India-Japan Industrial Corridor + Politics Of SUGAR
- In This NEWS Bulletin************************************INDIA-JAPAN COLLABORATION --1. DMIC to get custom bonded warehousing2. Home truth: DMIC to alter route to take MP alongPOLITICS OF SUGAR----3. UPs new sugar policy to serve the needy, not the greedy4. UP STATE BUDGET 2007-08 - Maya plans sweet-bitter deal for sick sugar mills-------------------------------------DMIC to get custom bonded warehousinghttp://www.financialexpress.com/fe_full_story.php?content_id=168904
ASHOK B SHARMA
Posted online: Tuesday, July 03, 2007 at 0006 hours IST
NEW DELHI, JUL 2: The proposed $90 billion Delhi Mumbai Industrial Corridor (DMIC) will have a chain of custom bonded warehouses over the length of 436,486 sq km encompassing six states, namely Uttar Pradesh, Delhi, Haryana, Rajasthan, Gujarat and Maharashtra.According to a document prepared for the deliberations by the taskforce, custom bonded warehouses would be set up to facilitate deferred payment of custom duty to encourage entrepreneurs and export-oriented units to carry out their operations with least investment. The concept of free trade warehousing zones (FTWZ) is to create trade-related infrastructure for facilitating import and export of goods and services and for carrying out trade transactions in free currency.DMIC which is envisaged as a joint collaboration project between the governments and industry of Japan and India will also strengthen and improve railway network, road connectivity, feeder linkages and port connectivity, set up greenfield ports in Maharashtra and Gujarat, improve airlinks and expand airport infrastructure and have dedicated freight corridors.A number of freight logistics parks are also planned to provide end-to-end solutions for freight distribution by rail wit provisions storage, cargo handling, trans shipment and other value added services. DMIC will also have a number of inland container depots and container freight stations.The proposed investment of $ 90 billion may be revised upwards if necessary as the work proceeds, according to sources.Plans are also to generate additional 10,000 MW power to meet the requirements of DMIC. Among industrial hubs to be encouraged are IT and Biotech parks, knowledge cities and centres of excellence, integrated agro food processing zones, integrated logistics hubs and overall integrated townships.The funding pattern has also been planned. Apart from the governments of both Japan and India sharing their chunk of investment, the industry in both the countries would contribute their share. "Indian companies can have the option for raising resources through Japanese Depository Receipts," said the Japan minister for economy,trade and industry, Akira Amari. The Union commerce minister, Kamal Nath said that part of the resources would be raised from capital markets. The state governments concerned would also be allowed to mobilize resources.
-------------------------------------Home truth: DMIC to alter route to take MP alonghttp://www.financialexpress.com/fe_full_story.php?content_id=168891
ASHOK B SHARMA
Posted online: Tuesday, July 03, 2007 at 0000 hours IST
NEW DELHI, JUL 2: The proposed Delhi-Mumbai Industrial Corridor (DMIC) will take a detour to take Madhya Pradesh along, the home state of commerce and industry minister Kamal Nath.The $90-billion, 1,483-km dedicated freight corridor coming up with Japanese help is to pass through six statesMaharashtra, Gujarat, Rajasthan, Haryana, Uttar Pradesh and Delhi, hardly touching Madhya Pradesh.During an Indo-Japan CEO luncheon meeting here on the DMIC project on Monday, which he attended along with his Japanese counterpart Akira Amari, Nath said, The route alignment of the DMIC project is not correct and needs to be refined.It has to include Madhya Pradesh, which is an industrial area. Madhya Pradesh will be connected to the DMIC project and the rectification in the alignment of the route will be made. Only then the project can succeed, he stressed. Incidentally, Naths electoral constituency Chhindwara is in Madhya Pradesh. Nath later accompanied Akira and a Japanese business delegation when they called on Prime Minister Manmohan Singh.Realignments of the route, such as these, are bound to increase the cost of the project and delay its launch. The corridor is to be launched in 2008 and completed by 2015. Although the governments of India and Japan had estimated this April that the project would cost $40-50 billion, both sides have now revised the estimates to $90 billion. Nath said this was because of the massive investments needed for power, roads, ports and airports.The project will trigger major expansion of infrastructure and industryincluding industrial clusters and rail, road, port, and air connectivityin the states.Conceived to be developed as a global manufacturing and trading hub, the project is expected to double employment potential, triple industrial output and quadruple exports from the region in 5 years.The number of jobs to be generated from the project is 3 million, the bulk of which will be in the manufacturing and processing sectors.The first phase of the project is scheduled to be completed by 2012, Nath said.He also said, The project should be replicated all over India. Other states like West Bengal have already expressed the willingness to use this model and I expect initial studies on the proposed eastern India corridor to begin early next year.On his part, Amari said the project would be funded by the governments of India and Japan as well as investments by Japanese firms and through Japan depository receipts issued by Indian companies.The corridor will have a chain of custom bonded warehouses over the length of 436,486 sq km, encompassing six states Uttar Pradesh, Delhi, Haryana, Rajasthan, Gujarat and Maharashtra.According to a document prepared for the deliberations by the task force, custom bonded warehouses would be set up to facilitate deferred payment of customs duty and encourage entrepreneurs and export-oriented units to carry out their operations with least investment.
--------------------------------------UPs new sugar policy to serve the needy, not the greedyhttp://www.financialexpress.com/fe_full_story.php?content_id=168788
ASHOK B SHARMA
Posted online: Monday, July 02, 2007 at 0000 hours IST
NEW DELHI, JUL 1: Following the introduction of the budgetary proposals, the UP government is preparing to give final shape to its new package for the sugar industry.According to sources the new sugar policy will render just and equitable incentives to all the sugar mills, irrespective of their levels of investment as compared to the earlier policy of giving incentives to factories having minimum capital investments of Rs 350 crore and Rs 500 crore.The earlier policy of reimbursement of transport costs of canes from out-centres to factory and of sugar from mills up to 600 km from the UP border may not be revived.Our new policy will be designed to benefit the needy and not the greedy, said a senior official in the UP government.The Mayawati government, after assuming power in UP had scrapped the new sugar industry promotion policy 2004 formulated by the erstwhile Mulayam Singh government in August 24, 2004. Several sugar factories in the state had complained that the policy formulated by the Mulyam Singh government had eroded the competitiveness of the industry, particularly the small and medium units. A writ petition was filed against Mulaayam Singhs sugar policy in the Allahabad High Court.Following the sugar policy of the Mulayam Singh government about 11 new mills were set up by Bajaj Hindustan Ltd and 8 new mills each by Triveni Engineering and Balrampur Chini. The existing sugar units have alleged that the new sugar mills set up in the vicinity have robbed them of their dedicated cane areas and encouraged unhealthy competition among sugar mills to procure cane, in violation of the spirit of the Sugarcane (Control) Order 1966 of the Union governmentThe existing sugar mills have also alleged that in the previous year they had to bear heavy losses as the canes were diverted to the new mills set up by huge capital and backed by incentives. This year resulted in a surplus cane production, but the mills are reluctant to purchase all the canes from farmers and arrears payable to cane growers in the state accumulated to Rs 2,604.19 crore till June 26, this year.
---------------------------------STATE BUDGET 2007-08
Maya plans sweet-bitter deal for sick sugar millshttp://www.financialexpress.com/fe_full_story.php?content_id=168619
ASHOK B SHARMA
Posted online: Saturday, June 30, 2007 at 0000 hours IST
NEW DELHI, JUN 29 : Uttar Pradesh state government Budget 2007-08 plans to sell 28 loss-making sugar mills to private sector. This is the first step by the new government towards privatisation. In addition, this also sends out strong signals that the state wanted to give a booster shot to its sugar sector.Presenting her maiden Budget in the state assembly on Friday, chief minister Mayawati announced to privatise loss making sugar mills, which were run by the cooperative sector and state sugar mills corporation.The state government is also expected to soon announce a new package for the sugar sector. Also, chief minister Mayawati who also holds finance portfolio announced to bring in a new Sugar Industry Policy and scrapped the previous sugar industry policy terming it as anti farmer.The new sugar policy could bring some cheer to cane growers. Over 80 private sugar mills and 56 public sugar mills have crushed sugar cane this season but payment has been a big problem.Till 21st June the government has paid a total amount of Rs 8,312 crore to cane growers against a due of Rs 10,920 crore. The remaining amount is likely to be returned in phases. Mayawati announced the privatisation of 28 loss-making sugar mills in the state
State to announce new package for the sugar sector; new sugar Policy on cards
State has doubled allocation to energy dept to Rs 9,209 cr to bridge demand-supply gap
Kisan Hit Yojana has been introduced to increase productivity of barren lands
... rolls out bonanza for energy, agri sectors and national rural job schemehttp://www.financialexpress.com/fe_full_story.php?content_id=168620
ASHOK B SHARMA
Posted online: Saturday, June 30, 2007 at 0000 hours IST
NEW DELHI, JUN 29 : The power sector seems to be at the top of the priority list of the new government. In the Budget announced on Friday, the UP government has doubled the provision for the energy department to Rs 9,209 crore in a bid to bridging the gap between demand and supply of electricity, which is about 2000 mega watt.The newly-formed Mayawati government has also decided to set up power plants with public-private participation.Besides, emphasis has been given to the agriculture sector as well. Kisan Hit Yojana has been introduced for treatment of usar, banjar and beehar land belonging to the dalits and other backward class people with a view to increasing their productivity.For rural development, the UP government plans to extend National Rural Employment Guarantee Scheme (NREGS) to all districts of the state and a provision of Rs 200 crore has been made as state share.An allocation of Rs 6,301 crore, up 24%, has also been made for construction of roads and bridges and their maintenance.Meanwhile, the government has decided to increase the dearness allowance (DA) of the pensioners to 35% from current 29% with effect from January 2007. There is good news for movie lovers as well. The UP government plans to reopen the closed a number of theatres besides setting up multiplexes. As a result, it hopes to garner Rs 137 crore as entertainment tax.
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