TAX TRIMMER: THE BUDGET CAN HELP YOU GROW YOUR WEALTH. HERE’S HOW

The single most important provision is Section 80C. Under it, one can invest up to Rs 1 lakh in approved schemes and save up to Rs 30,900 in tax. If one's income is more than Rs 1 crore, he can save up to Rs 33,990. Investment of up to Rs 1 lakh is deducted from taxable income and tax liability reduced accordingly.      Public provident fund (PPF): Investment up to Rs 100,000 allowed. That means, the entire limit of Rs 1 lakh investments allowed under Section 80C can be exhausted by investing in PPF. The return, fixed every year, is currently at 8.8%. This is the only instrument which is completely tax free. Lock-in period: 15 years. Effective post-tax return for a person who pays tax at the rate of 30% is 16.5%.      Insurance premia: Investment up to Rs 1 lakh allowed. But annual premium amount should be at least 20% of the sum assured. Lock-in period: 5 years. Returns depend on market. Money received on maturity after five years will be tax free in case of Unit linked Insurance Plan (ULIP). But for general insurance schemes, it will be treated as income of that year and taxed accordingly.      Mutual funds: Investment up to Rs 1 lakh allowed in ELSS. Lock-in period: 3 years. Return from these instruments is completely tax-free. But investors are subject to market risks.      Tuition fee: Amount of up to Rs 1 under section 80C.      Repayment of home loan: Repayment of principal up to Rs 1 lakh in a year gets tax benefit under 80C. Amount is deducted from taxable income. Payment up to Rs 1.50 lakh as interest on loan taken to buy house for self-use also exempt from tax. An additional deduction of Rs 1 lakh is allowed if one buys his first house taking a loan of upto Rs 25 lakh and the value of the property does not exceed Rs 40 lakh. Along with provision of repayment of principal, a housing loan can enable assessee to get income up to Rs 3.5 lakh exempted.      Pension fund: Investment up to Rs 1 lakh in pension fund of an insurancecompany can be deducted from taxable income. Part of overall limit of Rs 1 lakh under 80C. Taxable on withdrawal.      Repayment of educational loan: Interest paid while repaying education loan for own, or kin's, higher studies exempt from I-T. Repayment of principal does not qualify for exemption. Not part of cap of Rs 1 lakh under Section 80C.      Premium for mediclaim policy: You can claim deduction of up to Rs 20,000 for purchase of mediclaim policy for your parents if they are senior citizens or otherwise up to Rs 15,000. This is besides the Rs 15,000 deduction against purchase of mediclaim policy for yourself. lakh paid as tuition fee for education of two children of an assessee can be deducted from total income. Part of overall Rs 1 lakh limit

INDIA BUDGET 2013 :PC NETS BIG FISH

Not so long ago, India appeared to be cruising towards superpowerdom. Then bad weather struck, at home and abroad. With elections looming on the horizon, Chidambaram faces a twin challenge: Keep Congress hopes afloat while steering the economy out of choppy waters. He's soaked the rich, made a splash for women, and sought to shore up investments

Shankar Raghuraman | TIMES NEWS NETWORK 

    Budgets presented in the run-up to elections, whether in the preor post-reforms era, have tended to showcase how much the government is doing for the common man. What's changed post-reforms is that the 'pro-poor rhetoric' has not been accompanied by a 'soak-the-rich' posture. Finance minister P Chidambaram on Thursday bucked that trend. 
    While announcing a tax rebate of up to Rs 2,000 for those with incomes of not more than Rs 5 lakh, the FM imposed a 10% surcharge on income tax for crorepatis, who officially number a mere 42,800, and for domestic and foreign firms with taxable income above Rs 10 crore, which would leave out only small enterprises. 
    In a similar vein, he has hiked customs duty on all mobile phone handsets costing more than Rs 2,000. And has increased excise duty on SUVs—which the fine print of the Budget suggests have been defined in a manner that includes several sedans too. The duty on imported high-end automobiles and yachts has been upped too. Those buying homes and flats with a carpet area of 2,000 square feet or more, or a value of Rs 1 crore or more, will now effectively pay service tax on 30% of the value of the property, while cheaper ones will continue to pay 25% of the value. As Chidambaram himself put it in his speech, "When I need to raise resources, who can I go to except those who are relatively well placed in society?" 
    The 'pro-poor, anti-rich' stance apart, the FM was at pains to show how much the government cares for women and their empowerment. Among the many proposals directed at women was a Nirbhaya Fund for their security and empowerment, and India's first women's bank. 
    For the taxpayer, there will be an additional Rs 1 lakh available for deductions on home loan interest payments, though again only for relatively modestly-priced homes and first-time owners. There were promises too of inflation-linked savings instruments, though the details are to be worked out by the RBI. 
    For corporates, there is an incentive to invest, with 15% of spending of over Rs 100 crore on new plant and machinery in the next two years qualifying for a deduction. For the markets, there was some relief in the form of lower rates of tax on securities transactions and easier procedures for foreign portfolio investors. Against this was a fresh levy, equivalent to the tax on securities transactions, on non-agricultural commodity futures. 
AUR FOR AURAT 
One of the recurring themes of this Budget was women. TOI has long campaigned for a better economic deal for women; this is a good beginning. The FM also announced the setting up of a 1,000cr "Nirbhaya Fund" for the "dignity and safety of women". In the days following the brutal rape of a 23-year-old girl (who later died) in Delhi, TOI named her Nirbhaya (Fearless One). Other women-centric measures include: 
    First women's bank to be set up in public sector with capital of 1,000cr. Will lend to businesses that are run by women, employ women, and support women's SHGs, livelihoods 
    200cr to end "gender discrimination"; to help "vulnerable groups" like single women & widows ARE YOU SINKING OR SWIMMING? TOI HELPS YOU NAVIGATE 
    The biggest gainers from the new income tax proposals are those whose income is between Rs 2.2 lakh and Rs 5 lakh per annum. Everyone in this category saves exactly Rs 2,060 in their tax bill (including the 3% education cess). The only exception are those aged above 80, who are already tax-exempt till Rs 5 lakh and those aged between 60 and 80 who are exempt till Rs 2.5 lakh.Those with incomes between Rs 2 lakh and Rs 2.2 lakh will not have to pay any tax for next year, but how much they save depends on what their income is. A person with an income of just above Rs 2 lakh, for instance, will save almost nothing, while someone who earns Rs 2.1 lakh saves only Rs 1,030. Between Rs 5 lakh and Rs 1 crore, you neither gain nor lose in tax liability. Beyond Rs 1 crore, the extra tax bill mounts rapidly. At Rs 1.5 crore, the additional burden is Rs 4,45,990, at Rs 2 crore it is Rs 6,00,490 and at Rs 5 crore it becomes Rs 15,27,490. 
This is because the 10% surcharge applies to your entire tax bill and not just the portion over Rs 1 crore. 
    While you gain nothing from the Rs 2,000 tax rebate if your income is above Rs 5 lakh, you can still avail of the enhanced benefit on home loan interest payments. So far, interest payments up to Rs 1.5 lakh were deductible from your taxable income. The FM has now said that another Rs 1 lakh of interest payments will be allowed as a tax deduction provided your home loan does not exceed Rs 25 lakh, the value of the property is not more than Rs 40 lakh and it is your first home. If you meet these criteria, you can now 
save Rs 10,300 or Rs 20,600 or Rs 30,900 from your tax bill depending on whether you are in the 10%, 20% or 30% tax bracket. 
    While the formal IT exemption limit remains at Rs 2 lakh, you can avoid tax even with much higher incomes under certain circumstances. If you can use the exemptions for PF contributions, insurance premia etc up to Rs 1 lakh under Sec 80C, the home loan interest deduction under Sec 24 up to Rs 2.5 lakh, the exemption on savings bank account interest up to Rs 10,000 and the Mediclaim premia exemption up to Rs 20,000, you could theoretically have an income of Rs 6 lakh and be tax-free. Of course, whether all 
this is practically possible at such income levels is debatable. 
    As a consumer, your next mobile handset will become costlier as customs duty has been raised from 1% to 6% for all handsets costing more than Rs 2,000. If you are a smoker, the FM's decided you must pay more for your sin. So the excise duty on cigarettes has been hiked by about 18%. Similar hikes will apply to cigars, cheroots and cigarillos. 
SUV prices set to soar, even some sedans will cost more 
    With customs duty up from 75% to 100%, importing a Lamborghini could set you back by Rs 60 lakh, and a Land Cruiser by Rs 15 lakh. Excise duty on SUVs is also up, so even M&M's Scorpio and Toyota's Innova will cost Rs 15,000 to Rs 55,000 more. Worse, the definition of SUVs also covers Honda Civic, Toyota Altis and Maruti SX4, whose prices are set to rise by Rs 16,500 to Rs 40,000 | P 7 Tax changes to yield an extra 13k crore in direct taxes A nother change was to stipulate that where a foreign investor's equity holdings in a firm are over 10%, it would be treated as FDI, while below that threshold it would be FII investment. 
    The net effect of the tax changes is estimated to yield an extra Rs 13,300 crore in direct taxes and Rs 4,700 crore in indirect taxes. The total additional resource mobilisation of Rs 18,000 crore pales in comparison to the Rs 41,440 crore Pranab Mukherjee had proposed to raise last year. Despite the relatively modest tax mopup, the FM has managed to present a budget that apparently hikes outlays on key areas like education, health and the social sector by significant amounts—and yet contains the fiscal deficit at 4.8% of GDP. 
    There is a bit of smoke and mirrors in that image, though. Chidambaram constantly referred to how big the jumps in outlays were relative to the revised estimates for 2012-13, but chose not to dwell on the fact that when compared with the budget estimates for the same year, the increases were most often modest. 
    He is also clearly banking on being able to cut subsidies by a significant amount–next year's estimates for combined food, fertiliser and petro product subsidies is almost Rs 27,000 crore less than the revised estimates for 2012-13. Is that a sign that the government really means it when it says that fuel prices will be periodically revised? We'll have to wait and see. To be fair to the FM, he is, like Pi in Ang Lee's multi Oscar-winning film, faced with the onerous task of surviving a destructive storm and taking both the economy and his party-–not necessarily in that order—to shore. A little bit of fantasizing and optimism in such a situation is perhaps anecessary condition for survival. We can only hope it will be sufficient too.

CHECKING SLIDE Sebi orders probe, halts payout in 4 mid-cap scrips

Mumbai: Market regulator Sebi on Wednesday stopped payout of funds and securities for some trades executed on Monday in at least four mid-cap stocks that witnessed hectic activity in the last three days. 

    The stocks included Core Education, Eros International, ABG Shipyard and Welspun Corp, top sources confirmed to TOI. Sebi has also started an investigation into this sudden and sharp fall in about 10-12 mid-cap stocks. 
    The regulatory move came even as there were widespread talks about selling of a large number of midcap stocks in which some of the leading speculators in the market had built positions but failed to meet their margin commitments to their respective brokers. Market sources said some of these brokers and clients are scheduled to meet on Thursday to discuss the situation arising out of the regulatory move, which has been taken to mitigate market risks and stop alleged manipulations. 
    In the market, there are some brokers who finance speculators and traders (also called market operators) to take positions in stocks for intra-day trades. 
    In this case, as the prices of some speculative stocks fell sharply, leading to losses for operators, brokers liquidated those speculative positions, pulling down the prices further. The regulatory direction came on the same day U K Sinha, chairman, Sebi, said in Hyderabad that the regulator was probing crash in the prices of about 10-12 
mid-cap shares on Monday. On that day, the stock price of Core Education had crashed 62%. On Wednesday it took a further knock of 46% to close at Rs 60. Last Friday, the stock had closed at Rs 304. So in just three sessions, the stock has lost 80% of its value. Without disclosing any details, Sinha said that the probe was started on Tuesday. "A similar attempt was made sometime in July in about four-five scrips and we identified the people who tried to manipulate the market, passed orders against them and took risk mitigation measures," Sinha was quoted by PTI. 
    The decision to stop payout means the sellers of these stocks in Monday's session, did not get funds in Wednesday's settlement and those who bought the shares did not receive credit of these shares in their demat accounts. The sources, however, said that not all the payouts for Monday's trades were suspended by Sebi. 
    Market players said midcap stocks in which speculators and operators were active are expected to witness further selling in the next few sessions since investors will be loath to trade in these counters. In the last three days there were also market talks that part of the promoters holdings in these stocks which were pledged by them, were sold in the market by their financiers/brokers. 
    However, on Wednesday, through an email Maya Sinha, ED, Core Education, denied that any of Core's pledged shares were sold. Mkt rebounds on optimistic Eco Survey 
Mumbai: Dalal Street witnessed a rebound after Tuesday's selloff on the back of optimistic growth projections in the Economic Survey, which was released during Wednesday's market hours. 
    Among other projections, the government expects that the GDP growth for fiscal 2014 could range between 6.1% and 6.7%, up from about 5% during the current fiscal. As a result, the sensex closed 137 points higher at 19,152 with capital goods, real estate and oil & gas stocks leading the charge. On Tuesday, the index had lost 317 points to its lowest close in 2013 on fresh fears about the debt crisis in Europe and also doubts about economic growth in India. 
    Optimistic statements in the Economic Survey also raised market's expectations from the Budget for 2013-14, due on Thursday morning, which investors want to be a pro-growth one. 
    In Wednesday's session, among the sensex stocks, Bharti Airtel closed 3.3% higher at Rs 322 while L&T closed 3.2% up at Rs 1,410 and M&M gained 3% to Rs 891. Among the index laggards were GAIL, down 1.7% at Rs 334 and Infosys, off 1.6% at Rs 2,914.

‘If you do India well, you can cover entire world’ P&G CEO Says Country Offers Diversity Along Entire Pyramid

Mumbai: The $84-billion consumer products giant Procter & Gamble Company (P&G) has chalked out an over $1-billion investment plan for India, which will play out over the next five years, as part of a strategy to look at developing markets more closely. 

    The move, which 
would be music to the 
ears of the government, 
comes at a time when many companies have complained of problems in doing business in India either due to policy paralysis, delay in clearances or an overzealous tax machinery. 
    The Cincinnati-based company, which makes products such as Gillette, Tide detergents, Pantene shampoos, Bounty paper towel and Downy fabric softener, is keen on accelerating its presence in India where it currently has 14 categories. The objective is to bring in newer categories into India and greenfield plants which, along with innovation, can enhance India's share of the developing market pie. 
    In an exclusive interview with TOI, P&G's global president & CEO and chairman of the board, Robert 'Bob' McDonald said, "We have introduced seven new categories over the last few years. That was on top of seven we already had. But we have more categories to introduce since we have 37 categories globally. We expect to roll them out soon. Keep watching." 
    The confidence in the market stems from the fact that the Indian business has been growing at over 20% every year for over a decade now. "We entered the Indian market in 1989. The fact that over 700 million Indians use one of our products is terrific. We got to six million stores but we have more to do and we are working on it," he said. Part of the investments would go into expanding manufacturing facilities in Hyderabad and Mandideep. 
    McDonald, who is in Mumbai as part of an emerging market tour, will be visiting consumer homes in parts of the city on Thursday to "get some key insights". 
    For a global CEO who only recently got over a critical challenge from a section of investors questioning his leadership after P&G lowered guidance a few times last year, McDonald appeared composed and exuded a demeanour fit for an exmilitary man as he spoke about the road ahead. 
    "P&G people don't give others a chance to put pressure on them. They put pressure on themselves. We hate to lose," he said. 
    It's been a tough time for the company and although he does not liken the challenge he faced last year as a leader to perhaps a war-time general, the analogy would certainly hold true from an outsider's perspective. 
    That's because ever since the slowdown, the company has been in 'a constant state of war', in a manner of speaking, with its rivals and discounted products in the marketplace as well as in its efforts to push topline and garner shares. 
    P&G is represented by three legal entities in India — Procter & Gamble Hygiene and Health Care and Gillette India are listed companies, while P&G Home Products is a wholly-owned subsidiary. The combined turnover of the India business is over $1 billion, with brands such as Pantene, Ariel, Whisper, Vicks, Olay and Tide. 
    India currently contributes under 5% of the developing market pie for P&G, and under 1% to the global turnover. McDonald said the emerging market pie, which currently contributes 38% of its global revenues, would expand to half of its sales by 2025. "That gives us scale in these markets," said McDonald. 
    Since India features among the top 10 emerging markets in P&G's 40:20:10 global plan, the country is expected to see a slew of new category launches from P&G. It's billion-dollar brand Crest could be an option to add to the current marketing skirmish in an under-penetrated market like India. 
    Another strategy that P&G is going to play out quite seriously is straddling the pyramid in every category so as to cater to the top and bottom-end of the pyramid. 
    This is quite similar to the strategy Unilever follows in India. 
    On P&G's emphasis on India, McDonald said: "If you do India well, you can pretty much cover the entire world because you have so much diversity from top of the economic pyramid to the bottom. I want to have a vertical portfolio of product to meet the needs of every category." 
    When asked if this was a way to beat the premium tag attached to P&G, McDonald, he described it as work in progress. 
THUMBS UP FOR INDIA ON INDIA PLANS | We have introduced 7 new categories over the last few years on top of 7 we already had. But we have more categories since we have 37 globally. I want to have a vertical portfolio of product to meet the needs of every category… Keep watching 
ON INDIA SALES | We entered the Indian market in 1989. The fact that over 700m Indians use one of our products is terrific. We got to 6 million stores but we have more to do and we are working on it 
ON ROAD AHEAD | P&G people don't give others a chance to put pressure on them. They put pressure on themselves. We hate to lose

Robert McDonald | CEO & CHAIRMAN, PROCTER & GAMBLE

Ill-equipped civic markets are fire traps

Mumbai: With municipal markets not having basic fire safety equipment, they can be called veritable fire traps. Several illegal extensions, cluttered entry and exit routes add to the problem. 

    In the backdrop of the inferno in a 
godown-cum-office complex in a Kolkata market on Wednesday in which 18 people died, the fire safety of municipal markets should be beefed up, say experts. The building, housing the market in Kolkata, was unauthorized and had come up during the Left Front regime. 
    There are 103 municipal markets in Mumbai, most very old and dilapidated. The markets are in prime spots and cater to many people. "After the Crawford market fire that lasted for over eight hours, the BMC had planned to survey all civic markets for fire safety, but nothing has been done on that front," said a fire brigade official. 
    Electric wirings and circuit cabins that have been eaten up by rodents are hanging precariously in these markets. 
    The official added that since these markets were very old, the BMC can make provisions to have fire extinguishers, de-clutter the routes and also inspect the markets for storage of inflammable and hazardous chemicals. 
    "Several shops are making illegally extensions and the exits are getting narrower. Wooden wares are stocked in the lobby. If a fire erupts, it would be a nightmare for people trying to flee," said a shopkeeper at the Khar market. 
    He said several workers from these shops sleep on the market premises at night and if fire safety is ignored, it could lead to a disaster.

Wires hanging and a broken pillar at Vile Parle (E) and (W) markets

You may have to pay for driving into SoBo, western suburbs

Mumbai: Motorists may soon have to pay a congestion charge for driving into south Mumbai and the western suburbs, if the state approves the proposal made by the Mumbai Metropolitan Region Development Authority (MMRDA).      Mumbaikars may also have to pay development charges in the form of taxes against appreciation of their properties and businesses due to upcoming infrastructure projects such as sea links, metros and monorails.      "I think the city should follow the Singapore pattern. Buying cars there isn't easy; in fact, it is very expensive. Besides, there are heavy road taxes and congestion fees. After all, there will be a limit to elevated roads in a city like Mumbai," MMRDA commissioner Rahul Asthana told the media on Wednesday, a day before his retirement. "Time has come for Mumbai to think on these lines now… restrictions on private vehicles through congestion tax or heavy taxation on buying vehicles may be imminent."      Senior MMRDA officials said Asthana has forwarded the recommendations to the state, which will soon take adecision.      "I wonder how vehicles move on the packed S V Road," he said, upholding the idea of the MMRDA collecting property tax or 10% development charge in Bandra-Kurla Complex and other growth centres, such as Wadala and Oshiwara, where it is the planning and development authority.      Asthana said Mumbai also needs more parking facility and there should not be any hesitation in collecting betterment charges from people around the project areas, offering them development and heavy appreciation in terms of property prices and business prospects. A 1978 batch IAS offer, Asthana, will retire on Thursday after serving the MMRDA for two years. He is expected to join the MERC's judicial commission after a month's hiatus.  HC COMMITTEE'S MAJOR RECOMMENDATIONS      SET UP AN URBAN MASS TRANSPORT AUTHORITY: The authority will be given all legal and financial powers for efficient implementation and coordination of traffic projects  Agency responsible:  Urban development (UD) department TIMEFRAME 2 Years      PROVISION FOR VICARIOUS LIABILITY: A proposal will be tabled to amend the Motor Vehicles (MV) Act to hold the owner of the vehicle equally responsible for certain offences committed by the driver  Agency responsible: Home or transport department TIMEFRAME 2 YearsREFRESHER TRAINING: The MV Act will be amended to make refresher course mandatory for every licence holder  Agency responsible: Transport department TIMEFRAME 3 Years  CONGESTION PRICING IN SELECT AREAS: It will be a system of surcharging users of public goods that are subject to congestion through excess demands  Agency responsible: UD department TIMEFRAME 3 Years  RESTRICTION ON REGISTRATION OF NEW VEHICLES: A proposal will be send to the government to amend the MV Act and restrict registration of new vehicles  Agency responsible: Transport department TIMEFRAME 2 Years  CREATE A TASK FORCE TO SELECT MODERN TECHNOLOGY:The task force will study use of  radio frequency identification device and CCTV system to detect traffic offences  Agency responsible: Home department TIMEFRAME 3 Years      NEW EQUIPMENT TO ENFORCE TRAFFIC OFFENCE AND DELEGATION OF POWER:  The proposal will involve procuring wireless CCTV cameras, GPS system, hydraulic cranes, helmets with communication sets, tint meters among other equipment for the traffic police. Police naiks and constables will be given power to impose the MV Act. At present, only head constables and their seniors are authorized to do so  Agency responsible:  Home department TIMEFRAME 1 Year      A STRONG AND EFFECTIVE PARKING POLICY: The policy will involve systemizing onstreet parking in which no 'change of use' permission will be given unless provisions of  mandatory parking requirements are followed  Agency responsible: UD department TIMEFRAME 2 Years  ESTABLISH A COMPREHENSIVE PARKING UNIT: It will look after all on road, off road, vertical parking management using smart cards  Agency responsible: UD department TIMEFRAME 3 Years SPECIAL UNIT FOR ACCIDENT MANAGEMENT:  Accidents account for 20% of road congestion. The special unit will be given modern equipment to remove damaged vehicles as early as possible  Agency responsible:  BMC TIMEFRAME 1 Year

RIL-CAG spat sent to SG table

 The oil ministry has decided to seek the Solicitor General's opinion on the tussle between Reliance Industries (RIL) and the Comptroller and Auditor General over the federal auditor's right to access all records related to the gas field off the Andhra coast that was bid out to the company in 2001. Minister Veerappa Moily said he felt the need to seek legal advice in the wake of the debate in the media and also the concerns expressed by the CAG. TNNP 25

MMRDA boosts underground, elevated roads for easy travel

Mumbai: Road transport infrastructure has received a shot in the arm with the Mumbai Metropolitan Region Development Authority allocating Rs 3,500 crore for projects that are aimed at easing congestions and making travel shorter for around 3 lakh vehicles in and around the city. 

    These plans, especially an underground tunnel at the BKC and a Worli-Sewri elevated road, might not be as big as the Metro or the Mumbai Trans-Harbour Link, but they would be sure steps towards mitigating Mumbaikars' road travails, said officials. 
    The ventures will add another 10 km to the city—in the form of underground tunnels and elevated roads—and over 60 km beyond Mumbai limits. 
    MMRDA commissioner Rahul Asthana said their aim was to decongest roads and boost the transportation system, keeping in mind upcoming and future developments. "We decided to be more realistic in our approach than being pompous about big-ticket projects. We hope that this new strategy will , in another two to three years, bring relief to the city's motorists saving them time as well as fuel, besides cutting down on the pollution level," said Asthana. 
    According to officials, among the proposals, the BKC tunnel and the Worli-Sewri elevated road will be the most important for the city. A 4.5-km stretch, the Worli-Sewri elevated road will be the first eastwest direct connector in south Mumbai that will cut down on the distance, as motorists will no longer have to take the existing circuitous routes. Those availing of the flyover can bypass congested pockets in Dadar, Parel and Sion. The BKC tunnel will be the first underground stretch in the city meant for vehicles. The tunnel, which will start near the family court in the BKC, will come out at Kherwadi on the Western Express Highway. From the Kalanagar junction, the tunnel will have another branch towards the Bandra-Worli Sea Link or Bandra (W). This, officials said, would help motorists avoid the huge snarl at the Kalanagar junction altogether. 
    Besides these two plans, Asthana said the administration was considering reviving an elevated-road connectivity between the Eastern Express Highway and the BKC that was shelved three years ago. Experts were also deciding if a tunnel or a flyover would best ease the traffic at the busy JVPD Circle in Andheri. 
    Some of the projects shortlisted for outside the city are: creating four lanes on the Goa National Highway between Panvel and Palaspe Phata, flyovers at Rajnoli and Mankoli on Bhiwandi bypass, a road from Dombivli to Mankoli with a creek bridge in between, a ring road in Kalyan and Badlapur and a bridge over Vasai creek.

Mumbai pins high hopes on rail budget Rly Ministry Is With National Party After Gap Of 16 Yrs. So, Suburban Network Can Expect Fair Deal

Central Railway and Western Railway can expect an improvement in the budget outlay for the 2013-14 financial year compared to the previous one because of a change of guard in the railway ministry. The increase in allocation can help both zonal railways to upgrade passenger amenities in their suburban (Mumbai) as well as non-suburban sector. The rail budget will be presented by minister Pawan Kumar Bansal in Parliament on Tuesday. 

    In 2012-13, CR's allocation was Rs1,925 crore while WR's was Rs1,848 crore. Funds under the metropolitan transport project (MTP) category was Rs487 crore for CR and Rs2.13 crore for WR. CR's share was greater on account of the Seawood-Belapur-Uran track laying project. 
    "With a Congress minister at the helm—and not one from a regional party—we can expect an evenhanded approach as far as fund allocation is concerned. For a long time, the ministry was with regional parties on account of the compulsions of coalition politics, which led to favoritism and investment in non-productive projects," said a railway officer. 
    For example, during 2012-13, Kolkata Metro received Rs4,200 crore, of which "Rs4,103 crore was under the MTP head, which was more than the combined allocation for CR and WR, which carry almost 70 lakh passengers per day through Mumbai's suburban network", the officer said. 
    CR and WR officials hope that railway minister Pawan Kumar Bansal is more nuanced in sanctioning projects and funds. "Due to inadequate funds, we are not able to improve passenger amenities at a level desired by commuters. If sufficient funds are released, they can be utilized to build additional footbridges and escalators, and install many more coupon validating machines and automatic ticket vending machines at stations," the officer said. 
    Still, expectations are grounded as officials think Mumbai's suburban system may not get much money. 
"Both zonal railways have enough projects in hand to implement. As always, the minister will announce new services and allocate funds for regularitems likes CVMs and ATVMs. 
These, obviously, need money," the officer said. Since the railways is short 
of money, it can use its land and verticle space above stations for commercial exploitation. 
"The Railway Land Development Authority (RLDA) has invited consultants for such endeavours at Thane," the officer said. "So, there is hope."

EPFO to hike interest to 8.5% this yr

New Delhi: The Employees Provident Fund Organization on Monday agreed to increase interest rates paid to subscribers to 8.5% during the current financial year, compared to 8.25% last year. But it remains lower than what trade unions were demanding for the EPFO's five crore subscribers. 

    Although there were suggestions that the EPFO should pay 8.6%, its calculations showed that it would be left with a deficit of over Rs 240 crore if it agreed to the proposal. At 8.5%, it will have a surplus of a little over Rs 4 crore. 
    The Central Board of Trustees' recommendation will need to be notified by the finance ministry before the actual payouts begin. 
    Trade unions have accepted the new rate of 8.5% under protest. Unions reject 
    plan to park EPFO funds in stock markets 
New Delhi: Trade unions have accepted the EPFO's 8.5% interest rate for this financial year, but are not very happy. "When banks pay 9-10% interest on fixed deposits and the government pays 8.8% on public provident fund accounts, why is it paying only 8.5%?" said Pawan Kumar, organizing secretary of the Bharatiya Mazdoor Sangh, and a trade union representative on the CBT. The 8.25% rate fixed for 2011-12 was a substantial decline from the previous year's 9.5%. 
    At Monday's meeting, union representatives, however, had their way on stock market investment by the entity and shot down a proposal by the finance ministry to allow EPFO to park funds in the equity market. "We have strongly rejected any attempt to link EPF funds to the stock market," Kumar said. TNN

Budget 2013-14: An opportunity to restore India's growth: Rana Kapoor

The Union Budget FY14 is definitely an opportunity that could change gears for the Indian economy and bring India back on its path of achieving its potential growth.

By Rana Kapoor
MD & CEO, Yes Bank 

Like any other year, expectations are running high from the upcoming annual Budget for the financial year 2013-14 to be announced on the last day of this month. Undoubtedly, the Finance Minister has a challenging task at hand, as he delivers the last full budget of his government's term, at a time when macroeconomic economic conditions have successively deteriorated in the year gone by.

Growth in the economy is expected to have slowed to decade low in FY13, accompanied by persistent and elevated level of inflation, and deterioration in external finances. To me, the Union Budget this year should possess multiple agenda.

One, on the growth front, it should serve as a trigger to kick-start the investment cycle in the economy. While this has indeed been the government's focus in the last few months as it announced a flurry of economic reforms, the Budget allows the government to move a step ahead.

It offers an opportunity to the government to signal a stable tax environment especially with respect to foreign investment. This would help to alleviate investor fears and thereby enable the economy to benefit from the global liquidity rush.

Second, the government needs to send a strong message for facilitation of investment intentions by expressing readiness to implement certain key pending reforms such as the Land Acquisition Bill and Mines & Minerals Bill and in the financial sector, Pension & Insurance Bills among others. It must also allow the newly appointed Cabinet Committee on Investments to take on a greater role to expedite the pending regulatory clearances.

Third, the pace of domestic savings has shrunk from a high of 36.8% in FY08 to 30.8% in FY12 and is likely to decline even further. This has been led by a decline in savings of household sector, financial savings in particular.

As such, the budget should aim to induce financial savings, by reducing the lock-in period of bank deposit eligible for tax rebate (from five to three years), increasing threshold of mandatory TDS on interest income, broadening the Rajiv Gandhi Equity Saving Scheme among others. This will help not only to reduce the savings investment gap, but also benefit the banking sector to generate more medium term deposits and reduce its asset-liability mismatches.

Last and perhaps the most critical, the government needs to reinforce its commitment towards fiscal consolidation, by announcing a lower yet a credible fiscal deficit target for FY14. To be able to prune its fiscal deficit target, the Finance Minister can either increase revenues or reduce expenditure.

Clearly, while options to increase revenues remain limited in a slowing economy, the focus will, and should be on expenditure management. Pruning of populist subsidies and reorientation of spending towards productive capital expenditure will provide the much needed fillip to crowd-in private investments. The budget should make some big ticket announcements such as outlining the GST and DTC framework, and a time bound implementation of these.

The Union Budget FY14 is definitely an opportunity that could change gears for the Indian economy and bring India back on its path of achieving its potential growth.

WHAT’S UP

Tatas invest in Swiss solar tech developer Flisom The Tata Group has been increasing its investment in  the solar power business. The tea-to-telecom conglomerate recently invested in Zurich-based solar technology developer Flisom, which raised capital for the third time. The group, through Tata Industries, is already a strategic investor in eight-yearold Flisom, which was spun off from the Swiss Federal Institute of Technology. Flisom, which also has other investors, will use the proceeds to set up a 15 MW solar module plant in Switzerland. The Tata Group supports Flisom as it believes that the Swiss company's technology has the potential to make solar electricity affordable. In 2011, the group bought out British oil major BP's 51% stake in Tata BP Solar, a manufacturer of solar modules and its access to the BP's solar technology expires this year.      ( C o n t r i b u t e d b y R e e b a Z a c h a r i a h ) Shetty looks to raise funds from PEs for theme park Media and entertainment industry veteran Manmohan Shetty has held  talks with several private equity firms to raise funds for his Rs 1,600-crore theme park project set to come up along the Mumbai-Pune expressway. Shetty is looking at bringing in investors to expand into water parks and build an adjoining hotel at the property. A serial entrepreneur, Shetty, who sold his Adlabs Films to the Reliance ADA Group, is planning to dilute around 25-20% equity stake in the project and expects to raise around Rs 250 crore. The theme park is looking to tap into the growing spends on outdoor entertainment among urban Indians.      ( C o n t r i b u t e d b y      S a m i d h a S h a r m a )

Tata’s Old Pillars Need to Emulate TCS, Titan

Tata Group watchers say new chairman Cyrus Mistry may seek insights from Tata Log, a book by Harish Bhat, Tata Global Beverages MD and former Titan COO, about the strategic and operational challenges that Tata companies faced during Ratan Tata's tenure. Brand experts believe Mistry, who took charge of the group in December, needs to rejuvenate India's best-known brand, too, because it is facing some challenging times both in domestic and international markets and is at a crossroads today. Brand Finance's Most Valuable Brands 2013 study shows a significant improvement in the brand value of some group companies such as TCS and Titan, while old pillars Tata Power, Tata Motors and Indian Hotels have suffered erosion in their brand value since 2010 . "I think incumbent leaders such as Tata Motors, Indian Hotels and Tata Steel should be humble enough to seek learnings from smaller Tata companies," Unni Krishnan, MD of Brand Finance, says. "They face serious challenges in their ability to transform themselves in line with the changes taking place in the market," he adds.Experts say the speed of transformation of companies such as TCS and Titan exceed that of market trends, creating exponential brand value. Other sub-brands, such as Tanishq and Croma, too, are ahead of the market curve in their respective categories. The Tata Group did not respond to a mail from ET on the subject. With 98 operating companies and 350,000 employees, Tata Group has operations in 80 countries and 

    derives 60% of its revenues from abroad. Its international brands include Jaguar, Land Rover, Tetley and Corus. Industry insiders say the group is currently identifying categories and markets where they need to invest sizeable resources to build a global brand that also delivers financial value. Right now, some of its big firms are struggling. Tata Power reported a loss in the quarter ended December for the first time in over two decades while Tata Motors' domestic business is struggling in the face of an slowdown and the firm's inability to consolidate innovative offerings, leading to 458-crore loss in the third quarter. Krishnan says Indian companies, such as the Tatas and Godrej, seem to be following the wealth creation models based on shareholder value maximisation and near-term goals that have destroyed several MNCs. "Indian companies need to be beacons for creating brand value by letting the consciousness of the brand become advertisers of the brand. Aping multinational practises will break the spinal chord of Indian entrepreneurial energy," he says. But there are positives too, like TCS. While its peers struggle, the top software firm has built momentum in its long-term strategy, customer delivery and non-linear growth platform. It is poised to break into the top three IT global play ers list, the report states.

RIL co, Atos in race to man PSB ‘swipe’ 28 Banks Invite Partners To Operate 20L Point Of Sales Terminals Across India

Mumbai: A group firm of Reliance Industries and French IT services major Atos are among the shortlisted service providers to public sector banks wanting to deploy at least two million point of sales (POS) terminals-—debit and credit card swipe machines with merchants—boosting electronic payment in smaller towns within 24 months. India has more than 314 million debit cards but less than 10% of them are used for transactions at shops, and that too mostly in top ten metros.      IDBI is managing a reverse auction process to identity service providers who would manage the swipe machines, after the government pushed the banks to hasten electronic payment in a consumption driven economy, riding heavily on the Middle India story. About 28 public sector banks would outsource their swipe machines to four service providers, dividing the market into four circles with each deploying up to seven lakh POS terminals in two years.      India's leading automated teller machine (ATM) managers Financial Software & Systems (FSS), Prizm Payments and AGS Infotech are vying with Reliance Payment Services and Atos India to manage these swipe machines, said people familiar with the matter. However, some of the biggest global deployers of swipe machines like First Data, which manages the merchant terminals for ICICI Bank, have not bid for the public sector bank business. RIL unit's bid is interesting since it fits well with its chairman Mukesh Ambani's big 4G rollout and retailing plans.      RIL declined to comment on the story, while Atos India CEO Milind Kamat said he would not comment, citing non-disclosure agreements. Atos has set up a local transaction and payment subsidiary, through an acquisition of Venture Infotek 18 months ago, which is already working it private and PSU banks. Private banks like HDFC, Citibank, Axis, ICICI and HSBC together have about 7 lakh, while the PSU banks have 88,000 merchant terminals in the country. Their network is skewed towards the top metros, notwithstanding a footprint covering 300 cities and towns. The big PSU bank push over the next 2-3 years could see the electronic payment infrastructure reaching even rural-urban centres with just 5,000 people, said a source cited earlier.      "If customers pay by debit card the money continues to remain with the banking system increasing its lending resources. There is evidence that increased penetration of credit cards provides a boost to consumption demand," said Uttam Nayak, country manager, Visa.      A recent Moody's report said that global real GDP was only 1.8% per annum (2008-2012); without increased card usage, that growth would have been 1.6%. Banks are hoping to replicate the model it adopted in faster ATM rollout in recent years. India's ATM network crossed one lakh last year with public sector banks deploying 60,000 through service providers. The investments are made by service providers who receive rent for each transaction. By centralizing the deployment and promising volumes, banks were able to hammer down transaction costs by almost half.      Acquiring bank, merchant and service provider would jointly decide on the type of POS terminals. Some of them in areas where customers cannot use PIN/OTP might come out with biometric scanner. Banks are likely to offer a six month rent free merchant acquisition strategy to quicken the deployment process. The service providers are planning to expand the terminals to offer value added services like airline ticketing booking and bill payments.      Manufactures of the card swipe machines said they would push down the POS costs to back government's plans to build the electronic payment network. "This is a bold move and there's scope for lower prices despite terminals costing lesser than in many global markets already," said Pran Mehra, country head, Verizon, which provides banks with swipe machines. The merchant terminals cost between Rs 4,000 and Rs 7,000 each on an average.

Deadly mosquito invades Europe

SAFETY NET

Carrier Of Diseases Like Chikungunya & Dengue May Have Flown From India

London: An Asian export — possibly Indian — now has the whole of Europe worried. 
    The European Environment Agency (EEA) has found that the dangerous Asian tiger mosquito — an aggressive daytime-biting vector associated with the transmission of more than 20 human viruses including chikungunya, dengue, yellow fever and Japanese encephalitis has spread all over Europe after being imported from Asia. 
    Italy which is by far the most heavily infested country in Europe imported the mosquito from India. 
    The EEA said on Thursday said that the mosquito is now present in Albania, Bosnia and Herzegovina, Croatia, France, including Corsica, Greece, Monaco, Montenegro, the Netherlands, Italy, including Sicily and Sardinia, Slovenia, Spain and Switzerland, plus — but needing further confirmation — Belgium and Germany. 
    EEA says that predictions under different climate change scenarios show that the species will likely expand its European range even further in the near future, particularly in the Mediterranean basin, but also as far north as the Baltic states and part of Scandinavia. 
    Since the flight range of adults is limited to a few hundred metres, any long distance dispersal needs to be mediated by human activity. 
    The EEA said, "Currently there is solid evidence for its role in the transmission of two diseases: dengue and chikungunya. The small outbreak of chikungunya virus that developed in north-eastern of Italy during the summer of 2007 has clearly shown that the tiger mosquito is an important disease vector and may represent a true public health challenge. The outbreak in Italy was made possible by immigration of a single infected (but asymptomatic) man from India and the enormous population of tiger mosquitoes in the peninsula." 
    Aside from its role as vector of diseases, the EEA says, the Asian tiger mosquito is also known as an aggressive diurnal biter — unlike most other mosquitoes which are crepuscular or nocturnal — and as such represents a serious nuisance, particularly in the summers when it reaches high densities. 
    EEA says that in addition to the health impact, the invasion of this mosquito has also had a major economic impact, particularly in relation to treatment costs. Further evidence of the mosquito's potential devastating impacts exists from other outbreaks of chikungunya virus on La Reunion island in 2005–2006, with more than 250000 infections and several deaths.

Cycle Of Terror Returns, This Time To Hyderabad

Days After Jihadis Vow Revenge For Afzal's Hanging 13 Killed In Twin Blasts In Crowded Middle-Class Locality

Hyderabad: It proved to be a lull before a terrifying storm. Seventeen months after the last deadly blast at the Delhi high court, two powerful bombs fastened to parked bicycles ripped through Hyderabad's bustling Dilsukhnagar area on Thursday, killing at least 13 persons and injuring 70 others. While no individual or group has claimed responsibility so far, intelligence officers insist that the deadly operation bears the stamp of Lashkar proxy, Indian Mujahideen. 
    Thursday's bombs triggered back-to-back explosions near popular movie theatres, blowing bodies into the air, flattening shops and houses and triggering panic among scores of injured people who were seen scurrying for cover in all directions with blood oozing out of their heads and legs. 
    The first bomb went off with a deafening blast near the Dilsukhnagar bus stop at 7.05pm, close to Venkatadri theatre and a minute later, another high intensity blast, near a snack shop close by, flung bodies into the air and left a crater on the tarmac, police and witnesses said. TV channels reported that an unexploded bomb was recovered from the area but there was no confirmation from the cops. 
    Six months ago, there were low-intensity blasts in Pune which fortunately claimed no casualty. Since the last blast in which people died was in September 2011 in Delhi, a perception of the terror threat ebbing had grown which Thursday's Hyderabad attacks have blown to smithereens. 
With fingers being pointed at the IM, it seems the terror operatives have regrouped, 
with deadly intent. 
7.05pm | First blast 
behind bus stop near Venkatadri theatre in middleclass locality of Dilsukhnagar (east Hyd), about 16km from city centre. Bomb kept in rexine bag on a cycle parked in the main road which is the area's commercial hub 
7.06pm | Second blast 
near eatery in Konark theatre lane (pic), about 100m from Venkatadri theatre. Again, bomb in rexine bag on a cycle 
    Initial reports say both bombs were improvised explosive devices (IEDs) 
    Indian Mujahideen suspected to be behind blast 
    Last terrorist strike in Hyderabad were twin blasts on August 25, 2007. Explosions at Lumbini Park and Gokul Chat in Koti, about 5km fromLumbini, killed 42. Three Indian Mujahideen members arrested, investigations still on 
Last Terror Strikes In India 
Aug 1, 2012: One wounded in 4 low-intensity blasts in Pune 
Sep 7, 2011: 12 killed, 76 injured as a briefcase bomb went off outside Delhi HC

The Andhra Pradesh chief minister (Kiran Kumar Reddy) told me that there was a similar blast at nearby Gokul Chat five years ago - Home minister Sushilkumar Shinde

AirAsia, Tatas join hands for a new airline in India First FDI After Govt Eased Norms

Mumbai/Chennai: This is a big fat wedding in India's turbulent skies. One of the airline industry's most aggressive entrepreneurs and AirAsia founder Tony Fernandes has brought the Tata Group back into the airline industry after 60 years. The India-origin Fernandes has also drawn in the family of Amit Bhatia, son-inlaw of steel tycoon Lakshmi Mittal, pulling off a coup in the cash-strapped domestic aviation industry.      Asia's biggest low-cost carrier, the Kuala Lumpur-based AirAsia, is floating a joint venture with Tata Sons, the holding company of India's largest conglomerate, and Telestra Tradeplace, an investment vehicle of the Bhatia family, to launch a new airline in India. AirAsia will have 49% stake, Tatas 30% and Bhatia will hold 21% in the company, which will be headquartered in Chennai.      The JV hopes to start operations in the last quarter of this year under the AirAsia brand, the 48-year-old AirAsia CEO Fernandes said in a late-evening conference call with the media. AirAsia's entry is expected to shake upIndia's airline sector, which has seen airfares shoot up in recent past. The airline already flies into several south Indian cities, linking them with major Asian hubs at competitive fares.      This is the first foreign direct investment (FDI) after the government relaxed ownership rules, allowing foreign carriers to hold 49% stake in a domestic airline.  LOW ON COSTS, HIGH ON HOPES  Leading low-cost carrier AirAsia (49%) strikes a joint venture with Tata Sons (30%) and the family of Amit Bhatia, son-in-law of steel tycoon Lakshmi Mittal  First FDI deal in Indian skies after government allowed foreign carriers to invest here  Tata Group returns to aviation after 60 years. The Indian govt nationalized Tata Airlines, which is now Air India, in 1953  AirAsia founder & CEO Tony Fernandes, who is of Indian origin, and Amit Bhatia are co-investors in sporting ventures  Fernandes owns stakes in football team Queens Park Rangers and F-1 team Caterham (a trading name of 1 Malaysia Racing Team Sdn Bhd) ROARING BUSINESS AirAsia flies in on robust desi demand  Mumbai: AirAsia is planning a JV with Tata Sons and the Bhatia family to float its airline in India. "We have carefully evaluated developments in India over the last few years and strongly believe that the current environment is perfect to introduce AirAsia's low fares," its founder and CEO Tony Fernandes said. AirAsia operates multiple joint ventures in Asian markets.      "We hope to have regulatory approvals in place by the fourth quarter of this year. AirAsia typically invests anywhere from $30 million to $50 million to start an airline," he said, adding that Tata Group chairman emeritus Ratan Tata would be representing the Indian side. Fernandes shares a personal rapport with the 75-year-old Tata, a fact that triggered the deal. The JV marks the Tata Group's return to the aviation business, something which it pioneered in the country as well as Cyrus Mistry's first big move after becoming group chairman in December last year. The group bowed out of aviation when India nationalized Tata Airlines, which is now Air India, in 1953.      The $100 billion group that has its finger in almost every business from outsourcing to steel, luxury cars and salt has always desired to have a presence in the aviation sector.      It explored returning to the sector at least twice in the past two decades, when it joined hands with Singapore Airlines, first to float a new airline, and then, to bid for Air India.      But the government's flip-flop policies and political opposition buried thegroup's desires until Fernandes approached Ratan Tata with a proposal late last year. A Tata executive said that the group's participation in the venture is that of a financial investor and it will not be running the show.      Analysts said India's robust air travel demand was the key to draw AirAsia and other investors to the domestic aviation story. Amit Bhatia is a co-investor with Fernandes in sporting ventures, which include owning European football team Queen Park Rangers.      Estimates suggest that the number of domestic air travellers will triple to 159 million by 2021. "Hugely exciting venture involving my family, Tata Sons and the coolest guy around, Tony Fernandes," Bhatia tweeted.      The parties have made an application to the Foreign Investment Promotion Board for approval, after which they require the blessings of the civil aviation ministry. They will then have to approach the airline regulator for an air operator's permit. India entry is a significant step in AirAsia's journey to become an Asean airline, and a proud day for me  —TONY FERNANDES

Premji to give more to philanthropy

Bangalore: Wipro chairman Azim Premji, who in December 2010 donated about $2 billion to philanthropy, on Tuesday pledged to give more saying, "I strongly believe that those of us who are privileged to have wealth should contribute significantly to try and create a better world for the millions who are far less privileged." 

    Premji, whose net worth is in excess of $16 billion, in a letter to the first international 'Giving Pledge' group, said that the Azim Premji Foundation, which works in the space of public education in the country, has major plans for expansion. APF which currently employs 800 people will scale to 4,000-5,000 over the next five years. 
    The Giving Pledge initiative, co-founded by Bill Gates and Warren Buffett, has been evangelizing with billionaires across the world to give chunks of their wealth to charitable and philanthropic causes. They were in India in 2012 and addressed the wealthy in Delhi and Bangalore. The initiative on Tuesday released the name of 12 new signatories, including Azim Premji from India, Richard Branson from the UK and nickel and media mogul Vladimir Potanin from Russia. 
    In his letter, Premji said that he was convinced that markets, public systems and philanthropic initiatives all had a significant role to play if the country were to have inclusive development, and that "we needed to work purposefully towards establishing a more humane, equitable and ethical society for all our citizens". 
    However, Premji has not pledged half his wealth for philanthropy as has been reported by sections of foreign media. 
    A statement from APF said, "Azim Premji has been deeply committed to philanthropy for over a decade. He donated 8.7% of the total stock of Wipro from his personal stockholding for philanthropy in 2010. This formed the endowment for the Azim Premji Foundation." It further said that Premji believes that philanthropy has a "substantial role to play in tackling global issues: for building a better society and a sustainable planet".

Azim Premji