Indian Current Affairs: 17.11.2006

The government is likely to impose a cess of Rs. 1 per sft on commercial properties across the country.
This cess is proposed to be ploughed back into infrastructure development through meeting the viability gap funding requirements for core sector projects.

ICAO (International Civil Aviation Organization) comprises of 180 nations including India.

India has recently complied with the security measures suggested by ICAO by mandating that all goods bought at duty-free shops should be packed in transparent, re-sealable bags. The goods should be accompanied by their invoices also.
Similar guidelines have been imposed in EU, Canada and US.

The GoI has set aside Rs. 279 cr as Haj travel subsidy for those willing to undertake the trip to Saudi Arabia during the year on Haj pilgrimage. This provision was made in the Union Budget for the current year.
Recently the GoI has raised the subsidy cover from Rs. 1 lk to 1.1 lk.

Nathu La in Sikkim and Bumla in Arunachal Pradesh are currently the meeting points on the Indo-China border.
A third point is proposed to be set up at Kibithu. It is a point which can be used all round the year as it is a low altitude place. The other two being high altitude places are closed during winter.

GoI is finalizing the policy. It envisages offering incentives to the tune of 25% of capital expenditure. The threshold limit for investment to avail the incentives is being kept at Rs. 2,500 cr.
With this the proposed fab city in Hyderabad is likely to take off.
In contrast SEZs get an income tax holiday for 15 years – 100% for first 5 years, 50% for next 5 years and 100% on ploughed back profits.
For SEZs there is an export obligation clause; the same is being waived for fab units.

India’s concerns are about round tripping or misuse of the treaty by companies who route their investments into the Indian securities market to get exemption from capital gains tax. Companies indulging in this set up outfits which function as ‘letter-box’ companies in Mauritius to avail these benefits.
To address these concerns some measures being proposed include:

Making eligible only companies that are listed on a recognized stock exchange for capital gains tax exemption.
Laying down that the company in Mauritius should have at least operated for two years prior to the date on which capital gains tax arises here in India.

The combined expenditure of the Centre and the States has been at 27-29% of the GDP for quite some time.
The world over, this figure is at 35% for developed countries.
The expenditure on subsidy for fertilizers is at over Rs. 40,000 cr.

Some points of view made on reservation policy in the editorial of today’s ET deserve recounting:

Continued marginalization and oppression of the backward social groups indicates a larger political failure that cannot be resolved through caste-based reservation – or for that matter any other form of affirmative action – alone.
That the political class should be preoccupied with reservation, even as it does nothing to politically change archaic social structures that engender casteist oppression, is shameless doublespeak.
The traditional caste-occupation correlation is to be broken first.

Narender Pani succinctly identifies two basic premises of the Nehruvian strategy of economic development. These premises appear to be correct when we are looking at the present phase of economic growth.

Economic growth was believed to be more sustainable if we build a base in terms of heavy industry as well as technical manpower. The long gestation period of these investments mean that there would be a period of slow growth, but once the base is created growth would take off.
The private sector in the 1950's did not have resources to undertake such substantial long gestation period investments. It then became the responsibility of the state to create the base on which private sector would be able to grow.

NHAI (National Highway Authority of India) has recently awarded two projects for widening a 148 km stretch of the Golden Quadrilateral from four lanes to six lanes on a negative grant of Rs. 975 cr.
What this means is that the successful companies who have bid for these projects will be paying the NHAI that much money to take up the work and getting the right to collect toll from the motorists.

India is stated to be having a potential for 10,000 MW from this source.
The country is stated to having a total of 350 potential sites.
Sites with about 250 degree Celsius have been identified at Tatta Pani in Chattishgarh and Puga valley in Ladakh.
Iceland, Italy and New Zealand tap about 15 to 20% of their energy needs from geothermal energy.

It would support 15,000 tonne trains with 30-tonne axle loads in contrast to the present tracks that can support only 5,000 tonne trains and 20.3 tonne axle load.
The corridor would come in New Delhi – Mumbai and Ludhiana – Kolkata sectors.

It would be held in Hyderabad for three days from January 4^th of 2007.
It is designed to sharpen the skills and enhance the knowledge of healthcare professionals, educators and social workers.

Justice O.P. Dwivedi: Chairman of MRTPC (Monopolies and Restrictive Trade Practices Commission)

Indian Current Affairs