Gujarat announces abolishing of octroi from Nov
Gandhinagar: The Gujarat Government has taken an in-principle decision to abolish octroi from seven larger municipal corporation limits in the State from November this year. The state government said it would make efforts to find out by November the alternatives to compensate the Rs 1,800-crore loss to be incurred by civic bodies due to the abolition.

The Gujarat Chamber of Commerce and Industry (GCCI), said it would assist the State Government in finding alternatives to octroi to help civic bodies retain their revenues for public welfare and development works.

Currently, octroi rates vary, with a minimum of three per cent of the price of the commodity. To abolish octroi, the State Government would have to amend the Municipal Act and related laws, most likely in the Monsoon Session of the Vidhan Sabha in September.

The seven municipal corporations from where octroi is proposed to be abolished from November 15 are: Ahmedabad, Vadodara, Rajkot, Surat, Jamnagar, Bhavnagar and Junagarh.

Currently, Octroi revenues in the seven municipal corporations amount to nearly Rs 1,800 crore with an approximate increase of 20 per cent per annum.

Traders and business community had been agitating against octroi for years, particularly after levying of Value-Added Tax in the different States.
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World Bank offers $500 million for urban renewal in India
New Delhi: India is negotiating with the World Bank for an urban infrastructure fund worth $500 million to progress the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), to modernise 63 cities.

Sources in the Urban Development ministry said the World Bank had approached the Planning Commission for the fund, which would require Cabinet approval.

Larger cities could be able to access more funds as they were more credible financially. The credit rating of the mission cities would be over by October.

The ministry is also in talks with banks and financial institutions for financing the urban infrastructure at subsidised interest rates.

A review of the mission, which comprises projects worth about Rs 26,500 crore found that India lacked the contracting capacity to undertake and execute these projects.

Cities have been reporting constraints in the execution capacity and there is a need to attract large engineering firms to ensure timely execution of projects the reviewers said. They also suggested a subsidised interest rate regime for projects undertaken by the mission, especially by banks and financial institutions.
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Third Front again comes into being
Hyderabad: Former chief minister of Tamil Nadu and AIADMK supremo J Jayalalithaa announced the formation of a third front with eight political parties, including MDMK and Kerala Congress as last minute entrants.

Addressing a joint press conference at former Andhra Pradesh chief minister N Chandrababu Naidu's residence, Jayalalithaa said the formal name and leadership of the new front along with their stand on the Presidential candidate would be decided in the third meeting to be held at Chennai. She said many more political parties are also going to join us at the Chennai meeting. The leaders had first met at Allahabad during the Uttar Pradesh elections.

The meeting at Hyderabad was attended by six former chief ministers including Mulayam Singh Yadav (Samajwadi Party), Om Prakash Chautala (Indian National Lok Dal), Babulal Marandi (Jharkhand Vikas Morcha) and Bangarappa (Samajwadi Party) along with MDMK president Vaiko, Asom Gana Parishad (AGP) president Brindaban Goswami and Amar Singh (Samajwadi Party). Kerala Congress chief Thomas had sent his letter of support.

Waging a frontal attack on the Indo-US nuclear deal and the economic policies of the UPA government, the meeting of the seven political parties vouched to strive for a new economic policy to take care of farmers and the poor and middle classes, which according to them, has to be implemented by the central government.
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Indian exports face anti-dumping action
New Delhi: Nearly four per cent of the global anti-dumping action is against Indian exports, even though India accounts for only one percent of global exports.

According to the latest data available with the government, of the 2,938 anti-dumping actions initiated between January 1995 and June 2006, India faced 124 investigations.

At the recent trade policy review meeting on India at the World Trade Organisation headquarters in Geneva, India pointed out that of the124 anti-dumping investigations against it, measures were introduced in 69 cases, which lead to considerable loss of trade.

According to Ajay Sahai, director general, Federation of Indian
Exporters, the range of anti-dumping duty on Indian exports ranges from 5 per cent to 20 per cent. The European Union tops the list with around 11 anti-dumping cases against Indian exports, followed by the United States, South Africa and Canada.
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