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Tuesday, December 25, 2007

[vinnomot] Climate Change + EU Cotton Subsidy & Trade Issues + BIO-ETHANOL + ORGANIC + 11th PLAN‏

NEWS Bulletin from Indian Society For Sustainable Agriculture And Rural Development
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1. India calls for caution in future climate talks
 
TRADE ISSUES---
2. EU cotton subsidy move ridiculed
3. More tariff cuts under India-Singapore CECA on anvil
 
BIO-ETHANOL----
4. Ethanol offtake for blending falls well short of the target
 
ORGANIC & FLORICULTURE----
5. Sikkim eyeing local and international markets for floriculture, organic products
 
CONTROVERSIAL WHEAT IMPORT + SUGAR---
6. Govt truns Nelson's Eye to wheat import offer
7. Sugar export subsidy to be extended by a year
8. Sugar industry demands rational cane pricing policy
 
US & INDIA - Anti-dumping----
9. Doha pact: India dares US on anti-dumping
 
11th PLAN----
10. Montek pegs growth at 8.5-9% on US slowdown, sub-prime crisis
11. Infrastructure: FM rings warning bell again -- Says projected 10% GDP rate will be missed if states don't get going
12. Agriculture, education, health get top priority as NDC okays 11th Plan
13. Buddha calls for relook at SEZ policy
 
14. New levy scheme for pan masala, gutkha units
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India calls for caution in future climate talks
 
 
ASHOK B SHARMA
Posted online: Tuesday , December 18, 2007 at 2021 hrs IST
 
India has said that next two years would be crucial for negotiations for a new climate pact which would replace the Kyoto Protocol by 2012.
 
The 13th meeting of the Conference of Parties to the UN Framework Convention on Climate Change (UNFCCC) which concluded in Bali in Indonesia last week has suggested setting up of an ad hoc working group on long-term cooperative action under the Convention. Member countries are required to submit to the UNFCCC secretariat their views regarding the work programme by February 22, 2008 and the ad hoc working group is slated to meet by April, 2008 and subsequently in June, September and December, 2008.
 
The ad hoc working group would prepare the agenda for meeting of the conference of parties scheduled in Copenhagen in 2009. The Bali conference has deferred the issue of quantifying emission cut under the new climate pact and this could be taken up in the Copenhagen meeting.
 
Briefing the mediapersons here in Delhi on Tuesday the Union science and technology minister, Kapil Sibal said : "We have been successful in Bali in preventing the attempts of the developed countries for diluting the agreement under Kyoto Protocol and trying to make some developing countries to commit emission cuts."
 
Sibal led the Indian delegation to the Bali conference.
 
The future agreements would now be consistent with the Kyoto Protocol and the two-track process would continue – one for the developed countries for cutting emissions and other for developing countries, he said and added "in the next two years we should be careful in negotiations."
 
Sibal said that as per Bali declaration the mitigation commitments or actions in the developed world would be measurable, reportable and verifiable. The developing countries would continue sustainable development supported and enabled by technology, financing and capacity building in a measurable, reportable and verifiable manner, he said.
 
"Another success was taking the US on board under the Bali roadmap," said Sibal.
 
However, Sibal said that India would continue its own programme for mitigation and adaptation to combat climate change. The Prime Minister's council on climate change would present an action plan in 2008, he said.
 
"Our action on mitigation in the country is voluntary and without any global commitment," he said and added that global Adaptation Fund was small at $ 60 million.
 
The Union minister of state for environment and forests, Namo Narain Meena alleged that out of the four pillars – mitigation, adaptation, technology transfer and resources – the developed world was interested in adaptation.
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EU cotton subsidy move ridiculed
 
 
ASHOK B SHARMA
Posted online: Monday , December 17, 2007 at 0141 hrs IST
 
New Delhi, Dec 16 The Indian textile industry and farmers have criticised the European Union's (EU) move to shift its 300 million euro cotton subsidy to Blue Box.
 
Blue Box subsidies are given under production limiting programmes and are exempted from being capped. However, proposals have been put forth in the WTO for capping Blue Box subsidies at 2.5% of a country's total value of farm production.
 
At a meeting of farm negotiators in Geneva on December 5, this year, the EU said that it should be given the right to pay 300 million euro a year, with a view to honour its earlier commitments to Greece and Spain on their accession to the Union. The EU said that in return it would reduce its cotton subsidy to zero under the Amber Box. Amber Box subsidies are considered as trade-distorting.
 
The draft text released by the WTO agriculture committee chair, Crawford Falconer in July 17, had proposed that any Blue Box payment for individual products should not exceed the average payments made in 1995-2000.
 
However, an increase in Blue Box payment can be allowed, if a one for one reduction is made in Amber Box subsidy. In the case of cotton, the ratio proposed by Falconer was two to one; every dollar in additional Blue Box payment would mean a $2 cut in Amber Box subsidy.
 
The president of Bharatiya Krishak Samaj, Krishan Bir Chaudhary said, "If the EU is allowed to shift its cotton subsidy, the US would agree to reduce its $4 billion cotton subsidy, and this would spell doom for third world farmers."
 
Reacting to the European move to shift its cotton subsidy, the secretary-general of the Confederation of Indian Textile Industry (CITI), DK Nair said, "This is a clever move by EU. India and other developing countries, particularly the African countries, should resist it."
 
If the Falconer formula is applied without the one to one ratio cut, the EU would be able to pay only the 180 million euro Blue Box subsidy to cotton growers.
With a view to pay 300 million euro, the EU preferred a one to one ratio cut formula.
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More tariff cuts under India-Singapore CECA on anvil
 
 
ASHOK B SHARMA
Posted online: Thursday , December 20, 2007 at 2110 hrs IST
 
New Delhi, December 20: India and Singapore have signed a protocol to amend the comprehensive economic cooperation agreement (CECA) between the two countries, an official press release said.
 
The CECA would be amended to expand the tariff liberalization package within the Trade in Goods Chapter.
 
With a view to enhance bilateral trade and to strengthen economic relations in various fields, the CECA) between India and Singapore was signed on June 29, 2005 by the Indian Prime Minister Manmohan Singh and the Singapore Prime Minister Lee Hsien Loong. It came into effect from August 1, 2005.
 
The bilateral trade has shown tremendous growth since then with India's exports to Singapore during 2005-06 and 2006-07 at $ 5.4 billion and $ 6.02 billion registering a growth of 35.61% and 10.98% respectively and Singapore's export to India during 2005-06 and 2006-07 at $ 3.4 billion and $ 5.5 billion registering a growth of 26.49% and 63.10% respectively. India had a positive trade balance of $ 551 million against Singapore in 2006-07.
 
Singapore had recently made a request for tariff elimination/reduction for certain products. India has now decided to agree to eliminate/reduce tariff on 539 products (at 8-digit HS code) as an additional concession within the existing India-Singapore CECA. Of the 539 tariff lines, tariff elimination is to be achieved in 5 equal cuts between January 15, 2008 and December 1, 2011 for 307 items.
These 307 items comprise mainly of articles of base metal, machinery and mechanical appliances, chemicals and textile and textile articles.
 
For another 97 products, tariff elimination is to be achieved in 9 equal cuts between January 15, 2008 and December 1, 2015. These 97 items comprise mainly of machinery and mechanical appliances, plastic and rubber articles and textile and textile articles. For 135 products, tariff reduction to 5% is to be achieved in 9 equal cuts between January 15, 2008 and December 1, 2015. These items comprise mainly of chemicals, plastic and rubber articles and machinery and mechanical appliances.
 
Under the existing Trade in Goods Agreement, about 83% value of India's imports from Singapore are covered under products for which tariff is being eliminated or reduced. After the proposed additional tariff concessions, this coverage would go up to about 93%. It has also been decided to extend, under India-Singapore CECA, additional concessions that India may offer under ASEAN-India FTA in Goods in terms of product coverage, time-line, Rules of Origin, with appropriate amendments to India- Singapore CECA
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Ethanol offtake for blending falls well short of the target
 
 
ASHOK B SHARMA
Posted online: Monday , December 24, 2007 at 0014 hrs IST
 
New Delhi, Dec 23 The government's programme of mandatory 5% ethanol-blended petrol doesn't seem to be running smoothly. Actual lifting of ethanol by oil Companies was only 200 million litre, as against the doping requirement of 550 million litre in the first year of implementation, which is already over.
 
The sugar industry alleged that oil Companies did not lift the required stock they produced. The out-going president of the Indian Sugar Mills Association (ISMA), P Rama Babu told FE, "Oil Companies do not appear to have taken up the programme as seriously as they ought to have done. We strongly feel that if the programme has to succeed, it is important that an empowered committee is created to oversee its implementation." ISMA suggested that the system of purchase of ethanol through tender, purchases should be made directly from the suppliers at the determined ex-factory price of Rs 21.50 a litre.
 
It has suggested that newly commissioned ethanol plants be allowed to participate in the ethanol-blended petrol programme. For any shortfall in the earlier state-wise purchase of ethanol, also for additional quantity required for increasing ethanol doping of petrol, the new plants be treated on a priority basis, to bring them at par with existing suppliers.
 
The government is likely to issue a notification, allowing sugar mills to produce ethanol directly from sugarcane juice or B-heavy ethanol. Mandatory blending of petrol with ethanol would be raised to 10% from October 2008 all over the country, with the exception of Jammu & Kashmir, north eastern states, and island territories, for which ethanol output should increase to 1,200 million litre. The Bureau of Indian Standards would finalise norms for 10% ethanol-blended petrol by March 2008.
 
The industry has asked for restoration of concessional excise duty on ethanol-doped petrol, and placing ethanol in the list of declared goods, under section 5A of the Central Sales Tax Act, so state governments wouldn't impose tax on ethanol
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Sikkim eyeing local and international markets for floriculture, organic products
 
 
ASHOK B SHARMA
Posted online: Monday , December 24, 2007 at 0023 hrs IST
 
New Delhi, Dec 23 Sikkim has geared up to market its floriculture and organic food, within the country and abroad. It is scheduled to host the three-day International FloriShow in Saramsha Garden in Gangtok beginning March 14, 2008, in collaboration with central government agencies and the Media Today group. Representatives from about 30 countries, including Holland, New Zealand, Thailand, Australia, Korea are likely to participate in the event.
 
With a view to promote Sikkim within the country, an exclusive outlet was recently inaugurated in Pamposh Enclave in Delhi , last week. "Sikkim has a competitive advantage for its organic produces, medicinal herbs, fruits, and vegetables, which are peculiar to the region. We have launched the process of certification of organic areas and by 2012, Sikkim would be declared as the first organic state in the country," said the chief minister, Pawan Chamling.
 
He identified eco-tourism, hydel power, horticulture as priority sectors, and asked the central government to help in road and railway connectivity, which would boost trade with China through the Nathu La pass. He suggested border trade with Nepal through the Chewa-Bhanjyang check post and with Bhutan through Rhenock. Sikkim has begun documenting its biodiversity resources and traditional knowledge, and would opt for geographical indications for some of its deserving items, he said.
 
The several micro-climate zones in the state have made it a biodiversity hotspot. Out of 4,500 species of flowering plants, about 600 are orchid species, 36 rhododendrons species, 60 primulae species, 16 conifers species, 23 bamboo species, 362 ferns and allies, 8 tree ferns, 60 primulas, 11 oaks, and over 424 medicinal plants. The forests are rich in faunal diversity, with over 150 mammals, 552 birds, 48 fishes, and over 690 butterflies.
 
Out of 600 orchid species grown, 300 are Sikkim's natural species. Exotic flowers like roses, lillium, anthurium, and gladiolus are grown. The state has its own varieties of large cardamom, ginger, turmeric, garlic, and cherry pepper. Temi tea is a hot favourite the world over, and alpine Gouda cheese is an important item of export.
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Govt truns Nelson's Eye to wheat import offer
 
http://www.financialexpress.com/news/Govt-truns-Nelsons-Eye-to-wheat-import-offer/253676/
 
ASHOK B SHARMA
Posted online: Monday , December 24, 2007 at 0201 hrs IST
 
New Delhi, Dec 23 The 330,000 tonne wheat import deal met its natural death as the State Trading Corporation of India (STC) failed to issue letters of acceptance to the parties.
The STC had invited global bids on December 10, this year for import of wheat through an open ended tender. The tender which was opened on December 17 found three bidders in the fray, namely Glencore, Cargill and Toepfer.
 
The three bidders assured to supply 330,000 tonne wheat at prices ranging between $ 359 to $ 479 a tonne. The delivery was to be made through eight ports in staggered shipments by April, 2008.
 
The STC was scheduled to issue letters of acceptance to these parties latest by December 22. "As no letters of acceptance has been issued to the parties, the deal is automatically deemed to be scrapped," said a senior STC official.
 
When asked about the reasons for non-issuance of letters, the official said :"The food ministry did not agree to import wheat at such a high price."
 
The government has imported 1.8 million tonne wheat in the current fiscal beginning April. It had plans to import 500,000 tonne to replenish its buffer stock.
 
In the previous fiscal year government imported 5.5 million tonne wheat against an average price of $ 205 a tonne.
 
This is the second time that the wheat import tender was camcelled this year. In May the wheat tender was cancelled due to high prices quoted.
 
Subsequently in June, 2007 511,000 tonne wheat against an average price of $ 326 a tonne, In August 795,000 tonne wheat was imported against an average price of $ 389 a tonne. The fourth tender in the row was floated by MMTC which led to a purchase of 342,000 tonne wheat against an average price of $ 397 a tonne. The fifth tender in the row was floated by PEC which led to a purchase of 150,000 tonne wheat against an average price of $ 395 a tonne. The sixth tender floated by STC lapsed automatically on Deceember 22.
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Sugar export subsidy to be extended by a year
 
 
ASHOK B SHARMA
Posted online: Saturday , December 22, 2007 at 0106 hrs IST
 
The government is planning to extend for another year, the subsidy scheme on inland transportation of sugar for exports. It is also contemplating on the issue of a "rational" sugarcane pricing policy linked to the sales proceeds of sugar and byproducts.
 
A notification is likely to be issued within a month, allowing sugar mills to produce ethanol directly from sugarcane juice or B-heavy ethanol. Mandatory blending of petrol with ethanol would be raised to 10% from October 2008 all over the country, with the exception of Jammu and Kashmir, northeastern states, and island territories. The Bureau of Indian Standards would finalise norms for 10% ethanol blended petrol by March 2008.
 
The Centre would persuade state governments not to impose levies on ethanol and ensure its free movement. The government had announced transport assistance on sugar exports till April 2009, which stipulates Rs 1,350 a tonne assistance to mills in the coastal states and Rs 1,450 a tonne assistance to those located in the landlocked states.
 
The Union food and agriculture minister, Sharad Pawar at the sidelines of the 73rd AGM of the Indian Sugar Mills Association (ISMA) in Delhi on Friday said, "Due to falling global prices of sugar and the cost burden of the industry, we may extend the sops for one more year."
 
He said that 60% of the global surplus of sugar was held by India, and in 2006-07 the production peaked to 28 million tonne. Hemmed in this situation, the industry was unable to pay the cane prices in time, and arrear payments to farmers accumulated to Rs 2,600 crore by September 2007, he said.
 
Pawar urged the industry to pay the farmers' dues with the earlier sops extended to them.
 
The minister informed the industry that the government has set up computerised systems to settle claims for buffer stock subsidy and export assistance. The directorate of sugar, in collaboration with the National Informatics Centre has begun creating a database on production, stock, prices, and exports, he said, and urged the industry to send timely data.
 
Regarding the industry demand for a "rational" cane pricing policy and preventing the state governments from announcing their own state advised prices (SAPs), the minister said that he discussed the issued with the ministers concerned from various states in October this year but "considering the sensitive nature of the matter, firm commitments and conclusive decisions could not be taken."
 
He said that the Supreme Court has upheld the state government's right to announce SAPs. He, however, assured the industry that he would persuade the state governments from announcing irrationally high SAPs. Pawar turned down the industry demand for increasing the captive cane zone area from the radius of 15 km to that of 25 km. He urged the industry to work for developing improved cane varieties for better sugar production.
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Sugar industry demands rational cane pricing policy
 
 
ASHOK B SHARMA
Posted online: Friday , December 21, 2007 at 0022 hrs IST
 
New Delhi, Dec 20 The sugar industry, upbeat with the recent Allahabad High Court order scrapping the state advised price (SAP) for canes in Uttar Pradesh, has demanded that central government take steps in formulating a "rational" sugarcane pricing policy.
 
They have demanded separate cane pricing for north and south India.
 
The Allahabad High Court has scrapped the cane SAP announced by the state government for the year 2006-07. However, the court directed the Uttar Pradesh government to set up a committee under the chairmanship of a retired or sitting judge of the High Court for fixing SAP within three months. The court has also said that the farmers need not refund the "excess" payments. This would be adjusted when payments are made to them in the next season, said advocate Yashwant Verma.
 
The industry has complained that as the SAPs announced by the state governments were arbitrarily fixed and were higher, they were unable to pay the growers in time. On countrywide basis the arrears payable to farmers have aggregated to over Rs 2000 crore. In Uttar Pradesh leads with Rs 1106.25 crore arrears followed by Maharashtra.
 
The central government announces Statutory Minimum Price (SMP) for canes every year. However, speaking to the mediapersons in Delhi on Thursday, the president of Indian Sugar Mills Association (ISMA), P Rama Babu said: "We want the cane prices should be based on a percentage of sales proceeds from sugar and byproducts".
 
Internationally, a very simple formula existed he said and added that the farmer's share ranged between 59% to 70%, with some credit given to them towards byproducts like molasses and baggasse. In the years of low sugar prices, the governments usually extended a helping hand by taking the liability of additional payment in one way or the other, he said.
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Doha pact: India dares US on anti-dumping
 
 
ASHOK B SHARMA
Posted online: Thursday , December 20, 2007 at 2337 hrs IST
 
While conceding that the earliest conclusion of the six-year-old Doha Round negotiations at the WTO would only be in 2009-10, India on Thursday, however, threatened that it would not support any agreement in the multilateral talks which allows "zeroing", a US-backed rule which allows imposition of higher anti-dumping duties.
 
India is backed by at least 15 other countries that all have said zeroing would help US enhance its protectionist tendencies. Anti-dumping duty is imposed by an importing country when it is found that the normal price of a product in the exporting country is higher that its export price. The duty imposed depends on damage suffered by the domestic industry due to the imported product.
 
"With 'zeroing' there will be no Doha Round agreement. The text by the chair of the negotiating group on rules (Ambassador Guillermo Valles Galmes of Uruguay) has succumbed to pressure by the US and has brought in zeroing which benefits only the US. This is disturbing and is a retrograde step. The chair has lost its credibility. Zeroing was ruled as illegal by WTO's dispute settlement body and the appellate body," commerce secretary G K Pillai said at a conference organized by the Centre for Trade and Development (Centad) here on Thursday.
 
Pillai said the chair deleted the "lesser duty rule" proposed by India and several other countries, which called for imposition of lesser anti-dumping duties. He said organisations like Centad and NGOs must help build public opinion against allowing zeroing.
 
India also opposed a move by the developed countries to disallow subsidies to traditional fishing communities that uses boats with small motors, in the pretext of over-fishing and damaging the environment. The proposal by the developed countries said subsidies could be given to such fisherman if the country gets approval from Food and Agriculture Organisation.
 
"Such fishing communities will be protected by India with subsidies. This is non-negotiable. We are also against approaching FAO for any such approval," Pillai said.
 
On a recent proposal by the US and EU that to counter climate change, tariffs must be done away with on 43 environment-friendly goods, Pillai said India would welcome such goods coming into the country but would also want the technology to be transferred freely. Pillai said India was against payment of royalty for the patents on these advanced technology environment-friendly goods.
 
US and EU wanted inking a broader pact on climate-friendly goods and services for developed and advanced developing countries. But India and Brazil had criticised the move saying it was a backdoor attempt by the rich nations to increase sales of their goods. Brazil had even said the list had mostly produced by the US and EU.
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Montek pegs growth at 8.5-9% on US slowdown, sub-prime crisis
 
 
ASHOK B SHARMA
Posted online: Friday , December 21, 2007 at 0215 hrs IST
 
New Delhi, Dec 20 Planning Commission deputy chairman Montek Singh Ahluwalia on Thursday said that the sub-prime crisis and a slowdown of the US Economy will have some impact on India, but it will not be a very serious problem.
 
Speaking at the India Economic Conclave, Ahluwalia said, "The principle short-term risk is really whether or not the sub-prime crisis, in the global financial system will spread and lead to a slowdown in US Economy and globally. And if it does that, then obviously, it will have some impact on India. But I do not expect that to be a very serious problem."
 
"Even if there is a slowdown it might lead to somewhat slower growth in the first year than otherwise. But I do not think it will affect the five-year growth prospect," he said.
 
On the growth rate he said correct set of policies will help India achieve over 9% growth in the 11th Plan and in the next decade the growth rate can be 10% and more, Ahluwalia said.
 
"There is a general recognition among chief ministers that we are entering the current plan on strong fundamentals. We believe that the growth rate in the current fiscal would be 8.5-9%," Ahluwalia said.
 
He pointed out that issues like faster reduction of poverty and generating employment would depend a lot on faster growth. "The task that we have set for ourselves is quite ambitious. We have to ensure that we get the desired growth."
 
Making a case for faster development of the country's infrastructure sector, Ahluwalia pointed out that India would require $500 billion within the next five years to render the sector world class.
 
He said the 11th Five Year Plan approved by the National Development Council on Wednesday has laid a lot of emphasis on paying adequate attention to social sectors for which the government has announced various programmes.
 
He also said the current level of global energy prices are a serious constraint for the Indian Economy, but does not expect any sharp rise in the same.
"I don't think that there will be a sharp increase in energy prices. Present level of energy prices is a serious constraint. You know what we have to do," Ahluwalia said.
 
High prices of energy resources like crude oil and coal have been trading at high levels in the international market, increasing the financial burden on domestic Companies. Crude oil crossed the $99.29 a barrel mark last month
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Infrastructure: FM rings warning bell again
 
Says projected 10% GDP rate will be missed if states don't get going
 

ASHOK B SHARMA
Posted online: Thursday , December 20, 2007 at 0037 hrs IST
 
Finance minister P Chidambaram again issued a warning on the slow growth in infrastucture in the country saying if states do not get going on land acquisition and environmental clearances for such projects, the 10% GDP growth rate projected for the 11th Plan would be missed.
 
"Virtually every project, we are told, faces difficulties in the matter of land acquisition, environmental clearance, road connectivity and availability of water. Unless we achieve the planned targets set for each of these sectors in the 11th Plan, I am afraid we cannot reach the target growth rate of GDP of 10% in the last year of the Plan," the minister told the National Development Council on Wednesday. The minister's comments are significant as the pace of road construction has dipped in several states as the governments are reluctant to acquire land for them.
 
As an example of the weak pace of infra projects, Chidambaram said power targets have been missed in the last three plans. He added that the 11th plan target of adding 78,577 mw too could be missed if the states did not push the pace of clearances.
 
The minister identified tax refund on state levies to exporters and faster pace of infrastructure projects as action areas in his intervention in the meeting of the chief ministers. On refunds, he held out the carrot of attracting exporters through such measures. "Any state which relieves exporters of tax burdens stands to gain: more export-oriented industries will locate in that state. Hence, it is in the long-term interest of the state to rebate or refund all taxes on exports".
 
In his speech Prime Minister Manmohan Singh was, however, confident that the Economy would be able to clock double digit growth rate in the 11th Plan period on the back of an average 9% growth rate per annum in the last three years of the 10th Plan. "As we enter the 11th Plan, the prospects on the growth front are encouraging. Such a good growth performance is unprecedented and leads us to wonder whether we have actually scaled another invisible barrier and placed our Economy on a high growth path," Singh said.
 
A correct set of policies and dedicated efforts by both the Centre and the state governments would help maintain the growth momentum and also place the Economy on a high growth trajectory of 10%, he said.
 
The risks to the growth momentum was the threat of economic slowdown in major economies like the US. "The sub-prime lending crisis has also hit the global financial Markets and India cannot be immune to such developments as the Economy is now increasingly integrated into the global Economy as much as the external sector now accounts for 40% of GDP," the Prime Minister pointed out in his speech.
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Agriculture, education, health get top priority as NDC okays 11th Plan
 
 
ASHOK B SHARMA
Posted online: Thursday , December 20, 2007 at 0039 hrs IST
 
New Delhi , Dec 19 Attaching utmost priority to agriculture, education and health, the National Development Council (NDC) on Wednesday approved the 11th Five-Year Plan, which earmarks more than half of the gross budgetary support (GBS) toward these areas.
 
The priority sectors have been allocated almost 70% of total GBS. In the 10th plan these sectors were given about 53% of the GBS.
 
The 11th Five-Year Plan (2007-12), approved by the NDC amid demands by chief ministers for greater flow of funds to states for tackling regional imbalances, aims at sustaining a 9% economic growth during the period, and 4% agriculture growth. Plan outlay for the education sector was raised from 7.68% of the GBS in the 10th Plan to around 19% in the 11th Plan. The total outlay for the Plan is Rs 36,44,718 crore, of which budgetary support is pegged at Rs 14,21,711 crore.
 
However, the government did not accord the same priority to infrastructure development, which economist feel holds the key for economic growth.
 
Allocation to the energy sector has also been reduced, a move which goes against the larger interest of the Economy. "Plan is for the poor. We aim for inclusive growth and would everything necessary to unliftment of marginalised groups," Prime Minister Manmohan Singh told while addressing the NDC meeting.
 
He also expressed confidence of achieving and sustaining 9% growth rate and pointed that country may achieve 10% growth by the terminal year of the current plan. However, he cautioned that prices of food product and global economic situation would test the resilience of the Indian Economy. Manmohan Singh also proposed to set up two task forces and an expert group to deal with issues concerning hilly areas, expansion of irrigation and expeditious clearance of infrastructure projects.
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Buddha calls for relook at SEZ policy
 
 
ASHOK B SHARMA
Posted online: Thursday , December 20, 2007 at 0041 hrs IST
 
New Delhi, Dec 19 West Bengal chief minister Buddhadeb Bhattacharjee on Wednesday sought a "fresh look" into the Centre's policy on special economic zones (SEZs), which he felt should be restricted to select industries.
 
Bhattacharjee, who is under fire over the Nandigram SEZ issue in West Bengal, also wanted the Centre to fix a ceiling on land for a particular type of SEZ and work out the percentage of land area to be compulsorily utilised for industries within that limit.
 
"The scheme for SEZs requires a fresh look. Industry groups should be identified in the first instance, which are to be covered under the scheme, instead of extending it to all and sundry," he said at the NDC meeting.
 
He was of the view that since the minimum land requirement is prescribed, "there should be an upper ceiling of land as well for a particular type of SEZ".
 
The Centre has already fixed a land ceiling of 5,000 hectare for multi-product SEZs following mass protests by farmers in various states. The minister pointed out that there was only a "passing reference" and no "substantial commitment" to increase land holding of the poor in the 11th Plan document though it recognised "limited endowment of land, capital, labour and skill" as reasons for poverty. He also expressed concern over the findings of the NSSO that only 27% of the total number of farm households received credit from formal source
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New levy scheme for pan masala, gutkha units
 
 
ASHOK B SHARMA
Posted online: Wednesday, December 19, 2007 at 2334 hrs IST
 
New Delhi, Dec 19 In a bid to prevent the rampant tax evasion by the pan masala and gutkha industry, the finance ministry has introduced an optional compounded levy scheme for it.
 
Under the scheme, manufacturers of these products will have the option of paying excise duty on the basis of the number of packing machines installed in their factory premises, an official release on Wednesday said.
 
The scheme provides the option to pay Rs 12 lakh as duty every month for each packing machine per line, for gutkha pouches costing upto Rs 1.50.
Similarly, the duty per machine per line per month for pan masala pouches priced upto Rs 1.50 has been fixed at Rs 10 lakh. Different duty slabs have been given for pouches priced upto Rs 6. In case of multiple track or line packing machine, the rate of duty would be multiplied accordingly.
 
For manufacturers wanting to opt for this scheme, they will have to file an application giving details of the packing machine installed in the factory to the jurisdictional assistant or deputy commissioner of central excise. The option, once exercised will be effective for the entire fiscal. As an incentive to this scheme, those opting for it will be waved of any inspection or search in his premises in a routine manner.
 
The pan masala and gutkha sector provides only about Rs 600 crore in central excise duty annually as against a potential of Rs 2,400 crore. To curb tax evasion in this sector, the Central Board of Excise and Customs had also recently issued instructions to the field formations to verify the packing machines present in the factory, the number of such machines in working condition, and for sealing of non-working machines
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