Indian telecom investment to peak at $40 billion this fiscal

This investment, up from $20 billion seen last year, would be for continuing the development of 3G, broadband wireless access and expansion of existing networks

Investment in the Indian telecom sector will peak at $40 billion during the current fiscal as the country presses on to build a network of one billion mobile phones over the next two years, the Telecom Equipment & Services Export Promotion Council said today, reports PTI

This investment, up from $20 billion seen last year, would be for continuing the development of third generation (3G), broadband wireless access (BWA) and expansion of existing networks, said RK Pathak, secretary of the Telecom Equipment & Services Export Promotion Council, in Singapore at the CommunicAsia 2010, a Singapore exhibition for global telecom industries.

The Indian government has set up the Telecom Equipment & Services Export Promotion Council for promoting export of equipment and services.

However, investment would be lower in the next fiscal as the industry completes most of its developments, especially the establishment of hardware, Mr Pathak said, adding that software development was largely done by indigenous engineering workforce.

Additionally, India is also importing an average of $10 billion worth of hardware to support its massive expansion of telecom sector, which has set a target of adding 18-20 million subscribers a month, said Mr Pathak, who is also a deputy director general (IP) at the Department of Telecommunications (DoT).

He projected the domestic manufacturing sector to produce Rs60,000 crore of equipment this fiscal year, up from Rs50,000 crore last fiscal year, which were doubled from Rs25,000 crore two years ago.

Mr Pathak also highlighted the export potential of Indian telecom sector, projecting a $5 billion hardware product export in the current fiscal year compared to $4 billion a year ago.

He said the five-company Indian participation in the CommunicAsia has received positive business collaboration responses from visitors to the Singapore show.

A number of collaborations and joint ventures were being discussed at the CommunicAsia for marketing India-made telecom equipment on the global market, he said.

Though this is the first year participation in the Singapore exhibition, the year-old council would be launching more global marketing and trade promotion campaigns at international exhibitions in the coming year, he added.


Tax exemption recommendation is balanced: Finmin

A day after releasing a revised draft of the Direct Taxes Code (DTC), the finance ministry today said its recommendations on exempting retirement savings are balanced and would not entail loss of revenue, reports PTI.

"EEE (exempt-exempt-exempt) is only for limited number of saving instruments. It (recommendation) is balanced," revenue secretary Sunil Mitra told PTI when asked about the rationale of watering down the original proposals.

Under EEE mode, contributions in certain savings schemes become tax-exempt as it is deductible from income, the accumulations are also exempt from tax till it remain invested and withdrawals are also not taxed. However, in EET, the first two steps remain tax-exempt, but withdrawals are taxed.

On the impact of the recommendations on revenue, he said, "Tax collection will increase or not it will all depends on rates. The rates we have not put just now. That will go in the legislation."

In the revised DTC, which will replace the 50-year-old Income Tax Act, the finance ministry decided to drop its earlier proposal to tax the Government Provident Fund or the Public Provident Fund withdrawals.

The first DTC draft had proposed to tax all savings schemes, including provident funds, at the time of withdrawal bringing them under the EET (Exempt-Exempt-Tax) mode.

The revised draft also puts pensions administered by the interim regulator Pension Fund Regulatory and Development Authority (PFRDA), including pension of government employees who were recruited since January 2004, under EEE treatment.

The government plans to introduce a draft legislation on the DTC in Parliament in the forthcoming monsoon session.

"If Parliament procedure is complete and it becomes a law, it will be implemented from 1 April 2011," Mr Mitra said yesterday.


Tata Nano available off the shelf now

While the company had recently stated that open market sales of Nano are likely to begin by August with its Sanand plant going into production mode, dealers said the base model can now be purchased within just two days

Customers will no longer have to wait for long periods to own the Tata Nano as dealers are now offering almost immediate delivery of the world's cheapest car, reports PTI.

However, the company is yet to clear a backlog of orders placed by customers.

Due to production constraints, Tata Motors had decided to make bookings through a lottery system and deliver the first one lakh units of the Nano by the end of this year.

While the company had recently stated that open market sales of Nano are likely to begin by August with its Sanand plant going into production mode, dealers said the base model can now be purchased within a period of just two days.

"The base model is almost readily available. You can book today and take the delivery tomorrow," a staffer at a New Delhi showroom said.

Another dealer said that medium and top-end versions of the car would take longer to deliver.

"If booked today, the top-end model can be delivered in 15-20 days," he added.

When asked how they could entertain new bookings when the first one lakh cars were yet to be delivered by the company, the dealer said that it was being done through "management quota".

"You have to write an application to Tata Motors and it will be registered for booking... The car will be delivered under management quota," one dealer official said.

When contacted, a company spokesperson said: "Tata Motors is now engaged in delivering Nanos to those who have already booked, as per schedule, and at the same price as was committed during the booking."

Earlier this month, the company had inaugurated the mother plant for Nano at Sanand in Gujarat. The plant has a capacity of 2.5 lakh units per annum.

After being forced to pull out of West Bengal's Singur district, its first choice, Tata Motors had been producing the car in limited numbers at its Pantnagar facility in Uttarakhand.

The Nano was launched on 23rd March last year. Bookings for the car opened in April 2009 and deliveries began in July that year. It has delivered over 35,000 units so far.

The company had selected 1.55 lakh customers through a draw, and only the first one lakh customers were declared price protected. Nano, touted as the world's cheapest car, is available at Rs1.23 lakh-Rs1.72 lakh (ex-showroom price, New Delhi).


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)