In Parliament: Powers for RBI

"The RBI will be armed with greater autonomy and authority to deal with subjects under the Act," Finance Minister P Chidambaram said replying to a debate on the Bill.

The changes in the Bill were effected in line with recommendations made by the standing committee on finance. The amendment would let the RBI decide on the repo rate and CRR (cash reserve ratio), the minister said.

In the debate in the Lok Sabha, BJP's Vijayendra Pal Singh, BJD's B Mahtab and Congress's M Shuklabaidya supported the move to strengthen the central bank and introduce more operational flexibility for it.

Chidambaram said the amendment was necessary due to the changing role of financial sectors and the increasing role of the Indian economy in the global market.

The amendment Bill was passed by the House through a voice vote.

Taxation laws
The Lok Sabha on Wednesday passed the Taxation Laws (Amendment) Bill, 2005 to provide that tax deduction for contributions made to certain eligible projects or institutions would not be denied merely because approval to such projects or institution is withdrawn in future.

"The Bill takes note of major lacunae and bottlenecks. There are problems of paying taxes but we have to change the culture," Finance Minister P Chidambaram said replying to a debate on the Bill.

Once the amendment is notified, contributions once made to scientific research organisations, eligible public sector companies or local authorities, institutions carrying out rural development programme, National Laboratory, university and Indian Institute of Technology would not be denied even if the approval granted to such bodies or projects is withdrawn subsequently.

Citing the example of Europe, Chidambaram said people there paid taxes because the money collected was spent wisely. 'So we have to spend the money collected prudently.' Referring to the recent IPO scam, Chidambaram said 'we have taken the strongest action, nobody will be spared.'

FDI in retail
The Opposition in the Rajya Sabha today vociferously opposed any move to allow Foreign Direct Investment (FDI) in general retail trade and demanded a full discussion on the issue.

The matter cropped up during Question Hour, when Commerce Minister Kamal Nath said the Centre had allowed FDI up to 51 per cent with prior government approval in retailing 'single brand' products.

The minister sought to allay Opposition's concerns that domestic retail trade would be affected, saying there was no FDI in general retail trade. He said the concern was being studied and so far no decision had been taken in allowing FDI in general retail trade.

However, the Opposition BJP and JD(U) members were joined by members from the Left parties and Samajwadi Party in expressing serious concern over the issue.

Cargo handling
The 2006-07 target for expanding cargo-handling capacity at 12 major ports in India has been set at 465.70 million tonnes per annum (MTPA), against the 397.50 MTPA which was registered last fiscal.

Minister for Shipping, Road Transport and Highways T R Baalu said in a written reply to a Parliamentary question that the Vizag Port had the maximum capacity with 49.65 MTPA, while Kandla was second with 45 MTPA and Mumbai third with 42.90 MTPA.

NHDP benefits AP
Andhra Pradesh was the biggest beneficiary of the National Highway Development Programme's phase I, II and III-A.

Answering a written question in Parliament on Wednesday, Minister of State for Shipping, Road Transport and Highways K H Muniyappa said that 1129.30 km had been four or six-laned in Andhra Pradesh under the first three phases of NHDP. Rajasthan (741.56 km) and Uttar Pradesh (654.89 km) were the second and third major beneficiaries in the road sector.

All India Services
The Central Government has initiated a proposal for the amendment of relevant All India Services rules and regulations to provide for a fixed tenure of posting to All India Services officers, the Lok Sabha was informed on Wednesday.

In a written reply, Minister of State for Personnel Suresh Pachouri said in the conference of the district magistrates in June 2005 and also the Civil Services Day on April 21 last, there was a suggestion for prescribing security of tenure to officers of All India Services.

EPF deposits
A parliamentary panel on Wednesday expressed "deep concern" over lowering of rate of interest on EPF deposits and strongly favoured at least 9.5 per cent interest from 2005-06 onwards to safeguard the interest of nearly four crore subscribers.

The Standing Committee on Labour in its report tabled in the Lok Sabha noted that the government should always evolve a consensus while taking any decision on important issues concerning workers.

It said trade unions representing employees side must "invariably" be consulted by the government while deciding the rate of interest. The committee, headed by S Sudhakar Reddy, in its 70-page report said it was "deeply concerned" to note that out of 39.7 crore strong workforce in the country, only 4.11 crore workers have so far been covered under the epf scheme.

Pvt courier cos
The government would soon bring a Bill amending the Indian Post Office Act, 1898, seeking regularisation of private courier companies. Communication and IT Minister Dayanidhi Maran said this in Lok Sabha during Question Hour.

Replying to a question, Maran said, "Since courier companies are not registered, no information regarding their business is available with the Department of Posts."

He also informed the House that DoP was looking at all options to expand the operations of Speed Post in every part of the country.

Mobile portability
The government is currently examining the Trai recommendations on mobile number portability, which will allow subscribers to retain the number even after changing service providers.

"Trai has submitted its suggestions on the MNP issue which mandates all unified access licensees and cellular licensees to implement mobile number portability within service area from April 1, 2007, in a phased manner," Minister of State for Telecom and IT Shakeel Ahmad told the Lok Sabha on Wednesday.

Coal India
Coal India Limited (CIL) has instituted a "watchdog mechanism" to ensure that there are no irregularities in the sale of coal by the National Consumers Federation of India Limited (NCCF), the Lok Sabha was informed.

In reply to a query, Coal Minister Shibu Soren said NCCF was allocated coal for distributing it to small consumers who did not have linkage or sponsorship and found it difficult to directly approach the coal companies.