Uniform VAT rates for industrial inputs, essential commodities and capital goods
New Delhi: Twenty one states which have switched over to VAT have agreed to adopt uniform rates for industrial inputs, capital goods and essential commodities like medicines, salt, bread and PDS items. In a significant decision, certain goods have also been exempted from VAT.

This has been decided after a meeting between the state finance ministers and the Chairman of the VAT empowered committee, Asim Dasgupta.

Essential items like branded and unbranded salt, bread, gur, jaggery and all food items distributed through the Public Distribution System (PDS) will be exempted. The category of goods, which come under industrial inputs will be taxed at four per cent. All capital goods will also be taxed at four per cent.

The states, which have switched over to the VAT regime will notify rates by the end of April. Medicines, medical equipment and devices will attract four per cent VAT. "The Empowered Committee will form a view on what is to be included in life saving drugs," he said.

The VAT panel also discussed threadbare the tax treatment of petroleum products. "Diesel and petrol will be out of VAT while LPG can attract VAT," he said.
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Aiyar's Pakistan visit scheduled for 25th May
New Delhi: Petroleum Minister Mani Shankar Aiyar will visit Pakistan in May to discuss bilateral energy ties as well as the 4.16 billion dollar Iran-India gas pipeline project.

During his visit starting May 25, Aiyar will push for diesel and petrochemical exports to Pakistan and discuss import of natural gas from Iran through a 2600-km pipeline, 760-km of which is to pass through Pakistan.

During the meeting with his Pakistani counterpart, Aiyar said he would take up the issue of removing diesel from the negative list of importable items from India. He would also look at settling the transit issue with Pakistan before his June trip to Tehran to seal a deal for the import of 60-70 million standard cubic meters per day of natural gas from Iran via the 4.16 billion dollar pipeline. According to ministry officials, Aiyar will discuss issues like the route of the pipeline, transit fee etc with Pakistan as it will all have an important bearing on the cost of gas.

India and Iran are currently engaged in detailing techno- commercial issues like gas volumes, route and price and Aiyar's visit to Tehran would be for signing a firm pact.
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Plan panel to prepare paper for a new regulatory regime
New Delhi: The Planning Commission is preparing to put up a discussion paper on improving regulatory mechanisms and setting up new regulators where they do not exist.

This follows a directive from the Prime Minister, Dr Manmohan Singh, who is of the view that a proper regulatory regime will enable greater participation of the private sector, especially in infrastructure sectors.

The financial requirements of building the infrastructure are phenomenal and the most practical model for this purpose is public-private partnership. Addressing the Infrastructure Regulatory Conclave here, Planning Commission Deputy Chairman, Montek Singh Ahluwalia, said he was personally involved in the preparation of the concept paper, which would serve as a guidepost for improving the functioning of regulatory bodies.

"I cannot give details on what we are working. However, when the paper is ready we will put it up for comments from the public, including the industry. The paper along with the comments would be handed to the Prime Minister," Ahluwalia said.
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Forty two new flyovers in Mumbai
Mumbai: The State Government is planning to build 42 new flyovers over the next three years under the World Bank-funded Mumbai Urban Transport Project (MUTP). The Maharashtra State Road Development Corporation (MSRDC) will construct these flyovers at an aggregate cost of Rs1,000 crore, according to Anil Deshmukh, Minster for Public Works.

Deshmukh said that tenders worth Rs188.59 crore for the seven flyovers have already been called for by the MSRDC. The projects intend to improve connectivity, especially between the western and eastern suburbs, the expansion of and the creation of new roads and flyovers.

The Santracruz-Chembur Link Road is a crucial link in this project, connecting Kurla with Santracruz. "A part of the Santracruz-Chembur Link Road will be a 2.2-km-long double-decker flyover. It will be the longest flyover in the city and will surpass the 1.8-km-long JJ flyover, presently the longest. There will four lanes on each deck. Costing Rs80 crore, this flyover is likely to be completed by December, 2006," Deshmukh said.

The existing Jogeshwari-Vikroli link road, which is perennially congested, is being expanded as a 10-lane road at a cost of Rs175 crore. The travelling time between Vikroli and Jogeshwari will get reduced to 20 minutes from 90 minutes now, once the link is completed.

Similarly, the Western Express Highway stretch between Bandra and International Airport will be expanded to 14 lanes and the stretch between the airport and Dahisar will be expanded to 12 lanes. Elevated roads will be constructed at Dharavi, Mulund-Goregaon and Lovegrow junction, Worli.
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McKinsey and CII report: Establish eastern states mineral council
Kolkata: A report on the country's potential in the minerals and metals sector, jointly prepared by the Confederation of Indian Industry and Mckinsey & Company has highlighted that this sector in the eastern region alone has the potential to attract investments worth $ 75-125 billion over the next 10-12 years, provided concerted efforts are made by the State Governments in association with industry players.

The report was released here on Tuesday at an international conclave on minerals and metals manufacturing by the West Bengal Chief Minister, Buddhadeb Bhattacharjee.
The conclave was arranged by the CII, coinciding with its annual regional meeting. Experts from 24 countries, along with major domestic players in the mineral and metal industry, attended the conclave.

Rajat Gupta, partner, McKinsey & Co, said India enjoys a strong position in the mineral map of the world and should learn from other countries to harness its natural wealth for higher economic performance and employment generation. Gupta said current market and economic forces made this an opportune time for the sector to step up its efforts, which has the potential to generate employment for 7,00,000 people by 2015.

Domestic demand is likely to witness a significant growth in current economic trends, making the country one of the five largest global markets for several metals and minerals.

This apart, the Chinese economy's growth has accelerated global demand for basic materials. India, being a low-cost producer, could position itself to play a significant role in servicing global demand, he said.

The report has recommended that the States in the eastern region, which control 75 per cent the country's mineral deposits, collaborate to benefit from each other's structural advantages. It is desirable to form an eastern State minerals council, comprising the four eastern States, to resolve inter-State issues faced by the industry and explore joint initiatives.

The council should meet every two months to examine the possibility of joint funding of infrastructure as well as joint development of mining areas. It should also jointly allocate downstream investments among member States so that the industry does not face artificial restrictions on locating its plans.

While endorsing the recommendation of forming a council, the Chief Minister asked the CII to take initiatives to convince mineral-bearing States in the eastern region to form such a council. The Union Government should encourage only exports of value-added items but not raw materials.
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