Trade strategy moots tariff cuts
New Delhi: Union commerce and industry minister Murasoli Maran on 30 January announced the medium term export strategy for 2002-07. The strategy advocates lowering of customs and excise duties on key inputs required for exports, a cheaper rupee, service tax rebate and a comprehensive value-added tax system.

The strategy focuses on 220 commodities and on 25 potential markets in order to raise Indias share in the world trade from 0.67 per cent at present to at least one per cent in the medium term and achieve a compound annual export growth rate of 11.9 per cent.

The projected growth, if realized, will result in a foreign exchange earning of $80 billion, up from about $ 46 billion in 2000-01.

The strategy also aims at providing an effective and responsive trade defence mechanism such as continuation of anti-dumping and safeguard duties to provide protection against unfair trade practices.

The new five-year Exim policy to be announced on 31 March will specify which WTO-compatible export incentives can be continued into the future.

The policy paper also defines strategies for each of the 7 identified major sectors. These are engineering/electrical/ electronics and allied products; textiles, gems and jewellery, chemicals and allied products, including cement, agriculture and allied products, including plantations and marine products, leather and footwear and other items.
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Trai tells cell operators to cut roaming charges
New Delhi: The Telecom Regulatory Authority of India has directed cellular operators to reduce the charges for national/region roaming.

The authority has ruled that there shall be no entry fee for roaming. Further, a maximum limit of Rs 100 has been specified towards monthly rental for national/regional roaming. The airtime charge has been reduced to a maximum of Rs 3 per minute from 1 March 2002. A maximum surcharge of up to 15 per cent has been allowed, but this surcharge can be applied on the airtime component.
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VSNL slashes bandwidth rentals
New Delhi: Videsh Sanchar Nigam Limited (VSNL) has decided to reduce the annual rental of international bandwidth for international private leased circuits by 35 to 40 per cent. VSNL has also allowed FLAG Telecom to sell its bandwidth capacity directly to ISPs with immediate effect and to international long distance (ILD) service providers from 1 April 2002.

FLAGs 1000 megabits per second (mbps) of excess capacity, which was lying idle till now, will now be pumped into the Indian market, thereby more than doubling the bandwidth available to the nation from 870 mbps to 1,870 mbps.

However, FLAG will have to pay interconnect and access charges to VSNL.
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BSNL seeks stay on Bharti's long-distance operations
New Delhi: Bharat Sanchar Nigam Ltd has approached the Telecom Dispute Settlement Appellate Tribunal (TDSAT) seeking a stay on the national long distance operations of Bharti Telesonic Ltd.

The petition notes that the interim arrangement proposed by Trai for routing all default mobile-to-mobile STD calls, alternately between both Bharti and BSNL would amount to inequitable distribution of revenues. It has, therefore, called for a stay on Bharti's NLD operations till the guidelines on the issue are finalised, in consultation with all the operators.
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Hollywood bucks for Bollywood
New Delhi: The US-based Film Finances Inc, one of the largest issuers of film completion bonds, has decided to form a joint venture to gain a foothold in Bollywood.

The concept of completion bonds, new to India, is widespread in developed countries as far as financing of films is concerned.

These bonds are usually issued in cases where films are produced through institutional finances, as is the existing practice in countries such as the US, Canada, the UK and Australia.

The bonds ensure that the films are completed in time, since banks maintain that unfinished films have no value.

Film Finances has tied up with Kaleidoscope (India) Private Ltd, which is controlled by Bobby Bedi, co-producer of Bandit Queen.
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