The Hindu : Relief package for radio paging sector

Online edition of India's National Newspaper
Sunday, Jan 05, 2003

National

National

Relief package for radio paging sector

By Our Special Correspondent

NEW DELHI JAN. 4. In an effort to provide relief to the ailing radio paging industry, the Union Cabinet has decided to allow migration from licence regime to revenue sharing regime and waive Rs. 450 crores due to the Government as licence fee.

At its meeting on Friday, the Cabinet approved a series of concessions to the industry, including a revenue share of 5 per cent. This is inclusive of universal service obligations.

Briefing correspondents, the Union Minister of Information and Broadcasting, Sushma Swaraj, said the interest according to the licence agreement was waived and was to be charged as simple interest on all liquidated damage dues and licence fee due from the commencement of the third payment year in respect of city paging licensees and from the commencement of second year in respect of circle paging.

The outstanding amount shall be paid within one month of the issue of demand letter after acceptance of the offered migration package. The period of licence shall be 20 years starting from the effective date of the existing licence. However, spectrum charges of Rs. 13 crores would not be waived.

The Union Cabinet also cleared a new industrial policy for the hill States of Himachal Pradesh and Uttaranchal in order to encourage setting up of new units. Incidentally, Assembly elections are due in Himachal Pradesh next month.

The incentives cleared include a 100 per cent exemption on excise duty for 10 years, 100 per cent income tax exemption for 5 years and exemption of income tax up to 30 per cent for companies and up to 25 per cent for institutions other than companies for a period of another 5 years, on the lines of concessions notified for Jammu and Kashmir.

The Cabinet also gave its approval to waive Rs. 295.71 crores of outstanding Government loans and interest due from Burn Standard Company Ltd., Kolkata, to make its net worth turn positive and attractive for a joint venture. The company was earlier referred to the Bureau of Industrial Financial Reconstruction and despite packages, things did not turn around.

Among the other decisions, the Cabinet cleared an amendment to set up a competent medical authority in Lakshadweep islands to remove an anomaly of not according scheduled tribe status to children born away from the islands due to inadequate health care facilities at home. After the amendment, cases referred by the authority for safe delivery shall be accorded the status, provided such children return to the islands for inhabitation.

The Cabinet also cleared a bilateral investment promotion and protection agreement with the Republic of Sudan. The country already has 51 such agreements and is in the process of signing similar accords with 25 other countries.

Printer friendly page
Send this article to Friends by E-Mail

National