21.12.2006

• SEZs may face fresh restrictions
• The eGoM (Empowered Group of Ministers) on SEZs is scheduled to consider new restrictions, including a ceiling on land acquisition for multi-product SEZs, freeze on new IT SEZs in tier-I cities and also some changes in Central Land Acquisition Act.
• India’s exports are booming
• Grown at 57% to $9.7 bn in November 2006 when compared with previous year’s $6.1 bn.
• Apr-Nov figure is $79.59 bn
• Set to exceed the targeted $125 bn for the current fiscal.
• Steps on capital account convertibility
• Till now Indians could invest in a foreign company only when that company held at least 10% in a listed local company. That is now set to change.
• Indians can even invest in foreign mutual funds or park their money in foreign currency deposits in international banks which have no India presence.
• We can even donate up to $50,000 in a financial year.
• All these can be done of course with RBI approval.
• Indian veto power in telecom joint ventures
• It is set to go. So far, even if a local company had only 10% in a telecom JV it had a veto power (a power which can be there in other sectors only when they hold 26% stake).
• Press Note 5 of 2005 is being amended to make way for this.
• Amartya Sen
• Won the 1998 Nobel Prize for Economics. It is actually called the Sveriges Riksbank Prize in Economic Sciences.
• Awarded the Bharata Ratna in 1999.
• Market figures about home video rental markets
• Put at about $137 mn in 2006. Set to grow to $562 mn by 2010.
• Leaders are
• Japan ($3,541 mn)
• China ($427)
• Hawthorne Studies
• Between 1924 and 1932, a series of experiments were conducted in a factory in Hawthorne works of the Western Electric Company in Chicago. The experiments were conducted, among other things, for testing workers productivity in varying lighting conditions.
• Oddly, the results of the studies were very confusing – whether the light was dimmed or brightened, productivity was up.
• Based on this, it was concluded that the mere act of involving people in a piece of research (making them know that they are being watched) caused them to work harder.
• The results of these studies are taught as classical lessons in management schools.
• Patent scenario in India
• Number of patents filed
• 2001 - 6,000
• 2005 – 23,000
• 2006 – 30,000
• But in spite of the increasing number of applications for patents being filed in the country, it still remains under the 301 watch list of the US. This list aims at identifying countries not providing adequate protection to copyrights, patents or other IPR and brings them under the higher scrutiny of US authorities.
• State of Indian roads sector
• India has a total road network of 33.13 lk km.
• Of this, 200 km comprises of expressways, 66,590 km comprise of national highways, 1,28,000 km comprise of state highways and 4,70,000 kms comprise of the district highways. Rural and other roads comprise of 26,50,000 km.
• “No one can stop an idea whose time has come” – Victor Hugo
• This best describes the move towards using the huge forex reserves of the country for infrastructure funding.
• Championed by the Dy. Chairman of the Planning Commission and supported by the PM, the government is set to consider this option soon.
• DEPB Scheme
• It is basically a scheme to neutralize the incidence of customs duty on the import content of the export product by way of grant of duty credit against the export product.
• It is seen as non-WTO compliant, because of its non-transparent nature since the reimbursement is based on pre-fixed rates and is freely transferable.
• Though set to expire by 31^st March 2007, the scheme is likely to get an extension because the government has not been able to come out with an alternative scheme.
• Quotable quote:
• “This is not the approach to the Seventh Plan. It is the seventh approach to the same Plan!” – Late Prof. Raj Krishna is stated to have said so on the VII Plan approach paper.
• Suggestions to tackle judicial delays:
• Take up only that many cases, which the judge can hear; with this about half the day spent on rescheduling the cases can be saved.
• Put the cause list on the web, at least a week in advance; this way everyone can prepare well for the cases and avoid adjournments.
• Classify cases and have a norm, within which each type of case should be disposed of.
• Based on the norm, have an incentive system for the judges, in terms of giving them a variable pay, for disposing of the cases in excess of the norms.
• Consider two-shift working of courts, in order to clear pending cases.
• Cigarette smoke contains radio active pollutants:
• Polonium 210 and Lead 210.
• Shareholding norms in Stock exchanges set to be modified
• The RBI and the SEBI will be issuing guidelines shortly on this.
• The total foreign investment in the stock exchanges is likely to be capped at 49%. Of this 26% can be FDI while 23% can be FII.
• Also, no single investor can be allowed to hold more than 5% in the corporatised exchange.