, chrysanthemum and dahlia, the orchids exuded a mesmeric charm that most flowers would be hard-pressed to match.
Glistening with moisture, its velvetty sheen burnished by the mild winter sun, they looked so perfect as to seem unreal. It's easy to understand why these flowers command such prices around the world!
Which wedding decor is complete without flowers? Even if the humble by-the-weight saffron marigold can cut a dash, there is nothing quite like orchids to emphasise both rarity and breeding. That orchids have caught the imagination is evident as now the 'ordinary' ones are available for even Rs 30 per stalk, imported by the plane load from Thailand, in the usual shades of white, violet or yellow. And then there are the ones dyed turquoise to catch the eye!
Actually the sheer variety of orchids boggles the mind, both in its natural and hybrid avatars. Would it surprise you to learn that orchids are among the largest species of flowering plants? It is believed that orchids outnumber mammals as a species four-to-one, and they are more than double the number of bird species? Even so, they are rare because they either flourish deep in the rainforests and temperate wildernesses or in horticultural gardens. They aren't found in the average park or nursery!
Many a chic New York apartment has an orchid plant — usually a plain black pot with the almost bare, leafless stalk crowned by a magnificent spray of flowers. As a statement, it speaks far louder than even a barrel-ful of less exotic flowers. Increasingly India has also woken up to the orchids' less-is-more appeal, even if they don't know that some of the most beautiful species are grown right here in India.
Sadly, they are pretty difficult to maintain in the usual environment of our cities — which are either too hot, too cold or too dry for this moisture and temperate humidity loving flower! Ah, but that's precisely what makes it an essential luxury!
( sOURCE: ET)
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