Tax revenues of states levying VAT rises in April-October
New Delhi: Tax revenues of the 24 states and union territories that have implemented VAT have recorded a 14.6- per cent increase during the first seven months of the current fiscal against the corresponding period a year-ago.

Data with the finance ministry showed that the tax revenues of the 24 states and union territories stood at Rs41,800 crore during April-October 2005 against sales tax revenues of Rs36,480 crore recorded in the same period of the previous year.

Non-manufacturing intensive states such as Orissa and Delhi recorded strong growth in tax revenues under the VAT regime.
In the first seven months of the current fiscal, Orissa's tax revenues increased by 27.2 per cent to Rs1,222 crore (Rs960 crore) and that of Delhi by 35.03 per cent to Rs3,103 crore (Rs2,298 crore).

Although manufacturing-intensive states like Maharashtra, Karnataka, and Andhra Pradesh have recorded strong growth in absolute terms, their performance pales when compared to the non-manufacturing sates.

Maharashtra recorded 9.7 per cent increase in tax revenues to
Rs9,934 crore (Rs9,056 crore).

In the first seven months of the current fiscal, tax revenues of Andhra Pradesh grew by 12.36 per cent to Rs6,480 crore
(Rs5,767 crore).
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BPOs set to capture $11-billion insurance revenues: Nasscom
New Delhi: Competitive pressure among companies is driving the sector towards higher level of outsourcing adoption now. This has opened up for the BPO service providers an opportunity to capture about $11 billion of insurance revenues by 2008, according to the National Association of Software and Services Companies (Nasscom).

"As observed in other segments of the outsourcing space, once past proof-of-concept, early movers in the industry are beginning to push-the-envelope to expand the scope of activities included in insurance BPO. The rapidly increasing maturity of customers as well as service providers is now enabling them to add more higher-value-adding elements across the insurance value chain to the existing engagements," the latest Nasscom report on Trends and Opportunities in Insurance BPO has said.

The report said that that the insurance BPO market size for India, pegged at $425 million in 2004, is estimated to touch $790 million by 2007.

"Though the insurance segment of the BFSI vertical has had a relatively slower start, compared to other segments such as payment services (credit cards), traditional banking etc, competitive pressure is driving this sector towards higher levels of outsourcing adoption," it said.

Citing projection by Gartner that BPO service providers would capture $11 billion of insurance revenue by 2008, the Nasscom report said that insurers are turning to external BPO providers to expedite their legacy transformation process.
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Ethanol demand to sustain sugar price leves
Mumbai: Raw sugar prices all over the world, have touched a 10-year high, and are expected to remain firm on account of higher demand for ethanol and lower stocks, according to Kushagra Nayan Bajaj, CEO, Bajaj Hindusthan Ltd, said.

He said, Brazil, one of the biggest sugar producing countries, is shifting cane-to-ethanol production due to the increase in crude oil prices that has triggered an interest in alternative fuel for automobiles.

World sugar stocks at the end of the October 2005-September 2006 season are seen at 60.11 million tonnes against 61.37 million tonnes at the end of September 2005.

The European Commission decision to slash subsidy on white sugar by 39 per cent and the EU countries agreeing to cut subsidies by 36 per cent over the next four years would result in the disappearance of the EU as a major exporter. The EU is expected to emerge a net importer of sugar in the long term.
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CMIE revises GDP growth forecast to 7.6 per cent
Mumbai: The Centre for Monitoring Indian Economy (CMIE) has revised its forecast for real GDP growth for 2005-06 to 7.6 per cent, from its earlier expectation of 6.8 per cent.

The centre has revised upwards the growth projected for the services sector but a downward revision for growth in industry (mining, quarrying, and construction).

The higher GDP growth expectation reflects the upward revision of growth in the services sector, now pegged at 9.2 per cent, against 7.5 per cent estimated earlier, a statement from CMIE said.

The revision of growth rate in services was itself led by the trade, hotel, transportation, and communications sectors, which registered higher than expected growth, according to CMIE.
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France keen on tie-up ventures with Bengal
Kolkata: France has expressed keen interest in entering into collaborative ventures in West Bengal , particularly in agri-processing and public transportation – the areas where French companies command a global presence.

The ventures, to start with, are likely to be in the areas of technology transfer.

Jean Leviol, economic, commercial and financial counsellor for South Asia and head of economic missions, embassy of France in India, said some areas have already been identified, and many French companies already having a large presence in the state are expected to carry the process forward.

Some of the ventures could be in the emerging areas of fruits, vegetables and dairy products, considering that France has world class companies in agri-business such as Pernord Ricard, Moet Hennessy, Danone, Lactalys, Bongrain, Bonduelle, Doux and Soufflet.

He said 70 per cent of the French exports into India, backed by investments, are in the areas of textiles and garments. The 10 French companies in the top 100 worldwide list are Total, Carrefour, Vivendi, PSA, EDF, France Telecom, Suez, Les Mousquetaires, Renault and Saint Gobain.
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AP government resolves controversy over Kakinada SEZ
Kakinada: The AP state government has resolved the controversy over the acquisition of land for the port-based refinery and special economic zone at Kakinada by deciding to relocate the oil refinery in the Thondangi mandal and minimise land acquisition in the Kakinada rural mandal for the special economic zone.

The government will acquire 4,300 acres in the Uppada-Kothapalli mandal and 1,200 acres in the Kakinada rural mandal, of which only 260 acres would be taken from private sources.

An estimated 10,000 acres are needed for the refinery and SEZ.

The government signed a memorandum of understanding with ONGC a few months ago for the two projects.

This led to farmers in the Kakinada rural mandal protesting that their farmlands under the Pithapuram branch canal (Godavari canal) should not be acquired for the projects. The refinery, originally planned near the port, has since been shifted.
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