SC permits NTC mills, buyers to submit development plans
New Delhi: The Supreme Court has permitted five NTC Mills and the developers who had purchased land belonging to these mills in Mumbai, to submit development plans to the concerned authorities for approval and also for seeking environmental clearance.

The SC passed this interim order during the course of hearing of a batch of appeals against a Bombay High Court judgment scrapping the Rs20,000-crore project to develop land belonging to 58 sick textile mills located in Mumbai.

The order also stayed that portion of the High Court order holding that the sale of surplus land by NTC was contrary to the Board for Industrial and Financial Reconstruction (BIFR) scheme and apex court orders. It said the interim order would be subject to the final outcome of the appeals.

The SC said the developers could go ahead with the demolition of the buildings, but could not proceed with any new construction (except construction of compound wall) on the said land. Further, there would be no third-party negotiations and buyers would have to proceed on their own risk.

Earlier acting on a petition filed by the Bombay Environmental Group, the High Court had held that the five NTC mills — Apollo, Mumbai, Elphinstone Mill Number 3, Jupiter and Kohinoor — were sold without complying with the conditions laid down by the BIFR.
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E&Y sets up auditing standard for services companies
Bangalore: Indian services companies will soon adhere to SAS 70, the international auditing standard backed by Ernst & Young.

SAS 70 (Statement on Auditing Standard) is a standard that offers information about controls at a service organisation that affect the client's financial statements. It offers independent assurance to the client about the service organisation. With this report, the company can eliminate the need for their clients to review them. SAS 70 follows a limited distribution model and only potential customers and regulators are granted access.

Sunil Chandiramani, partner, Ernst & Young India said, "Given the size of BPO and ITeS companies in India servicing US organisations, regulatory and compliance standards will gain importance.

A SAS 70 enterprise-wide report costs between Rs 20,000 and Rs 1 crore.

A unique feature of SAS 70 is that it requires sub-services to be identified, bringing transparency to the entire dealings.
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Madras HC says comparative ads' need to be curtailed
Chennai: The Madras High Court has said it was high time that the `comparative advertisement' (comparing one's product with that of the competitor) was curtailed. It said that such "curtailment/ban" should be brought out by suitable amendment to the MRTP Act and the Code for Commercial Advertising on Doordarshan and other satellite television channels and other media.

The Court said that comparative advertisement involved balancing of interest. In case of commercial disparagement by a competitor, one must be cognizant of the interest of advertisers in promoting their products. At the same time, the interest of those who might be damaged by competitor's attacks on their products was also to be kept in mind.

The court said that comparative advertisements and the subtle disparaging in advertisements appeared to be growing in popularity. But law had not kept pace in striking a proper balance amongst these competitors. Attempt to induce consumers by giving negative impression of the competitor's product should be discarded.
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Labour Minister to take up EPF interest rate issue with PM
New Delhi: The Labour minister K. Chandrasekhar Rao, has said he will take up the issue of "best returns" for provident fund deposits again when he meets the prime minister, Dr Manmohan Singh, on Thursday.

After a recent meeting of the Central Board of Trustees of the Employees Provident Fund Organisation (EPFO), Rao had said the EPFO would pay 8.5 per cent interest for fiscal 2005-06, one percentage point lower than what it had paid during the past few years.

The prime minister had publicly ruled out any budgetary support to the EPFO to help it meet any deficits that it would have to face, even if it should pay 8.5 per cent.

Pointing out that the EPFO was not a commercial organisation but mainly aimed at the social security of workers, the minister said that the top priority of his ministry and the EPFO was to ensure safe deposit of subscribers' money.
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ASCON-CII survey: Manufacturing sectors shows impressive growth
New Delhi: An ASCON-CII survey conducted recently says the domestic manufacturing sector has reported impressive growth for the April-September period of the current year, as compared to the corresponding period last year.

According to the survey, of the total 140 manufacturers sectors in the country reporting production, 27 sectors recorded growth rates of more than 20 per cent. Forty-three sectors recorded a growth rate of 10-20 per cent, while 50 sectors registered growth of up to 10 per cent. Twenty sectors reported negative growth, according to the survey.

Cast iron, pig iron, sponge iron, switchgears, electric motors, machine tools, microwave ovens, drugs and pharmaceuticals and cellular services sector, among others, recorded growth of more than 20 per cent, said the survey.

Paints, capacitors, auto components, precision tubes, industrial gases, transmission line towers, motorcycles and alcoholic beverage sectors, among others, recorded growth of 10-20 per cent, according to the survey.

The survey says that the Indian manufacturing industry is facing a slowdown on the export front due to high domestic demand. The latest survey indicates that 14 sectors (against 19 last year) have shown growth rate of above 20 per cent in exports.
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Aiyar may deregulate natural gas prices
New Delhi: The petroleum minister, Mani Shankar Aiyar, speaking at the Third National Gas Conservation Programme, here said that commercial consumers of natural gas should gear up to paying market-related prices for the product.

The Supreme Court had taken the view that only transport, power and, certain small sector companies could be given special treatment, the minister said.

He said the demand is much more and there is strong need to increase supplies. Besides, the price element cannot be ignored for long. The era of cheap gas is behind us. Administered price mechanism is not possible for the gas sector, he added.
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Women comprise 6 per cent of corporate workforce: CII study
New Delhi: According to a survey conducted by the CII, women comprise only six per cent of the total workforce. Anu Aga, director, Thermax, released the report.

The survey, which covers 149 companies, focused on medium and large companies. Women, however, form a higher proportion of the workforce in the southern States compared to other zones of the country.

The findings of the study reveal that although women constitute nearly half of the population, their participation in economic development has come to focus only during the recent years. According to the study, women managers, who are in senior and junior management levels, have not exhibited a propensity to switch companies.
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FDI doors closed for partnership firms
New Delhi: Foreign direct investment will be allowed only in limited companies and not in partnership firms. As a matter of policy, even for downstream investment of FDI, the Government would encourage investments through the structure of limited companies only, according to official sources.

The Department of Economic Affairs (DEA) recently communicated the Government stand to the Foreign Investment Promotion Board (FIPB) which is now expected to make it a standard condition, the sources said.

The government says limited companies put limited liabilities on their shareholders, while partnership firms put unlimited liability on the partners. According to the existing provisions for FDI, there is no specific mention of allowing or not allowing FDI in partnership firms.

The issue came to light following an application filed by the Netherlands-based Dimexon International Holding BV with the FIPB.
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