News & important developments
from the most prospective of the New World markets…….
India. Our effort is to provide you with the latest and relevant
developments that take place in the Indian business, economic
and legal environment.
ECONOMIC &
LEGAL NEWS
FOREIGN
FIRMS ALLOWED TO SET UP SEZ BRANCHES: The Reserve
Bank of India has granted general permission to foreign companies
to set up branches in special economic zones (SEZs) to undertake
either manufacturing or services activities...
ONGC
LAUNCHES BIGGEST PIPELINE PROJECT IN ASIA PACIFIC:
The state-run Oil and Natural Gas Corp (ONGC) has launched
the biggest pipeline project in Asia Pacific by way of laying
two sub sea pipelines in Mumbai High offshore field at an
estimated cost of $600 million....
INDIA
GRABS 15% OF FIIS' EMERGING MARKET FUNDS: Foreign
institutional investors (FIIs) pumped in $34bn in emerging
markets in '03 and India managed to attract a fair share of
15% of total FII investment between January-November '03...
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CAP
ON REMITTANCE RAISED FROM $ 10,000 TO $ 25,000: Indians
will finally get the benefit of capital account convertibility.
The government has raised the annual cap on free outward remittance
from $10,000 of $25,000....
AIR
TRAVEL TO BE CHEAPER : The government's decision to
abolish taxes on air travel and reduce excise duty on aviation
turbine fuel (ATF) had its immediate impact on air travel
with all major airlines slashing their fares taking them below
first class AC train fares.
IMPORT
DUTY ON LAPTOPS AND LIQUOR AS BAGGAGE REMOVED : Finance
minister Jaswant Singh has scrapped the need to pay import
duty on laptops brought in by passengers as part of their
baggage. The cumulative import duty on a laptop was, till
date, nearly 33%. One can bring in a laptop at zero duty on
return from a foreign trip. Countervailing duty has now been
reduced to 8% from the earlier 16%.
GOVT
TO START GREENFIELD AIRPORT PROJECTS IN GOA, HYDERABAD
: Shortly after giving the nod for the greenfield airport
project in Bangalore, the government said similar projects
would be started in Goa and Hyderabad.
Other News…
BUSINESS NEWS
ONLY
FOREIGN BANK ARMS ALLOWED 100% IN LOCAL UNITS: The
government has incorporated a clause in the recent policy
changes on FDI in banking, under which the acquisition of
100% equity in a local bank will be open only to a wholly-owned
subsidiary of a foreign banking company...
CABOTAGE
LAWS EASED FOR CRUISE LINERS: To promote cruise tourism,
in the absence of Indian flags sailing in this segment, the
shipping ministry has altered cabotage laws to allow foreign
flag cruise vessels calling at more than one Indian port to
sail without obtaining permits or licences from the director-general
shipping.
GOVT
HALVES DUTY ON MANY ITEMS FROM THAILAND: The government
reduced customs duty on a whole range of inputs and raw materials
used in the manufacture of final products covered under Free
Trade Agreement (FTA) between India and Thailand...
==
SC
ADMITS PETITION AGAINST DIVESTMENT OF EIL, NFL : The
Supreme Court admitted petitions filed by the officers' associations
of Engineers India (EIL) and National Fertiliser (NFL) challenging
privatisation of the two PSUs. The two petitions would be
heard along with the petition challenging the privatisation
of Jessop & Co filed by its staff association.
US
BAN ON OUTSOURCING WILL NOT HELP FREE-TRADE: The US
Senate's decision to ban outsourcing by American companies
would not have any great impact on Indian IT companies, but
such moves would certainly go against the global free trade
policy….
GOVT
BARS PRODUCTION OF WATER COMPANIES : The government
has disallowed production by over 200 bottled water plants,
including those of popular brands like Bisleri, Kingfisher
and Coca Cola's Kinley, due to a violation of revised pesticide
norms, or unsatisfactory performance.
GOVT
WAIVES DIVESTMENT RULE FOR REEBOK PARENT : The government
has rejected Phoenix Overseas Ltd plea to hike stake in Reebok
India Ltd to the original level. Instead, the government has
allowed Reebok International to maintain the current equity
structure in Reebok India thus waiving the disinvestment clause
imposed on the US company in 1997…..
NO
MORE TAX CHECKS ON 50000+ DEPOSITS : Income tax department
will go a little easy on banks. The Central Information Branch
(CIB) - which tracks various high value transactions for investigation
- has been directed by the Finance Ministry to stop calling
for information from banks on time….
TAX
BREAKS FOR SEZ UNITS EXTENDED BY 10 MORE YRS : The
government has decided to extend more tax breaks to companies
in special economic zones (SEZ), with the finance ministry
giving its nod to allow income-tax benefits on export profits
for 20 years instead of 10 years…..
Other News…
NEW DEVELOPMENTS AND JOINT VENTURES
TIMES
GROUP TIES UP WITH DOW JONES TO PUBLISH WALL STREET JOURNAL
IN INDIA: Dow Jones, the publisher of The Wall Street
Journal, and Bennett, Coleman, the publisher of The Times
of India and The Economic Times, announced a joint venture
to publish The Wall Street Journal for India.
INFOTECH
BUYS US CO VARGIS FOR $2.65 M: Infotech Software Solutions,
Inc., the US subsidiary of Infotech Enterprises, has acquired
a Virginia-based GIS firm, Vargis LLC for $2.65 million (working
out to approximately Rs 12 crore)...
MTNL
WINS LICENCES IN MAURITIUS AND KENYA: Constrained
by policy from investing in the domestic market outside Delhi
and Mumbai, the cash-rich Mahanagar Telephone Nigam (MTNL)
is expanding abroad in a big way. It has won licences for
operating cellular mobile, WLL and international long distance
(ILD) services in Mauritius .
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ESCOTEL
SUBSCRIBERS NOW IDEA USERS: Idea Cellular Ltd has
bought 100% of Escotel Mobile Communications for an enterprise
value of around Rs 1,150 crore, of which Rs 275 crore will
be paid by way of cash and the balance Rs 890 crore will be
by way of debt.
Other News…
