Commerce Ministry asks developers to set up SEZs in less developed states
Noting that achievements of SEZs are "below potential", the Commerce Ministry today asked the industry to look for opportunities in under-developed states for setting up special economic zones in manufacturing sector.
Till date, of 589 approved SEZs, 389 are notified and only 153 are operational.
The SEZs have lost their sheen due to the global economic uncertainties and imposition of minimum alternative tax (MAT). The government had imposed MAT and Dividend Distribution Tax (DDT) on SEZs in 2010-11, which were earlier exempted from almost all levies.
The Direct Taxes Codes (DTC) being considered by Parliament also proposes to do away with the income tax exemption given to them.The tax incentives were the main attraction for setting up of these export enclaves.
(Sources: Economic Times, Zeenews, Indian Express, Financial Express)
Retail inflation falls slightly to 10.02% in June
Retail price inflation declined to 10.02 per cent in June. However, it remained in double digits for the third month. Retail inflation in May stood at 10.36 per cent in May and 10.26 per cent in April.
The base effect of inflation in housing contributed to the fall in inflation. In fact, in rural areas, where there is no such category, consumer price inflation rose to 9.74 per cent from 9.57 per cent in May, official data showed on Wednesday.
In urban India, inflation fell to 10.44 per cent from 11.52 per cent in May.
(Sources: Business Standard, Zeenews, Hindu Business Line, Livemint)
Tata Steel's capacity to go up to 33.5 MT by 2014
Tata Steel Group's plant capacity will go up to 33.5 million tonnes per annum (mtpa) by 2014 with the 2.9 mtpa expansion of Jamshedpur plant and commissioning of the first phase of 3 mtpa Odisha unit, Chairman Ratan Tata has said.
Tata said the ongoing 2.9 mtpa expansion in Jamshedpur is expected to go on stream this financial year, taking the company's production capacity in India to 9.7 mtpa.
Tata Steel, which has units in Europe and Thailand, has a total steel-making capacity of 28 mtpa at present.
(Sources: Business Standard, Economic Times, Zeenews, Worldnews, Indiatimes)
Tyre makers feel the heat of weak auto demand & rising input costs
Tyre makers are feeling the heat with weak demand and the rising cost of inputs squeezing margins. The demand for heavy and light automobile tyres is almost flat in the first quarter of the fiscal year. A sluggish global demand is blocking their efforts to step up exports to cash in on a weak rupee.
The production of bus and truck tyre, which accounts for over 60% of the revenue, is marginally up by 0.4%, according to the figures of Automotive Tyre Manufacturers Association (ATMA).
Tyre makers have been facing a rise in input costs too. While natural rubber prices have declined, the other raw materials have become dearer since they are mostly imported. The depreciation of the rupee has made imports costlier.
(Sources: Exim News, Indiatimes, Business Standard, Worldnews, Economic Times)
Mercedes to launch all-new B-Class & Sports Tourer to take on rivals Audi, BMW
Changing tack after losing traction in the Indian market to its German rivals, Mercedes-Benz India is adopting a "step-down" strategy to garner market share. It is preparing to launch an all-new B-Class known as the Sports Tourer in September, in a bid to rustle up demand and take on BMW and Audi in a segment that is clearly showing signs of a slowdown.
(Sources: Times of India, Economic Times, Indiatimes, Worldnews)
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