HAL to unveil Concept Combat Air Trainer
Bangalore: A mock up of the next generation advanced jet trainer will be unveiled at Aero India 2005, the biennial defence aerospace trade show that starts here from February 9, officials of state-run aircraft maker Hindustan Aeronautics Limited (HAL) have said.

HAL plans to build the all-composite Combat Air Trainer (CAT) by 2010, which will be superior to the 66 Hawk advanced jet trainers (AJT) India is buying from the UK-based British Aerospace, the officials said.

This new (CAT), will be a twin-engine aircraft, designed indigenously, they said. The trainer will however be "a little less complex than the light combat aircraft (LCA)" which HAL is currently building, they said.

Indian Air Force engineers are close to freezing the design for the CAT which will have modern avionics and could also be deployed for combat operations.

HAL is confident of rolling out the first prototype of CAT in 39 months after the Centre sanctions the project cost of Rs750 crore. The trainer is a logical upgrade over the intermediate jet trainer, which HAL developed and flew in 22 months from the drawing board stage using technologies from the LCA programme.

HAL officials say the CAT project should take off around 2007 with the first flight by 2010.
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Sino-India trade at new high of $13.6 billion
Beijing: India-China bilateral trade has set a new record with total trade touching $ 13.6 billion in 2004 and India enjoying a comfortable trade surplus of $ 1.75 billion. ndia-China annual trade for 2004 was up 79 per cent over the total trade volume of 2003, the customs figures showed.

The total trade figure achieved during 2004 was $ 3.6 billion more than expected at the beginning of the year, indicating the huge potential that exists between the two fastest growing economies, analysts said. The bilateral trade at the end of 2000 was $ 3 billion, it increased to $ 5 billion at the end of 2002, and in 2003 it touched $ 7.6 billion.

During January-December period of 2004, Indian exports to China grew by 80.5 per cent to reach $ 7.68 billion. Meanwhile, India's imports from China registered 77.2 per cent year-on-year growth to hit $ 5.93 billion. Trade balance for the year stood in India's favour at $ 1.75 billion.

Monthly trade volume recorded a yearly high of $ 1.44 billion, surpassing November's high of $ 1.32 billion. Indian exports to China in December touched $ 744 million and imports for the month reached $ 697 million. Iron ore dominates Indian exports to China.
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Budget likely to spur investments
New Delhi: The 2005-06 Union Budget apart from containing sops to spur investment in job-providing industry, will have a "good, hard look" at all tax exemptions, barring those for housing. The budget, now in an advanced stage of preparation, will also have measures to encourage savings to push up public investment but have adequate safeguards to prevent the sops being used as "tax shelter", sources have indicated.

In line with the promise made by both Prime Minister Manmohan Singh and Finance Minister P Chidambaram to carry forward comprehensive tax reforms, the budget will revisit both direct and indirect tax structure to make it "simple, easy and compliant" besides being growth-friendly.

The thrust of the tax reforms would be to remove the "distortions" in the tax structure and look at the convoluted duty structure in employment-generating and growth-oriented sectors of petroleum, man-made fabrics, sugar and pharma.

While formulating policies on corporate taxes, the sources said the Government will keep in mind the fact that industry is the main job giver. Trade and industry have already asked Government to consider reduction in corporate tax rates to 30 per cent from the present 35 per cent.

As outlined in the CMP, the big-ticket items of expenditure in the budget would be rural employment guarantee scheme, food for work programme, irrigation, health care and education. Also as promised in the CMP, public sector investments in infrastructure sector would be stepped up in the budget especially in power, roads, irrigation and ports.

On exemptions, the sources said there would be "a good, hard look" at them because there cannot be a claim to permanent exemptions. Sources said that whenever an exemption is granted, it should be accompanied by a "sunset clause" so that it is not permanent. The tax-GDP ratio has improved this year and the budget would attempt to raise tax-GDP ratio by at least one per cent in 2005-06, which has to be sustained in the next 2-3 years.

As promised in the Common Minimum Programme, sources have indicated that tax rates would have to be "moderate and stable". The attempt would be ensure that the rates remain the same in the next four to five years. On the expenditure side, the big-ticket items in the budget will be Sarva Siksha Abhiyan, food for work, rural employment guarantee, health care and irrigation.

On the investment side, the govt. will be pushing ahead with public sector investments in power, irrigation, roads and ports.
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Stringent norms to prevent predatory take-overs of banks
New Delhi: The Government may opt for stringent norms to prevent "predatory takeovers" of Indian private banks. The roadmap for banking reforms may be announced by the Reserve Bank of India shortly, which will allow up to 74 per cent equity in Indian private banks.

According to sources, the govt. has taken the Left parties into confidence on this issue and the roadmap will have adequate safeguards on this score. The Finance Minister, P Chidambaram has already said that the roadmap would be announced in due course and that the Reserve Bank was in the process of fine-tuning it.
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