TIOL-DDT 276 · the untouched capture
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<strong><font color="#663399" size="3">TIOL-DDT 276</font><br>
04 01 2006<br>
Wednesday </strong></font> </div>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Mini
cement plants - mega woes- Will the FM help the small players?</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Mini
cement plants don’t remain mini forever – most of them get closed.
Technology over the years has ensured that with the same machinery, with a little
change they can produce far more than what they were doing – with a little
support from the government they can survive and contribute to the nation’s
progress. Will the big ones and the government allow them?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
mini cement manufacturers association has submitted a memorandum to the Revenue
Secretary requesting for enhancing the eligibility level for excise exemption
from the present 99,000 tpa to 2,64,000 tpa. Will the government lose revenue
by this? No! On the contrary the Government stands to gain about sixty Crores.
How? With the enhanced capacity, more cement plants will be revived and there
will be more production and more duty. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Many
of the units are on death bed and can come back to a vigorous life with a little
oxygen. That little push or its absence will either make them or mar them. Some
facts:-</font></p>
<div align="justify">
<ul>
<li><strong> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Cost of production in mini cement plants is higher than in major plants.
So they were given excise duty concession</font></strong></li>
<li><strong> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">
The mini plants provide 7 to 8 times more jobs than large plants –
that too in rural areas</font></strong></li>
<li><strong> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Unable to face competition from large plants nearly 300 out of the 350 mini
plants are closed. What a waste of capital and machinery. </font></strong></li>
<li><strong> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Even the survival of the 50 odd units is doubtful.</font></strong></li>
<li><strong> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">
All these units can be revived with a little support</font></strong></li>
<li><strong> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Whenever the Government enhanced the exemption limit there has been an increase
in duty collection.</font></strong></li>
<li><strong> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">
Planning Commission’s working Group had recommended enhancement of
the exemption limit. </font></strong></li>
<li><strong> <font size="2" face="Verdana, Arial, Helvetica, sans-serif">
The demand for cement is to grow in the coming years and unless these mini
cement units are revived, we may face a situation where we will have to
import cement.</font></strong></li>
</ul>
</div>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
is not only good politics but also good economics for the government to allow
these mini cement plants to survive. Of course the big fish will not like it.
Will the Government see reason?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Today
we are carrying an article by the President of the Mini Cement Manufacturers
Association. <strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3116">Please
see our special column</a></strong>.</font></p>
<p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Export
containers- tamper-proof bottle seals. </strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board
has directed that the containers for movement of goods to gateway ports/ICD/CFS
should be sealed with tamper proof one time bottle seals. For the seals supplied
by the department, cost will be recovered. However exporters can use their own
seals. We had carried details about the Board’s draft circular in <a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=3052"><strong>TIOL-DDT
267 -22 12 2005</strong></a>. Now the circular is issued. </font></p>
<p align="left"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=25&filename=notification/custom/2006/cuscir06_01.htm">CIRCULAR
NO. 01/2006, Dated: January 2, 2006</a></strong></font></p>
<p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Exim
Bank’s Line of Credit of US$ 27 Million to The Government of the Republic
of Mali </font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
Export-Import Bank of India has made available a Line of Credit (LOC) up to
an aggregate sum of USD 27 Million. The credit is available for financing exports
from India, under the Foreign Trade Policy of the Government of India, of equipment,
goods and services for rural electrification and setting up of agro-machinery
and tractor assembly plant in Mali. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Shipments
under the credit will have to be declared on GR/SDF Forms. No agency commission
is payable under the line of credit, however, if required the exporter may use
his own resources or utilize balances of his EEFC account for payment of commission
in free foreign exchange. Authorised Dealer (AD) banks may allow such remittance
after realisation of full payment of contract value. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=49&filename=notification/rbi/2005/rbi05cir019.htm">RBI
CIRCULAR NO 19, Dated: January 2, 2006</a></strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">It
is my sincere hope that within the foreseeable future we can rapidly modernize
rural India and ensure that the gains of development reach every corner of our
vast country. - Dr. Man Mohan Singh at the Science Congress yesterday.</font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Until
tomorrow with more DDT</strong></font></p>
<p align="justify"><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day. </font></strong></p>
<p align="justify"><strong><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail
your comments to </font></strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></font></p>
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