Santosh Nirash appointed goodwill ambassador of SSACS
GANGTOK, March 10: Giving a novel standpoint in reaching the common masses with the message of HIV/AIDS awareness, 81-year-old journalist Santosh Nirash was today appointed as the goodwill ambassador of Sikkim State Aids Control Society.
During her one year tenure, Mrs Nirash will help promote AIDS awareness across the State.
This was today announced by Dr. V Singhi, the new Project Director of SSACS in a media workshop on HIV/AIDS held here at the conference hall of State Forest Department.
Mrs Nirash, who is also the editor and publisher of Hindi weekly ‘Zamana Sadabahar’ in her address said more and more people should come forward to fight the disease and the stigma attached to it. She also assured of leaving no stone unturned to reach the message of AIDS to the people in nook and corners of the State. “I hope I will leave up to the expectation of SSACS and the people of Sikkim,” she added.
Dr. Singhi said the new Community Care Centre for people living with HIV AIDS will be inaugurated at Development Area next week. “The centre will provide free accommodation to the PLWHAs who come for medical treatment and cannot afford to stay in the hotels owing to financial constraints,” he added.
Highlighting on the action plans of the third phase of Aids control programme, the new SSACS project director said enough awareness has been brought in terms of HIV/AIDS now and the impact of the awareness will be measured. He also expressed his concern over the alarming flying sex workers in the Capital.
Calling to the media to be more supportive in spreading the HIV/AIDS awareness, he also requested to maintain the confidentiality of the AIDS patient and not to publish any photographs without prior consent of the patient.
The SSACS Deputy Director DS Kerongi while highlighting about the activities of SSACS told blood safety programme, mobile Integrated Counselling Testing Centres, work place intervention program, adolescent education programme are the few success story of SSACS in Sikkim.
Speaking as resource person, Editor, Now Pema Wangchuk said the media has somehow failed to understand its responsibility in giving priority to issues such as AIDS. “It is the duty of every journalist to ensure that the stigma and discrimination does not exist and if it does they should report it,” he added. He said the issues such as denying proper medical treatment to the AIDS patients is hardly reported in any media.
Calling for a realistic awareness on the issue, Mr. Wangchuk said the media should openly criticize certain policies and data of National AIDS Control Society which has been exaggerated.
Deputy Director, IEC SSACS Raj Kumar Sharma, Monitoring and Evaluation Officer Passang Tamang and Consultant, Youth Affairs Chung Chung Bhutia also addressed the gathering.
source; sikkim express
Friday, March 12, 2010
'North-east states are the battery of India'-P.D.RAI
The North-East MPs' Forum, a platform for parliamenta-rians from the eight states in the region, recently met in Gangtok to discuss ways to facilitate peace and development. P D Rai , a Sikkim Democratic Front MP and general secretary of the forum, spoke to Amrith Lal :
What is the North-East MPs' Forum about?
It is still a rag-tag group of MPs. But we all realise it's good to have friends, and friends with a common agenda. It's not that the region is ignored. The point is to have focused attention on the region. The region has had a history of insurgency. It began in Nagaland soon after independence. Now we have about 50 to 60 insurgent groups in the region. For a while the government thought this was a security issue, now it wants to treat it as a development issue. They have formed agencies to address it that way. This region, to my mind, is the battery of India. It has a power potential of about 80,000 MW. It is sitting on a colossal amount of hydrocarbons. The region has nearly 33 per cent of India's biodiversity reserves. How much better can it get? So it's important for the country that there is development in the region.
These issues can be effectively addressed through the forum. Let me give you an example. One of the big issues for Sikkim is the National Highway 31A and the state has just one MP in the Lok Sabha. If 10 of us barge into the concerned minister's room and demand that he do something about it, he's likely to act. Numbers matter.
You argue that the Centre must move from a security-centric approach to a people-centric approach.
Bangladesh prime minister Sheikh Hasina's India visit has opened up an interesting geopolitical opportunity for the region. Tripura would gain the most if we have a trade and transit treaty with Bangladesh. It will cut the distance to Kolkata from the present 1,700 km through difficult terrain to some 350 km. The polity in Meghalaya is insulated from the issue of migrants. Migration from Bangladesh is a political problem in Assam.
Bangladesh and India have an asymmetry in development. Suppose Bangladesh develops faster, a lot of the migration will slow down. So, this gives a chance to develop the subcontinent or rather the sub-region in a more holistic way. If we include Bangladesh into the paradigm it is a large region that we are talking about for development, for new markets.
What are your priorities? Do you have a wish list for the Centre?
Yes, first let's get the trade and transit treaty going. Currently, more than 75 per cent of the border trade in the region is through informal channels. For Sikkim, the biggest challenge is the National Highway 31A. Secure that for us. We would want to increase the number of items that could be traded at Nathula or through Moreh. Could we have more trade across all these posts?
Peace is a great enabler for development. Sikkim is a shining example of what peace can do for development. Maybe the time has come to desecuritise the region and see what happens. You have done it the other way and nothing has happened. Now let's try doing it this way.
SOURCE; TOI
The North-East MPs' Forum, a platform for parliamenta-rians from the eight states in the region, recently met in Gangtok to discuss ways to facilitate peace and development. P D Rai , a Sikkim Democratic Front MP and general secretary of the forum, spoke to Amrith Lal :
What is the North-East MPs' Forum about?
It is still a rag-tag group of MPs. But we all realise it's good to have friends, and friends with a common agenda. It's not that the region is ignored. The point is to have focused attention on the region. The region has had a history of insurgency. It began in Nagaland soon after independence. Now we have about 50 to 60 insurgent groups in the region. For a while the government thought this was a security issue, now it wants to treat it as a development issue. They have formed agencies to address it that way. This region, to my mind, is the battery of India. It has a power potential of about 80,000 MW. It is sitting on a colossal amount of hydrocarbons. The region has nearly 33 per cent of India's biodiversity reserves. How much better can it get? So it's important for the country that there is development in the region.
These issues can be effectively addressed through the forum. Let me give you an example. One of the big issues for Sikkim is the National Highway 31A and the state has just one MP in the Lok Sabha. If 10 of us barge into the concerned minister's room and demand that he do something about it, he's likely to act. Numbers matter.
You argue that the Centre must move from a security-centric approach to a people-centric approach.
Bangladesh prime minister Sheikh Hasina's India visit has opened up an interesting geopolitical opportunity for the region. Tripura would gain the most if we have a trade and transit treaty with Bangladesh. It will cut the distance to Kolkata from the present 1,700 km through difficult terrain to some 350 km. The polity in Meghalaya is insulated from the issue of migrants. Migration from Bangladesh is a political problem in Assam.
Bangladesh and India have an asymmetry in development. Suppose Bangladesh develops faster, a lot of the migration will slow down. So, this gives a chance to develop the subcontinent or rather the sub-region in a more holistic way. If we include Bangladesh into the paradigm it is a large region that we are talking about for development, for new markets.
What are your priorities? Do you have a wish list for the Centre?
Yes, first let's get the trade and transit treaty going. Currently, more than 75 per cent of the border trade in the region is through informal channels. For Sikkim, the biggest challenge is the National Highway 31A. Secure that for us. We would want to increase the number of items that could be traded at Nathula or through Moreh. Could we have more trade across all these posts?
Peace is a great enabler for development. Sikkim is a shining example of what peace can do for development. Maybe the time has come to desecuritise the region and see what happens. You have done it the other way and nothing has happened. Now let's try doing it this way.
SOURCE; TOI
Thursday, March 11, 2010
Say no to RTI amendments
Say no to RTI amendments
(The Hindu Editorial)
Central Information Commissioner Shailesh Gandhi recently took the extraordinary step of unilaterally releasing the minutes of the October 14, 2009 meeting between Union Minister Prithviraj Chavan and Central and State Information Commissioners on a proposal to significantly amend the Right to Information Act, 2005. The meeting's importance lay in the fact that it saw the hopeless isolation of the government side (Department of Personnel and Training, Ministry of Personnel, Public Grievances, and Training) on the proposed amendments. Of the 60 Information Commissioners who attended, all but two were opposed to the idea of tinkering with the historic legislation.
What explains such unity of resolve? The DoPT's package contained two ‘killer' amendments. The first would include under Section 8 (which specifies exemptions to the Act) applications deemed to be “frivolous and vexatious.” The second would bar from the Act's purview any discussion leading up to an official decision. The best judge of whether or not an application is “frivolous and vexatious” is the Information Commissioner who is called upon to decide the issue. In the four-and-a-half years since the Act came into force, no information officer has complained of being overburdened by such applications. Nor is there anything to suggest that government functioning is hampered by the disclosure of official discussions (previously known as file notings) and records of process. The only reasonable conclusion is that both the bureaucracy and the political government fear transparency of process because it will expose wrongdoing.
In recent days, RTI queries relating to public spending, governance, distribution of largesse, and even the procedure adopted for deciding awards have proved to be deeply embarrassing for the government. The ghost of RTI amendments has returned – in the controversial form of exemption for the office of the Chief Justice of India. The irony is too glaring to miss. It was the Supreme Court that laid the ground for opening up acts of governance to public scrutiny. In the 1975 State of U.P. vs Raj Narain case, the court said: “In a government of responsibility like ours, where all the agents of the public must be responsible for their conduct, there can be but few secrets. The people of this country have a right to know every public act, everything that is done in a public way, by their functionaries…”
The RTI Act has empowered the ordinary citizen in a way its architects did not anticipate. Studies have shown its growing appeal across all social strata, which is surely why the government is set on blunting this powerful tool in the hands of the people. Such obscurantism must be seen through and defeated.
(The Hindu Editorial)
Central Information Commissioner Shailesh Gandhi recently took the extraordinary step of unilaterally releasing the minutes of the October 14, 2009 meeting between Union Minister Prithviraj Chavan and Central and State Information Commissioners on a proposal to significantly amend the Right to Information Act, 2005. The meeting's importance lay in the fact that it saw the hopeless isolation of the government side (Department of Personnel and Training, Ministry of Personnel, Public Grievances, and Training) on the proposed amendments. Of the 60 Information Commissioners who attended, all but two were opposed to the idea of tinkering with the historic legislation.
What explains such unity of resolve? The DoPT's package contained two ‘killer' amendments. The first would include under Section 8 (which specifies exemptions to the Act) applications deemed to be “frivolous and vexatious.” The second would bar from the Act's purview any discussion leading up to an official decision. The best judge of whether or not an application is “frivolous and vexatious” is the Information Commissioner who is called upon to decide the issue. In the four-and-a-half years since the Act came into force, no information officer has complained of being overburdened by such applications. Nor is there anything to suggest that government functioning is hampered by the disclosure of official discussions (previously known as file notings) and records of process. The only reasonable conclusion is that both the bureaucracy and the political government fear transparency of process because it will expose wrongdoing.
In recent days, RTI queries relating to public spending, governance, distribution of largesse, and even the procedure adopted for deciding awards have proved to be deeply embarrassing for the government. The ghost of RTI amendments has returned – in the controversial form of exemption for the office of the Chief Justice of India. The irony is too glaring to miss. It was the Supreme Court that laid the ground for opening up acts of governance to public scrutiny. In the 1975 State of U.P. vs Raj Narain case, the court said: “In a government of responsibility like ours, where all the agents of the public must be responsible for their conduct, there can be but few secrets. The people of this country have a right to know every public act, everything that is done in a public way, by their functionaries…”
The RTI Act has empowered the ordinary citizen in a way its architects did not anticipate. Studies have shown its growing appeal across all social strata, which is surely why the government is set on blunting this powerful tool in the hands of the people. Such obscurantism must be seen through and defeated.
RESOLUTUION ON GORKHALAND IN PARLIAMENT
Text of Private Members Resolution to be moved by Rudy tomorrow ie March 12 in the
Rajya Sabha
SHRI RAJIV PRATAP RUDY to move the following Resolution:—
“Having regard to the fact that—
(i) the State of Andhra Pradesh was formed in the year 1956 after amalgamating Telugu speaking areas and due to wrong policies, some areas remained neglected in the fields of education, employment, irrigation, development, etc.; neglect and backwardness have led to an acute feeling of alienation among the people of the Telangana region, who have been demanding a separate state since 1969;
(ii) Telangana consists of ten districts of Andhra Pradesh, namely, Hyderabad, Rangareddy, Mahboobnagar, Medak, Nalonda, Khammam, Warangal, Karimnagar, Adilabad and Nizamabad, out of which nine districts have been recognized by the Government of India as backward despite the fact that this region houses many natural resources, the benefits of which have failed to reach its people;
(iii) the proposed Gorkhaland area in West Bangal, i.e. Darjeeling District and the adjoining Dooars area which are under Jalpaiguri District were parts of two kingdoms of Sikkim and Bhutan before the advent of the British;
(iv) the Government of India Act, 1919 constituted a Legislative Council for Bengal but Darjeeling had no representation, as it was declared an Excluded Area and outside the purview of the Legislature of the Bengal Presidency;
(v) post Independence, Darjeeling and the Dooars became part of West Bengal as the State Re-organization Commission in 1956 recommended creation of 14 states on linguistic lines;
(vi) the census of 1951 for Darjeeling District projected the Nepali speaking population as a miniscule minority by showing Nepali speaking population only 17% which was actually 66% and thereby denied them a separate state on linguistic lines;
(vii) the Indian Gorkhas having a distinct socio-cultural entity and concentrated in contiguous districts of North Bengal are fighting for the formation of a separate state within the Indian Union in order to preserve, protect and promote their distinct identity;
(viii) the Gorkhas, Bhutias and the Lepchas have a social, cultural and linguistic affinity with the tribals of the Dooras region, i.e. Santhals, Uraons, Mundas, Totas, Rabhas, Mechey and Raj Bangshis and Nepali is their lingua franca and is spoken throughout the region of Dooars;
(ix) the demand, when fulfilled, will ensure the protection of the Gorkha’s distinct socio-cultural identity and will bring them into the mainstream and inculcate a sense of belonging;
(x) the experience of creation of smaller states has been good as in these states administration is smoother and efficient coupled with higher development of the areas that have been neglected, giving the people more access to the Government and reducing the disparity levels between the developed and non-developed areas; and
(xi) there is merit in the demand for separate states of Telangana as well as Gorkhaland as it serves the cause of geographical continuity, conomic viability and administrative convenience, this house, therefore, urges upon the Government to create separate States of Telangana and Gorkhaland with a separate Legislature, Executive and Judiciary in accordance with the Constitution of India.”
Rajya Sabha
SHRI RAJIV PRATAP RUDY to move the following Resolution:—
“Having regard to the fact that—
(i) the State of Andhra Pradesh was formed in the year 1956 after amalgamating Telugu speaking areas and due to wrong policies, some areas remained neglected in the fields of education, employment, irrigation, development, etc.; neglect and backwardness have led to an acute feeling of alienation among the people of the Telangana region, who have been demanding a separate state since 1969;
(ii) Telangana consists of ten districts of Andhra Pradesh, namely, Hyderabad, Rangareddy, Mahboobnagar, Medak, Nalonda, Khammam, Warangal, Karimnagar, Adilabad and Nizamabad, out of which nine districts have been recognized by the Government of India as backward despite the fact that this region houses many natural resources, the benefits of which have failed to reach its people;
(iii) the proposed Gorkhaland area in West Bangal, i.e. Darjeeling District and the adjoining Dooars area which are under Jalpaiguri District were parts of two kingdoms of Sikkim and Bhutan before the advent of the British;
(iv) the Government of India Act, 1919 constituted a Legislative Council for Bengal but Darjeeling had no representation, as it was declared an Excluded Area and outside the purview of the Legislature of the Bengal Presidency;
(v) post Independence, Darjeeling and the Dooars became part of West Bengal as the State Re-organization Commission in 1956 recommended creation of 14 states on linguistic lines;
(vi) the census of 1951 for Darjeeling District projected the Nepali speaking population as a miniscule minority by showing Nepali speaking population only 17% which was actually 66% and thereby denied them a separate state on linguistic lines;
(vii) the Indian Gorkhas having a distinct socio-cultural entity and concentrated in contiguous districts of North Bengal are fighting for the formation of a separate state within the Indian Union in order to preserve, protect and promote their distinct identity;
(viii) the Gorkhas, Bhutias and the Lepchas have a social, cultural and linguistic affinity with the tribals of the Dooras region, i.e. Santhals, Uraons, Mundas, Totas, Rabhas, Mechey and Raj Bangshis and Nepali is their lingua franca and is spoken throughout the region of Dooars;
(ix) the demand, when fulfilled, will ensure the protection of the Gorkha’s distinct socio-cultural identity and will bring them into the mainstream and inculcate a sense of belonging;
(x) the experience of creation of smaller states has been good as in these states administration is smoother and efficient coupled with higher development of the areas that have been neglected, giving the people more access to the Government and reducing the disparity levels between the developed and non-developed areas; and
(xi) there is merit in the demand for separate states of Telangana as well as Gorkhaland as it serves the cause of geographical continuity, conomic viability and administrative convenience, this house, therefore, urges upon the Government to create separate States of Telangana and Gorkhaland with a separate Legislature, Executive and Judiciary in accordance with the Constitution of India.”
PERSONAL FINANCE:Maximum Gain with Minimum Risk
By Dhirendra Kumar
Of the total population that saves and invests, only a very tiny fraction ever invests in any asset that is backed by equity. Given that equity-backed investments provide better returns, there is no other reason for this except that equity carries a substantial risk of loss. Losses are integral to equity investing, and that's something that investors can never get used to. This inevitably leads to what amounts to the holy grail of financial products – if equity could be packaged in such a way that the risk of loss could be eliminated, then such a product would be extremely attractive.
In many countries, equity funds which can protect the original capital are popular products. In India too, there are a handful of such mutual funds that promise to get you some of the benefits of equity investment while ensuring that there's no chance of the value of your investment falling below the original sum you invested. There are existing funds from Franklin Templeton and UTI, and Birla Sun Life has just launched a couple of such funds, one of three years tenure and another of five years. These are all closed-end funds and the capital-protection is there only if you invest in the NFO and redeem at the end.
The way capital protection works in such funds is that the fund manager puts away in safe debt instruments enough assets so that at least par value can be delivered at the time of redemption. For example, consider a fund that collects Rs 100 crore from investor for a tenure of five years. The basic capital protection goal of the fund is to ensure that at redemption, it has at least the original Rs 100 crore. So what the fund manager has to do is to construct a quality debt portfolio that matures around the same time as the fund's redemption. Now, let's say that that such a debt portfolio will yield 7 per cent over that period. This means that if the fund manager invests Rs 71.3 crore in this debt portfolio, he can be assured of having at least Rs 100 crore to meet the minimum redemption value. This leaves him with Rs 28.7 crore to invest in equity and enhance his investors' returns. Actual funds can change the recipe a bit but this is the basic concept.
It's important to note that these funds are not 'capital guaranteed' but only capital-protection 'oriented'. In all such funds, the 'capital protection' is a goal and not an obligation. By law, funds are not allowed to offer guarantees and SEBI's rules regarding such funds term them as 'Capital Protection Oriented' funds. The 'oriented' part makes it a sort of a best-effort exercise. Also, their closed-end nature means that you can't invest whenever you want to or in an SIP-you'll just have to wait for a fund company to launch such a fund.
In India, the appeal of such products is limited because of the supply of high yielding fixed income options, some of them with genuine government-backed guarantees. Here's how to use one such option-the post office deposit to get all the benefits of a genuine capital-guaranteed (not oriented) fund. All you have to do is to replicate the above strategy with the government's post office deposit. This pays you an interest of 7.5 per cent per annum, compounded quarterly. This means that of the total amount you'd like to deposit for five years, you should put 69 percent in the post office and the rest in any good open-end large cap equity fund.
Not only will this arrangement give you a government-backed capital guarantee, but the equity part will actually be liquid. Moreover, you could actually deposit the money in the post office's monthly income scheme (8% returns) and invest the monthly income in an SIP. This would combine the advantages of an SIP with capital guarantee.
By Dhirendra Kumar
Of the total population that saves and invests, only a very tiny fraction ever invests in any asset that is backed by equity. Given that equity-backed investments provide better returns, there is no other reason for this except that equity carries a substantial risk of loss. Losses are integral to equity investing, and that's something that investors can never get used to. This inevitably leads to what amounts to the holy grail of financial products – if equity could be packaged in such a way that the risk of loss could be eliminated, then such a product would be extremely attractive.
In many countries, equity funds which can protect the original capital are popular products. In India too, there are a handful of such mutual funds that promise to get you some of the benefits of equity investment while ensuring that there's no chance of the value of your investment falling below the original sum you invested. There are existing funds from Franklin Templeton and UTI, and Birla Sun Life has just launched a couple of such funds, one of three years tenure and another of five years. These are all closed-end funds and the capital-protection is there only if you invest in the NFO and redeem at the end.
The way capital protection works in such funds is that the fund manager puts away in safe debt instruments enough assets so that at least par value can be delivered at the time of redemption. For example, consider a fund that collects Rs 100 crore from investor for a tenure of five years. The basic capital protection goal of the fund is to ensure that at redemption, it has at least the original Rs 100 crore. So what the fund manager has to do is to construct a quality debt portfolio that matures around the same time as the fund's redemption. Now, let's say that that such a debt portfolio will yield 7 per cent over that period. This means that if the fund manager invests Rs 71.3 crore in this debt portfolio, he can be assured of having at least Rs 100 crore to meet the minimum redemption value. This leaves him with Rs 28.7 crore to invest in equity and enhance his investors' returns. Actual funds can change the recipe a bit but this is the basic concept.
It's important to note that these funds are not 'capital guaranteed' but only capital-protection 'oriented'. In all such funds, the 'capital protection' is a goal and not an obligation. By law, funds are not allowed to offer guarantees and SEBI's rules regarding such funds term them as 'Capital Protection Oriented' funds. The 'oriented' part makes it a sort of a best-effort exercise. Also, their closed-end nature means that you can't invest whenever you want to or in an SIP-you'll just have to wait for a fund company to launch such a fund.
In India, the appeal of such products is limited because of the supply of high yielding fixed income options, some of them with genuine government-backed guarantees. Here's how to use one such option-the post office deposit to get all the benefits of a genuine capital-guaranteed (not oriented) fund. All you have to do is to replicate the above strategy with the government's post office deposit. This pays you an interest of 7.5 per cent per annum, compounded quarterly. This means that of the total amount you'd like to deposit for five years, you should put 69 percent in the post office and the rest in any good open-end large cap equity fund.
Not only will this arrangement give you a government-backed capital guarantee, but the equity part will actually be liquid. Moreover, you could actually deposit the money in the post office's monthly income scheme (8% returns) and invest the monthly income in an SIP. This would combine the advantages of an SIP with capital guarantee.
INDIA:NATIONAL GAS GRID
14:11 IST
Lok Sabha
The Minister for Petroleum & Natural Gas Shri Murli Deora informed the Lok Sabha in a written reply today that in order to expand natural gas transportation infrastructure in the country, Ministry of Petroleum and Natural Gas has authorized nine new trunk pipelines with total length of 5523 km. These are; (i) Dadri-Bawana-Nangal (ii) Chainsa-Jhajjar-Hissar (iii) Dabhol-Bangalore (iv) Kochi-Kanjirrakod-Bangalore-Mangalore (v) Jagdishpur-Haldia (vi) Vijaywada-Nellore-Chennai (vii) Kakinada-Basudevpur-Howrah (viii) Chennai-Tuticorin and (ix) Chennai-Bangalore-Mangalore pipelines.
He further said that of the pipelines mentioned above, five pipelines, namely, Dabhol-Bangalore, Kochi-Kanjirakod-Bangalore/Mangalore, Vijayawada-Nellore-Chennai, Chennai-Tuticorin and Chennai-Bangalore-Mangalore pipelines, would be providing gas connectivity to southern states.
The Minister also informed that Reliance Gas Transportation Infrastructure Limited(RGTIL) has been given authorization to lay 445 km Vijaywada-Nellore-Chennai pipeline and 670 km Chennai-Tuticorin pipeline. The pipelines are targeted to be completed by 2012.
Shri Deora said that the Petroleum & Natural Gas Regulatory Board Act, 2006 has been notified to provide a regulatory and developmental framework for developing pipeline infrastructure and to ensure adequate supply of natural gas in all parts of the country including Tamil Nadu.
Pib
14:11 IST
Lok Sabha
The Minister for Petroleum & Natural Gas Shri Murli Deora informed the Lok Sabha in a written reply today that in order to expand natural gas transportation infrastructure in the country, Ministry of Petroleum and Natural Gas has authorized nine new trunk pipelines with total length of 5523 km. These are; (i) Dadri-Bawana-Nangal (ii) Chainsa-Jhajjar-Hissar (iii) Dabhol-Bangalore (iv) Kochi-Kanjirrakod-Bangalore-Mangalore (v) Jagdishpur-Haldia (vi) Vijaywada-Nellore-Chennai (vii) Kakinada-Basudevpur-Howrah (viii) Chennai-Tuticorin and (ix) Chennai-Bangalore-Mangalore pipelines.
He further said that of the pipelines mentioned above, five pipelines, namely, Dabhol-Bangalore, Kochi-Kanjirakod-Bangalore/Mangalore, Vijayawada-Nellore-Chennai, Chennai-Tuticorin and Chennai-Bangalore-Mangalore pipelines, would be providing gas connectivity to southern states.
The Minister also informed that Reliance Gas Transportation Infrastructure Limited(RGTIL) has been given authorization to lay 445 km Vijaywada-Nellore-Chennai pipeline and 670 km Chennai-Tuticorin pipeline. The pipelines are targeted to be completed by 2012.
Shri Deora said that the Petroleum & Natural Gas Regulatory Board Act, 2006 has been notified to provide a regulatory and developmental framework for developing pipeline infrastructure and to ensure adequate supply of natural gas in all parts of the country including Tamil Nadu.
Pib
CHINA'S CHALLENGE
China's Challenge
By Jennifer Richmond and Rodger Baker
China’s National People’s Congress (NPC) remains in session. As usual, the meeting has provided Beijing an opportunity to highlight the past year’s successes and lay out the problems that lie ahead. On the surface at least, China has shown remarkable resilience in the face of global economic crisis. It has posted enviable gross domestic product (GDP) growth rates while keeping factories running (if at a loss) and workers employed. But the economic crisis has exposed the inefficiencies of China’s export-dependent economic model, and the government has had to pump money into a major investment stimulus package to make up for the net drain the export sector currently is exacting on the economy.
China’s Economic Imbalance
For years, China’s leaders have recognized the risks of the current economic model. They have debated policy ideas to shift from the current model to one that is more sustainable in the long run and incorporates a more geographically equitable growth and a hefty rise in domestic consumption. While there is general agreement on the need for change, top leaders disagree on the timing and method of transition. This has stirred internal debates, which can lead to factionalization as varying interests align to promote their preferred policy prescription. Entrenched interests in urban areas and the export industry — along with constant fears of triggering major social upheaval — have left the government year after year making only slight changes around the margins. Often, Beijing has taken one step forward only to take two back when social instability and/or institutional resistance emerge.
And this debate becomes even more significant now, as China deals simultaneously with the aftermath of the global economic slowdown and preparations for a leadership transition in 2012.
The Hu Agenda
Chinese President Hu Jintao came into office eight years ago with the ambitious goal of closing a widening wealth gap by equalizing economic growth between the rural interior and coastal cities. Hu inherited the results of Deng Xiaoping’s opening and reform, which focused on the rapid development of the coastal areas, which were better geographically positioned for international trade. The vast interior took second billing, being kept in line with the promise that in time the rising tide of economic wealth would float all ships. Eventually it did, somewhat. But while the interior saw significant improvements over the early Mao period, the growth and rise in living standards and disposable income in the urban coastal areas far outstripped rural growth. Some coastal urban areas are now approaching Western standards of living, while much of the interior remains mired in Third World conditions. And the faster the coast grows, the more dependent China becomes on the money from that growth to facilitate employment and subsidize the rural population.
Hu’s predecessor, Jiang Zemin, also recognized these problems. To address them, he promoted a “Go West” economic policy designed to shift investment further inland. But Jiang faced the same entrenched interests that have opposed Hu’s efforts at significant change. While Jiang was able to begin reform of the bloated state-owned enterprises, he softened his Westward economic drive. Amid cyclical global economic downturns, China fell back on the subsidized export model to keep employment levels up and keep money flowing in. Concern over social instability held radical reform in check, and the closer Jiang got to the end of his term in power, the less likely he was to make significant changes that could undermine social cohesion. No Chinese leader wants to preside over a major economic policy that fails out of fear of being the Chinese Mikhail Gorbachev.
For those like Hu who have argued that rapid reform is worth the risk of potential short-term social dislocation, the global downturn was seen as validating their policies — and as confirming that the risks to China of not changing far outweigh the risks of changing now. The export industry’s drag on GDP has forced Beijing to enact a massive investment and loan program. By some accounts, fixed investments in 2009 accounted for more than 90 percent of GDP. Those arguing for faster reform have noted that the pace of investment growth is unsustainable in the long run, and that the flood of money into the system has created new inflationary pressures.
Much of this investment came in the form of bank loans that need to be serviced and repaid. But as the government tries to cool the economy, the risk of companies defaulting on their loans looms. Cooling the economy also threatens to burst China’s real estate bubble. This not only compounds problems in related industry sectors, it could also trigger massive social discord in the urban areas, where housing has taken the place of the stock market as the investment of choice.
Beijing’s Ongoing Dilemma
Chinese leaders face the constant dilemma of needing to allow the economy to maintain its three-decade long export-oriented growth pattern even though this builds in long-term weaknesses, but shifting the economy is not something that can be done without its own consequences. Social pressures are convincing the government of the need to raise the minimum wage to keep up with economic pressures. At the same time, misallocation of labor and new job formation incentives in the interior are causing shortages of labor in some sectors in major coastal export zones. If coastal factories increase wages to attract labor or appease workers, they run the risk of going under due to the already razor-thin margins. But if they don’t, the labor fueling these industries at best may riot and at worst might simply move back home, leaving exporters with little option but to close shop.
Looming demographic changes around the globe also impact the Chinese situation, and the government can no longer rely on an ever-increasing export market to drive the Chinese economy. Some international companies operating in China already are beginning to consider relocating manufacturing operations to places with cheaper labor or back to their home countries to save on transportation costs Chinese wages are no longer mitigating.
With its export markets unlikely to recover to pre-crisis levels any time soon, competition and protectionism are on the rise. The United States is growing bolder in its restrictions on Chinese exports, and China may no longer avoid having the U.S. government label it a currency manipulator. While this may be an extreme measure in 2010, the pressures for such a scenario are rising.
Amid its domestic and global challenges, Chinese leaders are engaged in economic policy debates. It appears that internal criticism is being directed against Hu as social tensions over issues like rising housing prices and inflation grow. In some ways, this is not unusual. National presidents often bear the brunt of dissatisfaction with economic downturns no matter whether their policies were to blame. In China, however, criticism against economic policy falls on the premier, who is responsible for setting the country’s economic direction. The focus on Hu reflects both the depth of the current crisis and the underlying political tensions over economic policy in a time of both global economic unpredictability and preparations for the end of Hu’s presidency in 2012.
To bridge the gulf between the urban coast and the rural interior, Hu and his supporters have pursued a multiphased plan. First, they sought to rein in some of the most independent of the coastal areas — Shanghai in particular, which served as a center of power and influence not only in promoting the continuation of unfettered coastal growth but also of Hu’s predecessor, Jiang. Second, a plan was put in motion to consolidate redundancies in China’s economy and to shift light- and low-skilled industry inland by increasing wages in the key coastal export manufacturing areas, reducing their cost competitiveness. And Beijing added an urbanization drive in traditionally rural and inland areas. Together, this represented a joint attempt to bring the jobs to the interior rather than continue the pattern of migrant workers moving to the coast.
The core of the Hu policies was an overall attempt to re-centralize economic control. This would allow the central government to begin weeding out redundancies left over from Mao’s era of provincial self-sufficiency, which the Deng and Jiang eras of uncoordinated and locally-directed economic growth often driven by corruption and nepotism exacerbated. In short, Hu planned to centralize the economy to consolidate industry, redistribute wealth and urbanize the interior to create a more balanced economy that emphasized domestic consumption over exports. However, Hu’s push, under the epithet “harmonious society,” has been anything but smooth and its successes have been limited at best.
Hu Meets Resistance
Institutional and local government resistance to re-centralization has hounded the policy from its inception, and resistance has grown with the economic crisis. Money is now pouring into the economy via massive government-mandated bank lending to stimulate growth through investments as exports wane. Consequently, housing prices and inflation fears now plague the government — two issues that could lead to increased social tensions and are already leading to louder questioning of Hu’s policies. With just two years to go in his administration, Hu already is looking to his legacy, weighing the risks and rewards between promoting long-term economic sustainability or short-term economic survival. The next two years will witness seemingly incongruent policy pronouncements as the two opposing directions and their proponents battle over China’s economic and political landscape.
Hu’s rise to the presidency was all but assured long before he took office. From a somewhat simplified perspective, the PRC has had only four leaders: Mao Zedong, Deng Xiaoping, Jiang Zemin and Hu Jintao. When Mao died, his appointed successor, Hua Guofeng (who was settled upon after several other candidates fell out of favor), lasted only a short time. Amid the political chaos of the post-Cultural Revolution era, Deng rose to the top. Both Mao and Deng were strong leaders who, although contending with rivals, could rule almost single-handedly when the need arose.
To avoid the confusion of the post-Mao transition, Deng created a long-term succession plan. He ultimately settled on Shanghai Mayor Jiang Zemin as his successor. But in an effort to preserve his vision and legacy, Deng also chose Jiang’s successor, Hu Jintao. Barring some terrible breach of office, Hu was more or less guaranteed the presidency a decade before he took office, and there was little Jiang could do to alter this outcome. Jiang, however, made sure that he left his mark by lining up Hu’s successor, Xi Jinping. Despite Jiang’s support, Xi has not risen through the ranks in the same manner as Hu did, raising speculation of internal disagreements on the succession plan.
Vice President Xi is considered one of the “princelings,” leaders whose parents were part of the revolutionary-era governments under Mao and Deng who mainly have cut their teeth through business ventures concentrated in the coastal regions. Hu, on the other hand, is considered among the “tuanpai” or “tuanxi,” leaders who come primarily from the ranks of the Communist Youth League and interior provinces. While these “groups” are not in and of themselves cohesive factions, and China’s political networks are complex, Hu’s and Xi’s backgrounds reflect their differing policy approaches. As such, the question of the next Chinese leader is shaped by opposing economic plans.
On one hand are those like Hu who support a more rapid and immediate refocusing on rural and interior economic growth, even at the cost of reduced coastal and urban power. On the other hand, those like Jiang and his protege Xi have an interest in maintaining the status quo of regionalized semi-independence in economic matters and continued strong coastal growth. They are proceeding on the assumption that a strong coastal-led economy will both provide more immediate rewards for themselves and strengthen China’s international position and its national defense.
It is important not to overstress the differences. Each has the same ultimate goal, namely, maintaining the CPC as the central authority and building a strong China; it is just their paths to these ends that differ. But the economic policy differences are now becoming key questions of Party survival and Chinese stability and strength. Factional struggles that in normal circumstances can be largely controlled, or at least would not get out of hand, are now shaping up in an environment where China’s three-decade economic growth spurt may be reaching its climax. Meanwhile, social pressures are rising amid uncertainties and instabilities in Chinese economic structures.
Beijing has emerged from the economic crisis bolder and more self-confident than ever. But this is driven more by a recognition of weakness than a false assessment of strength. China’s leadership is in crisis mode, and at this time of economic instability and uncertainty, the leadership must also manage a transition that is bringing competing economic policies into stark contrast. And this is the sort of pressure that can cause the gloves to come off and throw expectations of unity and smooth transitions out the window.
Everything may pass smoothly; two years is a long time, after all. But if there is one thing certain about the upcoming change of presidents, it is that nothing is certain.
Source:www.STRATFOR
By Jennifer Richmond and Rodger Baker
China’s National People’s Congress (NPC) remains in session. As usual, the meeting has provided Beijing an opportunity to highlight the past year’s successes and lay out the problems that lie ahead. On the surface at least, China has shown remarkable resilience in the face of global economic crisis. It has posted enviable gross domestic product (GDP) growth rates while keeping factories running (if at a loss) and workers employed. But the economic crisis has exposed the inefficiencies of China’s export-dependent economic model, and the government has had to pump money into a major investment stimulus package to make up for the net drain the export sector currently is exacting on the economy.
China’s Economic Imbalance
For years, China’s leaders have recognized the risks of the current economic model. They have debated policy ideas to shift from the current model to one that is more sustainable in the long run and incorporates a more geographically equitable growth and a hefty rise in domestic consumption. While there is general agreement on the need for change, top leaders disagree on the timing and method of transition. This has stirred internal debates, which can lead to factionalization as varying interests align to promote their preferred policy prescription. Entrenched interests in urban areas and the export industry — along with constant fears of triggering major social upheaval — have left the government year after year making only slight changes around the margins. Often, Beijing has taken one step forward only to take two back when social instability and/or institutional resistance emerge.
And this debate becomes even more significant now, as China deals simultaneously with the aftermath of the global economic slowdown and preparations for a leadership transition in 2012.
The Hu Agenda
Chinese President Hu Jintao came into office eight years ago with the ambitious goal of closing a widening wealth gap by equalizing economic growth between the rural interior and coastal cities. Hu inherited the results of Deng Xiaoping’s opening and reform, which focused on the rapid development of the coastal areas, which were better geographically positioned for international trade. The vast interior took second billing, being kept in line with the promise that in time the rising tide of economic wealth would float all ships. Eventually it did, somewhat. But while the interior saw significant improvements over the early Mao period, the growth and rise in living standards and disposable income in the urban coastal areas far outstripped rural growth. Some coastal urban areas are now approaching Western standards of living, while much of the interior remains mired in Third World conditions. And the faster the coast grows, the more dependent China becomes on the money from that growth to facilitate employment and subsidize the rural population.
Hu’s predecessor, Jiang Zemin, also recognized these problems. To address them, he promoted a “Go West” economic policy designed to shift investment further inland. But Jiang faced the same entrenched interests that have opposed Hu’s efforts at significant change. While Jiang was able to begin reform of the bloated state-owned enterprises, he softened his Westward economic drive. Amid cyclical global economic downturns, China fell back on the subsidized export model to keep employment levels up and keep money flowing in. Concern over social instability held radical reform in check, and the closer Jiang got to the end of his term in power, the less likely he was to make significant changes that could undermine social cohesion. No Chinese leader wants to preside over a major economic policy that fails out of fear of being the Chinese Mikhail Gorbachev.
For those like Hu who have argued that rapid reform is worth the risk of potential short-term social dislocation, the global downturn was seen as validating their policies — and as confirming that the risks to China of not changing far outweigh the risks of changing now. The export industry’s drag on GDP has forced Beijing to enact a massive investment and loan program. By some accounts, fixed investments in 2009 accounted for more than 90 percent of GDP. Those arguing for faster reform have noted that the pace of investment growth is unsustainable in the long run, and that the flood of money into the system has created new inflationary pressures.
Much of this investment came in the form of bank loans that need to be serviced and repaid. But as the government tries to cool the economy, the risk of companies defaulting on their loans looms. Cooling the economy also threatens to burst China’s real estate bubble. This not only compounds problems in related industry sectors, it could also trigger massive social discord in the urban areas, where housing has taken the place of the stock market as the investment of choice.
Beijing’s Ongoing Dilemma
Chinese leaders face the constant dilemma of needing to allow the economy to maintain its three-decade long export-oriented growth pattern even though this builds in long-term weaknesses, but shifting the economy is not something that can be done without its own consequences. Social pressures are convincing the government of the need to raise the minimum wage to keep up with economic pressures. At the same time, misallocation of labor and new job formation incentives in the interior are causing shortages of labor in some sectors in major coastal export zones. If coastal factories increase wages to attract labor or appease workers, they run the risk of going under due to the already razor-thin margins. But if they don’t, the labor fueling these industries at best may riot and at worst might simply move back home, leaving exporters with little option but to close shop.
Looming demographic changes around the globe also impact the Chinese situation, and the government can no longer rely on an ever-increasing export market to drive the Chinese economy. Some international companies operating in China already are beginning to consider relocating manufacturing operations to places with cheaper labor or back to their home countries to save on transportation costs Chinese wages are no longer mitigating.
With its export markets unlikely to recover to pre-crisis levels any time soon, competition and protectionism are on the rise. The United States is growing bolder in its restrictions on Chinese exports, and China may no longer avoid having the U.S. government label it a currency manipulator. While this may be an extreme measure in 2010, the pressures for such a scenario are rising.
Amid its domestic and global challenges, Chinese leaders are engaged in economic policy debates. It appears that internal criticism is being directed against Hu as social tensions over issues like rising housing prices and inflation grow. In some ways, this is not unusual. National presidents often bear the brunt of dissatisfaction with economic downturns no matter whether their policies were to blame. In China, however, criticism against economic policy falls on the premier, who is responsible for setting the country’s economic direction. The focus on Hu reflects both the depth of the current crisis and the underlying political tensions over economic policy in a time of both global economic unpredictability and preparations for the end of Hu’s presidency in 2012.
To bridge the gulf between the urban coast and the rural interior, Hu and his supporters have pursued a multiphased plan. First, they sought to rein in some of the most independent of the coastal areas — Shanghai in particular, which served as a center of power and influence not only in promoting the continuation of unfettered coastal growth but also of Hu’s predecessor, Jiang. Second, a plan was put in motion to consolidate redundancies in China’s economy and to shift light- and low-skilled industry inland by increasing wages in the key coastal export manufacturing areas, reducing their cost competitiveness. And Beijing added an urbanization drive in traditionally rural and inland areas. Together, this represented a joint attempt to bring the jobs to the interior rather than continue the pattern of migrant workers moving to the coast.
The core of the Hu policies was an overall attempt to re-centralize economic control. This would allow the central government to begin weeding out redundancies left over from Mao’s era of provincial self-sufficiency, which the Deng and Jiang eras of uncoordinated and locally-directed economic growth often driven by corruption and nepotism exacerbated. In short, Hu planned to centralize the economy to consolidate industry, redistribute wealth and urbanize the interior to create a more balanced economy that emphasized domestic consumption over exports. However, Hu’s push, under the epithet “harmonious society,” has been anything but smooth and its successes have been limited at best.
Hu Meets Resistance
Institutional and local government resistance to re-centralization has hounded the policy from its inception, and resistance has grown with the economic crisis. Money is now pouring into the economy via massive government-mandated bank lending to stimulate growth through investments as exports wane. Consequently, housing prices and inflation fears now plague the government — two issues that could lead to increased social tensions and are already leading to louder questioning of Hu’s policies. With just two years to go in his administration, Hu already is looking to his legacy, weighing the risks and rewards between promoting long-term economic sustainability or short-term economic survival. The next two years will witness seemingly incongruent policy pronouncements as the two opposing directions and their proponents battle over China’s economic and political landscape.
Hu’s rise to the presidency was all but assured long before he took office. From a somewhat simplified perspective, the PRC has had only four leaders: Mao Zedong, Deng Xiaoping, Jiang Zemin and Hu Jintao. When Mao died, his appointed successor, Hua Guofeng (who was settled upon after several other candidates fell out of favor), lasted only a short time. Amid the political chaos of the post-Cultural Revolution era, Deng rose to the top. Both Mao and Deng were strong leaders who, although contending with rivals, could rule almost single-handedly when the need arose.
To avoid the confusion of the post-Mao transition, Deng created a long-term succession plan. He ultimately settled on Shanghai Mayor Jiang Zemin as his successor. But in an effort to preserve his vision and legacy, Deng also chose Jiang’s successor, Hu Jintao. Barring some terrible breach of office, Hu was more or less guaranteed the presidency a decade before he took office, and there was little Jiang could do to alter this outcome. Jiang, however, made sure that he left his mark by lining up Hu’s successor, Xi Jinping. Despite Jiang’s support, Xi has not risen through the ranks in the same manner as Hu did, raising speculation of internal disagreements on the succession plan.
Vice President Xi is considered one of the “princelings,” leaders whose parents were part of the revolutionary-era governments under Mao and Deng who mainly have cut their teeth through business ventures concentrated in the coastal regions. Hu, on the other hand, is considered among the “tuanpai” or “tuanxi,” leaders who come primarily from the ranks of the Communist Youth League and interior provinces. While these “groups” are not in and of themselves cohesive factions, and China’s political networks are complex, Hu’s and Xi’s backgrounds reflect their differing policy approaches. As such, the question of the next Chinese leader is shaped by opposing economic plans.
On one hand are those like Hu who support a more rapid and immediate refocusing on rural and interior economic growth, even at the cost of reduced coastal and urban power. On the other hand, those like Jiang and his protege Xi have an interest in maintaining the status quo of regionalized semi-independence in economic matters and continued strong coastal growth. They are proceeding on the assumption that a strong coastal-led economy will both provide more immediate rewards for themselves and strengthen China’s international position and its national defense.
It is important not to overstress the differences. Each has the same ultimate goal, namely, maintaining the CPC as the central authority and building a strong China; it is just their paths to these ends that differ. But the economic policy differences are now becoming key questions of Party survival and Chinese stability and strength. Factional struggles that in normal circumstances can be largely controlled, or at least would not get out of hand, are now shaping up in an environment where China’s three-decade economic growth spurt may be reaching its climax. Meanwhile, social pressures are rising amid uncertainties and instabilities in Chinese economic structures.
Beijing has emerged from the economic crisis bolder and more self-confident than ever. But this is driven more by a recognition of weakness than a false assessment of strength. China’s leadership is in crisis mode, and at this time of economic instability and uncertainty, the leadership must also manage a transition that is bringing competing economic policies into stark contrast. And this is the sort of pressure that can cause the gloves to come off and throw expectations of unity and smooth transitions out the window.
Everything may pass smoothly; two years is a long time, after all. But if there is one thing certain about the upcoming change of presidents, it is that nothing is certain.
Source:www.STRATFOR
Mukesh Ambani, Lakshmi Mittal in top 10 of world's rich list
Oil magnate Mukesh Ambani and steel tycoon Lakshmi Mittal made it to the top 10 on the 2010 Forbes list of world’s billionaires.
Mr. Ambani ranked fourth with $29 billion and Mr. Mittal ranked fifth with $28.7 billion on the Forbes list of billionaires on Wednesday.
The biggest loser in the world this year was Mukesh Ambani’s younger brother Anil Ambani, who lost $32 billion — 76 percent of his fortune — as shares of his Reliance Communications, Reliance Power and Reliance Capital all collapsed, Forbes said on its website. He was last year’s biggest gainer.
Mr. Mukesh Ambani is one of 24 Indian billionaires, all but one of whom are poorer than a year ago. Another 29 Indians lost their billionaire status entirely as India’s stock market tumbled 44 percent in the past year and the Indian rupee depreciated 18 percent against the dollar, Forbes said.
India is no longer the top spot in Asia for billionaires, ceding that title to China, which has 28.
Mexican telecom tycoon Carlos Slim Helu topped the list, with $53.5 billion, $500 million ahead of long-time list topper Microsoft founder Bill Gates, who ranked second. Legendary investor Warren Buffet was third with $47 billion
Oil magnate Mukesh Ambani and steel tycoon Lakshmi Mittal made it to the top 10 on the 2010 Forbes list of world’s billionaires.
Mr. Ambani ranked fourth with $29 billion and Mr. Mittal ranked fifth with $28.7 billion on the Forbes list of billionaires on Wednesday.
The biggest loser in the world this year was Mukesh Ambani’s younger brother Anil Ambani, who lost $32 billion — 76 percent of his fortune — as shares of his Reliance Communications, Reliance Power and Reliance Capital all collapsed, Forbes said on its website. He was last year’s biggest gainer.
Mr. Mukesh Ambani is one of 24 Indian billionaires, all but one of whom are poorer than a year ago. Another 29 Indians lost their billionaire status entirely as India’s stock market tumbled 44 percent in the past year and the Indian rupee depreciated 18 percent against the dollar, Forbes said.
India is no longer the top spot in Asia for billionaires, ceding that title to China, which has 28.
Mexican telecom tycoon Carlos Slim Helu topped the list, with $53.5 billion, $500 million ahead of long-time list topper Microsoft founder Bill Gates, who ranked second. Legendary investor Warren Buffet was third with $47 billion
Digital Imaging X-Ray at Ruchi Diagnostic Clinic
Gangtok: It is now almost 15 years that Ruchi Diagnostics have been catering to the basic needs of the patients by providing the best possible diagnostic services to the people of Sikkim. The Clinic has now installed most modern Fuji Digital Imaging Machine, also called Digital X-Ray.
This machine provides enhanced medical diagnostic quality and effectiveness and can handle diagnostic images in digital format which provides stable and highly precise results. This unit is capable of making automatic image processing at a very high resolution of 508 DPI at 10 pixel per mm.
Also to meet the need of busiest radiological demands, the machine works at a very fast speed of about 100 X-Ray prints per hour. With the installation of this machine the doctors can fully rely on the results for early detection of bone fractures, chest problems, kidney stones and spinal irregularities.
This machine can store the images in digital format which can be reproduced if need so arises. Another advantage of the machine is the fastest and dried output of the film so that waiting time for the patient is saved. This Machine is imported from Japan by Fuji film and has been installed in Sikkim State for the first time, informs Mr. Ramesh Kr. Periwal, Managing Director of the Diagnostic Clinic.
SOURCE: SIKKIM REPORTER
Gangtok: It is now almost 15 years that Ruchi Diagnostics have been catering to the basic needs of the patients by providing the best possible diagnostic services to the people of Sikkim. The Clinic has now installed most modern Fuji Digital Imaging Machine, also called Digital X-Ray.
This machine provides enhanced medical diagnostic quality and effectiveness and can handle diagnostic images in digital format which provides stable and highly precise results. This unit is capable of making automatic image processing at a very high resolution of 508 DPI at 10 pixel per mm.
Also to meet the need of busiest radiological demands, the machine works at a very fast speed of about 100 X-Ray prints per hour. With the installation of this machine the doctors can fully rely on the results for early detection of bone fractures, chest problems, kidney stones and spinal irregularities.
This machine can store the images in digital format which can be reproduced if need so arises. Another advantage of the machine is the fastest and dried output of the film so that waiting time for the patient is saved. This Machine is imported from Japan by Fuji film and has been installed in Sikkim State for the first time, informs Mr. Ramesh Kr. Periwal, Managing Director of the Diagnostic Clinic.
SOURCE: SIKKIM REPORTER
INDIA:GOOD NEWS FOR EMPLOYMENT:
GOOD NEWS FOR EMPLOYMENT:
Nearly a million jobs to be created in 2010-11
India would see nearly a million jobs created in 2010-11, 35% more than in the current fiscal year, says a survey by human resources firm Ma Foi Man agement Consultants Ltd.
The annual Ma Foi Employment Trends Survey, released on Wednes day, predicts healthcare and pharma firms would lead the hiring, adding 295,000 jobs to their existing work force of 3.37 million.
The hospitality and travel sector would add 137,000 jobs to an employ ee base of nearly six million, followed by real estate and construction that would add 136,000 people to its work force of 730,000, the survey esti mates. The information technology (IT) and information technologyena bled services (ITeS) sector is seen add ing only 97,000 jobs to its base of 1.8 million.
Ma Foi, a unit of Dutch human resources firm Randstad Holding NV, surveyed chief executives or human resources heads at 1,000 companies across sectors in India.
Hiring, however, will gain traction only in the second quarter of 201011 as companies are still cautious about the economic recovery, said E. Balaji, chief executive of the Indian arm of Ma Foi.
India's economy is estimated to grow at 7.2% in 200910 and at 8.5% in 201011. It grew at 6.8% in 200809.
"Companies will pick up in hiring in MayJune. People will wait to see the first quarter performance," said Mad havi Lall, human resources head for India and South Asia at British bank Standard Chartered Plc.
The bank plans to add 2,500 people in India in 2010, on a par with its addi tions in 2009.
Sectors such as education, training and consultancy are expected to add 83,000 jobs in 201011, followed by manufacturing with 68,000, banking, financial services and insurance with 46,000, transport, storage and com munication with 27,000, energy gener ation and supply with 15,000, and trade with 13,000, as per the survey.
On Tuesday, Manpower Inc. fore cast brisk hiring in the AprilJune quar ter, India topping the 36 countries sur veyed.
The number of organized temporary jobs is estimated to grow 18% quarter onquarter in the first three months of fiscal 201011, up from a 1114% rise in the JanuaryMarch period, says staff ing firm Teamlease Services Pvt. Ltd's survey released on Wednesday.
The Teamlease Annual Temp Salary Primer 2010 predicts wage increases of 7.2515% in the coming fiscal year, up from an average increase of 5.25% in 200910.
Nearly a million jobs to be created in 2010-11
India would see nearly a million jobs created in 2010-11, 35% more than in the current fiscal year, says a survey by human resources firm Ma Foi Man agement Consultants Ltd.
The annual Ma Foi Employment Trends Survey, released on Wednes day, predicts healthcare and pharma firms would lead the hiring, adding 295,000 jobs to their existing work force of 3.37 million.
The hospitality and travel sector would add 137,000 jobs to an employ ee base of nearly six million, followed by real estate and construction that would add 136,000 people to its work force of 730,000, the survey esti mates. The information technology (IT) and information technologyena bled services (ITeS) sector is seen add ing only 97,000 jobs to its base of 1.8 million.
Ma Foi, a unit of Dutch human resources firm Randstad Holding NV, surveyed chief executives or human resources heads at 1,000 companies across sectors in India.
Hiring, however, will gain traction only in the second quarter of 201011 as companies are still cautious about the economic recovery, said E. Balaji, chief executive of the Indian arm of Ma Foi.
India's economy is estimated to grow at 7.2% in 200910 and at 8.5% in 201011. It grew at 6.8% in 200809.
"Companies will pick up in hiring in MayJune. People will wait to see the first quarter performance," said Mad havi Lall, human resources head for India and South Asia at British bank Standard Chartered Plc.
The bank plans to add 2,500 people in India in 2010, on a par with its addi tions in 2009.
Sectors such as education, training and consultancy are expected to add 83,000 jobs in 201011, followed by manufacturing with 68,000, banking, financial services and insurance with 46,000, transport, storage and com munication with 27,000, energy gener ation and supply with 15,000, and trade with 13,000, as per the survey.
On Tuesday, Manpower Inc. fore cast brisk hiring in the AprilJune quar ter, India topping the 36 countries sur veyed.
The number of organized temporary jobs is estimated to grow 18% quarter onquarter in the first three months of fiscal 201011, up from a 1114% rise in the JanuaryMarch period, says staff ing firm Teamlease Services Pvt. Ltd's survey released on Wednesday.
The Teamlease Annual Temp Salary Primer 2010 predicts wage increases of 7.2515% in the coming fiscal year, up from an average increase of 5.25% in 200910.
India regains favor with upscale travelers
Sikkim Favoured destination
By Harpreet Kaur
March 10, 2010, (Sawf News) - India, Vietnam and Cuba are emerging as the favored destinations for upscale travelers, according to a new report.
Rounding out the top emerging-destination are the Galapagos Islands, China and Chile.
The 2010 Virtuoso Luxe Report, released on March 8, was compiled using feedback from a network of travel providers and advisors and reflects booking trends.
The India Experience
The impetus to travel to India comes as much from its booming economy - back to a high growth trajectory after having taken the worldwide recession in its stride - as the mystic charm of its ancient civilization.
India isn't perceived to be in the safest corner of the world, which can be a dampener for those who don't realize it's a vibrant democracy where the rule of the law is as much a fact of life as the widespread corruption in government offices.
India presents a unique experience for traveler because of its diversity - the people, culture, and language changes every 100 kilometers - bringing a varied experience not felt or seen anywhere else in the world.
The diversity will engage the traveler as well as startle her into incredulity. India is filled with mountains, hills, forests, desert, beaches, flora, fauna and wild animals, not to mention 1.2 billion people of differing religion and culture. There is something here for every traveler.
Favored destinations in the country include beaches, holy places, historical sites, adventure sports and desert cities. Goa, Kerala, Rajasthan, Delhi, Himachal Pradesh, Sikkim and Uttar Pradesh are the states that attract most of the travelers.
The Indian tourism industry in on an upswing after a dismal 2009. In just one month, February 2010, the industry has grown 9.9% against a negative growth during 2009.
Nearly 1.1 million foreign travelers arrived in India in January-February 2010, an upswing of 12.7% over the previous year.
The downswing came mostly because of terrorist threats to many of the major cities and tourists destinations in India. The Indian government has spruced up security and people are once again on the move.
However, travelers are advised to avoid places with ongoing law and order problems. India has grown conscious to the individual traveler's security and keeps consulates and traveler's updated on events and happenings.
The country has good connectivity with cellular coverage that extends even to adventure destination.
Cyber cafes abound allowing you to keep in touch with family and friends 24/7.
India is a conservative society so avoid bringing undue attention upon yourself. Adopt a dress code that is appropriate to your location. Within high end hotels, the country is no different from any western county.
Follow simple rules like covering up in holy places, not traveling alone to remote destinations, travel with a companion whom you are familiar with, check the credentials of the person you are taking on as a guide, exchange money at legitimate and government approved organizations or banks works wonders in securing the traveler.
Do look up the Indian guidelines provided by travel websites and guidebooks for your safety.
Sikkim Favoured destination
By Harpreet Kaur
March 10, 2010, (Sawf News) - India, Vietnam and Cuba are emerging as the favored destinations for upscale travelers, according to a new report.
Rounding out the top emerging-destination are the Galapagos Islands, China and Chile.
The 2010 Virtuoso Luxe Report, released on March 8, was compiled using feedback from a network of travel providers and advisors and reflects booking trends.
The India Experience
The impetus to travel to India comes as much from its booming economy - back to a high growth trajectory after having taken the worldwide recession in its stride - as the mystic charm of its ancient civilization.
India isn't perceived to be in the safest corner of the world, which can be a dampener for those who don't realize it's a vibrant democracy where the rule of the law is as much a fact of life as the widespread corruption in government offices.
India presents a unique experience for traveler because of its diversity - the people, culture, and language changes every 100 kilometers - bringing a varied experience not felt or seen anywhere else in the world.
The diversity will engage the traveler as well as startle her into incredulity. India is filled with mountains, hills, forests, desert, beaches, flora, fauna and wild animals, not to mention 1.2 billion people of differing religion and culture. There is something here for every traveler.
Favored destinations in the country include beaches, holy places, historical sites, adventure sports and desert cities. Goa, Kerala, Rajasthan, Delhi, Himachal Pradesh, Sikkim and Uttar Pradesh are the states that attract most of the travelers.
The Indian tourism industry in on an upswing after a dismal 2009. In just one month, February 2010, the industry has grown 9.9% against a negative growth during 2009.
Nearly 1.1 million foreign travelers arrived in India in January-February 2010, an upswing of 12.7% over the previous year.
The downswing came mostly because of terrorist threats to many of the major cities and tourists destinations in India. The Indian government has spruced up security and people are once again on the move.
However, travelers are advised to avoid places with ongoing law and order problems. India has grown conscious to the individual traveler's security and keeps consulates and traveler's updated on events and happenings.
The country has good connectivity with cellular coverage that extends even to adventure destination.
Cyber cafes abound allowing you to keep in touch with family and friends 24/7.
India is a conservative society so avoid bringing undue attention upon yourself. Adopt a dress code that is appropriate to your location. Within high end hotels, the country is no different from any western county.
Follow simple rules like covering up in holy places, not traveling alone to remote destinations, travel with a companion whom you are familiar with, check the credentials of the person you are taking on as a guide, exchange money at legitimate and government approved organizations or banks works wonders in securing the traveler.
Do look up the Indian guidelines provided by travel websites and guidebooks for your safety.
New pictorial warnings on tobacco products from June 1
Come June 1 and cigarette packets and tobacco products will carry a new set of pictorial health warnings, an NGO said Wednesday.
Binoy Matthew of Voluntary Health Association of India (VHAI), an NGO said: 'The ministry of health and family welfare March 5 notified the new pictorial health warnings which will be implemented on all tobacco products from June 1.'
'Since the news came just a few days before the No Smoking Day, which is today, we are very happy. VHAI had field tested these pictorial warnings in seven states in the country and found them to be most effective,' he told IANS.
The seven states where VHAI tested the pictorial warnings for efficacy were Orissa, Bihar, Arunachal Pradesh, Sikkim, Madhya Pradesh, Kerala and Andhra Pradesh.
'The pictorial warnings on tobacco products were enforced May 31 last year. However they were found to be ineffective. Further the rules mandate that the pictorial warnings should be rotated every 12 months - thus the new warnings which shows a picture of oral cancer, will be implemented in June,' Matthew said.
source: IANS
Come June 1 and cigarette packets and tobacco products will carry a new set of pictorial health warnings, an NGO said Wednesday.
Binoy Matthew of Voluntary Health Association of India (VHAI), an NGO said: 'The ministry of health and family welfare March 5 notified the new pictorial health warnings which will be implemented on all tobacco products from June 1.'
'Since the news came just a few days before the No Smoking Day, which is today, we are very happy. VHAI had field tested these pictorial warnings in seven states in the country and found them to be most effective,' he told IANS.
The seven states where VHAI tested the pictorial warnings for efficacy were Orissa, Bihar, Arunachal Pradesh, Sikkim, Madhya Pradesh, Kerala and Andhra Pradesh.
'The pictorial warnings on tobacco products were enforced May 31 last year. However they were found to be ineffective. Further the rules mandate that the pictorial warnings should be rotated every 12 months - thus the new warnings which shows a picture of oral cancer, will be implemented in June,' Matthew said.
source: IANS
Sikkim to be included in Brahmaputra Board
--------------------------------------------------------------------------------
15:21 IST
LOK SABHA
Government proposes to restructure the Brahmaputra Board by way of brining an amendment in the existing Brahmaputra Board Act, 1980. The proposed Board shall consist of the following members, namely:
(i) a Chairman, three Chief Engineers, one Director, North Eastern Hydraulic and Allied Research Institute (NEHARI), Secretary of the Board and the Financial Advisor to the Board.
(ii) a member each to represent respectively the Governments of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and West Bengal and member from North-Eastern Council.
(iii) a member each to represent the Ministries of Agriculture, Water Resources, Shipping, Finance, Power, Road Transport & Highways, Development of North Eastern Region.
This information was given by the Minister of State for Water Resources, Shri Vincent H. Pala in a written reply in the Lok Sabha today.
SK/RS
--------------------------------------------------------------------------------
15:21 IST
LOK SABHA
Government proposes to restructure the Brahmaputra Board by way of brining an amendment in the existing Brahmaputra Board Act, 1980. The proposed Board shall consist of the following members, namely:
(i) a Chairman, three Chief Engineers, one Director, North Eastern Hydraulic and Allied Research Institute (NEHARI), Secretary of the Board and the Financial Advisor to the Board.
(ii) a member each to represent respectively the Governments of Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and West Bengal and member from North-Eastern Council.
(iii) a member each to represent the Ministries of Agriculture, Water Resources, Shipping, Finance, Power, Road Transport & Highways, Development of North Eastern Region.
This information was given by the Minister of State for Water Resources, Shri Vincent H. Pala in a written reply in the Lok Sabha today.
SK/RS
Wednesday, March 10, 2010
EXHIBITION OF INNOVATION IN NEW DELHI
13:19 IST
The President of India, Smt. Pratibha Devisingh Patil inaugurated an ‘Exhibition of Innovations’ in the President’s Estate of Rashtrapati Bhavan today. This is perhaps the first time ever that a Head of State anywhere, has hosted an exhibition of innovations. The showcasing of this exhibition is in consonance with the vision of the President and inspiration received by the nation, following the declaration of this decade as the ‘Decade of Innovation’. The President feels that the ‘business as usual’ approach will not do and there is a need for focusing on new ways of doing things in this decade. The event is therefore a lead taken by Rashtrapati Bhavan in this direction. The exhibition places before the public, innovations principally from grassroots innovators from unorganized sectors. The Exhibition will be open for viewing to the public from March 10 to 14 from 1000 hrs to 1700 hrs. Entry would be from Gate No. 35 of Rashtrapati Bhavan, situated near North Avenue.
The President took a look at the various innovations on display and interacted with the innovators. She was keen that the exhibits should not remain merely displays, but efforts should be made to take the next steps forward. This would involve helping the innovators link-up with industry and marketing agencies to fine tune their creations and then bring their products into the market. If found necessary the President’s Secretariat would assist by asking the Ministry of Micro, Small and Medium Enterprises, to help wherever required.
The principal objective of this event is to promote the innovative spirit and knowledge, encourage grassroots innovators and follow-up the process by bringing industry and manufacturers together to make the new products available for larger number of people for the good of society. This also is in consonance with the need for inclusive growth.
The principal theme of the exhibition is innovations which impact agricultural production and related fields. It is hoped that some of the innovations on display may be able, through this opportunity, to move forward on the road for learning and commercialization of the concepts and products.
The exhibition has participation from 32 innovators from around the country, with 36 innovations and products showcased. These include 9 new plant varieties, 3 innovations by students, 14 related to the agriculture and farming sectors and four energy and environment related exhibits.
The National Innovation Foundation (NIF) whose function the President attended in November 2009 and the Indian Agricultural Research Institute (IARI) are participating in this exhibition. The Minister of State for Agriculture, Prof. K.V. Thomas was also present.
*********
13:19 IST
The President of India, Smt. Pratibha Devisingh Patil inaugurated an ‘Exhibition of Innovations’ in the President’s Estate of Rashtrapati Bhavan today. This is perhaps the first time ever that a Head of State anywhere, has hosted an exhibition of innovations. The showcasing of this exhibition is in consonance with the vision of the President and inspiration received by the nation, following the declaration of this decade as the ‘Decade of Innovation’. The President feels that the ‘business as usual’ approach will not do and there is a need for focusing on new ways of doing things in this decade. The event is therefore a lead taken by Rashtrapati Bhavan in this direction. The exhibition places before the public, innovations principally from grassroots innovators from unorganized sectors. The Exhibition will be open for viewing to the public from March 10 to 14 from 1000 hrs to 1700 hrs. Entry would be from Gate No. 35 of Rashtrapati Bhavan, situated near North Avenue.
The President took a look at the various innovations on display and interacted with the innovators. She was keen that the exhibits should not remain merely displays, but efforts should be made to take the next steps forward. This would involve helping the innovators link-up with industry and marketing agencies to fine tune their creations and then bring their products into the market. If found necessary the President’s Secretariat would assist by asking the Ministry of Micro, Small and Medium Enterprises, to help wherever required.
The principal objective of this event is to promote the innovative spirit and knowledge, encourage grassroots innovators and follow-up the process by bringing industry and manufacturers together to make the new products available for larger number of people for the good of society. This also is in consonance with the need for inclusive growth.
The principal theme of the exhibition is innovations which impact agricultural production and related fields. It is hoped that some of the innovations on display may be able, through this opportunity, to move forward on the road for learning and commercialization of the concepts and products.
The exhibition has participation from 32 innovators from around the country, with 36 innovations and products showcased. These include 9 new plant varieties, 3 innovations by students, 14 related to the agriculture and farming sectors and four energy and environment related exhibits.
The National Innovation Foundation (NIF) whose function the President attended in November 2009 and the Indian Agricultural Research Institute (IARI) are participating in this exhibition. The Minister of State for Agriculture, Prof. K.V. Thomas was also present.
*********
Stem cell treatment offers potential cure for age-related illnesses
Emeritus Professor of Tamilnadu Dr.MGR Medical University J.G.Kannappan interacting with students at an awareness programme on ‘Stem cell’ in Chennai
Stem cell treatment offers the greatest potential of a cure for many age-related illnesses. Right now, doctors are struggling to find practical applications of technology that has been proven in laboratory settings, said S.Natarajan, Chairman and Managing Director, Aditya Jyot Eye Hospital.
Pointing out that stem cells, which are present in large numbers in the foetal cell, can give rise to 250 types of specialised cells in the body, Dr.Natarajan said “It is therapeutic cell which can be used to replace tissues/organs and to repair damaged or defective cells.”
He was speaking here on Tuesday at the inauguration of a four-day awareness programme on ‘Stem cell' organised at Science City, Periyar Science and Technology Campus. Postgraduate students from various streams like biochemistry, microbiology and molecular biology took part in the event.
Foetal stem cells can be transplanted to repair or rejuvenate tissue in a recipient without rejection within the first 12 weeks and they can also be used for cloning using techniques such as somatic cell nucleus transfer, he said.
The theme of the workshop was to expose students to research potential in the emerging field. The four- day event will cover stem cell techniques, harvesting and banking, transplantation mechanisms and field visits.
“The body has its own repair mechanisms and we are just learning to tap into nature's gift,” said J.G.Kannappan, emeritus professor, Tamilnadu Dr.MGR Medical University. “Our red blood cells are replaced every six weeks. If we can understand nature's processes, we might be able to find cures for diseases such as diabetes or Alzheimer's.”
While the field has a lot of potential, “pressing ethical issues need to be addressed while moving forward,” Dr.Kannappan said. Stem cell technology can lead to designer human beings and human tissue might be used for merchandising. Regulations have to come in now before widespread use of the technology takes off, he added.
SOURCE: THE HINDU
Emeritus Professor of Tamilnadu Dr.MGR Medical University J.G.Kannappan interacting with students at an awareness programme on ‘Stem cell’ in Chennai
Stem cell treatment offers the greatest potential of a cure for many age-related illnesses. Right now, doctors are struggling to find practical applications of technology that has been proven in laboratory settings, said S.Natarajan, Chairman and Managing Director, Aditya Jyot Eye Hospital.
Pointing out that stem cells, which are present in large numbers in the foetal cell, can give rise to 250 types of specialised cells in the body, Dr.Natarajan said “It is therapeutic cell which can be used to replace tissues/organs and to repair damaged or defective cells.”
He was speaking here on Tuesday at the inauguration of a four-day awareness programme on ‘Stem cell' organised at Science City, Periyar Science and Technology Campus. Postgraduate students from various streams like biochemistry, microbiology and molecular biology took part in the event.
Foetal stem cells can be transplanted to repair or rejuvenate tissue in a recipient without rejection within the first 12 weeks and they can also be used for cloning using techniques such as somatic cell nucleus transfer, he said.
The theme of the workshop was to expose students to research potential in the emerging field. The four- day event will cover stem cell techniques, harvesting and banking, transplantation mechanisms and field visits.
“The body has its own repair mechanisms and we are just learning to tap into nature's gift,” said J.G.Kannappan, emeritus professor, Tamilnadu Dr.MGR Medical University. “Our red blood cells are replaced every six weeks. If we can understand nature's processes, we might be able to find cures for diseases such as diabetes or Alzheimer's.”
While the field has a lot of potential, “pressing ethical issues need to be addressed while moving forward,” Dr.Kannappan said. Stem cell technology can lead to designer human beings and human tissue might be used for merchandising. Regulations have to come in now before widespread use of the technology takes off, he added.
SOURCE: THE HINDU
Emissions: China joins India on scrutiny
Ananth Krishnan
AP China's top climate change negotiator Xie Zhenhua, left, Wang Guangtao, center, Chairman of the Environment Protection and Resources Conservation Committee of the National People's Congress and Zhang Lijun, right, Vice Minister of Environmental Protection, at a press conference in Beijing on Wednesday.
China supports India in opposing any international “scrutiny” of voluntary actions to reduce greenhouse gas emissions, said the country's top climate change negotiator on Wednesday.
China also sought to continue and expand cooperation with India as negotiations between the developing world and the West headed towards the climate change conference in Mexico later this year, said Xie Zhenhua, vice-chairman of the National Development and Reform Commission and one of China's lead negotiators at December's Copenhagen conference.
“China and India have a common position on major issues on climate change and we are willing to step up cooperation in forestry, energy efficiency and renewable energy,” he said. “We face common challenges, such as the task of developing our economy, eliminating poverty, improving people's livelihood, reducing emissions and protecting the environment.”
On Wednesday, Mr. Xie also lent support to India's opposition to any international scrutiny of voluntary actions to reduce emissions, which the United States and some European countries are calling for. That, Mr. Xie said, was out of the question, being “an issue of sovereignty”.
“Autonomous efforts must not be subject to MRV [Measurement, Reporting and Verification],” he stressed.
He, however, added that China had agreed to “verification that is non-intrusive” in the interest of advancing negotiations at Copenhagen, and to “reduce mistrust” with the West.
While China and India had initially been opposed to any MRV of voluntary projects, they had agreed to “consultations and analysis” in the negotiations but not to “scrutiny”.
Developed countries, Mr. Xie said, “should be subject to MRV in emission reductions and also in providing technological, financial and capacity building support to developing countries”.
The question of international scrutiny of developing countries' mitigation actions remains a crucial sticking point in talks between the West and the developing world. In its submission to the United Nations Framework Convention on Climate Change (UNFCCC) last month, the U.S. reiterated its call for “scrutiny” of voluntary actions, though it later changed its position following opposition from India, as The Hindu first reported on February 28.
China and India this week formally “listed” their names as parties to the Copenhagen accord, though many differences still remain in the positions of developing countries and the West.
Mr. Xie called on the U.S. to help bridge the gap and work towards an agreement in Mexico.
He said the U.S “should do more in terms of providing technology and capacity building support”, and its commitments “fell short of UNFCCC requirements and expectations of developing countries”.
“We hope the U.S. will not shift responsibility to other countries,” Mr. Xie added.
SOURCE: THE HINDU
Ananth Krishnan
AP China's top climate change negotiator Xie Zhenhua, left, Wang Guangtao, center, Chairman of the Environment Protection and Resources Conservation Committee of the National People's Congress and Zhang Lijun, right, Vice Minister of Environmental Protection, at a press conference in Beijing on Wednesday.
China supports India in opposing any international “scrutiny” of voluntary actions to reduce greenhouse gas emissions, said the country's top climate change negotiator on Wednesday.
China also sought to continue and expand cooperation with India as negotiations between the developing world and the West headed towards the climate change conference in Mexico later this year, said Xie Zhenhua, vice-chairman of the National Development and Reform Commission and one of China's lead negotiators at December's Copenhagen conference.
“China and India have a common position on major issues on climate change and we are willing to step up cooperation in forestry, energy efficiency and renewable energy,” he said. “We face common challenges, such as the task of developing our economy, eliminating poverty, improving people's livelihood, reducing emissions and protecting the environment.”
On Wednesday, Mr. Xie also lent support to India's opposition to any international scrutiny of voluntary actions to reduce emissions, which the United States and some European countries are calling for. That, Mr. Xie said, was out of the question, being “an issue of sovereignty”.
“Autonomous efforts must not be subject to MRV [Measurement, Reporting and Verification],” he stressed.
He, however, added that China had agreed to “verification that is non-intrusive” in the interest of advancing negotiations at Copenhagen, and to “reduce mistrust” with the West.
While China and India had initially been opposed to any MRV of voluntary projects, they had agreed to “consultations and analysis” in the negotiations but not to “scrutiny”.
Developed countries, Mr. Xie said, “should be subject to MRV in emission reductions and also in providing technological, financial and capacity building support to developing countries”.
The question of international scrutiny of developing countries' mitigation actions remains a crucial sticking point in talks between the West and the developing world. In its submission to the United Nations Framework Convention on Climate Change (UNFCCC) last month, the U.S. reiterated its call for “scrutiny” of voluntary actions, though it later changed its position following opposition from India, as The Hindu first reported on February 28.
China and India this week formally “listed” their names as parties to the Copenhagen accord, though many differences still remain in the positions of developing countries and the West.
Mr. Xie called on the U.S. to help bridge the gap and work towards an agreement in Mexico.
He said the U.S “should do more in terms of providing technology and capacity building support”, and its commitments “fell short of UNFCCC requirements and expectations of developing countries”.
“We hope the U.S. will not shift responsibility to other countries,” Mr. Xie added.
SOURCE: THE HINDU
RENTING AND SERVICE TAX
Service tax on renting of immovable property
S Madhavan / New Delhi April 27, 2009, 0:23 IST
In a recent landmark judgement, in Home Solution Retail India Ltd. & Others vs. UOI & Others, the Delhi High Court has pronounced its judgement with regard to several writ petitions which had challenged the applicability of the levy of service tax on renting of immovable property.
The High Court has held that the taxable service in respect of renting of immovable property, as defined under the relevant Section 65(105)(zzzz) of the Finance Act 1994 thereof, was with regard to any service in relation to renting of property and was not on the renting of immovable property as such.
Consequently, the High Court has held that the levy of service tax on the renting of immovable property itself, in terms of the relevant notification issued consequent to the introduction of the taxable service, was ultra vires the provisions of the Act.
In arriving at its decision, the court has relied on the wordings of the particular taxable service in order to hold that since the activity of renting of immovable property was itself not a service, the expression ‘service in relation to renting of immovable property’, occurring in the definition of the taxable service, can only extend to services which are provided in relation to the renting of immovable property.
Accordingly, the Court distinguished the particular definition of service in relation to renting of immovable property from several other definitions in service tax law which were similarly worded and held that in those other definitions, the expression ‘in relation to’ itself referred to a service and consequently not only was the core service taxable but also the allied and ancillary services in relation thereto were also taxable.
The court illustrated this distinction by referring to the taxable service of dry cleaning where the expression was a service in relation to dry cleaning and held the activity of dry cleaning was itself also a service which was taxable therein. As opposed to this situation, the taxable service provided by a real estate agent, for instance, was a service in relation to real estate and since real estate was not a service, the definition could only extend to services in relation thereto.
On a similar analogy, the court came to the conclusion that in the present case, the renting of immovable property could not be construed as a service by itself and hence the taxable service in question could only extend to services in relation to renting of immovable property and not to the activity of renting itself.
In arriving at the aforesaid finding, the court has relied on the decision of the Supreme Court in T N Kalyana Mandapam Association Vs. UOI (2004) 5 SCC 632) which, interestingly enough, was relied upon both by the appellants, who had challenged the legality of the levy, as well as by the respondents i.e. Government of India. Based on a detailed consideration of the aforesaid judgement, the Delhi High Court has come to a determination that the decision of the Supreme Court supported the argument of the appellants and not that of the respondents.
With regard to the nature of the service tax itself, the High Court has held that it is a value added tax and the tax is a tax on value addition done by the service provider and it must have a connection with the service. Consequently, since the mere renting of immovable property does not entail any value addition, it could not be regarded as a service for that reason as well.
Here again, the High Court has relied upon another decision of the Supreme Court, in All India Federation of Chartered Accountants Vs. UOI (2007) 7 SCC 527), which had held that just as excise duty was a tax on value addition in regard to goods, the service tax was a tax on value addition by rendition of services.
Accordingly, the Supreme Court, in that case, had distinguished property-based services and performance-based services and had arrived at a conclusion that the expression ‘in relation’, occurring in the various relevant definitions, needed to be construed in accordance with this principle of value addition.
The High Court h as, relying on the above decision, consequently come to the conclusion that the levy of service tax on the activity of renting of immovable property was ultra vires the relevant definition of the taxable service, as contained in the Finance Act, 1994.
While upholding the arguments contained in the writ petitions in regard to the above points, the High Court has held that it has therefore not been required to examine the alternate argument as contained in the petitions that the relevant definition, should it be construed as applicable to the activity of renting of immovable property as well, would be violative of the Constitution of India in that the Central Government could not, in terms thereof, impose a tax on land, as it was a State subject.
Hence, the decision is limited to the point that the taxable service as understood and interpreted through the relevant impugned notification and hence the tax so collected, was not in accordance with the statute and hence without basis in law and the decision is not with regard to whether or not the definition of taxable service itself is unconstitutional.
This judgement is applicable on an all India basis, as it is on a point of legality, and would have far reaching consequences for all and in particular for those who carry on business in rented premises and who do not have an output excise or a service tax liability so as to be able to offset this tax on rentals. The Retail Sector is thus a very major beneficiary, as the service tax on rentals is a very significant unrecovered tax cost for the sector. Further, the judgement has ramifications with regard to other taxable services as well since these are also similarly worded.
The Central Government is almost certain to file an appeal against the aforesaid judgement with the Supreme Court. It remains to be seen whether it will request a stay of the judgment in the interim and whether such a request would be granted. It is also possible that the Government may consider amending the provisions of the Finance Act, 1994, possibly with retrospective effect, in order to overcome the above judgement of the Delhi High Court. The picture will become clear in this regard in the near future.
However, until such time as these eventualities do not occur, taxpayers can take effective steps to avail the benefit of non payment of service tax on renting of immovable property. Several issues such as discontinuance of payment of tax for future period, filing of refund claims for past taxes paid on such rentals, for the period of one year and beyond, availment of CENVAT credits on such taxes, payment of such taxes to the Government, if already collected as such, the person entitled to file such claims will need to be addressed in detail, in order for the benefits to flow to tax payers.
The author is leader, indirect tax practice, PricewaterhouseCoopers
pwctls.nd@in.pwc.com
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Renting of immovable property & service tax
JOINTLY OWNED PROPERTY: - ELIGIBILITY FOR EXEMPTION SCHEME
CA SUDHIR HALAKHANDI
The article was written by CA Sudhir Halakhandi in 2007 and it is a published article in journal- CA SUDHIR HALAKHANDI
Renting of immovable property for commercial purpose has been made taxable service w.e.f. 1st. June 2007 but since the threshold limit has been increased from Rs.4 lakhs to Rs. 8 lakhs hence the small property holders are not affected by this levy. The service tax is payable @ 12.36 percent including education cess and Senior and Higher education cess.
Some of the properties are jointly owned by more than one person with their determined share of ownership and if the total rent received from the jointly owned property exceeds Rs. 8 Lakhs than there is confusion about claim of exemption as per Notification 6/2005 – ST dated 1-3-2005 available to the small service providers. Let us try to understand this problem with the help of an example: -
One commercial property is owned by A and B. The total rent for the property for a financial year is Rs. 15 lakhs. Out of this Rs. 7.50 Lakhs is received by A and B respectively . Suppose this is the total rent due and received for the period for which the service is taxable in the Financial Year 2007-08. Now what is the tax liability for the Financial year 2007-08 and what will be the status of the Service provider for the Financial year 2008-09 with respect to Exemption scheme as provided in Notification No. 6/2005- ST dated 1-3-2005.
There are two totally different views on this problem.
One view is very simple that since the rent received is more than Rs.8 Lakhs hence the service in the first year will be taxable over this amount of Rs. 8 lakhs and since the collection is Rs. 15 lakhs hence service tax is payable on Rs.7 Lakhs in the Financial year 2007-08 and since the services rendered during the Financial year 2007-08 is more than Rs. 8 lakhs hence exemption on first collection of Rs. 8 Lakhs will not be available for the Financial year 2008-09. Here the joint ownership has been disregarded while considering the provision of service and calculating the exemption limit.
For the revenue point of view this version is beneficial and will result in more revenue.
But there is one more angle to this problem and according to this since two owners own the property hence both are service providers providing the service individually and can claim exemption individually and in that case the individual exemption up to Rs. 8 lakhs can be claimed. Let us study this angle of the problem for the benefit of joint owners of the property.
The exemption is service provider based exemption
The exemption as mentioned in the Notification No.6/2005 – ST dated 1-3-2005 is a service provider based exemption and this is available on the taxable service or services provided from one or more premises by a service provider. The eligibility to the exemption scheme is also supporting this view and let us see the particular clause in this respect: -
The aggregate value of taxable service rendered by a provider of taxable service from one or more premises, does not exceed Rs. Eight Lakh in the preceding financial year.
Hence it is clear from the exemption scheme as provided in Notification No.6/2005-ST dated 1-3-2005 that the Exemption scheme is based on service provider and not based on the service receiver or individual service. Hence both the joint owners can claim exemption Individually and separately.
Here see the side effects of the Service provider based exemption scheme: -
Mr. Ray, an Individual owning 10 Shops in a complex and the rent of per shop is Rs. 10000.00 per Month received by him from different shop keepers hence the total rent received is 10x12x Rs.10000.00= Rs. 1200000.00. Here the exemption as provided by Notification 6/2005- ST dated 1-3-2005 is not available because the rent received has crossed the basic exemption Limit of Rs.8 Lakhs. Since service tax is an indirect tax and it’s ultimate burden has to be born by the service receiver and here the service receiver is tenant hence a person i.e. small shop keeper paying Rs.10000.00 per Month as rent may have to pay service tax under these circumstances only for the reason that the total receipt of his landlord is higher than the exemption limit.
Mr. Sahay, a another Individual having a big showroom place and receiving rent of Rs. 50000.00 per Month from “Footstep trading company” and does not own any other property given on rent for use in the course or furtherance of Business or commerce. Here the total rent received is Rs. 600000.00 and since it is less than Rs. 8 lakhs hence no service tax is payable.
Here see the effect that a small shop keeper paying small rent as Rs.10000.00 per month has to pay service tax but a big showroom owner paying rent as much as Rs. 50000.00 per month is not required to pay any service tax.
Renting of joint property is a service provided by two joint owners individually
If a jointly owned property is given on rent for commercial purpose then it is the service, which is provided individually by both the joint owners because in case of renting of property nothing has to be done except for renting the property and this is the service as per the fiction of the law then the service is provided by both the joint owners individually. If there are more than two joint owners then it can safely be said all the joint owners are separate service providers and in that case all the joint owners can claim separate exemption.
In the particular case mentioned above the rent received by A is Rs. 7.50 lakhs only hence he can claim the exemption from payment of service and on the same basis the other joint owner B can also claim exemption from the payment of service Tax.
In such a case since the value of service provided is more than Rs. 7 lakhs hence both these joint owners will require their separate registration as per the requirement of the Service Tax (Registration of Special category of persons) Rules 2005.
Since in the true sense “Renting of immovable property” can not be equated with the provision of any service and it is only due to a fiction created by our law makers the renting is equated to provision of a service hence made taxable and in that case the law makers should come forward with a suitable clarification in this respect to end this controversy to avoid confusion about the payment of service tax in this respect.
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1 BACKGROUNDBy the Finance Act 2007, Central Government has extended the levy of service tax on renting of property also with effect from 1.06.2007. Renting of immovable property for use in the course or furtherance of business or commerce is taxable under section 65(105)(zzzz) of the Finance Act 1994. Renting includes letting, leasing, licensing or other similar arrangement. For the purposes of this clause, “for use in the course or furtherance of business or commerce” includes use of immovable property as factories, office buildings, warehouses, theatres, exhibition halls and multiple-use buildings. Some residential and other properties are excluded from the scope of this service. Further Notification No.24/2007-Service Tax, dated 22.05.07 exempts taxable service provided by any person in relation to renting of immovable property from service tax equivalent to service tax payable on the amount of property tax, actually paid by the service provider to the local authority. In other words, service tax is payable on the rental amount received less the actual amount of property tax paid. However, any amount such as interest, penalty paid to the local authority by the service provider on account of delayed payment of property tax or any other reasons can not be treated as property tax for the purpose of this exemption and hence, deduction of such amount from the gross amount charged shall not be allowed.
While the dispute on propriety of the levy of service tax by the central government was yet to be decided by the appropriate courts, the government issued a clarification stating that service tax paid on input services in the nature of construction service or work contract service that are used in construction of an immovable property, which is meant to be rented or leased, will not be eligible for CENVAT credit for those who provide renting of immovable property service.Finance Act, 2008 has inserted an explanation to the definition of immovable property to clarify that renting of immovable property shall include allowing or permitting the use of space in an immovable property, irrespective of the transfer of possession or control of such immovable property. The explanation states that the amendment is for removal of doubts. Ministry of Finance had vide Circular No. DOF 334/1/2008-TRU dated 29.2.2008 clarified as under -"Use of immovable property is allowed for placing vending/dispensing machines in malls and other commercial premises and erection of communication towers on buildings. In such cases, there may or may not be transfer of right of possession or control of the immovable property in favour of the person using such property.”The constitutional validity of the levy of service tax on rentals on such immovable property is doubtful. Mere renting of office space does not involve any service. Many association and individuals have filed writs petitions before different High Courts across India. Now the matter is before Supreme Court, but the some High Courts have stayed the recovery of Service Tax till final decision by the Supreme Court.2 DECISION OF BOMBAY HIGH COURT IN THE CASE OF RETAILERS ASSOCIATION OF INDIA V. UNION OF INDIA[2008] 16 STT 127 (BOM.)Assessee was an association of retailers. In respect of let out premises of members of assessee-association, revenue demanded service tax in category of ‘Renting of immovable property service’. Tribunal confirmed said demand, against which assessee filed writ petition. During pendency of writ petition, revenue moved Supreme Court for transferring these matters to Supreme Court for hearing and, therefore, High Court could not take up matter for final hearing. It was found that few High Courts had granted interim relief to respective assessees in relation to said statutory provision. Such interim relief directed members of assessee to file an undertaking in High Court stating that in event challenge was disallowed, they would make payment of service tax due and payable in accordance with legal provisions and further, that they would not be entitled to transfer their interest in property in relation to which demand of service tax was made, without first giving two weeks prior notice to revenue about their intention to transfer interest and nature of transfer. It was further directed that in case such undertaking is given, the person who is submitting the undertaking shall not be entitled to transfer his interest in the property in relation to which the demand of service tax is made without first giving two weeks prior notice of his intention to transfer his interest and the nature of the transfer to the respondents. In case within the period of two weeks, objection is raised on behalf of the respondents to the proposed creation or transfer of interest, then no interest will be created or transferred without seeking leave of the Court. It goes without saying that if the objection is not raised within the period of two weeks, the person shall be free to create or transfer proposed interest in the property.On the undertaking mentioned above, being filed by the members of the petitioners, The High Court directed that no coercive steps shall be taken by the respondent for recovery of service tax in respect of the premise of such members of the petitioners.
3 DECISION OF DELHI HIGH COURT IN THE CASE OF HOME SOLUTION RETAIL INDIA LTD. V. UNION OF INDIA[2009] 20 STT 129 (DELHI)To avoid multiplicity of litigation, the Union of India preferred a transfer petition to the Supreme Court of India seeking transfer of all writ petitions pending before different High Courts of India. The Supreme Court directed the same to Delhi High Court for single window adjudication. The Delhi High Court has struck down the levy of service tax on renting of immovable property as "unconstitutional", while deciding 26 writ petitions of different petitioners, by a combined order.In the instant batch of writ petitions, the petitioners, who were either landlords, or tenants in respect of leased premises, had challenged the legality, validity and vires of Notification No. 24/2007, dated 22-5-2007 and Circular No. 98/1/2008 - ST dated 4-1-2008 issued by the department of revenue. The said notification dated 22-5-2007 is an exemption notification by virtue of which the Central Government exempted the ‘taxable service of renting of immovable property’, referred to in sub-clause (zzzz) of clause (105) of section 65 from so much of the service tax levy as was in excess of service tax calculated on a value which is equivalent to the gross amount charged for renting of such immovable property less taxes on such property, namely, property tax levied or collected by local bodies. It was the petitioners’ contention that while the Act does not treat renting of immovable property as a taxable service, the notification proceeds on the basis that the taxable service is the renting of immovable property itself. Similarly, the impugned circular whilst giving a clarification in respect of commercial and industrial construction service has purported to clarify that the “right to use immovable property is exigible to service tax under the ‘Renting of immovable property service’ ”. Consequently, by the said clarification, the Union of India was seeking to levy service tax on renting of immovable property instead of on services in relation to renting of immovable property. It was further alleged that because of this incorrect interpretation, service tax was sought to be levied on the renting of immovable property as opposed to service tax on a service provided ‘in relation to the renting of immovable property’. Consequently, the said notification and the said circular were sought to be set aside as being ultra vires the said Act.The Delhi High Court held that the Service tax is a value added tax. It is a tax on value addition provided by a service provider. It is obvious that it must have connection with a service and there must be some value addition by that service. If there is no value addition, then there is no service. With this in mind, it would be instructive to anlayse the provisions of section 65(105)(zzzz). It has reference to a service provided or to be provided to any person, by any other person in relation to ‘renting of immovable property for use in the course or furtherance of business or commerce’. The wordings of the provision are so structured as to entail a service provided or to be provided to ‘A’ by ‘B’ in relation to ‘C’. Here, ‘A’ is the recipient of the service, ‘B’ is the service provider and ‘C’ is the subject-matter. The expression ‘in relation to’ may be of widest amplitude, but it has been used in the said Act as per its context. Sometimes, the expression ‘in relation to’ would include the subject-matter following it and on other occasions, it would not. As in the case of service of dry cleaning, the expression ‘in relation to dry cleaning’ also has reference to the very service of dry cleaning. On the other hand, the service referred to in section 65(105)(v), which refers to a service provided by a real estate agent ‘in relation to real estate’, does not, obviously include the subject-matter as a service. This is so because real estate by itself cannot by any stretch of imagination be regarded as a service. Going back to the structured sentence, i.e., - service provided or to be provided to ‘A’ by ‘B’ in relation to ‘C’, it is obvious that ‘C’ can either be a service (such as dry cleaning, hair dressing, etc.) or not a service by itself, such as real estate. The expression ‘in relation to’ would, therefore, have different meanings depending on whether ‘C’ is a service or is not a service. If ‘C’ is a service, then the expression ‘in relation to’ means the service ‘C’ as well as any other service having connection with the service ‘C’. Where ‘C’ is not a service, the expression ‘in relation to’ would have reference only to some service which has a connection with ‘C’. But, this would not imply that ‘C’ itself is a service.The High Court further held that there is no dispute that any service connected with the renting of such immovable property would fall within the ambit of section 65(105)(zzzz) and would be exigible to service tax. The question is whether renting of such immovable property by itself constitutes a service and, thereby, a taxable service. Service tax is a value added tax. It is a tax on the value addition provided by some service provider. Insofar as renting of immovable property for use in the course or furtherance of business or commerce is concerned, any value addition could not be discerned. Consequently, the renting of immovable property for use in the course or furtherance of business or commerce by itself does not entail any value addition and, therefore, cannot be regarded as a service. Of course, if there is some other service, such as air conditioning service provided along with the renting of immovable property, then it would fall within section 65(105)(zzzz)In view of the foregoing discussion, the court held that section 65(105)(zzzz) does not in terms entail that the renting out of immovable property for use in the course or furtherance of business or commerce would by itself constitute a taxable service and be exigible to service tax under the Act. The obvious consequence of this finding is that the interpretation placed by the impugned notification and circular on the said provision was not correct. Consequently, the same were held ultra vires the said Act and to the extent they authorize the levy of service tax on renting of immovable property per se, were set aside.
4 SERVICE TAX DEPARTMENT INSTRUCTION IRK DELHI HIGH COURT [SSIPL RETAIL LTD. V. UOI [2010] 24 STT 571 (DELHI)]Central Government had appealed against the Delhi high court judgment and Supreme Court had admitted the SLP but declined to grant interim stay to the Government (SLP Civil No 13850/2009). During pendency of that SLP, the service tax department official had issued instruction to its officers throughout the country that in view of pendency of SLP, officers should safeguard the revenue by either pursuing the taxpayers to pay the service tax on renting of immovable property or resorting to means under law to protect the revenue. On the basis of such instruction, the officials of the department started sending notices to the petitioners with instructions to start complying with the provisions of the aforesaid notification and circular by paying the requisite service tax. Aggrieved with the orders, again writ petition is filed before the Delhi high court. The Delhi high court held as under:· Even when SLP was pending, the judgment of the High Court held the field and in the absence of any stay, the service tax department was bound to follow the same.· From a perusal of the communications entered by the officials of the department, it was clear that message given was that on account of pendency of the SLP, such persons were under obligation to deposit service tax; so much so that even threat was extended to the extent that failure to comply with the same would leave to initiate the further necessary action against the defaulters.· Even though the judgment of the High Court was challenged by filing the SLP, till the date there was no order passed by the Supreme Court staying the operation of that judgment. In these circumstances, the department could not instruct its officers to pursue matter with taxpayers calling upon them to pay service tax or to resort to other means under law to protect the revenue.· The deparetment had assured that corrective steps would be taken by issuing further instructions, in supersession of earlier instructions, to the officers not to write such letters demanding the payment of service tax or threatening coercive steps. On such assurance, no further orders were required to be passed in the instant petition.
5 BUDGET 2010 PROPOSALS
In the case of Home Solution Retail India Ltd. v. Union of India [2009] 20 STT 129 (DELHI), Delhi High Court held that there is no dispute that any service connected with the renting of immovable property would fall within the ambit of section 65(105)(zzzz) and would be exigible to service tax. But the court also held that section 65(105)(zzzz) does not in terms entail that the renting out of immovable property for use in the course or furtherance of business or commerce would by itself constitute a taxable service and be exigible to service tax under the Act. The obvious consequence of this finding was that the interpretation placed by the CBEC notification and circular on the said provision was held as incorrect but there was no ruling on the constitutionality of provision. Simply, as per high court, the provisions does not entail for service tax on renting of immovable property but services relating to renting etc. and notification providing for levy of service tax on renting was held ultra vires. So, it is provided in the Budget 2010 proposals to amend the relevant provisions itself to override the decision of Delhi high court. Now the renting itself is deemed as taxable services. Further validating provisions has also been proposed under clause 76 to legalise all actions taken under sub-clause (zzzz) of clause (105) of section 65 of the Finance Act, 1994, at any time during the period commencing on and from the 1st day of June, 2007 and ending with the day, the Finance Bill, 2010 receives the assent of the President.ConclusionCentral Government had appealed against the Delhi high court judgment and Supreme Court had admitted the SLP but declined to grant interim stay to the Government (SLP Civil No 13850/2009). The SLP is still pending. In this decision the Delhi High Court had held the circular/notification as ultra vires the said Act (Finance Act, 1994). But it has not been decided whether Central Government has power to levy Service Tax on renting of immovable property. Now the Act is amended. So the question is whether the levy will be constitutional? However, the high court had not decided this issue but the following observations are quite pertinent:“35. From this analysis, it is clear that we have to understand as to whether renting of immovable property for use in the course or furtherance of business or commerce by itself is a service. There is no dispute that any service connected with the renting of such immovable property would fall within the ambit of section 65(105)(zzzz) and would be exigible to service tax. The question is whether renting of such immovable property by itself constitutes a service and, thereby, a taxable service. We have already seen that service tax is a value added tax. It is a tax on the value addition provided by some service provider. Insofar as renting of immovable property for use in the course or furtherance of business or commerce is concerned, we are unable to discern any value addition. Consequently, the renting of immovable property for use in the course or furtherance of business of commerce by itself does not entail any value addition and, therefore, cannot be regarded as a service. Of course, if there is some other service, such as air conditioning service provided alongwith the renting of immovable property, then it would fall within section 65(105)(zzzz).”So as per these observations, it seems that renting cannot be service per se. But the matter is not free from doubt and second stage of litigation is going to start soon after the proposals become operative.
By CA HARIOM Jindal
S Madhavan / New Delhi April 27, 2009, 0:23 IST
In a recent landmark judgement, in Home Solution Retail India Ltd. & Others vs. UOI & Others, the Delhi High Court has pronounced its judgement with regard to several writ petitions which had challenged the applicability of the levy of service tax on renting of immovable property.
The High Court has held that the taxable service in respect of renting of immovable property, as defined under the relevant Section 65(105)(zzzz) of the Finance Act 1994 thereof, was with regard to any service in relation to renting of property and was not on the renting of immovable property as such.
Consequently, the High Court has held that the levy of service tax on the renting of immovable property itself, in terms of the relevant notification issued consequent to the introduction of the taxable service, was ultra vires the provisions of the Act.
In arriving at its decision, the court has relied on the wordings of the particular taxable service in order to hold that since the activity of renting of immovable property was itself not a service, the expression ‘service in relation to renting of immovable property’, occurring in the definition of the taxable service, can only extend to services which are provided in relation to the renting of immovable property.
Accordingly, the Court distinguished the particular definition of service in relation to renting of immovable property from several other definitions in service tax law which were similarly worded and held that in those other definitions, the expression ‘in relation to’ itself referred to a service and consequently not only was the core service taxable but also the allied and ancillary services in relation thereto were also taxable.
The court illustrated this distinction by referring to the taxable service of dry cleaning where the expression was a service in relation to dry cleaning and held the activity of dry cleaning was itself also a service which was taxable therein. As opposed to this situation, the taxable service provided by a real estate agent, for instance, was a service in relation to real estate and since real estate was not a service, the definition could only extend to services in relation thereto.
On a similar analogy, the court came to the conclusion that in the present case, the renting of immovable property could not be construed as a service by itself and hence the taxable service in question could only extend to services in relation to renting of immovable property and not to the activity of renting itself.
In arriving at the aforesaid finding, the court has relied on the decision of the Supreme Court in T N Kalyana Mandapam Association Vs. UOI (2004) 5 SCC 632) which, interestingly enough, was relied upon both by the appellants, who had challenged the legality of the levy, as well as by the respondents i.e. Government of India. Based on a detailed consideration of the aforesaid judgement, the Delhi High Court has come to a determination that the decision of the Supreme Court supported the argument of the appellants and not that of the respondents.
With regard to the nature of the service tax itself, the High Court has held that it is a value added tax and the tax is a tax on value addition done by the service provider and it must have a connection with the service. Consequently, since the mere renting of immovable property does not entail any value addition, it could not be regarded as a service for that reason as well.
Here again, the High Court has relied upon another decision of the Supreme Court, in All India Federation of Chartered Accountants Vs. UOI (2007) 7 SCC 527), which had held that just as excise duty was a tax on value addition in regard to goods, the service tax was a tax on value addition by rendition of services.
Accordingly, the Supreme Court, in that case, had distinguished property-based services and performance-based services and had arrived at a conclusion that the expression ‘in relation’, occurring in the various relevant definitions, needed to be construed in accordance with this principle of value addition.
The High Court h as, relying on the above decision, consequently come to the conclusion that the levy of service tax on the activity of renting of immovable property was ultra vires the relevant definition of the taxable service, as contained in the Finance Act, 1994.
While upholding the arguments contained in the writ petitions in regard to the above points, the High Court has held that it has therefore not been required to examine the alternate argument as contained in the petitions that the relevant definition, should it be construed as applicable to the activity of renting of immovable property as well, would be violative of the Constitution of India in that the Central Government could not, in terms thereof, impose a tax on land, as it was a State subject.
Hence, the decision is limited to the point that the taxable service as understood and interpreted through the relevant impugned notification and hence the tax so collected, was not in accordance with the statute and hence without basis in law and the decision is not with regard to whether or not the definition of taxable service itself is unconstitutional.
This judgement is applicable on an all India basis, as it is on a point of legality, and would have far reaching consequences for all and in particular for those who carry on business in rented premises and who do not have an output excise or a service tax liability so as to be able to offset this tax on rentals. The Retail Sector is thus a very major beneficiary, as the service tax on rentals is a very significant unrecovered tax cost for the sector. Further, the judgement has ramifications with regard to other taxable services as well since these are also similarly worded.
The Central Government is almost certain to file an appeal against the aforesaid judgement with the Supreme Court. It remains to be seen whether it will request a stay of the judgment in the interim and whether such a request would be granted. It is also possible that the Government may consider amending the provisions of the Finance Act, 1994, possibly with retrospective effect, in order to overcome the above judgement of the Delhi High Court. The picture will become clear in this regard in the near future.
However, until such time as these eventualities do not occur, taxpayers can take effective steps to avail the benefit of non payment of service tax on renting of immovable property. Several issues such as discontinuance of payment of tax for future period, filing of refund claims for past taxes paid on such rentals, for the period of one year and beyond, availment of CENVAT credits on such taxes, payment of such taxes to the Government, if already collected as such, the person entitled to file such claims will need to be addressed in detail, in order for the benefits to flow to tax payers.
The author is leader, indirect tax practice, PricewaterhouseCoopers
pwctls.nd@in.pwc.com
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Renting of immovable property & service tax
JOINTLY OWNED PROPERTY: - ELIGIBILITY FOR EXEMPTION SCHEME
CA SUDHIR HALAKHANDI
The article was written by CA Sudhir Halakhandi in 2007 and it is a published article in journal- CA SUDHIR HALAKHANDI
Renting of immovable property for commercial purpose has been made taxable service w.e.f. 1st. June 2007 but since the threshold limit has been increased from Rs.4 lakhs to Rs. 8 lakhs hence the small property holders are not affected by this levy. The service tax is payable @ 12.36 percent including education cess and Senior and Higher education cess.
Some of the properties are jointly owned by more than one person with their determined share of ownership and if the total rent received from the jointly owned property exceeds Rs. 8 Lakhs than there is confusion about claim of exemption as per Notification 6/2005 – ST dated 1-3-2005 available to the small service providers. Let us try to understand this problem with the help of an example: -
One commercial property is owned by A and B. The total rent for the property for a financial year is Rs. 15 lakhs. Out of this Rs. 7.50 Lakhs is received by A and B respectively . Suppose this is the total rent due and received for the period for which the service is taxable in the Financial Year 2007-08. Now what is the tax liability for the Financial year 2007-08 and what will be the status of the Service provider for the Financial year 2008-09 with respect to Exemption scheme as provided in Notification No. 6/2005- ST dated 1-3-2005.
There are two totally different views on this problem.
One view is very simple that since the rent received is more than Rs.8 Lakhs hence the service in the first year will be taxable over this amount of Rs. 8 lakhs and since the collection is Rs. 15 lakhs hence service tax is payable on Rs.7 Lakhs in the Financial year 2007-08 and since the services rendered during the Financial year 2007-08 is more than Rs. 8 lakhs hence exemption on first collection of Rs. 8 Lakhs will not be available for the Financial year 2008-09. Here the joint ownership has been disregarded while considering the provision of service and calculating the exemption limit.
For the revenue point of view this version is beneficial and will result in more revenue.
But there is one more angle to this problem and according to this since two owners own the property hence both are service providers providing the service individually and can claim exemption individually and in that case the individual exemption up to Rs. 8 lakhs can be claimed. Let us study this angle of the problem for the benefit of joint owners of the property.
The exemption is service provider based exemption
The exemption as mentioned in the Notification No.6/2005 – ST dated 1-3-2005 is a service provider based exemption and this is available on the taxable service or services provided from one or more premises by a service provider. The eligibility to the exemption scheme is also supporting this view and let us see the particular clause in this respect: -
The aggregate value of taxable service rendered by a provider of taxable service from one or more premises, does not exceed Rs. Eight Lakh in the preceding financial year.
Hence it is clear from the exemption scheme as provided in Notification No.6/2005-ST dated 1-3-2005 that the Exemption scheme is based on service provider and not based on the service receiver or individual service. Hence both the joint owners can claim exemption Individually and separately.
Here see the side effects of the Service provider based exemption scheme: -
Mr. Ray, an Individual owning 10 Shops in a complex and the rent of per shop is Rs. 10000.00 per Month received by him from different shop keepers hence the total rent received is 10x12x Rs.10000.00= Rs. 1200000.00. Here the exemption as provided by Notification 6/2005- ST dated 1-3-2005 is not available because the rent received has crossed the basic exemption Limit of Rs.8 Lakhs. Since service tax is an indirect tax and it’s ultimate burden has to be born by the service receiver and here the service receiver is tenant hence a person i.e. small shop keeper paying Rs.10000.00 per Month as rent may have to pay service tax under these circumstances only for the reason that the total receipt of his landlord is higher than the exemption limit.
Mr. Sahay, a another Individual having a big showroom place and receiving rent of Rs. 50000.00 per Month from “Footstep trading company” and does not own any other property given on rent for use in the course or furtherance of Business or commerce. Here the total rent received is Rs. 600000.00 and since it is less than Rs. 8 lakhs hence no service tax is payable.
Here see the effect that a small shop keeper paying small rent as Rs.10000.00 per month has to pay service tax but a big showroom owner paying rent as much as Rs. 50000.00 per month is not required to pay any service tax.
Renting of joint property is a service provided by two joint owners individually
If a jointly owned property is given on rent for commercial purpose then it is the service, which is provided individually by both the joint owners because in case of renting of property nothing has to be done except for renting the property and this is the service as per the fiction of the law then the service is provided by both the joint owners individually. If there are more than two joint owners then it can safely be said all the joint owners are separate service providers and in that case all the joint owners can claim separate exemption.
In the particular case mentioned above the rent received by A is Rs. 7.50 lakhs only hence he can claim the exemption from payment of service and on the same basis the other joint owner B can also claim exemption from the payment of service Tax.
In such a case since the value of service provided is more than Rs. 7 lakhs hence both these joint owners will require their separate registration as per the requirement of the Service Tax (Registration of Special category of persons) Rules 2005.
Since in the true sense “Renting of immovable property” can not be equated with the provision of any service and it is only due to a fiction created by our law makers the renting is equated to provision of a service hence made taxable and in that case the law makers should come forward with a suitable clarification in this respect to end this controversy to avoid confusion about the payment of service tax in this respect.
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1 BACKGROUNDBy the Finance Act 2007, Central Government has extended the levy of service tax on renting of property also with effect from 1.06.2007. Renting of immovable property for use in the course or furtherance of business or commerce is taxable under section 65(105)(zzzz) of the Finance Act 1994. Renting includes letting, leasing, licensing or other similar arrangement. For the purposes of this clause, “for use in the course or furtherance of business or commerce” includes use of immovable property as factories, office buildings, warehouses, theatres, exhibition halls and multiple-use buildings. Some residential and other properties are excluded from the scope of this service. Further Notification No.24/2007-Service Tax, dated 22.05.07 exempts taxable service provided by any person in relation to renting of immovable property from service tax equivalent to service tax payable on the amount of property tax, actually paid by the service provider to the local authority. In other words, service tax is payable on the rental amount received less the actual amount of property tax paid. However, any amount such as interest, penalty paid to the local authority by the service provider on account of delayed payment of property tax or any other reasons can not be treated as property tax for the purpose of this exemption and hence, deduction of such amount from the gross amount charged shall not be allowed.
While the dispute on propriety of the levy of service tax by the central government was yet to be decided by the appropriate courts, the government issued a clarification stating that service tax paid on input services in the nature of construction service or work contract service that are used in construction of an immovable property, which is meant to be rented or leased, will not be eligible for CENVAT credit for those who provide renting of immovable property service.Finance Act, 2008 has inserted an explanation to the definition of immovable property to clarify that renting of immovable property shall include allowing or permitting the use of space in an immovable property, irrespective of the transfer of possession or control of such immovable property. The explanation states that the amendment is for removal of doubts. Ministry of Finance had vide Circular No. DOF 334/1/2008-TRU dated 29.2.2008 clarified as under -"Use of immovable property is allowed for placing vending/dispensing machines in malls and other commercial premises and erection of communication towers on buildings. In such cases, there may or may not be transfer of right of possession or control of the immovable property in favour of the person using such property.”The constitutional validity of the levy of service tax on rentals on such immovable property is doubtful. Mere renting of office space does not involve any service. Many association and individuals have filed writs petitions before different High Courts across India. Now the matter is before Supreme Court, but the some High Courts have stayed the recovery of Service Tax till final decision by the Supreme Court.2 DECISION OF BOMBAY HIGH COURT IN THE CASE OF RETAILERS ASSOCIATION OF INDIA V. UNION OF INDIA[2008] 16 STT 127 (BOM.)Assessee was an association of retailers. In respect of let out premises of members of assessee-association, revenue demanded service tax in category of ‘Renting of immovable property service’. Tribunal confirmed said demand, against which assessee filed writ petition. During pendency of writ petition, revenue moved Supreme Court for transferring these matters to Supreme Court for hearing and, therefore, High Court could not take up matter for final hearing. It was found that few High Courts had granted interim relief to respective assessees in relation to said statutory provision. Such interim relief directed members of assessee to file an undertaking in High Court stating that in event challenge was disallowed, they would make payment of service tax due and payable in accordance with legal provisions and further, that they would not be entitled to transfer their interest in property in relation to which demand of service tax was made, without first giving two weeks prior notice to revenue about their intention to transfer interest and nature of transfer. It was further directed that in case such undertaking is given, the person who is submitting the undertaking shall not be entitled to transfer his interest in the property in relation to which the demand of service tax is made without first giving two weeks prior notice of his intention to transfer his interest and the nature of the transfer to the respondents. In case within the period of two weeks, objection is raised on behalf of the respondents to the proposed creation or transfer of interest, then no interest will be created or transferred without seeking leave of the Court. It goes without saying that if the objection is not raised within the period of two weeks, the person shall be free to create or transfer proposed interest in the property.On the undertaking mentioned above, being filed by the members of the petitioners, The High Court directed that no coercive steps shall be taken by the respondent for recovery of service tax in respect of the premise of such members of the petitioners.
3 DECISION OF DELHI HIGH COURT IN THE CASE OF HOME SOLUTION RETAIL INDIA LTD. V. UNION OF INDIA[2009] 20 STT 129 (DELHI)To avoid multiplicity of litigation, the Union of India preferred a transfer petition to the Supreme Court of India seeking transfer of all writ petitions pending before different High Courts of India. The Supreme Court directed the same to Delhi High Court for single window adjudication. The Delhi High Court has struck down the levy of service tax on renting of immovable property as "unconstitutional", while deciding 26 writ petitions of different petitioners, by a combined order.In the instant batch of writ petitions, the petitioners, who were either landlords, or tenants in respect of leased premises, had challenged the legality, validity and vires of Notification No. 24/2007, dated 22-5-2007 and Circular No. 98/1/2008 - ST dated 4-1-2008 issued by the department of revenue. The said notification dated 22-5-2007 is an exemption notification by virtue of which the Central Government exempted the ‘taxable service of renting of immovable property’, referred to in sub-clause (zzzz) of clause (105) of section 65 from so much of the service tax levy as was in excess of service tax calculated on a value which is equivalent to the gross amount charged for renting of such immovable property less taxes on such property, namely, property tax levied or collected by local bodies. It was the petitioners’ contention that while the Act does not treat renting of immovable property as a taxable service, the notification proceeds on the basis that the taxable service is the renting of immovable property itself. Similarly, the impugned circular whilst giving a clarification in respect of commercial and industrial construction service has purported to clarify that the “right to use immovable property is exigible to service tax under the ‘Renting of immovable property service’ ”. Consequently, by the said clarification, the Union of India was seeking to levy service tax on renting of immovable property instead of on services in relation to renting of immovable property. It was further alleged that because of this incorrect interpretation, service tax was sought to be levied on the renting of immovable property as opposed to service tax on a service provided ‘in relation to the renting of immovable property’. Consequently, the said notification and the said circular were sought to be set aside as being ultra vires the said Act.The Delhi High Court held that the Service tax is a value added tax. It is a tax on value addition provided by a service provider. It is obvious that it must have connection with a service and there must be some value addition by that service. If there is no value addition, then there is no service. With this in mind, it would be instructive to anlayse the provisions of section 65(105)(zzzz). It has reference to a service provided or to be provided to any person, by any other person in relation to ‘renting of immovable property for use in the course or furtherance of business or commerce’. The wordings of the provision are so structured as to entail a service provided or to be provided to ‘A’ by ‘B’ in relation to ‘C’. Here, ‘A’ is the recipient of the service, ‘B’ is the service provider and ‘C’ is the subject-matter. The expression ‘in relation to’ may be of widest amplitude, but it has been used in the said Act as per its context. Sometimes, the expression ‘in relation to’ would include the subject-matter following it and on other occasions, it would not. As in the case of service of dry cleaning, the expression ‘in relation to dry cleaning’ also has reference to the very service of dry cleaning. On the other hand, the service referred to in section 65(105)(v), which refers to a service provided by a real estate agent ‘in relation to real estate’, does not, obviously include the subject-matter as a service. This is so because real estate by itself cannot by any stretch of imagination be regarded as a service. Going back to the structured sentence, i.e., - service provided or to be provided to ‘A’ by ‘B’ in relation to ‘C’, it is obvious that ‘C’ can either be a service (such as dry cleaning, hair dressing, etc.) or not a service by itself, such as real estate. The expression ‘in relation to’ would, therefore, have different meanings depending on whether ‘C’ is a service or is not a service. If ‘C’ is a service, then the expression ‘in relation to’ means the service ‘C’ as well as any other service having connection with the service ‘C’. Where ‘C’ is not a service, the expression ‘in relation to’ would have reference only to some service which has a connection with ‘C’. But, this would not imply that ‘C’ itself is a service.The High Court further held that there is no dispute that any service connected with the renting of such immovable property would fall within the ambit of section 65(105)(zzzz) and would be exigible to service tax. The question is whether renting of such immovable property by itself constitutes a service and, thereby, a taxable service. Service tax is a value added tax. It is a tax on the value addition provided by some service provider. Insofar as renting of immovable property for use in the course or furtherance of business or commerce is concerned, any value addition could not be discerned. Consequently, the renting of immovable property for use in the course or furtherance of business or commerce by itself does not entail any value addition and, therefore, cannot be regarded as a service. Of course, if there is some other service, such as air conditioning service provided along with the renting of immovable property, then it would fall within section 65(105)(zzzz)In view of the foregoing discussion, the court held that section 65(105)(zzzz) does not in terms entail that the renting out of immovable property for use in the course or furtherance of business or commerce would by itself constitute a taxable service and be exigible to service tax under the Act. The obvious consequence of this finding is that the interpretation placed by the impugned notification and circular on the said provision was not correct. Consequently, the same were held ultra vires the said Act and to the extent they authorize the levy of service tax on renting of immovable property per se, were set aside.
4 SERVICE TAX DEPARTMENT INSTRUCTION IRK DELHI HIGH COURT [SSIPL RETAIL LTD. V. UOI [2010] 24 STT 571 (DELHI)]Central Government had appealed against the Delhi high court judgment and Supreme Court had admitted the SLP but declined to grant interim stay to the Government (SLP Civil No 13850/2009). During pendency of that SLP, the service tax department official had issued instruction to its officers throughout the country that in view of pendency of SLP, officers should safeguard the revenue by either pursuing the taxpayers to pay the service tax on renting of immovable property or resorting to means under law to protect the revenue. On the basis of such instruction, the officials of the department started sending notices to the petitioners with instructions to start complying with the provisions of the aforesaid notification and circular by paying the requisite service tax. Aggrieved with the orders, again writ petition is filed before the Delhi high court. The Delhi high court held as under:· Even when SLP was pending, the judgment of the High Court held the field and in the absence of any stay, the service tax department was bound to follow the same.· From a perusal of the communications entered by the officials of the department, it was clear that message given was that on account of pendency of the SLP, such persons were under obligation to deposit service tax; so much so that even threat was extended to the extent that failure to comply with the same would leave to initiate the further necessary action against the defaulters.· Even though the judgment of the High Court was challenged by filing the SLP, till the date there was no order passed by the Supreme Court staying the operation of that judgment. In these circumstances, the department could not instruct its officers to pursue matter with taxpayers calling upon them to pay service tax or to resort to other means under law to protect the revenue.· The deparetment had assured that corrective steps would be taken by issuing further instructions, in supersession of earlier instructions, to the officers not to write such letters demanding the payment of service tax or threatening coercive steps. On such assurance, no further orders were required to be passed in the instant petition.
5 BUDGET 2010 PROPOSALS
In the case of Home Solution Retail India Ltd. v. Union of India [2009] 20 STT 129 (DELHI), Delhi High Court held that there is no dispute that any service connected with the renting of immovable property would fall within the ambit of section 65(105)(zzzz) and would be exigible to service tax. But the court also held that section 65(105)(zzzz) does not in terms entail that the renting out of immovable property for use in the course or furtherance of business or commerce would by itself constitute a taxable service and be exigible to service tax under the Act. The obvious consequence of this finding was that the interpretation placed by the CBEC notification and circular on the said provision was held as incorrect but there was no ruling on the constitutionality of provision. Simply, as per high court, the provisions does not entail for service tax on renting of immovable property but services relating to renting etc. and notification providing for levy of service tax on renting was held ultra vires. So, it is provided in the Budget 2010 proposals to amend the relevant provisions itself to override the decision of Delhi high court. Now the renting itself is deemed as taxable services. Further validating provisions has also been proposed under clause 76 to legalise all actions taken under sub-clause (zzzz) of clause (105) of section 65 of the Finance Act, 1994, at any time during the period commencing on and from the 1st day of June, 2007 and ending with the day, the Finance Bill, 2010 receives the assent of the President.ConclusionCentral Government had appealed against the Delhi high court judgment and Supreme Court had admitted the SLP but declined to grant interim stay to the Government (SLP Civil No 13850/2009). The SLP is still pending. In this decision the Delhi High Court had held the circular/notification as ultra vires the said Act (Finance Act, 1994). But it has not been decided whether Central Government has power to levy Service Tax on renting of immovable property. Now the Act is amended. So the question is whether the levy will be constitutional? However, the high court had not decided this issue but the following observations are quite pertinent:“35. From this analysis, it is clear that we have to understand as to whether renting of immovable property for use in the course or furtherance of business or commerce by itself is a service. There is no dispute that any service connected with the renting of such immovable property would fall within the ambit of section 65(105)(zzzz) and would be exigible to service tax. The question is whether renting of such immovable property by itself constitutes a service and, thereby, a taxable service. We have already seen that service tax is a value added tax. It is a tax on the value addition provided by some service provider. Insofar as renting of immovable property for use in the course or furtherance of business or commerce is concerned, we are unable to discern any value addition. Consequently, the renting of immovable property for use in the course or furtherance of business of commerce by itself does not entail any value addition and, therefore, cannot be regarded as a service. Of course, if there is some other service, such as air conditioning service provided alongwith the renting of immovable property, then it would fall within section 65(105)(zzzz).”So as per these observations, it seems that renting cannot be service per se. But the matter is not free from doubt and second stage of litigation is going to start soon after the proposals become operative.
By CA HARIOM Jindal
Vision 2010: a dangerous myopia
By Amiya Kumar Bagchi
The Central budget of 2010-11 is a further step in the realisation of a vision of India vibrant with the income, wealth, saving, education and the entrepreneurial energy of the top 5-10 per cent of the population and the rest of Indians, serving that minority and surviving as barely literate, malnourished multitude.
With the accession of Rajiv Gandhi to power, a vision began to germinate. That vision was that of an India that would be vibrant with the entrepreneurial energy of the few, and the rest of the population serving those few with their labour.
The argument was that despite more than 40 years of independence, with slogans of a ‘socialistic pattern of society,' Indians remained desperately poor. Most of them also remained actually illiterate or barely literate. The free market advocates backing Rajiv Gandhi thought that the energy of the business community could both enrich the rich and, through trickle-down effects, better the condition of ordinary people. The Central budget of 2010-11 is a further step towards the implementation of that vision.
Look at the successes of the budget: the professional middle class is happy with the cuts in taxes collected from it. The business community, including foreign investors, is happy, because of further privatisation of public assets by which the Finance Minister proposes to raise Rs. 25,000 crore, because of the looming privatisation of many operations of the Indian Railways, whose kitty is nowhere near what it should be for even partial implementation of the projects announced by the Railway Minister, because the FDI path would be further smoothed and because licences would be issued for fresh private banks. Never mind if they fail as the Global Trust Bank did, the government will pick up the bill directly or indirectly, in accordance with its earlier record and the recent practice in the United States and Britain where banks failed but bankers remained prosperous. The Indian stock market responded positively, thus sending a message of welcome to the budget and generating profits for the bulls.
The Finance Ministers of the neoliberal Central government had earlier instituted the Fiscal Responsibility and Responsibility Management Act. This became their excuse to drastically cut down public investment and expenditure on the social sector. As soon as the global financial crisis hit India and the interests of the Indian rich demanded fiscal stimulus, the government overthrew fiscal orthodoxy and budget deficits soared. North Block policymakers can claim that the stimulus worked and the growth rates did not crash. The problem is with the content of that growth.
The Indian Constitution is only quasi-federal. Using and abusing the power of centralisation vested in it, the neoliberal policymakers have concentrated more and more financial powers in their hands, leaving the State governments with scantier resources to carry out their constitutional responsibilities of providing health care, education and rural livelihoods. The Central government has introduced an enormous number of Centrally-Sponsored Schemes and encroached on the States' jurisdiction. The Centre has handed over much of the financing to aid agencies of the U.S. and European Union governments, which have imposed fresh conditionalities on the States. The irony is that the more backward the regions are, the less able they are in fulfilling the conditions. Hence, the greater the deprivation of those areas.
The centralising tendency has been rampant in the field of education: the government has established Central universities not just in backward or remote areas but in States with well-established universities, which continue to suffer stagnation because of lack of resources as well as political manipulation. Instead of learning the proper lessons from the often tardy responses of the over-centralised AICTE, NCERT or UGC, namely, that they need more and more assured supply of public money and must devolve some of their powers to regional bodies, the Ministry of Human Resource Development has decided, with the proposed National Commission on Higher Education and Research (NCHER) Bill to concentrate all powers in its single wise head. Not all wisdom resides in persons who tread the corridors of power in Delhi.
Moreover, the policymakers have proclaimed that they want the institutions to be of international standard, and that the scholars employed there will be judged according to international (read U.S. establishment) accreditation criteria. The idea that there is a single, uncontested international standard in economics, history, political science or sociology is laughable. In areas of technological education too, local adaptation is critical and ‘international' standards will not provide the knowledge of the local cost-benefit conditions in the diversity that is India. How would ‘international' standards be applied to scholars of Tamil or Bengali or Marathi literature, culture and history who do not write in English?
The acceptance of the NCHER Bill will have many unacceptable consequences. First, under an NCHER endowed with powers far exceeding its optimum span of control, decisions will be even slower in critical areas of education than they are now. Second, with a niggardly Central government, tuition fees will rise far beyond the paying capacity of poor students and, therefore, will exclude much larger numbers of meritorious but poor students from higher education. Third, the step will lead to further dilution of the quality of teaching in State universities, the further proliferation of private colleges doling out poor-quality education.
The Union Cabinet recently approved an agreement with the U.S. on ‘Agricultural co-operation and food security.' Under an India-U.S. Agricultural Knowledge Initiative, multinational agribusiness firms such as Cargill and Monsanto can become members of the policymaking body. This is ironical since most of U.S. agribusinesses are conducted under the umbrella of huge government subsidies, while the current budget has cut the measly subsidies poor farmers enjoy in India. Indian agriculture has grown slowly in recent years, and food grain production has lagged behind population growth.
Ordinary Indians are badly malnourished and calorie intake has fallen over time. An Expert Group appointed by the Planning Commission has proposed 1800 calories per day as the norm of consumption by an adult for fixing the poverty line. This norm is applicable only for light or sedentary work. How is a construction worker with heavy head loads or an agricultural worker driving buffaloes in a flooded paddy land going to do his work and lead a healthy life or survive long? Even this norm yields an estimate of poverty of about 42 per cent in 2004-05, much higher than the estimates quoted officially. If the Food Security Bill is passed by Parliament, it will presumably be implemented by accepting the older estimate or the new estimate of the Expert Group. Either way, a vast number of people who are malnourished will remain in that state.
Under the Common Minimum Programme, the first UPA government adopted the National Rural Employment Guarantee Scheme. Even its partial implementation has helped the desperately poor and yielded rich dividends for the ruling parties under whose auspices there has been a better record of implementation. But this can be regarded only as a halting step towards a universal public distribution system, which is the proper way to address the issues. The budget is still focussed on the interests of the middle and richer classes and on tie-ups with the U.S. as the exemplar and leader of the system that the advisors want. The Right to Education Act, for example, excludes the education of children below the age of six, and the ICDS programme that is supposed to look after them is still poorly funded and poorly governed. The allocation in the current budget for mid-day meals for school children is far short of what would be needed to universalise them.
Finally, the whole saga of the nuclear agreement with the U.S., currently developing into a bill that caps the liability of suppliers and operators at Rs. 500 crore whereas a Chernobyl-like development could impose unimaginable costs on the current and future costs often appears like a black comedy in the making. We should remember that crime rates in U.S. cities still remain high, and there is a continual war going on on U.S. borders against ‘illegal' immigrants from Latin America. Do the policymakers at the Centre want a permanent state of civil war with the disaffected inside to be added to the worries on subversion across India's borders?
(Professor Amiya Kumar Bagchi is Director, Institute of Development Studies, Kolkata.)
source: The Hindu
By Amiya Kumar Bagchi
The Central budget of 2010-11 is a further step in the realisation of a vision of India vibrant with the income, wealth, saving, education and the entrepreneurial energy of the top 5-10 per cent of the population and the rest of Indians, serving that minority and surviving as barely literate, malnourished multitude.
With the accession of Rajiv Gandhi to power, a vision began to germinate. That vision was that of an India that would be vibrant with the entrepreneurial energy of the few, and the rest of the population serving those few with their labour.
The argument was that despite more than 40 years of independence, with slogans of a ‘socialistic pattern of society,' Indians remained desperately poor. Most of them also remained actually illiterate or barely literate. The free market advocates backing Rajiv Gandhi thought that the energy of the business community could both enrich the rich and, through trickle-down effects, better the condition of ordinary people. The Central budget of 2010-11 is a further step towards the implementation of that vision.
Look at the successes of the budget: the professional middle class is happy with the cuts in taxes collected from it. The business community, including foreign investors, is happy, because of further privatisation of public assets by which the Finance Minister proposes to raise Rs. 25,000 crore, because of the looming privatisation of many operations of the Indian Railways, whose kitty is nowhere near what it should be for even partial implementation of the projects announced by the Railway Minister, because the FDI path would be further smoothed and because licences would be issued for fresh private banks. Never mind if they fail as the Global Trust Bank did, the government will pick up the bill directly or indirectly, in accordance with its earlier record and the recent practice in the United States and Britain where banks failed but bankers remained prosperous. The Indian stock market responded positively, thus sending a message of welcome to the budget and generating profits for the bulls.
The Finance Ministers of the neoliberal Central government had earlier instituted the Fiscal Responsibility and Responsibility Management Act. This became their excuse to drastically cut down public investment and expenditure on the social sector. As soon as the global financial crisis hit India and the interests of the Indian rich demanded fiscal stimulus, the government overthrew fiscal orthodoxy and budget deficits soared. North Block policymakers can claim that the stimulus worked and the growth rates did not crash. The problem is with the content of that growth.
The Indian Constitution is only quasi-federal. Using and abusing the power of centralisation vested in it, the neoliberal policymakers have concentrated more and more financial powers in their hands, leaving the State governments with scantier resources to carry out their constitutional responsibilities of providing health care, education and rural livelihoods. The Central government has introduced an enormous number of Centrally-Sponsored Schemes and encroached on the States' jurisdiction. The Centre has handed over much of the financing to aid agencies of the U.S. and European Union governments, which have imposed fresh conditionalities on the States. The irony is that the more backward the regions are, the less able they are in fulfilling the conditions. Hence, the greater the deprivation of those areas.
The centralising tendency has been rampant in the field of education: the government has established Central universities not just in backward or remote areas but in States with well-established universities, which continue to suffer stagnation because of lack of resources as well as political manipulation. Instead of learning the proper lessons from the often tardy responses of the over-centralised AICTE, NCERT or UGC, namely, that they need more and more assured supply of public money and must devolve some of their powers to regional bodies, the Ministry of Human Resource Development has decided, with the proposed National Commission on Higher Education and Research (NCHER) Bill to concentrate all powers in its single wise head. Not all wisdom resides in persons who tread the corridors of power in Delhi.
Moreover, the policymakers have proclaimed that they want the institutions to be of international standard, and that the scholars employed there will be judged according to international (read U.S. establishment) accreditation criteria. The idea that there is a single, uncontested international standard in economics, history, political science or sociology is laughable. In areas of technological education too, local adaptation is critical and ‘international' standards will not provide the knowledge of the local cost-benefit conditions in the diversity that is India. How would ‘international' standards be applied to scholars of Tamil or Bengali or Marathi literature, culture and history who do not write in English?
The acceptance of the NCHER Bill will have many unacceptable consequences. First, under an NCHER endowed with powers far exceeding its optimum span of control, decisions will be even slower in critical areas of education than they are now. Second, with a niggardly Central government, tuition fees will rise far beyond the paying capacity of poor students and, therefore, will exclude much larger numbers of meritorious but poor students from higher education. Third, the step will lead to further dilution of the quality of teaching in State universities, the further proliferation of private colleges doling out poor-quality education.
The Union Cabinet recently approved an agreement with the U.S. on ‘Agricultural co-operation and food security.' Under an India-U.S. Agricultural Knowledge Initiative, multinational agribusiness firms such as Cargill and Monsanto can become members of the policymaking body. This is ironical since most of U.S. agribusinesses are conducted under the umbrella of huge government subsidies, while the current budget has cut the measly subsidies poor farmers enjoy in India. Indian agriculture has grown slowly in recent years, and food grain production has lagged behind population growth.
Ordinary Indians are badly malnourished and calorie intake has fallen over time. An Expert Group appointed by the Planning Commission has proposed 1800 calories per day as the norm of consumption by an adult for fixing the poverty line. This norm is applicable only for light or sedentary work. How is a construction worker with heavy head loads or an agricultural worker driving buffaloes in a flooded paddy land going to do his work and lead a healthy life or survive long? Even this norm yields an estimate of poverty of about 42 per cent in 2004-05, much higher than the estimates quoted officially. If the Food Security Bill is passed by Parliament, it will presumably be implemented by accepting the older estimate or the new estimate of the Expert Group. Either way, a vast number of people who are malnourished will remain in that state.
Under the Common Minimum Programme, the first UPA government adopted the National Rural Employment Guarantee Scheme. Even its partial implementation has helped the desperately poor and yielded rich dividends for the ruling parties under whose auspices there has been a better record of implementation. But this can be regarded only as a halting step towards a universal public distribution system, which is the proper way to address the issues. The budget is still focussed on the interests of the middle and richer classes and on tie-ups with the U.S. as the exemplar and leader of the system that the advisors want. The Right to Education Act, for example, excludes the education of children below the age of six, and the ICDS programme that is supposed to look after them is still poorly funded and poorly governed. The allocation in the current budget for mid-day meals for school children is far short of what would be needed to universalise them.
Finally, the whole saga of the nuclear agreement with the U.S., currently developing into a bill that caps the liability of suppliers and operators at Rs. 500 crore whereas a Chernobyl-like development could impose unimaginable costs on the current and future costs often appears like a black comedy in the making. We should remember that crime rates in U.S. cities still remain high, and there is a continual war going on on U.S. borders against ‘illegal' immigrants from Latin America. Do the policymakers at the Centre want a permanent state of civil war with the disaffected inside to be added to the worries on subversion across India's borders?
(Professor Amiya Kumar Bagchi is Director, Institute of Development Studies, Kolkata.)
source: The Hindu
Tuesday, March 9, 2010
CONGRATS INDIAN NATION. WOMEN'S RESERVATION BILL PASSED BY RAJYA SABHA
CONGRATS INDIAN NATION. WOMEN'S RESERVATION BILL PASSED BY RAJYA SABHA
History was created in the Rajya Sabha when it voted by an overwhelming majority a Bill to reserve 33 per cent of the seats in Lok Sabha and Assemblies for women after the Government pushed ahead with it, ignoring possible threats to its stability and after eviction of troublesome MPs opposed to it.
Fourteen years after the first attempt was made in the Lok Sabha and repeated failures subsequently, the Constitution Amendment Bill was adopted in the mandatory division with 186 members voting for it and one voting against.
In the 245-member House with an effective strength of 233, the Bill required the backing of at least 155 members and the UPA had the clear support of 165 in the run up to the event.
The Bill seeks to reserve for women 181 of the 543 seats in the Lok Sabha and 1,370 out of a total of 4,109 seats in the 28 State Assemblies.
History was created in the Rajya Sabha when it voted by an overwhelming majority a Bill to reserve 33 per cent of the seats in Lok Sabha and Assemblies for women after the Government pushed ahead with it, ignoring possible threats to its stability and after eviction of troublesome MPs opposed to it.
Fourteen years after the first attempt was made in the Lok Sabha and repeated failures subsequently, the Constitution Amendment Bill was adopted in the mandatory division with 186 members voting for it and one voting against.
In the 245-member House with an effective strength of 233, the Bill required the backing of at least 155 members and the UPA had the clear support of 165 in the run up to the event.
The Bill seeks to reserve for women 181 of the 543 seats in the Lok Sabha and 1,370 out of a total of 4,109 seats in the 28 State Assemblies.
Renumbering of National Highways
13:14 IST
LOK SABHA
The Government has decided to renumber the National Highways across the country as the system of numbering of National Highways (NHs) presently being used is not on scientific method. The Government has accepted the recommendations of the Committee set up by it in this regard in 2009.
As per the modified numbering system of National Highways, the NHs predominantly along the North-South direction and along the East-West direction are considered as Primary Routes. The Primary Routes along the North-South direction are being numbered in increasing order from east to west direction as even numbers in 2 digits and the Primary Routes along the East-West direction are being numbered in increasing order from north to south direction as odd numbers in 2 digits. The Secondary Routes are considered as those routes which are either circumferential routes around a Primary Route or a Spur Route originating from a Primary Route. The Secondary Routes are proposed to be numbered in 3 digits, with 2 digits as same as that of the Primary Route Number and the third digit prefixing the 2 digits as either even number or odd number depending upon whether it is a circumferential route around the Primary Route or it is a spur route originating from the Primary Route. Suffixes, such as A, B, C, D, etc. have also been proposed to be used for Secondary Routes with gap numbering in order to accommodate present as well as future such routes.
This information was provided by Shri R.P.N.Singh, Minister of State for Road Transport and Highways in the Lok Sabha today.
13:14 IST
LOK SABHA
The Government has decided to renumber the National Highways across the country as the system of numbering of National Highways (NHs) presently being used is not on scientific method. The Government has accepted the recommendations of the Committee set up by it in this regard in 2009.
As per the modified numbering system of National Highways, the NHs predominantly along the North-South direction and along the East-West direction are considered as Primary Routes. The Primary Routes along the North-South direction are being numbered in increasing order from east to west direction as even numbers in 2 digits and the Primary Routes along the East-West direction are being numbered in increasing order from north to south direction as odd numbers in 2 digits. The Secondary Routes are considered as those routes which are either circumferential routes around a Primary Route or a Spur Route originating from a Primary Route. The Secondary Routes are proposed to be numbered in 3 digits, with 2 digits as same as that of the Primary Route Number and the third digit prefixing the 2 digits as either even number or odd number depending upon whether it is a circumferential route around the Primary Route or it is a spur route originating from the Primary Route. Suffixes, such as A, B, C, D, etc. have also been proposed to be used for Secondary Routes with gap numbering in order to accommodate present as well as future such routes.
This information was provided by Shri R.P.N.Singh, Minister of State for Road Transport and Highways in the Lok Sabha today.
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