-
INDIA INTELLIGENCE REPORT
Information
Democracy Government States Neighbors Religions Organizations
The Eternal Way
Introduction The Scriptures Principles Karma The Individual The Society
Content
Latest Editorials Questions Search
 

Economy & Business   

Employee Provident Fund rate slashed to 8.5 per cent

What is India News Service, August 10, 2004, 2000 hrs IST

 In a major jolt to more than 30 million salaried employees, the Employees Provident Fund Organisation (EPFO) board today reduced the provident fund interest rate to 8.5 per cent.

The board in a majority decision decided to reduce the interest rate from the existing 9.5 per cent to 8.5 per cent as an interim measure. Even with the rate of interest fixed at 8.5 per cent, it is estimated that the loss to exchequer will amount to Rs 206.45 crore. Left unions, including Citu and Aituc, also expressed displeasure at the interest rate cut and said it would organise nationwide protests.

Rumours cause run on South Indian Coop Bank: Rumours of South Indian Cooperative Bank going bust caused thousands of depositors to queue up outside the branch\92s offices across Maharashtra.

RBI freezes operations of South Indian Co-op Bank: The Reserve Bank of India froze all operations of The South Indian Co-operative Bank Ltd. It allowed depositors to withdraw a sum not exceeding Rs 1,000 from the Mumbai-based urban co-operative bank. 

Finally, Sebi probes GTB trading: Securities and Exchange Board of India (Sebi) has launched a full-fledged probe into the trading in Global Trust Bank (GTB), including alleged insider-trading prior to it being placed under moratorium and announcement of merger. 

GTB posts loss of Rs 812 crore: The troubled Global Trust Bank has posted a net loss of Rs 812.38 crore for the year ended March 31, 2004. The total income for the FY-04 stood at Rs 515.25 crore while the total expenditure stood at Rs 594.04 crore. 

Birla Power meets tighter emission norm: With the country's emission norms getting tighter by the day, and the prices of genset inputs like kerosene and diesel rising steeply , genset manufacturers are looking at providing affordable eco friendly range of generator sets. 

Oil cos should present unified face abroad: Petroleum Minister Mani Shanker Iyer has asked the oil marketing companies (OMC's) to prepare a discussion paper on their role in bidding for oil equity abroad and present a unified face before the international market. 

Praful keen on MoU for Nagpur as int'l hub: Minister for Civil Aviation Praful Patel asked the Maharashtra government to sort out matters related to land for development of the Nagpur airport as a multi-modal international hub.

India third largest fertiliser producer: India has emerged as the third largest producer of fertiliser in the world with the rapid increase in the installed capacity for production of nitrogen to 119.98 lakh MT and 54.20 lakh MT of phosphatic nutrient as on March 31, 2004. 

CBDT revisits BPO taxation with draft revised circular: The Central Board of Direct Taxes (CBDT) has come up with a draft revised circular on taxation of IT-enabled business process outsourcing (BPO) units in India.  

GAIL-OVL to participate in Myanmar offshore block: The Indian consortium of GAIL (India) Ltd and ONGC Videsh Ltd (OVL) will be associated closely with the Government of Myanmar in the exploration and production from the A3 block in offshore Myanmar.

Drugs cheaper here than in Pak, Lanka: Even as the Government is planning to lower drug prices by bringing around 300 drugs under price control, the Indian pharmaceutical industry feels that prices of drugs in India are cheaper than those available in the neighbouring countries.

WTO- India working on safeguards for next round: India is busy working out a formula to safeguard the country\92s interests in the next round of WTO talks. 

Lease tax burden to tell more on state carriers: The airline industry may have to learn to live with the withholding tax, if Finance Minister P Chidambaram's pronouncements on this score are anything to go by. 

Merc makers plan mini-bus for India: DaimlerChrysler India Ltd., the wholly-owned subsidiary of the German auto major, will soon introduce 8-10-seat mini buses in India for the light commercial transport segment. 

Centre devising ways to check inflation: With inflation touching the 7.5 per cent mark on July 24, the Prime Minister, Manmohan Singh, had two rounds of meetings today with the Finance Minister, P. Chidambaram, and senior officials of the Ministry to chalk out a strategy to check the price rise. 

Scope for more agri-exports: India's exports of agricultural goods, estimated at $3 billion in 2003-04, could increase under the WTO regime once export subsidies by developed countries were eliminated. 

'High oil prices will depress economy': A likely moderation in global economic growth will take some pressures away from the escalating oil price, says economist.

Fiscal deficit to exceed target: The National Council of Applied Economic Research has warned fiscal deficit will overshoot the budget target to touch 4.7 per cent of GDP in 2004-05, while the education cess on all taxes will push up the prices.

Vijay TV in Star's fold: Star India Pvt. Ltd. becomes the sole owner of Vijay Television Pvt. Ltd., a Tamil language content company based in Chennai. 

Bank of Baroda enters Malaysia: Bank of Baroda today announced its foray into the Southeast Asia with the opening of its office at Kuala Lumpur, Malaysia. BOB is the first Indian bank to set up office in Malaysia. 

ICAI calls for changes in ESOP norms: The Institute of Chartered Accountants of India (ICAI) wants the Securities and Exchange Board of India to drop all accounting related guidance from the latter's guidelines on employee stock option plans (ESOPs) and employee share purchase plans.

More disclosure norms for foreign cos on cards?: It may not be easy for foreign companies to set up business in India, if the proposals of the Concept Paper on the revamped company law are accepted. 

Assocham against job quota in private sector: The Associated Chambers of Commerce and Industry of India (Assocham) has protested the move to introduce a legislation for job reservation in the private sector, saying that it will have adverse impact on the industry. 

Farm exports policy mulled: The government is working on an agricultural export policy to leverage India\92s strengths in the sector in the international market. 

Luxury tax may send hotel rates spiralling: Hotel tariffs in the country during the coming busy season are all set to go up with various state governments planning to impose an additional luxury tax on hotels. 
 
Shaw Wallace, UB end legal battles, finally: The Chhabria-controlled Shaw Wallace today claimed it had settled all lawsuits with its competitor, Vijay Mallya\92s UB Group. Besides, both McDowell & Co and UB Holdings had sold their stakes in it, Shaw Wallace said in a release. 

Range-bound movement continues: The Sensex is trapped in a range of 20-30 points, and is moving in and out of positive zone. The index is now at 5,239 - up six points. The Nifty has gained three points to 1,646.

Overall:

EPF rate cut: The Employees Provident Fund Organisation (EPFO) board reduced the provident fund interest rate to 8.5 per cent.

RBI freezes operations: The Reserve Bank of India froze all operations of The South Indian Co-operative Bank Ltd. 

Oil cos to stay united: Petroleum Minister Mani Shanker Iyer has asked the oil marketing companies (OMC's) to prepare a discussion paper on their role in bidding for oil equity abroad and present a unified face before the international market. 

Assocham against job quota in private sector: The Associated Chambers of Commerce and Industry of India (Assocham) has protested the move to introduce a legislation for job reservation in the private sector, saying that it will have adverse impact on the industry.