Speed Post heats up courier space
New Delhi: As part of the `One India One Rate - Speed Post' plan announced by Mr Dayanidhi Maran, Minister of Communications and Information Technology, the Department of Posts has slashed tariffs of Speed Post letters weighing up to 50 gm by half. Under the new scheme, consumers can send a letter weighing upto 50 gm to anywhere in the country for Rs25.

Till now, the postal department charged a flat rate of Rs50 for any letter up to 200gm.

The cut by the postal department is likely to give private courier companies tough competition. Courier companies charge between Rs35 and Rs80 for carrying a 50 gm letter within the country.

To implement the new scheme, India Post has introduced a new slab of 50 gm. The rate is inclusive of service tax and educational cess, irrespective of the distance involved.
Back to News Review index page  

Octroi abolition proposed in Maharashtra
Mumbai: A report by a study group set up by the Maharashtra Government for `Devising alternatives to octroi' has recommended abolition of octroi and imposition of new taxes to offset the loss. It has recommended imposition of `profession tax' by Municipal bodies, the levy of additional value added tax (VAT) and increased property tax. The 22 municipalities in the State collect Rs5,572 crore from octroi and levies annually.

"The municipal bodies shall be permitted to impose and collect their own independent professional tax. Imposition of profession tax by the ULB's (urban local bodies) would require enactment of a separate Profession Tax Act. Municipal bodies would have an option to collect municipal profession tax themselves or to use the services of Sales Tax Department for the initial one or two years" the report said.

The recommendations for changes in property tax are as follows: "The capital value based levy of property tax should also be made compulsory by statute and be enabled by suitable amendments of the respective municipal laws".

The recommendations for VAT are: "The State Government shall on behalf of the municipal bodies levy an Additional VAT at the rate of 4 per cent on motor spirits and at the rate of 10 per cent of the current VAT rates on other commodities (of course, excluding "declared goods"). This Additional VAT levy will have to be fully VATable. These Additional VAT receipts will not form part of the Consolidated Fund of the State. The collection shall be kept in a separate account."

No decision has been taken on the recommendations of the report.
Back to News Review index page  

SEZ board talks tough on land acquisition
New Delhi: The inter-ministerial Board of Approvals for SEZs has taken a tough stance on the issue of land acquisition. The board earlier this month asked the Maharashtra government to relook at the land being acquired for the 10,000-hectare SEZ of Reliance Industries Ltd in Mumbai.

The board has received some representations from local citizens who would be displaced due to the RIL zone. It has told the state government to ensure that minimum people are displaced and put to any hardship on account of the zone, senior government officials said.

A spokesperson for Reliance Industries Ltd said the Maharashtra government was acquiring land for the MahaMumbai SEZ, which is now called the Mumbai SEZ, in Raigad district. He said no individual would be displaced due to the Mumbai SEZ as far as possible. On the contrary, the Goathans (structure of the village as it exists today) are being retained to ensure there is no displacement.
Back to News Review index page  

Flour gets dearer
New Delhi: The unusual hike in the prices of wheat has led to flour prices rising by about 20 per cent in markets across the country. The retail price of chakki atta has increased from Rs11-12 a kg in May to Rs14-16 a kg.

This is as wheat prices have jumped by about Rs100 a quintal over the last one month.

In Delhi, wholesale wheat is quoting at about Rs1,000 a quintal. At the Multi Commodity Exchange (MCX), the spot price of wheat has increased from Rs 882 a quintal a month ago to Rs990 a quintal.

With the rising wheat prices, commodities like maida, darra and suji are also likely to be affected. The price of bread, biscuits, pasta and noodles is also expected to rise in the coming months.

A source in the industry said the food ministry has made a recommendation for making the private import of wheat duty free so that the imports pick up and the rising prices get curbed. However, no decision has been taken so far.

On June 28, the government had reduced the wheat import duty from 50 per cent to 5 per cent for the remaining period of the year.

The international wheat prices that were quoted in the range of $180 and $190 a tonne (cost and freight) in July are in the range of $210 and $225 a tonne. Wheat for October delivery at the MCX is trading at Rs1,025 a quintal as against Rs915 at the beginning of the month.
Back to News Review index page  

'Next generation legal reforms needed to boost growth': Mukesh Ambani
New Delhi: India needs to create a next generation of legal ecosystem to further economic progress, Reliance Industries chairman Mukesh Ambani said while addressing a conference on partnership of business and law organised by Assocham and Society of Indian Law Firms.

He said the country would need to focus on creating capacity by attracting the best minds so as to ensure that justice delivery goes through a quantum leap with a vision.

As the partnership between business and law goes through an evolutionary phase, he asked legal firms to shift from advocacy and advice to active participation in business and also explore new opportunities like the legal process outsourcing.
Back to News Review index page  

OBC quota gets Cabinet approval
New Delhi: The Union cabinet has cleared the Bill granting reservation to OBCs in government-aided higher educational institutions in a staggered manner. The Bill is likely to be tabled in Parliament on Tuesday.

Given the consensus within the political class on the need to bring OBCs within the ambit of reservations in higher educational institutions, it is unlikely that the Bill will face any hurdles in the two Houses of Parliament in the remaining four days of the session - even though there is a section which fears that it may be referred to the standing committee.
Back to News Review index page