Tougher for companies to import equipment to SEZs
New Delhi: The finance ministry says companies will not get tax sops on importing or shifting second-hand machinery from outside SEZs.

These tax concessions were allowed under the SEZ rules of the commerce ministry.

But the North Block, which has all along maintained that SEZs will result in revenue loss of Rs1,00,000 crore in the next four years, has provided in the Finance Bill that tax concessions under Section 10AA of the I-T Act would not be extended to any unit formed by transfer of old machinery.
Back to News Review index page  

Buffer stock of sugar to be created, export subsidies offered
New Delhi: Amid expectations of a bumper sugar crop, the government has decided to give major incentives for exports while creating a buffer stock of 20 lakh tonnes of the price-sensitive commodity.

The Cabinet Committee on Economic Affairs chaired by Prime Minister Manmohan Singh has decided to lift the ceiling on sugar exports under the Open General License (OGL) and provide subsidies to sugar mills for export. The buffer stock of 20 lakh tonnes of sugar would be created for a maximum of two years, sources said.

Export subsidy at a flat rate of Rs1,350 per tonne would be given for the sugar mills in coastal areas and Rs1,450 per tonne for factories situated in northern states. In addition, an incentive of Rs440 per tonne would also be given for export of raw sugar, the sources said.

These decisions are expected to not only buoy exporters and sugar mills, but also help manufacturers to clear the dues of sugarcane farmers.

India, the world's second-largest sugar producer, is expected to get a bumper sugar crop of over 250 lakh tonnes in 2006-07 season ending September 2007. The country is likely to use 190 lakh tonnes and the surplus would be around 100 lakh tonnes, including 40 lakh tonnes of carryover stocks.
Back to News Review index page  

Trains to carry ads
New Delhi: The Indian Railway zonal officials have issued tenders seeking co-branding opportunities from corporate houses without the knowledge of the Railway Board.

Last week, the South-Western Railway invited limited tenders from companies to lease out advertising space on train exteriors. The deal allows companies to put the names of their brands alongside the names of trains. The plan is to target the summer special trains that ply in that zone.

Following this, the railway ministry launched a co-branding pilot project. Sources close to the development say talks have begun with companies like Airtel and Britannia to consider co-branding opportunities.

PepsiCo, Coca Cola and Dabur are said to have evinced interest in the project, which could give them the opportunity to sell their brand names to wider audiences and income levels.

Discussions between companies and the railways are focused on a distance-fixed fee format.
Back to News Review index page