Vizag "fast track" power project faces Rs 1,200 crore cost escalation
New Delhi: Thanks to the delays in getting requisite clearances, the 1,040 MW Vizag power project, planned by the Hinduja group, has suffered a massive cost escalation of Rs 1,200 crore. The forward-looking Andhra Pradesh government is yet to approve the financial plan for the execution of the fast-track project, even though the financial plans have been submitted to the government in October 1999.

The group’s project has incurred a cost escalation of about Rs 1,200 crore due to hike in customs duty, interest during construction and financial charges to be paid by the promoters due to change in the funding pattern.
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WTO drafts stricter patents law
New Delhi: Even as Indian companies are gearing themselves to comply with the laws on patent and intellectual property, the World Trade Organisation has circulated a new draft on Patents. According to the WTO, the new draft is required since there have been major changes in the international intellectual property environment from the time the Trade Related Intellectual Property System (Trips) came into existence.

The new draft will alter the contours of the existing treaty to which India became a signatory only in 1998. When ratified by the international community, this draft will replace the current patent cooperation treaty, which laid down the procedures of applying for international patents under Trips.

The present draft, although a toned down version of an earlier draft, spells trouble for countries like India. Under this draft, once a patent has been granted it cannot be revoked unless a country can prove that the patent was a result of fraudulent intention. This considerably restricts the grounds on which a patent can be challenged.

The Indian government recently fought long and costly battles to revoke patents on the uses of neem and turmeric. Experts feel that such a restrictive definition will make it difficult to challenge the validity of patents under new law.

The new law also says that even if an applicant or owner of a patent has failed to comply with the time requirement for completing the patent formalities on technicalities, the country will allow the patent to be worked.

The greatest threat to developing countries like India comes from the strong restrictions on time limits for objecting to a claim. Given the poor infrastructure of the South countries the restrictions mean that potentially several applications can be made against these biologically rich countries and carried through without a fair hearing for these countries.

A meeting of 25 countries of the Asia-Pacific region has also asked for ensuring that the interests of the developing countries are adequately respected in the international patents architecture. Interestingly the resolution adopted by the meeting included a call to include the system of traditional knowledge in the system of TRIPS though that included a rider that the rights of the traditional communities must be protected.
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