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No more Govt nominees on UTI MF board
New Delhi: The ministry of finance has agreed that after the deal to transfer the asset management company to its sponsors is complete, it would end the practice of putting a government nominee on the board of directors of UTI Mutual Fund.

This will result in a complete overhaul and simultaneous expansion of the board of the asset management company. Sources said that the new-look board would have eight members (instead of the current five) with each of the four sponsors having the right to appoint two directors. While one of the directors will be an official of the sponsor, the four institutions will also appoint one independent director each.

The government will also give up the right to appoint a chief executive of the mutual fund and instead, the four sponsors - Life Insurance Corporation of India, State Bank of India, Punjab National Bank and Bank of Baroda - will select the CEO.

The control of the mutual fund is to be passed on to the sponsors on a consideration of about Rs1,200 crore, which would be paid by the sponsors to the government.

Under the present plans, UTI MF will remain under the control of a combination of the existing sponsors for at least three years. After three years, the sponsors would have the right to exit by selling off to an outside entity.
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Madras Management Association bags AIMA award
Hyderabad: The award committee of the All India Management Association (AIMA) has selected the Madras Management Association as the winner of the AIMA award. The Ahmedabad Management Association is ranked next.

The Kerala Management Association won in category II, while the Tarapur Management Association won in category III. The Coimbatore Management Association was adjudged the national emerging champion.

Kedarnath of the Aditya Birla group was chosen for the young manager award for 2005. The awards are given on the basis of their performances in the areas of professional development, training, publications, and membership promotion.
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Insurance staff to join stir against privatisation
Visakhapatnam: Now the All-India Insurance Employees' Association has joined the nationwide strike on September 29 against privatisation.

The unions affiliated to the Left parties have given the call for the strike.

The All-India Insurance Employees' Association, said the LIC and other public sector insurance had registered massive growth in recent years and the number of LIC policies during the past five years had more than doubled. There was acute shortage of staff and there was no further recruitment.

The Association says the FDI hike in insurance sector will give the MNCs a change to gain control over domestic savings. The Association is also demanding the restoration of the right for collective bargaining, taken away through an act of Parliament in 1981.
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India, Japan mull co-operation in hydrocarbon sector
New Delhi: According to the petroleum ministry, India and Japan are planning to initiate cooperation in sharing experiences in the hydrocarbons sector. India on its part, will be looking to share Japan's expertise in research and development initiatives, efficiency and conservation measures resulting in reduced consumption of fuel, and refining heavy crude.

Recently a high-level Japanese delegation led by Nobuyori Kodaira, director-general, agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry (METI), met the union minister for petroleum and natural gas, Mani Shankar Aiyar.

A joint statement on areas of co-operation between the two countries in the hydrocarbon sector is expected to be announced during the petroleum minister's two-day visit to Japan.
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Repair, servicing of computer software to attract service tax
New Delhi: The finance ministry has brought maintenance, repair or servicing of all computer software under the purview of service tax.

The ministry drafted a circular to this effect following a decision of the Supreme Court in the case of Tata Consultancy Services v/s state of Andhra Pradesh, in which the apex court had ruled that the sale of computer software falls within the scope of sale of goods.

As far as branded software (canned software) sold off the shelf is concerned, the draft circular highlighted that the Supreme Court had categorically decided that such cases fell within the definition of goods.

As regards unbranded / customised software, the draft circular said the supplier develops the programs and generally transfers them into a media, and thereafter it is taken to the customer's premises and loaded in their system. The revenue department noted that in this case too the software is incorporated in a media for use.

It also highlighted that the Supreme Court had held that computer software in a media should be categorised as goods.
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FM forecasts over 7 per cent growth
Finance minister P Chidambaram has said the government was confident of achieving a growth rate that is better than the present high level of 7.1 per cent.

He said the government was committed to deeper and stronger fiscal consolidation and reforms, and is confident that growth will accelerate from the current levels.

He added that the country's outlook for 2005-06 continued to be very positive. With buoyant industrial production, strong credit growth, improved business sentiments, increased efficiency gains in the corporate sector, stronger trade performance, and continued robustness in the services sector, we expect to achieve a growth rate of 7.1 per cent or more in the current fiscal year.
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NMMC asks for flexible labour regime
New Delhi: The National Manufacturing Competitiveness Council (NMCC) has asked the government to make the legal regime flexible enough for contract labour.

The Council has set the growth target of 12 per cent for the manufacturing sector and says there should be full managerial and commercial autonomy for the boards of public sector enterprises (PSEs).

In a national strategy paper it said the government must delegate more powers to the PSE boards to pursue joint ventures, mergers and acquisitions (M&As) and technology acquisition.

The NMCC has also proposed creation of a Global Technology Acquisition Fund to assist Indian companies to acquire technology-intensive firms abroad.
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Bidders for Mumbai, Delhi airport to be shortlisted by year end
The government has started evaluating the technical and financial bids submitted by the six consortia led by Reliance, Essel, Sterlite, DS Consortium, GMR and GVK, according to nnion civil aviation minister Praful Patel.

The process of shortlisting the potential bidders for the modernisation programme of the Mumbai and Delhi airports is likely to be completed by the year-end.

Patel added that the government would not bow to any pressure or conditions put forward by any of the individual bidders for the proposed airport-restructuring project.

Referring to the proposed strike of airport employees on September 29 to protest against the modernisation programme, the minister said the government has appealed to them to refrain from the strike and assured them that the airports modernisation will not snatch away any job.
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India's Forex reserves drop by more than $1 billion
New Delhi: According to the Reserve Bank of India, the country's foreign-exchange reserves, which include overseas currencies, gold and special drawing rights with the International Monetary Fund, fell $1.05 billion to $144.2 billion in the week ended September 16. Further, foreign-currency assets dropped $1.05 billion to $138.2 billion.

Gold reserves remained unchanged at $4.5 billion and special drawing rights were also unchanged at $4 million.

The nation's loans to the International Monetary Fund fell by $8 million to $1.44 billion, the Central Bank said.
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Used car segment comes out on top
New Delhi: The National Council for Applied Economic Research (NCAER) has said the automobile industry's prospects in the second-hand market were better than in white goods segment like refrigerators and colour televisions.

The report said that in 2001-02, 15 per cent of scooters purchased were used, while the share of second hand mopeds was 23 per cent and motorcycles 11 per cent.

Cars accounted for around a seventh of the total demand for second-hand vehicles in 2001-02, the report said, while the share of second0-hand refrigerators and colour televisions was just about 3 per cent of total purchases.

Over 40 per cent of the second-hand cars purchased in 2001-02 were bought by households that earned between Rs90,000 and Rs1,35,000 per annum, the report said.

Of the total second-hand two-wheelers sold, around two-third were bought by households with an annual income of less than
Rs90,000 and the figure was nearly three-fourths in the case of mopeds, it added.

Rural households in the under Rs90,000 income group accounted for just 5 per cent of all second-hand car purchases against over 16 per cent urban households.
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