Maharashtra to invest Rs60,000-cr in power sector
Mumbai: The Maharashtra Government is planning to invest above Rs60,000 crore over the next 3-4 years in order to emerge as a power-sufficient state. Government officials said half of the proposed investment would go in for power generation, while Rs14,500 crore and Rs17,000 crore would be for improving distribution and transmission facilities respectively.

By 2010, the state would be able to add more than 10,000 MW to its existing capacity. The minister said fuel was supposed to pose a threat for the state's power sector and to address that the state had applied for a mine in Orissa, which the Centre approved.

The state targets to reduce the distribution losses gradually from 28 pc in FY07 to 25 pc to 22 pc and to 19 pc by FY10.
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IMF wants India to look carefully at SEZs
Singapore: The International Monetary Fund (IMF) has asked India to look "very carefully" at the Special Economic Zones, and has said that the give-aways and tax sops to the zones could divert industrial activity from the rest of the country.

IMF chief economist Raghuram Rajan said "Overall, it (tax sops for SEZs) becomes yet another give-away which the government cannot afford," after the release of the World Economic Outlook by the Fund.

It seems that tax sops are the only reason for setting up smaller SEZs of 10 hectares, he said, adding it would be far better to make people compete on the basis of the quality of the infrastructure they create in such zones.

He said tax sops and give-aways may also divert a lot of activity from the rest of the economy into these zones, which creates problems of inequitable regional development.
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Govt may do away with textiles panel cess
New Delhi: The law ministry has approved a proposal of the textile ministry to abolish the textile panel cess. The abolition of the cess would enhance India's competitive position in global textile trade by reducing transaction costs of garment exports.

It will also save domestic textile manufacturers from unnecessary paper work. When first introduced, the cess was 0.025 pc of the production value, which was increased to 0.05 pc since June 1, 1977.

A Cabinet note to abolish the textile committee cess is in circulation and it is expected that the matter may be put before the Cabinet after Prime Minister returns from Latin America, government sources said.
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