document.writeln("

PM says Kabul a bridge to entire region
Kabul: In the first joint statement at the highest level ever since the ouster of the Taliban, India has formally endorsed Afghanistan President Hamid Karzai's vision to restore Afghanistan's ''historic role'' as a ''land bridge'' between Central Asia and the Indian sub-continent.

Prime Minister Manmohan Singh took the view that Karzai's vision was an important step in promoting regional cooperation through trade and people-to-people contact. He also supported the Afghan President's interest in establishing closer links with SAARC. Karzai has sought to make the point that Afghanistan has a stake in the India-Pakistan peace process, as progress on that front will remove such obstacles in the future.

''Afghanistan is directly affected by the India-Pakistan peace process and I believe that it is the destiny of the people of the region that there is peace and prosperity,'' Karzai said, adding that he favoured trilateral cooperation between India, Pakistan and Afghanistan.

Singh and Karzai also endorsed the need for greater ''consultation'' and ''cooperation'' in the project of building a pipeline from Turkmenistan through Afghanistan and Pakistan into India. The Prime Minister clarified that with a growth rate of 7-8 per cent, India needs access to energy resources and whether it is from Iran or Turkmenistan is not an issue.

India has already committed US$25mn for the construction of a new parliament building for Afghanistan. Karzai told the Prime Minister that this contribution was ''magnificently meaningful as the parliament is just like what the Taj Mahal is to India''. The Prime Minister also underlined the significance of his visit when he told Karzai that this was a relationship between the world's largest democracy and the world's ''youngest'' democracy.

Singh also outlined India's fresh initiatives that include starting community-inspired small developmental projects, adopting 100 villages for integrated rural development by way of solar electrification and rain water harvesting projects, and opening vocational training centres to take forward the skill-building initiative. Besides this, India and Afghanistan also signed other agreements on cooperation in health and agriculture.

The Prime Minister along with Karzai, also jointly inaugurated the Habibia High School building that was renovated by India at a cost of over US$5mn.
Back to News Review index page  

India expresses interest in Angolan diamond and oil industry
New Delhi: India is exploring the option of sourcing rough diamonds from Angola and re-exporting the cut and finished version. The country will also encourage Indian entrepreneurs to set up cutting and polishing units for diamonds in Angola, said Union commerce minister Kamal Nath when Angolan deputy minister of industry Abrabao Pio Dos Santos Gourgel called on him.

Kamal Nath also conveyed India's interest in participating in other important sectors like phosphate, manganese, copper and zinc.

The minister also drew the attention of the Angolan Government to ONGC Videsh's willingness to invest over US$1bn in a refinery project in Lobito in Angola.
Back to News Review index page  

Jayalalitha asks Centre to scrap tax exemptions extended to few States
Chennai: Tamil Nadu Chief Minister Jayalalitha has urged the Centre to immediately withdraw exemptions and tax holidays extended to certain states such as Himachal Pradesh and Uttaranchal, stating that the policy resulted in flight of capital from other states.

Such exemptions and incentives were a complete negation of the substance of the economic reforms, which sought to provide a level-playing field between the states, she said in a letter to Prime Minister Manmohan Singh, the text of which was released to media here today.

"We find that certain units from Tamil Nadu are planning to undertake investments in such enclaves. This is clearly a distortion and should be ended," she said seeking Singh's urgent intervention in the matter.

Recalling that the issue of special tax exemptions such as the full exemption from Union excise duty and income tax for investments in certain states such as Uttaranchal and Himachal Pradesh was discussed at the National Development Council meeting held in Delhi on June 27-28, she said most Chief Ministers had favoured scrapping of the exemptions.

Jayalalithaa said most Chief Ministers were of the opinion that such exemptions significantly distorted the investment decision of companies and corporate houses thereby drastically affecting the investment climate in their own states. "All Chief Ministers were unanimous that these exemptions should be scrapped forthwith," she observed.

Stating that the package made available to Himachal Pradesh and Uttaranchal included 100 per cent excise duty exemption on the output of new units for a period of 10 years from the date of commercial production besides income tax exemption and capital subsidy, she said no other unit in any other state could compete with this kind of disadvantage.

Even though the intention was "ostensibly" to foster investment flows into industrially backward regions of Uttaranchal and Himachal Pradesh, she said "In reality what is happening is that the new investment flows are going to those regions of these states which are close to New Delhi."

She also pointed out that the mid-term apprisal document of the 10th Five-Year Plan also acknowledged that the scheme was not calibrated properly and did not take into account the possibility of flight of capital and relocation of units from other states in the country.
Back to News Review index page  

Railways to increase focus on jatropha plantation
New Delhi: With increasing fuel prices, the Railway Board Chairman, J.P. Batra, said that the Railways plan to increase focus on the plantation of `Jatropha Curcas', an environment-friendly oilseed plant.

In the Northern Railway, diesel locomotives currently are successfully running with Jatropha oil-blended diesel and this experiment would be extended in a big way to other zonal railways.

He added that the Railways has planted 7.5 million `jatropha' plants so far and will intensify this in the near future, according to a release. The Railways has reached an agreement with Indian Oil Corporation (IOC) to provide 500 hectares of railway land for jatropha plantation and out of which, 180 hectares have already been provided to IOC for this purpose. He said that `jatropha is a cost-effective renewable energy source.
Back to News Review index page