India: Tea Export Static Since Independence

18-Nov-2013

Though tea production in India has increased manifold since Independence, its export has remained static since that time and the increased production is used to cater to the ever growing domestic consumption. However, the Tea Board has identified the potential international market and efforts are on to increase export.



Talking to The Assam Tribune, Chairman of the Tea Board MGVK Bhanu said that in 1947, the country produced 252 million kilograms of tea and 201 million kilograms were exported, while only 51 million kilograms were consumed inside India. In 1970, tea production increased to 419 million kilograms and the export was 202 million kilograms. In 2012, the country’s tea production increased to 1126 million kilograms and the export was only 205 million kilograms and the rest was consumed domestically.



Bhanu said that there has been a significant increase in production, productivity and domestic consumption of tea since Independence. There has been a phenomenal increase – 1747 per cent – in domestic consumption since Independence, and almost the entire increased production is used in catering to the burgeoning domestic consumption, while the export market remained more or less static.



Giving an account of the steps taken by the Tea Board to increase export, Bhanu said concerted efforts are being made covering five focus countries – Russia, Kazakhstan, Iran, Egypt and the United States of America. He revealed that all these markets have been nurtured except Egypt, which witnessed political and domestic disturbances.



The Tea Board Chairman said that a strong delegation of the Board was sent to Iran, which resulted in exports to that country. He said that Iran, with its preference for orthodox tea, particularly Assam tea, presents a great opportunity to increase export, both in terms of volume and value. India also put up a strong presence at the recently held North American Tea Conference. The speciality and quality segment has been growing in the USA and there is opportunity for growth in the segment in the days to come, he added.



According to records available with the Tea Board, the CIS countries import the highest quantity of tea from India, while, the exports to Iran, Egypt and the UAE also recorded marginal increase in the last couple of years. In 2011-12, India exported 58.59 million kilograms of tea to the CIS countries and the volume increased to 61.25 million kilograms in 2012-13. Similarly, the export to the UAE increased from 18.05 million kilograms to 21.51 million kilograms, export to Iran increased from 11.05 million kilograms to 18.73 million kilograms and to Egypt from 6.57 million kilograms to 9.66 million kilograms and to Germany from 7.18 million kilograms to 7.97 million kilograms.



Bhanu said that India also imports small quantities of tea not only from Kenya and Sri Lanka but also from other countries, mainly for re-export and blending and value addition.



Meanwhile, the area under tea cultivation in India increased from 337300 hectares at the time of Independence to 580000 hectares last year.

Source:-www.teanewsdirect.com

Rupee Up 31 Paise Against Dollar In Early Trade

Rising for the fourth straight day, the rupee gained 31 paise to 62.10 against the dollar in early trade on Tuesday at the Interbank Foreign Exchange market on increased selling of the U.S. currency by exporters.

Strengthening of euro and yen against the dollar in overseas market and a higher opening in the domestic equity market also supported the rupee, Forex dealers said.

The rupee had gained 70 paise, the most in one and a half months, to close at 62.41 in yesterday’s trade amid a sharp rise in local equities and dollar sales by exporters and banks.

Meanwhile, the BSE benchmark Sensex rose by 69.59 points, or 0.33 per cent, to 20,920.33 in early trade on Tuesday.

Source:- thehindu.com

SC: Winding up proceeding dropped on payment of agreed sum by appellant to respondent-company

CL : Winding up proceedings permitted to be withdrawn on payment of agreed amount by appellant-company to respondent-company

Charging nominal fees for allowing use of invention doesn’t prove profit motive; section 10(23C) reg

IT: Charging a nominal fees by assessee-society from beneficiaries to use coding system and to avail advantages and benefits therein was neither reflective of business aptitude nor indicative of profit oriented intent and thus assessee could not be denied registration under section 10(23C)(iv) on ground that activity of assessee was in nature of trade, commerce or business

Reference to DVO to value investment without rejecting assessee’s books is unjustified rules HC

IT : Without specifically rejecting books of account maintained by assessee, Assessing Officer could not refer matter to DVO for valuation of investment made by assessee in construction of factory building

Sum paid by one advertising agency to another akin to payment to a sub-contractor; sec. 194C attract

IT: Payment made by one advertising agency to other advertising agency for getting work done would be subjected to TDS under section 194C

How much foreign travel exp. is reasonable isn’t a question of law; HC declines to interfere

IT-I : Where in respect of foreign travel expenses incurred by assessee trust on behalf of its settler, Tribunal concluded that 50 per cent of said expenditure was towards business and same was to be allowed as deduction, finding so recorded by Tribunal being a finding of fact, same did not require any interference

Sec. 80P deductions to be denied only to Co-op. banks and not to Co-op. society after insertion of s

IT : Section 80P deductions to be denied only to Co-operative banks and not to Co-operative society after insertion of section 80P(4)

No need to reverse credit if cost of defective capital goods or inputs is recovered from supplier

Cenvat Credit : Where assessee had used input/capital goods and, on finding them defective, had recovered their cost (excluding duty element) from suppliers and had paid duty applicable on clearance of their waste, no reversal could be sought of credit taken in respect of duty paid on such goods

Disallowing an excess depreciation didn’t justify re-assessment if assessee was subjected to MAT pro

IT : Where assessee challenged initiation of reassessment proceedings contending that it was a MAT company under section 115JA/115JB and even after discarding higher rate of depreciation claimed as alleged by revenue, it would have no tax liability higher than what was computed under section 115JA, since said contention had not been raised earlier, matter was to be remanded back to Assessing Officer for disposing of assessee's objection in accordance with law

TP adjustments to be restricted to IEs only; incorrect cost allocation doesn’t justify rejection of

IT/ILT : Incorrect allocation of cost could not be a reason for rejecting cost plus method

ITAT may grant a consequential relief to a party even if it didn’t prefer an appeal on impugned issu

IT: When an appeal is preferred before Tribunal by any of parties, whole appeal is before Tribunal and it has to decide case irrespective of fact as to whether it would amount to granting relief to other party who did not prefer appeal

Back to basics - ITAT reiterates ‘share premium’ is capital receipt and can’t be taxed as residual i

IT : Where assessee-company was incorporated on 3-4-2008 and during previous year ending on 31-3-2009 it had collected share premium on allotment of shares of face value of Rs. 10 each at a premium of Rs. 490 per share, premium in question could not be taxed under section 56(1) as assessee's income from other sources

Sez Board To Give Licences For Defence Goods Production

Special Economic Zone (SEZ) units producing defence related items will no longer have to go to the Department of Industrial Policy & Promotion (DIPP) for an industrial licence.



The Board of Approval (BoA) for SEZs, which approves proposals for setting up these zones and takes decisions on matters related to their operation, will now also issue industrial licences for producing defence related goods.



“The move is aimed at speedier approval of such projects and is also another step towards single-window clearance promised to SEZs,” a Government official told Business Line.



The BoA is headed by the Commerce Secretary and includes senior officials from key ministries including Finance, Revenue, Home, Urban Development and Micro, Small & Medium Enterprises.



This move could be seen as another effort by the Government to make life easier for investors in SEZs in the absence of any assurance from the Finance Ministry that the minimum alternate tax (MAT) and the dividend distribution tax (DDT) imposed on the supposed “tax-free enclaves” three years ago would be withdrawn.



The Commerce Ministry recently slashed the minimum area requirement for setting up SEZs in an attempt to revive interest in the zones. Investments in SEZs have reduced to a trickle over the last two years due to imposition of taxes and the overall dull investment climate in the country.



Interestingly, the SEZ Act of 2005 gives the BoA the authority to issue industrial licences, but it had not been exercising it for the last seven years since the rules were approved. It was only in last meeting of the Board earlier this month that it took up for the first time the responsibility of issuing industrial licences to three pending proposals for producing defence items.



“Although the SEZ Act allowed it, the old system of issuing industrial licence by the DIPP was being followed as defence is a sensitive area. However, the BoA will be equally careful and follow all rules before issuing a licence,” the official added.



When a SEZ unit has to go to other departments for clearance, the entire coordination takes a long time, points out Hitender Mehta, Co-Chairman Assocham’s Group on SEZs. “Even after a licence is issued and the file lands up with the BoA, it could be a while before it is taken up because there is often a considerable time gap between two meetings,” Mehta said.

3 proposals



The three proposals that have been taken up by the BoA for issuing licences include Pipavav Defence and Offshore Engg Co’s application for manufacture and development of C4I systems, electro-optical systems, underwater systems and avionics, Syrma Technology’s application for producing defence products such as radio and satellite communication equipment and Data Patterns’s application for design, development and manufacture of radar, sonar and electronic warfare systems.

Source:- thehindubusinessline.com

Coir Exports Likely To Grow By 20% To 1200 Cr

17-Nov-2013

The country’s coir exports are likely to grow by 20 per cent to Rs 1,200 crore in the current fiscal on account of growing demand from western markets like the US and Europe.

Last fiscal, these exports stood at Rs 1,000 crore.

“Coir exports are growing at a healthy rate and may touch Rs 1,200 crore mark in 2013-14 due to rising demand in western markets like the US ad Europe,” Micro, Small and Medium Enterprises (MSME) Secretary Madhav Lal said.

He was speaking to reporters after inaugurating the Coir Board pavilion at India International Trade Fair (IITF) at Pragati Maidan here.

The US and Europe account for about 72 per cent of the country’s total coir exports.

Besides, exporters are getting a good response from emerging markets like Africa and the UAE, he added.

The Coir Board, which is a statutory body and was set up in Coir Board works towards the promotion and development of coir sector in India as a whole, is celebrating its 60 years.

During April-October 2013, these exports stood at over Rs 700 crore.

Products made out of coir include mats, carpets, matting tiles, yarn, bags, decorative items, jackets, umbrellas, coir jewellery.

Meanwhile, the Secretary inaugurated the MSME Expo organised by the Office of Development Commissioner MSME.

More than 66 exhibitors are showcasing a wide variety of products, including decorative, home furnishings, textiles, among others.

Source:- thehindubusinessline.com

Wheat Imports Soar On Low Global Prices

17-Nov-2013



Wheat imports doubled in the first four months of the current fiscal year from a year ago on the back of lower prices in the international market.



Between July and October, some 10.17 lakh tonnes of wheat arrived, in contrast to 4.99 lakh tonnes during the same period of fiscal 2012-13, according to data from the food ministry. Over the last one year, prices of wheat have been on the downturn globally due to increased production.



The ‘Soft Red Winter’ variety slumped to $257.7 per tonne in the third quarter of the year from $297 in the first quarter, while the ‘Hard Red Winter’ dropped to $305 a tonne from $321, according to World Bank Commo-dities Price Data.



The sliding prices encouraged all to import in higher quantities, said Mohammed Saiful Alam, chairman of the Chittagong-based S Alam Group, which imported 2 lakh tonnes of wheat since July.



Asif Iqbal, executive director of Meghna Group of Industries, said higher imports had caused a supply overflow in the market, forcing importers to sell at lower prices to pay off bank loans and other liabilities.



The retail prices, however, did not fall in line with the prices at which the importers had sold to the traders, who are releasing the grain slowly to the market to keep the prices high, Alam said.



Asked, Wazed Ali, owner of Lakhya Flour Industry at Narayanganj, said: “Don’t traders stock in godowns if the market demand is lower than the supply?”

The wholesale price of flour currently stands at Tk 27 per kg, in contrast to Tk 35-40 in January.



Ali said wheat imports would not rise further as importers who have incurred losses earlier have stopped importing.



Badrul Hasan, director of procurement of Directorate General of Food, expects this fiscal year’s wheat imports to be around 30 lakh tonnes, up from 18.61 lakh tonnes in fiscal 2012-13.



Of the total wheat imports, the private sector accounts for 67.5 percent and the government the rest.

Source:- thedailystar.net

Sugar Export Norm Relaxed Amid Domestic Surplus

With surplus domestic sugar production, the government has relaxed a condition for exports of the sweetener by doubling the limit on overseas shipments that sellers can register.



“One of the conditions was the upper limit of 25,000 tonnes per application for registration. This limit is now enhanced to 50,000 tonnes. Accordingly, an exporter can seek registration of up to 50,000 tonnes of sugar,” the Directorate General of Foreign Trade said in a circular.



Welcoming the decision, the Indian Sugar Mills Association (ISMA) said this would help in exports of raw sugar, which is generally shipped in bulk.



ISMA Director General, Abinash Verma, however, demanded that the system of making export registration should be abolished to help boost shipments.



The association has been demanding easier norms to export sugar due to surplus domestic production. It has targeted exports of 3-4 million tonnes of sugar in the 2013-14 marketing year (October-September) as against about 3,25,000 tonnes in the previous year.



Sugar production in India, the world’s second largest producer and biggest consumer, is projected at 25 million tonnes in 2013-14 against the annual domestic demand of 23 million tonnes.

Source:- thehindubusinessline.com

Tea Export Static Since Independence

Though tea production in India has increased manifold since Independence, its export has remained static since that time and the increased production is used to cater to the ever growing domestic consumption. However, the Tea Board has identified the potential international market and efforts are on to increase export.



Talking to The Assam Tribune, Chairman of the Tea Board MGVK Bhanu said that in 1947, the country produced 252 million kilograms of tea and 201 million kilograms were exported, while only 51 million kilograms were consumed inside India. In 1970, tea production increased to 419 million kilograms and the export was 202 million kilograms. In 2012, the country’s tea production increased to 1126 million kilograms and the export was only 205 million kilograms and the rest was consumed domestically.



Bhanu said that there has been a significant increase in production, productivity and domestic consumption of tea since Independence. There has been a phenomenal increase – 1747 per cent – in domestic consumption since Independence, and almost the entire increased production is used in catering to the burgeoning domestic consumption, while the export market remained more or less static.



Giving an account of the steps taken by the Tea Board to increase export, Bhanu said concerted efforts are being made covering five focus countries – Russia, Kazakhstan, Iran, Egypt and the United States of America. He revealed that all these markets have been nurtured except Egypt, which witnessed political and domestic disturbances.



The Tea Board Chairman said that a strong delegation of the Board was sent to Iran, which resulted in exports to that country. He said that Iran, with its preference for orthodox tea, particularly Assam tea, presents a great opportunity to increase export, both in terms of volume and value. India also put up a strong presence at the recently held North American Tea Conference. The speciality and quality segment has been growing in the USA and there is opportunity for growth in the segment in the days to come, he added.



According to records available with the Tea Board, the CIS countries import the highest quantity of tea from India, while, the exports to Iran, Egypt and the UAE also recorded marginal increase in the last couple of years. In 2011-12, India exported 58.59 million kilograms of tea to the CIS countries and the volume increased to 61.25 million kilograms in 2012-13. Similarly, the export to the UAE increased from 18.05 million kilograms to 21.51 million kilograms, export to Iran increased from 11.05 million kilograms to 18.73 million kilograms and to Egypt from 6.57 million kilograms to 9.66 million kilograms and to Germany from 7.18 million kilograms to 7.97 million kilograms.



Bhanu said that India also imports small quantities of tea not only from Kenya and Sri Lanka but also from other countries, mainly for re-export and blending and value addition.



Meanwhile, the area under tea cultivation in India increased from 337300 hectares at the time of Independence to 580000 hectares last year.

Source:- assamtribune.com

Ex-director having not participated in winding up proceedings can’t request to implead it in revival

CL : Ex-director who had not participated in winding up proceedings of company had no locus standi to file application for his impleadment in revival proceedings seeking validation of purchase of shares of company-in-liquidation

Oil Import Needs Return To Haunt Weak Rupee

Barely a month after the rupee hit a two-month high and showed signs of stabilising after its brutal fall this year, the currency is at risk from a re-emergence of heavy demand for dollars from oil importing firms.



As the rupee hit a nine-week low against the dollar on Wednesday, extending its drop over four trading sessions to 2 percent, the overriding fear in Indian markets was the return of dollar buying by oil companies, coupled with concerns the Reserve Bank of India (RBI) will soon wind down a special dollar facility for these firms.



The US dollar's rally this week on fresh expectations of the Federal Reserve scaling back its stimulus have also been factors pressuring the rupee, as well as Indonesia's rupiah and other emerging markets exposed to foreign capital flows.



But the re-emergence of dollar buying by oil importers has unnerved analysts, reminding them of the fragility of the rupee and its vulnerability to a wide current account deficit.

The three state-run oil marketing firms require an estimated $350 million a day, accounting for the bulk of dollar demand in India's markets.



The RBI had provided these companies with a special dollar swap window to borrow dollars as part of a package of measures to defend the rupee as it plunged to a record low in late August.



The swap window is expected to close at the end of November as the central bank gradually reverses its drastic rupee-defence policies. Traders fear that some of the early 3-month swaps these companies had entered into with the central bank would fall due in December, requiring them to buy dollars from the market.



"Oil companies are buying forward dollars particularly in near-month tenors to repay the central bank for the dollar swap window," said a dealer with a state-run bank who declined to be named as he was not authorised to speak to the media.



"We are seeing some demand in the 3-month tenor but I wouldn't say it is too big," said a forex dealer with another state-run bank.



The rupee weakened to 63.90 per dollar on Wednesday, before recovering some ground on suspected central bank intervention. It is still some distance away from the August record low of 68.85. But, having lost 13.4 per cent of its value against the dollar since the start of this year, the rupee's slide this week has analysts worried.



The currency hit a two-month high in October, stabilising after a series of measures by the RBI and government to attract foreign currency inflows, deter speculators and discourage the import of gold.



Deutsche Bank said in a report this week November would bring more nervousness to the rupee market. Among factors that would contribute to the jitters would be worry that the slight improvement seen in India's yawning current account deficit cannot be sustained.



The unwillingness of foreign investors to keep funding vulnerable countries and the unwind of the RBI's swap facilities would also undermine the rupee, they wrote, noting expected levels of rupee volatility, or vols, had already risen.



"We close out our tactical long in rupee and turn neutral. The RBI-facilitated, low-volatility spot regime is coming to an end with the reintroduction of oil demand to the market," Deutsche said.



Oil demand



Although the swap window for oil importers has not officially been closed, the country's economic affairs secretary Arvind Mayaram last week confirmed what rupee traders had heard, that state-run oil companies were back to buying about 30 per cent to 40 per cent of their dollar needs from the market.



Newly appointed RBI Governor Raghuram Rajan has been rolling back some of the exceptional rupee defence measures the central bank took in mid-July, including hefty increase in its emergency funding rate. Analysts expect the oil swap window would also soon be wound down.



The expectation that they would need far more dollar funding to repay the RBI when the swaps expire has pushed the rupee down in forward markets. Traders at state-run banks said the sharp rise in dollar-rupee future premium was partly due to these oil companies hedging their swap repayment obligations.



The forward market was pricing the rupee at 64.26 per dollar by the end of December, nearly one percent weaker than levels on Wednesday.



But the pressure on the rupee would ultimately be a function of how much oil the country needs in the months ahead and how much of the dollar needs have been hedged pre-emptively.



HPCL, one of the state-run oil marketing companies which had borrowed dollars via the RBI's swap window said it has hedged its dollar obligations.



"Our current requirement is minimal because our repayment obligations have been secured some time ago because of hedging for these months," said HPCL Head of Finance K V Rao.



"Our inventory position is also very good, so we may not go for large amount of imported crude which requires immediate payment."

Source:- deccanherald.com

Tomato Rate High Due To Dependence On Import

The tomatoes price continued to remain high at the level of Rs120-150 per kg in retail market and if dependence on import is ended through permanent halt on vegetables import from India, the growers will be encouraged to cultivate maximum crop.

So, the government should immediately impose a ban on import of tomato to encourage local productions as the present hefty increase in the prices of the commodity was only because of our dependence on neighboring country.



While showing a grave concern over steep rise in tomato prices in just a few days, the former SVP of LCCI Abdul Basit said that it was very unfortunate that while allowing import of tomato or other crops, the authorities did not bother to calculate its fallout on local farming community. And now when the local farmers have stopped sowing tomato crop due to heavy import, it is quite natural that the consumer is bound to buy at the prices being quoted by the Indian grower.



Abdul Basit said that the Supreme Court of Pakistan should also initiate suo moto proceedings to the matter that has deprived a common man from commodity like tomato that can be even grown even in vase or at rooftop.



He said that industrial bodies had been calling for long-time now that the government should ban all the commodities that can be produced locally but the authorities inaction has pushed us to a situation that would take at least a year to return to normal provided a ban is clamped right now.

Source:- nation.com.pk

Indian Rupee Opens Higher At 62.85/Dollar, Up 26 Paise

Indian rupee breached the 63-mark in early trade on Monday to open at 62.85 per dollar, up 26 paise from Thursday's closing of 63.11 per dollar.

Agam Gupta of Standard Chartered feels dollar-rupee should open lower at 62.90-62.95/USD.

"There has been some dollar weakness since India market close on Thursday. This will cause the sentiment to be slightly rupee positive," he adds. According to him, the range for the day is seen between 62.75-63.25/USD.

Revenue to prove illegitimate activities of trust or deviation from its stated objects to revoke its

IT : Pre-condition to cancellation of registration under section 12AA is finding that activities of trust are not genuine or are not being carried out in accordance with objects of trust

Investment of borrowings in loss making affiliates of Sahara group by Subroto Roy held as colorable

IT: Where assessee had invested borrowed interest bearing funds in loss making companies of same group in which he had substantial interest, interest paid on such borrowed funds could not be consider as exclusively and wholly for purpose of business but was a colourable device for tax evasion

Sum incurred on issuance and postage of share certificates is not revenue exp.

IT: Expenditure incurred on account of issuance of share certificates cannot be considered as revenue expenditure

An association of regional stock exchanges to ensure secured trading and safety of funds gets trust

IT: Where main object of assessee-trust was to protect investors by way of creating a fund and fund created by assessee was a public charitable fund having been set up to advance an object of general public utility, assessee was entitled to get registration under section 12AA

Refund claim filed within time can’t be rejected solely on ground of not opting for provisional asse

Excise & Custom : A refund claim filed within time-limit prescribed under law for seeking refund of excess duty paid by assessee under self-assessment cannot be rejected on ground of not opting for provisional assessment

Employer’s contribution to Karmchari Welfare Fund allowable as business exp.

IT : Contribution made by assessee as an employer, towards Karmchari Welfare Funds falls within expression 'as required by or under any other law' for purpose of section 40A(9) and, therefore, such contribution is deductible as business expenditure

TPO couldn’t disallow payment of royalty net of taxes if assessee got RBI’s approval to remit sum ne

IT/ILT: Where assessee entered into an royalty payment agreement with its AE and took approval of same from RBI, payment made by assessee in light of such agreements and as per approval of RBI were to be allowed

Unutilized portion of Government subsidy meant to compensate loss of profit deemed as revenue receip

IT : Unutilised portion of textile subsidy received from Central Government as compensation for loss of profit would be treated as revenue receipt

Post offer for sale of shareholding of promoters relevant for making a delisting offer

CL : In terms of regulation 17(b) of 2009 Regulations, it is only current shareholding i.e. post-offer for sale (Post-OFS) shareholding of promoter group which has to be taken into consideration while making a delisting offer and, therefore, there can be no question of SEBI specifying a different criterion

Luckily delay in filing of appeal due to wrong advice of a CA considered as condonable by ITAT

IT: Rent from factory sheds which was not used for commercial activities but let out to holding company would be income from house property

Post offer for sale shareholding of promoters relevant for making a delisting offer

CL : In terms of regulation 17(b) of 2009 Regulations, it is only current shareholding i.e. post-offer for sale (Post-OFS) shareholding of promoter group which has to be taken into consideration while making a delisting offer and, therefore, there can be no question of SEBI specifying a different criterion

India's Stamp Duty Collections Can Be Raised To Rs 2 Lakh Crore.

15-Nov-2013

Collections from stamp duty and registration fees on property and capital transactions can be more than doubled and raised to Rs 2 lakh crore through an innovative approach, progressive policy and transparency, says a study by industry body Assocham.



"With property prices skyrocketing in most metropolis and price of agricultural land too rising sharply in recent past, a progressive policy in this regard is the need of the hour," Assocham Secretary General D S Rawat said.



In India, where property transactions are often regarded as shady and undervalued to avoid payments vis-a-vis stamp duty and registration fees, an innovative approach in this regard would result in much larger collection, he added.



According to the study titled Trade Policy & Tax Regime: State Level Initiatives, Maharashtra alone accounts for over 20 per cent of stamp duty/registration fees and taxes on property transactions as the state has streamlined compliance and tax administration, thereby curbing evasion.



Smaller states like Delhi, Kerala, Haryana and Punjab too maintain robust collections on this account, a fact reflective of the real estate industry in these states, the study said, calling on other states to emulate Maharashtra's example.



"As stamp duty and registration fees collections show strong growth, state governments should do away with land revenue and property tax or factor this at the time of sale or purchase and make it a one-time payment," the study suggested.



Taxes on property and capital transactions cover two important aspects-- stamp duty and registration fees-- besides land revenue and tax on urban immovable property tax.



The Assocham study further suggested a marginal raise in motor and commercial vehicle tax and urged the government to abolish the passenger and goods tax.



Besides, the study urged policy makers to focus on increasing efficiency of tax collections with a customer friendly approach.



Money will flow into government coffers if the policy initiatives focus on 'tax collection with human face', the study said.



Source : economictimes.indiatimes.com

Quickly Extend Mfn Status For Bilateral Trade, India Tells Pakistan.

India has asked Pakistan to quickly extend it the most favoured nation, or MFN, status so that the "intent" of the trade relaxations roadmap agreed to by the two countries in September 2012 could be "translated into action".



According to the roadmap, India was supposed to allow trade with Pakistan in all but 100 sensitive tariff lines by April 2013 while Pakistan was supposed to grant India the MFN tag by December 2012.



Pakistan has already overshot the cut-off date of giving India the MFN status by 11 months.



India had extended this privilege to Pakistan in 1996.



"The sooner Pakistan grants India the MFN status, the better it is for bilateral trade," Arvind Mehta, joint secretary in the department of commerce, told the India-Pakistan Economic Relations meet organised by industry chamber FICCI.



"The roadmap for enhancing trade is in place. Non-discriminatory access should be given (to Indian products)...there has been progress. But we still need to translate our intent into policy actions." Mehta said if Pakistan grants non-discriminatory access to India, the government will provide a reciprocal market access to Pakistan at a 0-5% duty rate, similar to what is being given to Bangladesh.



"Pakistan should recognise that by delaying non-discriminatory access to India, it was losing out to Bangladesh," he added.



This is India's most ambitious trade pact offer to any country, with just 100 product tariff lines kept outside the trade basket, unlike other pacts where trade in 900-1,000 products are excluded.



Naeem Anwar, minister of trade in the Pakistan high commission in Delhi, said the deadline for giving India the MFN status was missed as concerns were raised by some sectors such as pharmaceutical.



He, however, said that Pakistan has completed the consultation process with these sectors, hoping that negotiations will soon start again on the matter. Anwar said elimination of the negative list would help in enhancing economic ties as there is huge trade potential between the two neighbours.



He also said that there is a potential to open other points for land trade in addition to the Wagah-Attari route. Anwar called for a liberalised visa regime for smoother movement of businesses.



"It is important for both the countries to have high frequency of visits of businessmen," he said. Pakistan's business community also pitched for MFN status for India, saying every effort should be initiated to boost bilateral trade.



Source : economictimes.indiatimes.com

Kalyani Group Shows How Gis Can Help In Laying The Foundation For A Smart City.

Kalyani Group is developing one of India’s largest integrated development projects, “Khed City”, at the outskirts of Pune in western India. This is a joint venture between Kalyani Group, Bharat Forge and Maharashtra Industrial Development Corporation (MIDC). Initiated within the framework of the then guidelines of SEZ development under a public-private partnership, Khed City (envisioned to occupy about 5,400 hectares) is being developed in phases. The first phase of development underway accounts for 100 ha as an SEZ that will cater exclusive to export-oriented industries; about 110 ha for Domestic Tariff Area; nearly 1,500 ha of Integrated Industrial Area including residential, commercial and support services areas; and more than 25 ha for rehabilitation and resettlement of the project-affected community.



The organization was facing multiple issues due to silos of information, which was affecting the speed of the project. Data was decentralized with each department responsible for maintaining its own data, developing its own standards and procedures, and managing its own personnel resources. Apart from this, there were issues related to data integrity as the files were stored in a central file server, as well as individual desktops. To add to the complexity, data was stored in different file formats.



To resolve these issues, the group implemented a web-based Geospatial Information System (GIS). It established a centrally managed Geographic Database and GIS Architecture usable by multiple stakeholders. It then integrated GIS with other business systems like ERP and CRM.



The system includes regional data derived from external sources including information on general location, connectivity and access to the SEZ; topographic data based on the actual mapping of the terrain carried out using satellite imageries, DGPS and total station surveys of the land for the SEZ; and planning data derived from the master plan and other detailed design plans created for internal and external features in the SEZ including revised layout and subdivisions of plots and various utility networks proposed.



MIS reports/ internal financial reporting systems and the site-logs generated via GIS enable continuous monitoring of the resources, erection plans and usage of material on site and its updating. This ensures that even the smallest deviations in the construction/ erection plan are captured in advance. This has resulted in negligible ( < 0.1 percent) unforeseen costs. This saving is huge considering the fact that in the construction industry unforeseen costs are always projected at 10 percent of the project cost.



Earlier, multiple CAD software tools were used for viewing different information. Post deployment of GIS, all the end users refer to a single system, which has reduced expenses in managing these tools. This system also allows end users to access all drawings online, which has significantly reduced printing and storing efforts. Due to the availability of multilayer information of utility network, operational expenses have come down as the exact location of utility is now available.



Prior to GIS deployment, data duplication resulted in errors and significant costs on account of maintaining multiple copies of the same data. The problem has been resolved post deployment of the system. In addition, the system has provided new analytical capabilities including what-if analysis tool.



The GIS system is also being considered by other Kalyani Group companies. For example, the group’s Wind Energy Company has plans to utilize the system for land acquisitions requited for wind farms and to map existing assets on the GIS platform.



Source:- informationweek.in

India Nudges Pakistan On Mfn Status

India on Friday urged Pakistan to grant it most favoured nation status (MFN), a call for trade preference that was echoed by a visiting Pakistani business team. The call for India was made by Arvind Mehta, joint secretary in the commerce ministry, and for Pakistan by a business delegation to the annual India International Trade Fair in New Delhi.



Both Mehta and the members of the Pakistani delegation were speaking at a seminar organised by the Federation of Indian Chambers of Commerce and Industry (Ficci) in the capital.



Trade between the countries climbed to $2.6 billion in 2012-13 from $275 million in 2009-10, Mehta said. India’s main exports to Pakistan include oil meal, chemicals, rubber and petroleum, while imports include cement, gypsum and dry fruits.



Commerce was seen as the driver of the peace process that was renewed in 2011 after the freeze caused by the 2008 Mumbai terror attack. The renewed process notched up a few achievements in the arena of trade — India announced it would, in principle, allow foreign direct investment (FDI) from Pakistan, and both sides opened a new checkpoint at a land crossing in northern Punjab to accelerate commerce.



This could happen because of the strong backing provided by the commerce ministers of India and Pakistan, Mehta said, adding that for trade to grow, it should be insulated from tensions in other facets of the India-Pakistan relationship. “If we want traction we should not be hostage to what happens at the LoC (Line of Control),” said Mehta. Two Indian soldiers were beheaded in January and another five killed in an ambush in August. Pakistan, too, said its soldiers were killed at the LoC, causing the resumed peace process to stall.



For trade to progress, “there should be an uninterrupted and irreversible dialogue process. That is the only way out,” Mehta said. “Non-discriminatory access should be given (to Indian products)... we still need to translate our intent into policy actions.”



Mehta pointed out that Pakistan was uniquely placed for trading with India. “There is no country in the world (that’s a member of the World Trade Organisation, or WTO ) which does not give non-discriminatory access (to a WTO member),” Mehta said referring to Pakistan not giving India MFN status — something that was agreed would happen by December 2012.



The change in government in Pakistan earlier this year, with the election of the business-friendly Nawaz Sharif-led government, raised hopes of India being given MFN status, but the situation has remained unchanged.



“If Pakistan grants non-discriminatory access to India, India will provide a reciprocal market access to Pakistan at a 0-5% duty rate, similar to what is being given to Bangladesh. Pakistan should recognize that by delaying non-discriminatory access to India, it is losing out to Bangladesh,” Mehta said.



In the case of Bangladesh, India’s largest trade partner in South Asia, Mehta said, India had reduced tariffs on many items because there was no question of Bangladesh holding back on granting India MFN status.



“The Indian ready-made garment market size is about $30 billion and in the next 4-5 years, it will touch $100 billion,” Mehta said, adding that Pakistan would lose out on this huge slice of the market if it doesn’t give India MFN soon.



Zubair Ahmed Malik, president of the Federation of Pakistan Chambers of Commerce and Industry, supported Mehta’s call. “MFN status must be given to India — this is what I am urging to our government,” Malik said. “We want to see the trade flourish between the two countries and it can flourish if there will be a free movement of people, and for that, visa regime should be eased by both the governments,” he added, referring to a liberalized visa regime for businessmen implemented from this year.



Under the new rules, Indian and Pakistani businessmen will get one-year multiple entry visas and will be exempt from reporting to the police while travelling.



Naeem Anwar, minister-trade, at the Pakistan high commission in New Delhi, said Pakistan missed the December deadline for granting MFN status to India due to concerns raised by some sections in his country.



He added that Pakistan had completed an internal consultation process and hoped negotiations will resume soon. “Other points should also be opened for trade. New points will help in boosting trade,” Anwar said.



Source:- livemint.com

Possibilities Of China-India Jv In Non-Woven Textiles

The textile industry in China and India are exploring opportunities for joint ventures in the areas of non-woven and technical textile and other value added items in both countries.



A 12-member Chinese delegation, headed by Wang Tiankai, President, China National Textile and Apparel Council (CNTAC), were in the city as part of the last leg of their four-day visit to India, to explore opportunities for better cooperation and understanding in the textile sector.



After visiting some facilities in and around the city, Tiankai told reporters last night that there was huge potential for exporting grey fabrics and made-ups to his nation.



He also said there was a need to have broad discussions to encourage Chinese firms to invest in the Indian market.



The delegation, which has already visited Delhi, Vadodara and Mumbai, wanted to know the local situation and learnt that India was giving priority to textile machinery upgradation and that it was good time to discuss and explore opportunities, he said.



Tianki also said China would continue to import cotton yarn from India and had already shipped in 4.5 lakh tonnes of cotton yarn till September, which showed an increase of 100%.



To a question on the expected release of surplus cotton of nearly 10 million tonnes and its impact on global market, he said there would definitely be a price gap and Chinese buyers would continue to buy it from India.



T Rajkumar, Chairman, Southern India Mills' Association, said about 40% of India's cotton yarn exports were to China and there was tremendous opportunity to increase the same in the coming months.

Source:- business-standard.com

Indian Steelmakers Vie For Low-Quality Goan Iron Ore

Indian steelmakers are looking to bid for much of the 11.46 million tonnes of low-quality iron ore that the state of Goa will auction, after court-ordered restrictions on mining have cut off supplies.



The domestic steel mills have traditionally preferred ores with higher iron content but are now developing technology to use whatever ore they can lay their hands on.



Goa used to be India’s top exporting state, with sales of more than 40 million tonnes a year mostly to China. But it has not produced or exported any ore since the Supreme Court imposed a ban 14 months ago to curb illegal mining. The court on Monday said it would allow the auction of ore that was mined before the ban.



“We would definitely like to buy some from Goa,” said RK Goyal, managing director of Kalyani Steels Ltd. “The availability of Goan ore will also help us get a more competitive price than what we’re paying in Karnataka.” The company, which buys ore mainly from the southern state, has been able to get only 70% or less of the more than 100,000 tonnes of iron ore it needs every month.



The Supreme Court in April revoked a 2011 ban on mining in Karnataka, but operations have resumed in only about a dozen of its 115 mines.



Kalyani Steels, JSW Steel Ltd and Kirloskar Ferrous Industries Ltd are part of the Karnataka Iron & Steel Manufacturers’ Association that recently appealed to the Supreme Court to stop the export of the stockpiled Goan ore. Their appeal surprised miners in Goa because Indian companies have generally used high-quality ore from Karnataka and eastern Odisha state. The recent shortage, however, has forced steelmakers to adopt methods to use ore with an iron content of less than 52%.



Steelmakers such as JSW Steel, Essar Steel, Prakash Industries Ltd, Monnet Ispat & Energy Ltd, Adhunik Metaliks Ltd and Steel Authority of India Ltd are investing in plants that can process low-grade iron ore. Many small unlisted companies have also set up the so-called beneficiation plants, which extract waste material from ore and increase its iron concentration.



Kirloskar Ferrous plans to make use of one such plant, which will bid for the low-quality Goan ore that goes up for auction. Kirloskar Ferrous will buy its concentrated product, R.V. Gumaste, the steel firm’s managing director, said. The company needs more than 1 million tonne of iron ore a year but is making do with just 600,000 tonnes, Gumaste said.

Indian steel mills’ capacity utilisation hit an all-time low of 82% in the year to March 2013, according to lobby group Assocham. “Even though Goan ore is low grade, we can at least survive,” Gumaste said. “I was used to eating bread and butter but will have to be ready to eat dry biscuits now.”



Source:- livemint.com

Gold Futures Down 0.2% On Global Cues

15-Nov-2013

Gold prices declined by 0.26% to Rs 30,246 per 10 grams in futures trading today after participant trimmed positions, tracking a weak global trend.



At the Multi Commodity Exchange, gold for delivery in December declined by Rs 79, or 0.26% to Rs 30,246 per 10 grams in business turnover of 872 lots.



In a similar fashion, the metal for delivery in February traded lower by Rs 77, or 0.26% to Rs 29,790 per ten grams in 48 lots.



Market analysts said speculators trimmed their positions in tandem with a weak global trend mainly kept pressure on gold prices at futures trade.



Meanwhile, gold fell by $4.60 to $1,282.70 an ounce in London in early trade today.

Source:- business-standard.com

Veg Oil Import At All-Time High In Last 12 Months

15-Oct-2013

Vegetable oil import in the oil year gone by (November 2012-October 2013) was at an all-time high of 10.6 million tonnes, up 4.8 per cent from the previous year’s 10.1 mt, on the back of rising domestic demand, according to data released by the Solvent Extractors’ Association (SEA).



In the current oil year (Nov ’13 to Oct ’14) as well, domestic demand for vegetable oil is expected to continue to increase, by at least 500,000 tonnes, on rising demand.



Overall production of vegetable oils was almost stagnant at eight mt in 2012-13, compared to 8.1 mt the previous year, while consumption rose three per cent, due to increase in per capita consumption and population growth (1.76 per cent). The lower price of vegetable oils globally boosted import.



The inverted export duty structure in Indonesia and Malaysia also added to import of RBD palmolein, which substantially increased during the year. Import of refined palmolein during April-October 2013 jumped to a little over 1.6 mt, compared to 750,000 tonnes during the same period of last year.



India meets a little over 50 per cent of domestic demand through import. Palm oil is imported from Malaysia and Indonesia, while soyabean oil comes from Argentina and Brazil.



“India’s demand for edible oil is on the rise and even in the current oil year, we will import at least half a million tonnes. Imports of vegetable oil will also depend on the domestic production of oilseed,” said B V Mehta, executive director of SEA.



If the price remains low internationally, then import will be higher, he added.

Source:- business-standard.com

Import Prices Fall On Cheaper Energy, Weaker Yen

15-Nov-2013

Prices of goods imported into the U.S. fell in October at the fastest pace in more than a year. Overall import prices fell by 0.7% in October from a month earlier, largely driven by lower petroleum costs, the Labor Department said Friday. That was largely in line with expectations and marked the largest decline since June 2012. Prices were down 2% over the past year.



Excluding all fuels, import prices were unchanged for the month but declined 1.3% over the last year. That was the largest annual drop since October 2009, the Labor Department said. Falling import prices typically reflect weak demand abroad containing inflation pressures, a development that in turn has helped keep inflation at historically low levels in the U.S.



“With the prices of imported goods largely flat, domestic firms will have limited pricing power and that implies continued low or even decelerating inflation,” said Joel Naroff, president of Naroff Economic Advisors Inc.



Stimulus efforts by some central banks have helped make a variety of goods cheaper for American importers.



Prices from Japan, for example, continued to trend down in October, declining 3.2% over the past year — the largest 12-month drop since the spring of 2002. And prices for imported cars –a large share of which comes from Japan – dropped 1.4% since October 2012, the biggest decline since the Labor Department started collecting that data in 1981.



Lower prices from Japan are likely the result of a falling yen, and government officials have suggested in recent days they are prepared to fight to keep the currency weak. The Bank of Japan is in the midst of stimulus measures designed to boost growth in the country.



But lower import prices aren’t necessarily trickling down to U.S. consumers and pushing them to spend more.



“Not only are we importing disinflation, but we have an economy which is still stuck in a shallow growth trajectory,” said Steven Ricchiuto, chief economist at Mizuho Securities.



Low inflation domestically could encourage the Federal Reserve to maintain its $85 billion-per-month bond-buying program, which is aimed at keeping long-term interest rates low and in turn spurring hiring, spending and growth. Some economists think the central bank may rein in the program at its December meeting, while others don’t expect any changes until early next year.



Overall inflation remains well below the Fed’s 2% annual target. Its preferred gauge, the index for personal consumption expenditures, rose 0.9% year-over-year in September.

Source:- blogs.wsj.com

Oil Import From Iran On Slippery Terrain

If the proposed Rs 2,000-crore Indian Energy Insurance Pool is not operational by next month, say major crude oil importers, they will not be bringing in any from Iran.



This casts a big shadow on the petroleum ministry’s plan to import 11 million tonnes of crude from Iran in this financial year — the attraction in doing so from that sanctions-hit country is that it will accept payment in rupees, instead of scarce dollars.



In fact, the bigger hurdle is the size of the proposed insurance pool. According to sources, while oil companies were asking for a cover of Rs 9,500-11,000 crore, the government is offering only Rs 2,000 crore.



State-owned general insurers had also invited their private sector counterparts to be part of this pool but none of the latter accepted, citing the high associated risks.



Petroleum Minister M Veerappa Moily had a plan to save $8.47 billion on the year’s crude oil import bill by paying for 11 mt of Iranian crude in rupees.



Of this, Mangalore Refinery and Petrochemicals Ltd (MRPL), a subsidiary of government-owned Oil and Natural Gas Corporation, and Essar Oil (not state-owned) were to import at least eight mt.



“There is no clarity on the insurance front. The insurance pool was supposed to be finalised in August. Based on this assurance, we started our imports in August. Now, even in November, the insurance hurdles are not settled. Unless the government finalises it by December, we will not be able to import Iran crude this year,” said P P Upadhya, managing director of MRPL.



Of the Rs 2,000-crore insurance pool, the petroleum ministry was to contribute around Rs 1,000 crore through the Oil Industry Development Board and the finance ministry another Rs 1,000 crore. The latter had recently asked OIDB to provide Rs 500 crore with immediate effect.



Echoing Upadhya, a senior Hindustan Petroleum Corporation official said, “We were planning to import 800,000 mt of Iranian crude. But if we are unable to get the insurance issues sorted, we will be substituting it with Saudi Arabia or Kuwait.”



Indian insurers used to depend on European companies to re-insure their risks. However, with the sanctions on trade with Iran from both America and the European Union, these have refused to re-insure, making the proposed insurance pool vital for future import.



When asked about this, an official from a public sector insurance company said, “They require a cover between Rs 9,500 crore and Rs 12,000 crore. However, we will be able to provide a cover of only Rs 2,000 crore. Hence, the pool is stuck, as the industry feels the cover is inadequate.” This pool was to have the four state-owned general insurers — New India Assurance, United India Assurance, National Insurance and Oriental Insurance -- and the sole re-insurer, General Insurance Corporation of India, as members.



Till September-end (the first six months of 2013-14), India has imported only about two mt from Iran, of the proposed 11 mt. An Essar spokesperson refused to comment on the issue.



India imported 18.5 mt of crude from Iran in 2010-11, which came down to 17.4 mt in 2011-12 and 14 mt in 2012-13.

Source:- business-standard.com

Additions for unexplained investment not justified if such investments were duly disclosed in return

IT: Where investment in property in question was duly shown in balance sheet and also in return of income of wife of assessee, addition under section 69 in respect of such investment could not be made in case of assessee

AO couldn’t deny sec. 10(23FB) relief alleging breach of Venture Capital norms if SEBI didn’t revoke

IT: Exemption under section 10(23FB) cannot be denied by Assessing Officer on ground that assessee has violated provisions of section 12 of SEBI (Venture Capital Funds) Regulations, 1996 when registration granted by SEBI is valid

I-T Department lays down procedure to deal with e-returns held as ‘defective’ due to unpaid self-ass

IT/ILT : Section 139 of The Income-Tax Act, 1961 - Return of Income - Treating E-Returns of A.Y. 2013-14 Where Unpaid Self-Assessment Tax Exists on The Date of Filing of Return as Deemed Defective Returns

HC slams revenue for fixing value of property without considering assessee’s claim; matter remanded

IT: Where assessee objects before Assessing Officer that value adopted by stamp valuation authority under section 50C(1) exceeds fair market value of property on date of transfer, Assessing Officer may either accept valuation of property on basis of report of approved valuer filed by assessee or he may refer question of valuation of capital asset to DVO in accordance with section 55A

No disallowance for excess payment to affiliates if assessee substantiates charging less from unrela

IT: Where assessee purchased electricity from its sister concern against price paid and claimed deduction of same and Assessing Officer disallowed a certain amount as excess payment under section 40A, since sister concern had reasons for charging lower rates from two parties, impugned disallowance was not justified

‘Deemed registration’ to trust as CIT didn’t pursue request even after 6 month from date of ITAT’s o

IT : 'Deemed registration' to trust as CIT didn’t pursue request even after 6 months from date of ITAT’s order

CIT to look into objects of trust for registration; mere commencement of charitable activities not r

IT: For grant of registration, Commissioner should look into objects of trust; issue of receipt of donation or commencement of charitable activities is not relevant

SetCom order set aside as it didn’t deal with issues and contentions raised by revenue

IT: Where order passed by Commission under section 245D(2C) was not focussed on issues and contentions raised by petitioners and by revenue, same was cryptic and was set aside

Moisturex cream meant for curing skin is medicament; SC lays down principles to identity medicament

ST : 'Moisturex' cream having medicinal ingredients and meant for curing of skin ailments/diseases is a medicament (duty 15%) and not cosmetic (duty 70%)

Purchase of land under Chhattisgarh Nivesh Adhiniyam isn’t a compulsory acquisition for sec. 194LA T

IT: Since Chhattisgarh Nagar Tatha Gram Nivesh Adhiniyam, 1973 did not contain power to compulsory acquire land, purchase of land under said Act by assessee-local authority by entering into mutual settlement with landowners could not be equated to compulsory acquisition of land

Sec. 68 addition was justified as assessee failed to prove genuineness of share transaction, says HC

IT: Where neither huge cash in hand over Rs. 20 lakhs was substantiated by wealth-tax return of other documentary proof nor photocopies of shares purchased or share numbers were furnished, impugned transaction could not be held to be genuine and explained

No disallowance if TDS default was cured before filing of return; amendment to sec. 40(a)(ia) is ret

IT : Amendment to section 40(a)(ia) by Finance Act, 2010 is retrospective and therefore, when assessee has paid to Government account tax deducted at source before due date of filing of return of income under section 139(1), disallowance of expenditure by invoking provisions of section 40(a)(ia) is not called for

IT department can’t restrict assessee from selling a similar flat at a lower price to an unrelated p

IT : Where assessee was engaged in business of selling of flats after construction and it offered an explanation for charging lower price in respect of some of flats sold by it and Assessing Officer without controverting such explanation made addition to income of assessee by applying rate of another flat sold by it, Assessing Officer was not justified in his action

India-Uk Free Trade Agreement Should Progress: David Cameron.

British Prime Minister David Cameron today said the proposed Free Trade Agreement (FTA) between India and the UK needs to progress.



"India-UK FTA is getting around for a long time and we need to progress on that front," Cameron said in reply to a query on India-UK trade at an interactive session with IIM Calcutta students here.



He said that India and UK have been investing in each other's countries. "The JLR (Tata Motors' acquisition of the British iconic brand) is the biggest success story where an Indian investment has been so encouraging.



"More capital flows will lead to greater trade flows between the two countries," he noted.



"What is important is that trade barriers should be reduced and that will help," he said.



He said that economic openness by both the countries should help in generating wealth.



"It is not a zero-sum game. India's gain is not Britain's loss. There is a need to reduce tariffs."



He also said that besides material trade, there was a lot of wealth in human capital. "These included universities, healthcare, banking and insurance."



In this context, he said that there was a limit on the number of students going from India to study in British universities.



But there was no limit for Indian graduates to get jobs in Britain, he said.



"There has to be a link between political openness and economic openness. Even if a country does not have oil, gas and ineral wealth, it does not matter. It is important what institutions we create and what policies we put in place," he added.



Source : economictimes.indiatimes.com

Smugglers Pushing In Gold Through Nepal, Bangla Borders.

As the 10% import duty on gold spurs unprecedented smuggling and authorities crack the whip, smugglers are skipping the traditional airport route and are tapping into fake currency networks across the Indo-Bangladesh and Indo-Nepal border to push in the yellow metal.



Investigations and seizures by financial intelligence agencies in the recent past have revealed that smugglers are now flying consignments of gold to Bangladesh and Nepal and then using couriers to carry them across the border.



In the past few months, over 50 kg of gold worth more than Rs 15 crore has been smuggled across the Indo-Bangladesh border alone. Sources in Directorate of Revenue Intelligence (DRI) said Nepal too has come up on the radar with some recent seizures on the border. Sources said this was only a fraction of what was being smuggled through these borders.



Increase in import duty on gold to 10% has created a gap in prices with places such as Dubai and Thailand where duty is only 1%. This year (up to October), close to 800 kg of smuggled gold has been seized. This is more than double of last year's haul of 350 kg.



DRI sources said the increase in seizures was also due to customs authorities keeping a strict vigil on airports. "That is why human couriers on Indo-Bangladesh border are being used as it is very difficult for customs authorities to man these porous borders. These borders already have a well-oiled network of smugglers who are engaged in fake currency and cattle smuggling," a senior DRI officer said.



Elaborating on the modus operandi, sources said gold was bought in places like Dubai and Thailand and flown to Dhaka or Kathmandu where authorities are not as vigilant. The consignment is then brought to the border and stored in safe houses.



"From here, human couriers are hired and given one or two bars to take across the border. It is very difficult to detect such small amounts on a long border. These couriers make two to five trips a day and thus manage to carry considerable gold in a day. The gold is then collected and stored on the Indian side and transported to unscrupulous jewelers in cities," the officer said.



Smugglers are also bringing gold through Sri Lanka using small fishing boats which are difficult to track and intercept, sources said.



Source : timesofindia.indiatimes.com

Rebar Rises In Shanghai To Trim Weekly Loss As Iron Ore Rallies

Steel reinforcement-bar futures in Shanghai advanced, narrowing a weekly loss, as higher iron ore prices helped offset a weaker demand outlook in winter.



Rebar for May delivery, the most-active contract on the Shanghai Futures Exchange, gained as much as 0.4 percent to 3,636 yuan ($597) a metric ton, before trading at 3,632 yuan at 10:28 a.m. local time. The contract lost 0.8 percent this week.



Iron ore for immediate delivery at Tianjin port tracked by The Steel Index gained 0.4 percent yesterday to $136.60 a dry ton, bringing this week’s gain to 0.5 percent. Demand for rebar usually wanes in winter as construction slows during the colder months, according to Jiang Yuying, an analyst at Chengdu Brilliant Futures Co. in Shanghai.



“There are some bargain-hunting buying in rebar as higher production costs are supporting prices,” said Jiang. “The upside might be limited due to the lack of positive news from policy makers and weak seasonality.”



The Communist Party’s senior leaders concluded a policy meeting this week with a communique stating that markets will become “decisive” in allocating resources while the state remains “dominant” in the economy, without providing specifics.



Iron ore for May delivery on the Dalian Commodity Exchange, rose 0.2 percent to 939 yuan.

Source:- businessweek.com

Tata Steel Rallies Over 3% Post Q2 Results; Brokerages Raise Target Price

Tata Steel LtdBSE 4.58 % rallied as much as 3.1 per cent in morning trade on Thursday, after the country's largest steelmaker by market value, beat analyst estimates by a fair margin and in response most brokerages have raised their respective target prices.



Consolidated net profit for the July-September quarter stood at Rs 916.8 crore, against a loss of Rs 363.9 crore in the same quarter last year. Analysts were expecting a consolidated profit of Rs 400 crore, on sales of Rs 34,600 crore, according to a an ET Now poll. The company reported consolidated sales of Rs 36,644.8 crore.



At 09:30 a.m.; Tata Steel was trading 2.4 per cent higher at Rs 367.60. It has hit a low of Rs 359 and a high of Rs 370 in trade today.



Tata Steel, which is the country's largest steel maker, sold 6.48 million tonnes of saleable steel in the second quarter, from 6.07 million tonnes from last year, on a consolidated basis. It was majorly helped by Rs 180 crore from the company subsidiaries like Tata Sponge, Tata Steel Processing, Dhamra Port and Tata BlueScope.



Margins rose to 10% from 7% from last year, helped by price increases in India and South-East Asia, and sales growth overall. The company raised prices by 1,500-2,500 per tonne in September in India. It took a similar hike in October, which could aid margins in the December quarter as well, ET reported.



Brokerage firms like JPMorgan and Deutsche Bank maintained their 'overweight' and 'buy' ratings on the stocks and see it heading over Rs 500 in the next 12 months, which translates into an upside of over 46 per cent from Wednesday's closing price of Rs 358.85.



JPMorgan raised its target price from Rs 500 earlier to Rs 525 for the next 12-months. Deutsche Bank expects the stock to rally towards Rs 525, raising its target price from Rs 372 earlier.



This is the first quarterly results announcement under new managing director Narendran, who took the helm in September. The company expects second half to be better than the first half, driven by growth.

Source:- economictimes.indiatimes.com

Labour Dispute Hits Export Shipments Through Jn Port

Shipping goods in containers to overseas customers through Jawaharlal Nehru port, India’s busiest container gateway, located near Mumbai has been hit by a labour dispute at one of the three terminals at the port.



Gateway Terminals India Pvt. Ltd, the terminal run by a joint venture between Denmark’s APM Terminals Management BV and Container Corp. of India Ltd (Concor), has shut the gates through which export containers are brought to the terminal for the last 10 days.

This is due to a three-week-old go-slow by the trailer operators at Gateway Terminals. Trailer operators pick up boxes arriving on ships from the wharf and cart them to the container storing yard of the terminal and then move the containers from the yard to the wharf to be loaded onto ships.



Gateway Terminals has outsourced this activity to a third party contractor who is seeking more money to do the job.



“Gateway Terminals has closed its export gate,” said S.N. Maharana, chief manager operations of JN port. The closure was necessitated by inadequate space to store containers inside the terminal, which in turn has triggered a blockage on the road leading up to the port.



“Shippers sending their export containers through JN port are facing the worst crisis at a time when exports are showing definite signs of a surge in the wake of growing demand for Christmas cargoes from the US and Europe,” said R. Venkatesh, vice- president of the Western India Shippers Association or WISA, which represents about 130 exporters and freight forwarders.



India’s exports grew by 13.47% during October 2013 to $27.27 billion from $24.03 billion a year earlier, making it the fourth straight month when exports grew in double digits, according to India’s commerce ministry.



The closure of the terminal’s export gate has started to bite exporters and shipping lines, WISA’s Venkatesh said.



“The terminal is choked. It has resorted to operational restrictions leading to huge shutouts of export containers, missed ship connections and abnormal delays in shipments of export cargoes and clearance of imported containers. The shipping lines have advised the shippers that any additional cost charged by the terminal has to be passed on to cargo interests,” Venkatesh added.



JN port’s Maharana said that some of the export containers of Gateway Terminals are being sent through the other two facilities run separately by the government-owned port itself and Nhava Sheva International Container Terminal Pvt. Ltd or NSICT (run by Dubai’s DP World Pvt. Ltd).



However, this has only added to the problems.



“Container shipping lines have already adopted dual berthing concept by dealing berth slots with NSICT and JN port container terminal, either on additional payment basis or some other business commitments. These costs will be passed on to the exporters and importers,” said a senior executive with a container freight station that services the port.



“Due to Gateway Terminals remaining closed for export intake, container inventory levels at other two terminals has shot up to their threshold handling limits, causing serious berthing delay, poor ship rate and massive export traffic queue running almost 15-20 kms on the national highway approach roads connecting the port,” said a Mumbai-based executive of a container carrier based in East Asia.



Further, the roads leading to port gates are also fully jammed with huge container traffic. And because of this, transporting containers to port has become very difficult, he added.

Between April and October, JN port handled 2.37 million standard containers, less than the 2.49 million standard containers it handled during the same period a year ago.

Source:- livemint.com

India Simplifies Risk Management System To Speed-Up Export Clearances

The Indian government launched a Risk Management System (RMS) for exports, a move aimed to reduce customs clearance time and lower transaction costs.



India introduced RMS for imports in December 2005, and traders had long demanded an extension of RMS to cover exports to help reduce transaction costs which are estimated at around 7-10% of total exports compared to about 3-3.5% in China and some Southeast Asian countries.



According to the Indian Finance Minister, the time taken to obtain customs clearance will now come down to a few hours, compared to around 1.6 days to 3.68 days prior to the implementation of RMS. Under the new system, low-risk consignments will be cleared by the Customs based on declarations by exporters. RMS is a growing practice among WTO members, and will help improve India's exports, local sources say.



Meanwhile, trade analysts say India's overall exports are expected to grow by 7.2% in FY 2014-15 (April – March), compared to -1% seen in FY 2013-14. India is expected to remain the world’s largest rice exports for the third consecutive year in 2014 with about 10 million tons of rice exports next year.

Source:- oryza.com

Tpg Emerges Final Bidder For Karaikal Port

14-Nov-2013

TPG Capital India is set to buy a majority stake in Karaikal Port Pvt. Ltd. The US-based private equity (PE) firm has entered into a so-called exclusivity agreement with the port and will invest at least Rs.1,000 crore to acquire stake from existing investors and promoters, said two people close to the development.



Located in Puducherry, the 47-million metric tonnes per annum (mmtpa) deepwater Karaikal port has a total investment requirement of Rs.4,000 crore. The project is expected to be completed by 2018.



“TPG does not comment on market speculation,” a company spokesperson said. G.R.K. Reddy, promoter and director at Karaikal Port, did not reply to phone calls and text messages on Wednesday and Thursday.



A port executive said TPG Capital is keen to invest in the firm. “Indeed, TPG is interested in investing but it is too premature to talk about it at this point of time,” he said, requesting anonymity.



A final valuation is yet to be arrived at and decisions pertaining to dilution of promoter stake and exit of existing private equity investors are still being finalized, the port official said.



At present, PE investors hold about 49% stake in Karaikal Port, a unit of infrastructure development firm Marg Ltd. “The promoters will also dilute some of their stake to offer majority shareholding to TPG,” said one of the people mentioned above.

So far, the PE firms have invested about Rs.680 crore in the company. Among the firms, Standard Chartered Private Equity Advisory (India) Pvt. Ltd has invested Rs.130 crore and Jacob Ballas India has invested Rs.200 crore. The port has also attracted private equity investment from IDFC Ltd and Ascent Capital Advisors.



“Discussions are still being held around valuations and it’s certain that TPG will at least invest Rs.1,000 crore to begin with. Negotiations with existing investors are also on. Depending upon how much the investors are ready to sell, promoters will consider the extent of their stake dilution,” another of the people cited earlier said.



The transaction will mark TPG Capital’s entry in the Indian port sector. The PE firm is the global buyout group of TPG, a global investment firm with over $55 billion capital under management.

The plan to bring TPG as an investor falls in line with Karaikal Port’s strategy to develop port infrastructure and increase operational efficiency. It is looking to strengthen its four divisions—coal handling, agricultural commodities, liquid cargoes and container handling—through partnerships.



“The primary objective of creating these four verticals is not to attract equity at these project-level businesses, but to get long-term contracts that can get bigger volume in respective verticals,” G.R.K. Reddy had said in a phone interview in June. Reddy also said that the firm was not raising fresh funds at that moment but was open to further equity dilution if needed.



The port is in the second stage of development and the total cost for the phase-II development is pegged at around Rs.2,800 crore.



PE firms seem to have a positive view on the port sector in India despite the current economic slowdown.



“Private ports in India present an exciting opportunity for PE investors, who are willing to make longer term investments, as there exists high growth potential on the back of increased international trade,” said Darius Pandole, partner at private equity firm New Silk Route Advisors Pvt. Ltd. “Additionally, private ports can benefit from market-determined tariffs that could result in healthy margins for various lines of port-related businesses.”

Non-major private ports, falling under state-government administration, have the independence to fix their own tariff. Karaikal Port is a minor port and has flexibility in pricing.



A PE investor is a better choice compared with debt that needs to be serviced regularly, an executive of a leading consulting firm said, requesting anonymity. “In case of equity investment, the company can buy out shares from private equity firms whenever the turnaround happens,” he said.

Source:- livemint.com

India's Q3 Gold Demand Down By 32% To 148 Tonnes: World Gold Council

Indians have offloaded more household gold in the third quarter of 2013 to take advantage of the price rise of the yellow metal and to meet their family requirement. Data released by World Gold Council on Thursday shows that there has been a 44.5% increase in recycled gold to 61.3 tonne from 34 tonne in the corresponding period of the previous year.



Talking to ET, Somasundaram PR, managing director (India), WGC said: "In Q2 of 2013, only 9.5 tonne of recycled gold has entered the market. But in Q3 when the supply side was constrained due to government policies, 61.3 tonne of old gold were offloaded by Indians. They took advantage of the price rise in yellow metal that touched Rs 33,000 per 10 gm during the quarter".



The demand for gold in India for Q3 2013 was at 148.2 tonne down by 32% compared to Q3 demand for 2012 which stood at 219.1 tonne. Despite this drop in demand in Q3, WGC pegs the 2013 demand at 900 tonne. Total jewellery demand in India for Q3 2013 was down by 23% at 104.7 tonne compared to 136.1 tonne in Q2 of 2012. There has been a drastic drop in investment demand as people preferred other asset class for investment due to volatility in the yellow metal prices. The investment demand was down by 48% at 43.5 tonne.



WGC says that in the first nine months of 2013 the total demand for jewellery is up by 13% and investment demand is up 30%. Total demand according to the council is up by 19%. Actually the surge in demand took place during April-June quarter when prices of the yellow metal fell to Rs 25,500 per 10 gm level.



Somasundaram added that the fourth quarter is traditionally a busy season for gold, as it captures post-monsoon rural spending, major festivals and auspicious wedding days and it is expected this to be true this year.



The global gold demand trend has followed the India pattern. Overall demand for gold in Q3 2013 was 869 tonne, down 21% on the same period a year ago. However, demand remained strong across most countries and sectors. The exceptions were gold-backed ETFs, which had net outflows of 119 tonne this quarter, compared to 402 tonne in Q2 2013.



WGC said that taking the year as a whole so far, the jewellery, bar and coin sectors are showing year-to-date increases, while technology demand remains robust. ETF investment demand is the notable exception, having weakened this year. As of the end of Q3 2013, demand stood at 2,896t, 26% higher than the same year-to-date figure in 2012.



The global demand for jewellery was 487 tonne in Q3 2013, compared with 462 tonne in the same period last year, an increase of 5%. Demand was particularly strong in China, where the figure reached 164 tonne, a rise of 29% compared with the same period last year. Robust growth in the jewellery sector was also seen in the Middle East, Turkey and significantly across South East Asia. After eight years of decline, the US jewellery market had its third consecutive quarter of growth with a shift to higher carat items - signalling the re-emergence of aspiration and luxury as key drivers of gold jewellery in US. The global bar and coin demand also showed a year-on-year increase, reaching 304 tonne, a rise of 6% compared to the same period last year.

Source:- economictimes.indiatimes.com

October Inflation Hits 8-Month High As Onion Prices Soar 278%

Spiralling prices of onion and other vegetables pushed the wholesale price inflation (WPI) to an eight-month high of 7 per cent in October. Food prices remained elevated, though the rate of increase dropped marginally to 18.19 per cent as compared with 18.4 per cent in September, data showed.



Retail prices of onions have quadrupled in some cities over the past three months, serving as a powerful reminder of the impact on consumers. Onion prices jumped by an annual 278.21 per cent in October as compared with a 78.38 per cent rise in vegetable prices.



Protein rich items like egg, meat and fish became costlier by 17.47 per cent against 13.37 per cent in September.



Rising food prices had also been reflected by data on Tuesday showing consumer price inflation accelerated more than expected in October, to 10.09 per cent from September's annual pace of 9.84 per cent.



Two days ago, Reserve Bank governor Raghuram Rajan described India's food inflation as "worryingly high". Still, Dr Rajan sought to address concerns about inflation at Wednesday's news briefing, and analysts have interpreted the remarks as signalling reluctance to raise India's key lending rate - the repo rate - which currently stands at 7.75 per cent. (Also read: Why the RBI may raise rates in December)



The Reserve Bank of India has already hiked the key repo rate by 25 basis points (0.25 per cent) twice since Dr Rajan took over as the governor in September.

Source:- profit.ndtv.com

Rupee Appreciates Further By 19 Paise To 63.11 Against Dollar

The rupee appreciated another 19 paise to 63.11 against the dollar today as local stocks made a strong recovery and exporters sold the US currency.



The rupee, which rose to a high of 62.95, gained for the second day after RBI Governor Raghuram Rajan sought to reassure investors, saying there is no fundamental reason for the currency to fall again. He also pegged the CAD at a lower level than estimated earlier.



Capital inflows continued to aid the rupee's rise, although a strong dollar overseas capped the gains.



The rupee resumed higher at 63.15 a dollar from the previous close of 63.30 at the interbank foreign exchange market and improved to a high of 62.95 as local stocks rose.



Further gains were stalled by concerns about a possible rate hike after data showed wholesale price inflation at 7 per cent in October compared with 6.46 per cent in September.



The rupee dropped to a low of 63.34 and closed at 63.11, a rise of 19 paise or 0.30 per cent. Yesterday, it had gained 41 paise. The local currency fell for the fifth straight week, losing 64 paise.



The 30-share benchmark Sensex snapped a seven-day losing streak and advanced 205.02 points or 1.02 per cent. Foreign institutional investors bought shares worth Rs 299.70 crore yesterday, according to provisional stock exchange data.



The dollar index was up 0.46 per cent against major global rivals.



"WPI data was released, which dented sentiment. Going ahead...Janet Yellen will be closely tracked as she is expected to comment on the ongoing tapering talks," said Abhishek Goenka, Founder & CEO, India Forex Advisors.



The RBI said it would inject Rs 8,000 crore by purchasing bonds on Monday to improve liquidity in the system.



Rajan said the estimate for the current account deficit this year is $ 56 billion, less than 3 per cent of GDP and $ 32 billion lower than last year.



He also said most of the dollar demand from OMCs is back in the market and the central bank will not rush to close a special window for their forex needs.

Source:- economictimes.indiatimes.com

[Indian Custom Non-Tariff Notification] : Amendment Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001

Winding up petition dismissed as substantive issues raised disputes over liability of parties

CL: Presence of several substantive issues touching upon liability of parties leads to dismissal of winding up petition

Fee from usage of software which facilitates shipping business isn’t FTS; no tax under India-Denmark

IT/ILT : Where assessee, a Denmark based company, recovered certain cost from its Indian agent towards useage of software which was directly connected with its shipping operations, same had to be treated as covered under article 9(1) of India-Denmark DTAA and, thus, it could not be taxed in India

No denial of sec. 80G relief in absence of any evidence showing violation of statutory conditions, r

IT: Where any violation to section 80G could not be established, exemption under section 80G could not be denied

IT officers don’t have unfettered powers to prolong search without issuing panchnama

IT: Department does not have unfettered powers to prolong search without justification and issue panchanamas to extend period of passing of assessment order

No review petition if case was remanded by HC to get clarifications on certain matters

IT: No review petition if case was remanded by HC to get clarifications on certain matters

AO can’t initiate afresh block assessment proceedings without recording his satisfaction prior to se

IT: Where Assessing Officer had not granted opportunity to assessee and had not recorded satisfaction prior to initiation of assessment proceedings under section 158BD, he would not be permitted to initiate fresh block assessment proceedings

CIT couldn’t decline penalty waiver in relevant year when he allowed relief in earlier years on simi

IT: Commissioner could not decline waiver of penalty when on similar facts in earlier years it had granted said relief

Confiscation of exportable goods by custom authorities is a loss of stock-in-trade and a business lo

IT: Confiscation of goods exported by assessee must be treated as a loss of stock-in-trade

Recipient of GTA service may claim abatement even if non-availment of credit not endorsed on consign

ST : A recipient of goods transport agency's services may claim abatement of 75 per cent even if consignment notes issued by goods transport agency are not endorsed as to non-availment of credit by goods transport agency

Imparting of nursing education is still charitable even if trust charges a nominal fees for such edu

IT: Where assessee-institution imparting education in field of nursing, claimed registration under section 12AA, in view of fact that assessee was charging nominal fee from students and, moreover, hostel facility run by it for students was only incidental to its main objective, it was to be concluded that assessee's activities were chartiable in nature and, thus, its claim for registration was to be allowed

Misc. income having nexus with business activities is composite income for apportionment of agricult

IT: Receipts of premium on import licence, sale of scrap, miscellaneous garden income and excise duty having direct nexus with assessee's activities of growing, manufacturing and selling of tea should be treated assessee's composite income before apportionment thereof in terms of rule 8 of Income-tax Rules

HC preferred to tax capital gain in year of receipt of consideration and not in year of land develop

IT: Capital gains would be charged only on receipt of sale consideration after development of land; and not when agreement was signed for development of land

Sharif Keen For Singh To Visit Pakistan.

NEW DELHI: Prime Minister Nawaz Sharif is keen for his Indian counterpart to visit Pakistan before the next Indian elections due by May, but it could all end up as wishful thinking due to imposing problems, not the least their respective hawks and naysayers, informed sources watching this week’s talks between the two countries said on Wednesday.



Prime Minister Manmohan Singh is widely expected to demit office next year after completing two successive terms. His previous initiatives to normalise ties with Pakistan were stymied by rightwing Hindu revivalist adversaries and also by hawks within his own party.



It is learnt, however, that the Congress party may have given the prime minister complete control of the Pakistan policy, which is potentially the single most encouraging development for any early resumption of peace talks. In that case the truly insurmountable problem is the agenda. What would each side have to offer the other?



Theoretically, Pakistan could see the conviction of a clutch of Muslim extremists in the next few months who were allegedly involved in the Mumbai terror attacks. If that happens, it could help create an improved atmosphere for Dr Singh to justify a visit.



However, the domestic blowback from the possible conviction for Pakistan could be tricky. Led by a powerful pack of vendetta-seekers, revenge violence some expect could not be seen as a happy occasion for Mr Sharif to host anyone for a focused meeting.



Could the Indian PM be yet lured by a Pakistani offer to grant Delhi the most favoured nation status in trade albeit under a less suspect nomenclature? Many Pakistanis do not feel good about the phrase ‘most favoured nation’ being used for ties with India.



If Pakistan ponders these two offers, not without a political cost to its leadership from the naysayers, how would India respond with a matching offer?



Pakistan wants to club the issues of Sir Creek demarcation with troop withdrawal from Siachen, an idea India for whatever reasons feels uncomfortable with. Could there be a thaw on this? For all the talk of resolving the core dispute, the ground has shifted tectonically since both sides pondered certain viable formulas.



The nub of the issue in resolving the Kashmir tangle is the withdrawal of troops on both sides, an idea that already looks defunct with the lurking fallout of developments in Afghanistan, namely the US troop withdrawal, and its ramifications far and wide.



For the moment, however, all eyes are set on the status of the ceasefire on the Line of Control in Kashmir. Would there be a DGMOs meeting as promised by the two prime ministers to fix the issues on the LoC, while also taking the first baby steps towards a military-to-military, face-to-face talk on issues concerning security on the borders.



Little was available on any of this from briefings and statements issued by both sides after Pakistan’s foreign policy adviser Sartaj Aziz met Indian foreign minister Salman Khurshid on Tuesday, followed by a call on Dr Singh on Wednesday.



According to the Indian foreign office spokesman, India took up the issue of LoC ceasefire violations with Pakistan. Mr Khurshid was clearly unhappy over a meeting Mr Aziz had had with Hurriyat leaders at the start of his visit on Sunday. He returned home on Wednesday.



Pakistan’s foreign office spokesman justified the “customary” meeting between Mr Aziz and the Hurriyat leaders, saying such exchanges were staple fare under previous Indian governments too.



Source : dawn.com

Pune Airport To Come Up At Khed Sez, 418 Hectares Need To Be Acquired.

After six years, the site for the proposed Green Field International Airport for Pune at Khed Special Economic Zone, 45 kms from Pune city, has been finalised by the state government. This was decided in a meeting between Prime Minister Manmohan Singh and Chief Minister Prithviraj Chavan held in New Delhi on Wednesday to review the key infrastructure projects in the state.



A statement issued on the Pune Airport said that given the traffic projections in Pune, there is an urgent need to build a new Green Field Airport.



"After discussing different options, it was decided that a new international airport would be developed for Pune at Khed. The Pune International Airport Project would be managed by the Airports Authority of India," the statement stated. If everything goes as planned, the airport will be ready in five years.



Senior officials who attended the meeting said the airport with two runways would need 1,268 hectares. "The project would be at the Khed SEZ and surrounding areas. While 850 hectares has already been acquired for the SEZ project, the remaining 418 hectares will have to be acquired and nearly 180 families would be affected. The rehabilitation package will be finalised by the district administration. The AAI has approved the site and stated that it is the most ''conducive site" as it was obstruction free.



"It is barren land and there are also no natural obstructions," said the official on the site proposal. The AAI in their masterplan has stated that the required plot of land would measure 6.34 km by 2 km. The Maharashtra Airport Development Company would have to take the necessary permissions, including those from the environment department.



The JV had earlier paid out Rs 289 crore to land holders for phase I at the rate of Rs 17 lakh a hectare. When chairman and managing director of Bharat Forge, who is in the US was contacted, he had stated that he would comments after his return to India. Senior officials said the land acquisition will have to be coordinated by the state government.



According to the officials, the site was recommended as the availability of acquired land is to the tune of 65 per cent, the location is free from obstruction and meets optimum airport requirements with two independent parallel runway operations. "The site does not appear to have any obstacles in its approach and take off path,'' said a government ficial.



Pune Divisional Commissioner Prabhakar Deshmukh and MADC MD T Satre had reviewed the site. The site has been finalised after reviewing six sites. A detailed presentation of the site selecton was made on November 11 to the chief minister and deputy chief minister and they had given an in-principal approval for the proposed site.



The meeting in New Delhi convened under the PM had the Chief Minister and deputy chief minister and state government officials besides Sharad Pawar.



Source : indianexpress.com

Madras HC accepts a novel sale and lease back transaction; allows lessor to claim depreciation on le

IT: Where there was a tacit agreement in form of offer and acceptance for sale of assets and existence of such assets could not be doubted, said sale and its lease back should not be rejected for purpose of allowing depreciation

Still Room For Improvement On Indian Port Policy

Despite positive moves to reduce the red tape tying up port development, India still needs to do more before it can take its place on the world logistics stage, according to an analyst.



Shailesh Garg, director at industry consultant Drewry, said that the shipping and ports sector in India needs to “develop rapidly to keep pace with Indian trade and to act as a catalyst in economic growth”.



While India has already attracted international container terminal operating groups, there remains an estimated $20bn of further investment needed in the port system.



India’s Ministry of Shipping recent changes to the container terminal concessions rules made them more inviting to private investors. But despite these ‘policy interventions’, the progress of PPP related projects in the sector has still been slower than expected.



“The government therefore needs to introduce substantial policy initiatives for developing the port sector to meet the proposed capacity addition targets,” said Mr Garg. “Apart from the regulatory environment, the government will also need to focus on integrated development, as inadequate road and rail facilities are leading to logistical bottlenecks, resulting in capacity constraints and under-utilisation of port capacity.



“Further, investment in the modernisation of existing ports is critical for removing physical constraints and equipping them to handle modern and bigger vessels.”



Mr Garg will speak on ports, shipping and logistics development across India, Pakistan and Sri Lanka at the upcoming TOC Container Supply Chain Middle East conference, taking place on December 9-11 at the Dubai World Trade Centre, UAE.

Source:- portstrategy.com

Rupee Around 63/Dollar After Rbi Chief Rajan's Comments

The rupee gained past 63/dollar on Thursday after comments from the Reserve Bank of India chief about dollar demand from oil companies being smoothly absorbed by the forex market and easing fears of near-term tapering by the U.S. Federal Reserve helped the currency.

The rupee rose to 62.9525 to a dollar versus its Wednesday close of 63.30/31. It was last trading at 63.01/02.

Fed Chairman-elect Janet Yellen, in remarks prepared for her nomination hearing before the Senate Banking Committee later on Thursday, said the U.S. jobless rate was still too high and both the labour market and economy were performing "far short" of potential.

Source:- in.reuters.com