Govt sub-group to study labour law flexibility in textile sector
New Delhi: In its attempts to introduce flexible labour laws in the textiles industry, the Centre has set up a sub-group within a Group of Ministers for the sector. "A group comprising the commerce minister, textile minister, labour minister, state chief ministers and trade unions has been formed to specifically look into this issue. It is expected to have its first meeting within a month," the textile minister, Sankersinh Vaghela, said here on Wednesday.

Vaghela said the group would also look at a proposal for allowing textile units to hire workers on contract for a short duration for executing seasonal orders. The industry has been demanding flexible labour laws due to the seasonal nature of the textile and garment export business.

The Minister said the textile industry had now turned around and is emerging as a "sunrise sector" now. "In 2004-05, the investment in the textile sector was Rs14,850 crore, which increased to Rs30,032 crore in 2005-06. The sector needs investment of Rs1,40,000 crore between 2005 and 2010, and this target will be achieved," Vaghela said.

He said in the last two years, the textile sector has created 20 lakh jobs and by 2010, another 120 lakh jobs would be created. Vaghela said textile exports are expected to touch $19.6 billon this fiscal, up from $17 billion in 2005-06 and $13.56 billion in 2004-05. The minister said the Centre has set a target of $40 billion for 2010.

He also said that a Technology Mission for Jute would be launched next year at Rs 2,000 crore. The government is also planning to launch technology missions for silk and wool, he added.
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3G ball back in Trai's court
New Delhi: The issue of offering 3G (third generation) mobile services, allowing consumers to get high-end services like streaming videos on their handsets, has gone back to the Telecom Regulatory Authority of India.

Communications minister Dayanidhi Maran told reporters that the telecom regulator will soon provide recommendations on spectrum, addressing a wide range of issues including the entry fee for 3G services.

The issue has be come a contentious one with the GSM and WLL (wireless in local loop) operators making their own demands.
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Centre identifies products for setting up rural business hubs
New Delhi: The government and industry have identified 846 rural products in which they can partner with village local bodies to set up rural business hubs, based on the Chinese model.

The concept of rural business hubs was launched in 2004 by the panchayati raj ministry, in collaboration with the Confederation of Indian Industry (CII). This scheme aims to work in partnership with the three-tier elected bodies of the villages called panchayati raj institutions (PRIs).

The ministry proposed new schemes in 2006-07, for approval by the Planning Commission, like Gram Swaraj, Panchayat Empowerment Incentive and Backward Region Grant Fund. Under Gram Swaraj Scheme, it has demanded an allocation of Rs1,438 crore for essential infrastructure, Rs1,404 crore for panchayat staff and Rs25 crore for capacity building of PRIs.

Mani Shankar Aiyer, panchayati raj minister, in an interactive session with the Forum of Financial Writers, said that so far 72 firms had agreed to come forward to join this new initiative of public-private-people partnership. The minister disclosed that his ministry had already signed 30 MoUs for such hubs in Karnataka, Haryana and Uttaranchal.

He said the first such hub had been set up, on experimental basis, near Nainital in Uttaranchal, in collaboration with ITC Ltd for fruits and fruit products. This hub would complete its first anniversary in June, this year when the ministry would review its performance, he said. Mr Aiyar further said three MoUs had been signed with the Haryana government for production of Jathropha for bio-diesel.
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One man panel set up to review service tax circulars
New Delhi: The Government has decided to constitute a committee under T.R. Rustagi, Chief Commissioner of Central Excise (retd), to review all the service tax circulars since 1994 and come up with recommendations to weed out the redundant circulars in the wake of legislative changes in service tax over the last decade.

"There have been a number of circulars on service tax issued from 1994. The law has undergone several changes over the last decade. Some of the circulars may not be relevant now. This is creating problems for users. It is receiving our attention," Mr R. Sekar, Joint Secretary, Ministry of Finance, said at a PHDCCI seminar on management of service tax here on Wednesday. He indicated that the Finance Ministry would soon issue the formal order on the appointment of the one-man committee.
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API manufacture: India set to overtake Italy
New Delhi: The Indian pharmaceutical industry is all set to overtake Italy as the world's second largest manufacturer of active pharmaceutical ingredients (API). The Indian API manufacturing industry is currently the third largest in the world and is expected to generate sales of $4.8 billion by 2010 from $2 billion in 2005, at an average yearly growth rate of 19.3 per cent, according to a study conducted by Italy's Chemical Pharmaceutical Generic Association (CPA).

Indian industry officials, however, are of the opinion that India would achieve this landmark in 2007 itself, going by the number of DMF (drug master file) submissions. Indian API makers made some 579 DMF submissions in 2004.

Meanwhile, according to the CPA study, sales by Italian API manufacturers are expected to increase to $3.3 billion by 2010 from $3.2 billion in 2005. The largest API manufacturer, China, is set to maintain its double-digit growth run and is expected to see API sales increase to $9.9 billion from $4.4 billion in 2005, an increase of 17.6 per cent. The report also said that India, with low labour costs and focus on innovation, can hit the margins of not only Europe-based manufacturers but even Chinese firms.
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