Round Table meet: India and UK to focus on trade
London: The India-UK Round Table beginning at Bolton Abbey in Yorkshire next Sunday would focus on stepping up bilateral trade and investment and greater cooperation in the fields of education and culture.

The two-day meeting will be the first meeting of the Round Table after the Manmohan Singh-led government came to power in Delhi.

The Round Table, constituted in April 2000 with bilateral relations at a nadir, has achieved considerable success in smoothing political and economic relations.

The re-constituted Indian delegation will be led by M H Ansari, a distinguished retired diplomat who takes over from K C Pant, former Deputy Chairman of the Planning Commission, as co-chairman of the Round Table.
Back to News Review index page  

Finance Ministry to trim the number of Central schemes
New Delhi: The Finance Ministry is considering a proposal to lessen the number of Centrally Sponsored Schemes (CSS), which may have outlived their utility. This will enable the rationalising of important social schemes in the Budget and cut expenditures by Rs5,500 crore. The scrapping of some of the schemes would also allow downsizing of many government departments.

The Finance Ministry has short-listed as many as 80 schemes, currently under 33 ministries and departments, official sources have indicated. Many of the schemes may be discontinued or merged with other schemes or transferred to states.

The restructuring of social schemes could save non-plan expenditure by Rs5,500 crore and enhance budgetary support to other important schemes, officials have said. The government spends as much as Rs36,000 crore annually on some 200 CSSs and a significant portion of the amount is transferred to the states in the form of grants.

The National Advisory Council, headed by UPA chairperson Sonia Gandhi, has also favoured the move. It has also asked Planning Commission to sort out CSSs that could be removed and the money used to fund other social schemes as mentioned in the Common Minimum Programme.

The NAC has suggested restructuring and clustering of CSS so as to attain the Millennium Development Goals (MDGs) committed by India on issues ranging from poverty reduction, primary education and combating dreaded diseases like HIV/AID.
Back to News Review index page  
Power generation: Gujarat to add 2,500 MW in capacity
Mumbai: The Gujarat Government is planning to add 2,500 MW of lignite-based power generation capacity in the State, over the next three years and will spend close to Rs10,000 crore on the projects

The investments will come through the State-owned Gujarat Industries Power Company (GIPCL) and Gujarat Mineral Development Corporation (GMDC), govt. officials have said.

The State Government has, for the time being, decided against divesting its stake in any of its State-owned companies, but will 're-invest' the resources of the companies in new projects.

Most of the investment will be in the three crucial sectors of water, energy and infrastructure projects such as information technology, roads and ports.

GIPCL will double its capacity at its 250 MW plant in Surat, apart from putting up 2,000 MW of greenfield capacity in South Gujarat. GMDC is putting up a 250 MW plant at Akrimota at a cost of Rs1,395 crore. GIPCL officials have said that the company plans to invite private sector partnership for its 2,000 MW power project.

GIPCL is also setting up two gas-based projects of 145 MW and 160 MW at Vadodara.
Back to News Review index page  
Dasgupta agrees to exempt fertilisers and pesticides from VAT
Chennai: Dr. Asim Dasgupta, Chairman, Empowered Committee of State Finance Ministers for VAT, agreed to a demand to exempt agricultural inputs - fertilisers, pesticides and seeds - from the purview of Value-Added Tax.

He has also agreed to a suggestion that the penal provisions of the VAT law may be kept inactive for a certain period of time, till the new VAT regime settles down. The Tamilnadu Chamber of Commerce, in its interaction with Dr, Dasgupta also suggested that since VAT was new to both the administering government department and traders, it should be kept in abeyance for a period of two years. Dr Dasgupta said that since VAT was being brought in a mood of trust, hence the penal provisions could be held back for some time.
Back to News Review index page  
Rs.400 crore modernisation fund for leather industry
Chennai: The Centre plans to allocate Rs400 crore modernisation fund for leather products and tanneries, according to Rafeeque Ahmed, Chairman, Council for Leather Exports (CLE).

The fund is likely to be allocated in the next few weeks. With Europe and the US moving leather products manufacturing to the east, capacity utilisation is on the increase and there was a need to increase production facilities. The 17 per cent growth achieved in leather sector is likely to improve to over 20 per cent in the coming year, Ahmed said.

The industry has made a representation to the Planning Commission to allocate funds for upgrading effluent treatment plants and the common effluent treatment plants. The Tamil Nadu Government has granted over Rs12 crore for upgrading the treatment plants in the State.

According to official statistics, in the first six months of 2004-05, the export to the US has grown by 20.49 per cent, to Spain by 33 per cent and to France by 16 per cent. Overall exports have touched $1,159 million, representing a 17 per cent growth over the previous period and are likely to reach $2,284 million by March.
Back to News Review index page