Private sector role in hydro power sought
New Delhi: In representation to the government, the PHD Chamber of Commerce and Industry (PHDCCI) has suggested a new set of measures to encourage private participation in hydro power to encourage faster in this sector. The representation has sought specific changes in areas relating to competitive bidding, environment clearance, tariff, financing and royalty issues.

The chamber has suggested that the limit of 100 mw for allocation of a project to the private sector should be done away with and there should not be any limit on the capacity if private sector participation is to be encouraged.

As per the current Hydro Power Development Policy 1998, all projects more than 100 mw are to be allocated through the competitive bidding route. Since competitive bidding has not worked in the hydro sector, all projects above 100 mw are being allocated to the public sector.
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IPPs seek exemption from dividend tax and MAT
New Delhi: Ogden Energy, National Grid, PowerGen and ABB, some of the leading global power generating companies, in a collective representation made to the government, have demanded exemption of power sector from dividend distribution tax (DDT) and Minimum Alternate Tax. The current rate of DDT at 22 per cent and MAT have struck a severe blow to the chances of the nascent independent power projects (IPPs) attracting substantial foreign investment, the pre-budget memorandum has stated.

The memorandum pointed out that IPPs were still evolving in India and only about eight IPPs had gone into commercial operations, while another eight IPPs were on the verge of financial closure. The representation points out that considering a minimum construction period of three years, the power projects would distribute dividend only in 2004-05. Until then, DDT revenues from power sector will be non-existent and even thereafter, quite insignificant to make any material difference to the total revenue collections.
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Karnataka to launch first biotech VCF
Bangalore: Karnataka is set to launch India’s first state-sponsored biotech venture capital fund to boost their initiatives. The fund is likely to have an initial seed capital of Rs 10 crore to be operated through Karnataka State Industrial Investment & Development Corporation-Karnataka State Finance Corporation. The proposal for creation of the biotech fund will be incorporated in state's new industrial policy to be announced shortly.

The state was also the frontrunner in setting up the first state financed IT VC fund is now focussing on other knowledge-based industries by floating a fund to support subjects like biotechnology, genetic engineering and pharmaceuticals. It is further planning to mobilise additional funds for the biotech corpus from other domestic and global FIs and multilateral agencies.

The government has already set up a Centre for Human Genetics at the Agriculture University campus in Bangalore and has engaged Arthur Andersen to prepare a biotech strategy paper spelling out the infrastructure and policy framework required to boost its growth as a part of its biotech initiatives.
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CII seeks halving excise duty on IT products
New Delhi: The Confederation of Indian Industry (CII) has demanded that the government halve the excise duty on Information Technology (IT) and related products to eight per cent from the existing 16 per cent to boost the sector. In a pre-Budget memorandum, the premier industry body has recommended the government to maintain a minimum of 10 per cent differential between input parts, components and finished goods for a vibrant manufacturing base of IT hardware in the country.

CII has further sought that tariff on IT items should be brought down in stages to zero level and has said that PC should be listed in the `employee benefits' for tax exemption to achieve the national objective of creating an IT literate population. The chamber also recommended that a section of the Income Tax Act should be amended for including donations towards IT and Internet related peripherals for the schools.
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