Govt issues norms for FDI in defence sector
New Delhi: Government has notified detailed guidelines for foreign direct investment in the defence sector making it imperative for companies seeking licence to produce arms and ammunition to have resident Indian as chief executives.

The guidelines fixed a three year lock-in period for transfer of equity from one foreign investor to another.

Licence application for production of arms and ammunition would be given by the department of industrial policy and promotion, in the commerce and industry ministry but cases involving FDI will be considered by the FIPB and licences given in consultation with the defence ministry.
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Strike hits banking services
New Delhi: Banking services throughout the country were affected on 4 January during a day-long strike by employees against alleged forcible transfers in Standard Chartered Bank (SCB), leading to a hold-up in bank clearances worth more than Rs 400 crore.

In Mumbai, clearing house operations at the Reserve Bank of India (RBI) were partially affected owing to the strike.

In Delhi and Kolkata, the strike crippled services in many branches, but did not have any impact on RBI working.
However, SBI offices all over the country functioned normally as their workmen are not members of AIBEA.
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Port workers plan strike on Jan 22
Kolkata: Nearly 80,000 port and dock workers and 4,000 officers employed in the major port trusts and dock labour boards plan to observe a day's token strike on 22 January in protest against the Centre's decision to privatise operations.

The decision to strike was taken by the recognised federations of port and dock workers unions. The All India Port & Dock Labour Board Officers' Federation will support the strike.
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Govt closes VSNL bids
New Delhi: The disinvestment ministry has closed the deadline for bidding for the public sector telecom giant VSNL. The ministry said it is unlikely to change the deadline for newcomers like Modi Corp. With this announcement companies like BPL and Modi Corp, who have shown renewed interest in bidding for VSNL, may now be out of the race.

BPL had bid through a consortium, but later it pulled out. The company wanted to re-bid on its own but with lowered entry barriers. The disinvestment ministry has ruled out that possibility and said that if the company wants, it can bid through its old consortium.
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Tax sops likely for firms funding polls
New Delhi: The forthcoming budget is likely to give tax exemptions to companies funding elections.

Necessary amendments would be made for this purpose in the Income Tax Act and they would be reflected in the Finance Bill 2002.

Tax relief is being provided to companies as part of the government efforts to move towards state funding of elections in a bid to eliminate black money.
It would be made mandatory for treasurer of political parties to submit to the Election Commission a detailed report on donations, failing which tax relief would not be provided.
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Security deposit on LPG lowered
New Delhi: The government on 4 January announced reduction in the deposit on cooking gas cylinder for new connections by about 22 per cent to Rs 700 from Rs 900.
Petroleum minister Ram Naik also announced cut in the excise duty on production from the Digboi refinery by 50 per cent, a package that would involve exemption of about Rs 100 crore.
The exemption is in response to the demand made by Assam.
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Beer baron Heineken dies
Noordwijk (The Netherlands): Dutch beer magnate Freddy Heineken, died at the age of 78. He died quietly at home in the presence of his wife Lucille and their only child Charlene de Carvalho, who is to succeed her father as head of Heineken Holding.

Born in Amsterdam on 4 November 1923, Heineken succeeded in transforming the firm founded by his grandfather in 1864 into a mammoth enterprise with a turnover of 4.449 billion euros worldwide in the first half of 2001.

He chose Heineken's distinctive green glass bottle, selected the company logo, and often remarked he would have become an advertising man if he hadn't become a brewer.

Heineken was kidnapped along with his chauffeur in November 1983, and chained to the wall of an empty Amsterdam factory for three weeks. He was freed after a ransom payment of 35 million guilders (16 million euros).

After the kidnapping, Heineken cut down on public appearances.
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Govt announces FDI norms for housing sector
New Delhi: Government has announced guidelines for foreign investments in housing sector, allowing 100 per cent FDI with a minimum capitalisation of $10 million for a wholly-owned subsidiary and $5 million for joint venture with Indian partners.
The detailed guidelines said that for development of integrated township, the minimum area should be 100 acres for foreign investments for which norms and standards are to be followed as per local bylaws/rules.

In the absence of such bylaws/rules, a minimum of 2,000 dwelling units for about 10,000 population will need to be developed by the investor, the guidelines said.
FDI will also be allowed for construction of commercial premises, hotels, resorts, city and regional level urban infrastructure facilities like roads, bridges, mass rapid transit systems and manufacture of building materials.
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