P-watch

SEZ deal gets sweeter

The Special Economic Zones (SEZs) fever rages on. Restrictions have been removed on the import of used plant and machinery. The government has also allowed use of machinery and plant previously owned by the assessee or used in the country. This, however, will be up to a limit of 20 per cent of the total value of the machinery or plant used in the business.

The government recently carried out amendments to the SEZ rules, lifting restrictions on use of used machinery. Earlier, imports were not permitted due to government concerns about relocation of existing units into SEZs. The new guidelines also lay down a maximum area of 5,000 hectares for multiproduct SEZs and a minimum area of 1,000 hectares on the recommendations of the empowered group of ministers. To woo investments in industrially backward states, the minimum size requirement for SEZs there has been reduced to 200 hectares.

(Rishi Joshi)

After SEZ,it’s the satellite towns

That sustainability lies in planned growth is beginning to dawn on the government. It is now planning to develop 100 satellite towns in the country. To begin with, the policy will apply to 35 cities with populations of more than one million. The new policy is likely to be aligned with the Jawaharlal Nehru National Urban Renewal Mission and the Centre may stipulate that participating cities undertake reform measures so as to qualify for receiving Central assistance.

PLANNED GROWTH

Policy to develop 100 satellite cities

Initial phase will have 35 cities

Policy will foster local economic activity

The policy, it is learnt, may not only facilitate construction of satellite towns around bigger cities, but also help in creating linkages with the parent city by creating transport facilities. The cities will also have sustainable economic activities that would create job opportunities in these satellite towns to ensure their success and attract people living a poor quality life in the metros.

Hence, a plan is been worked out with the objective of ensuring that the smaller cities foster economic activity to sustain the local population. Implementation holds the key.

Banks can no longer lure you to deposits that don’t allow you access anytime. Banking sector regulator Reserve Bank of India (RBI) has come down heavily on banks that impose a lock-in period on deposits. It has also warned against interest discrimination between deposits. Several banks have traditionally resorted to this scheme to overcome the tight liquidity conditions during December-March. Interestingly, bank loans have begun to slip after witnesing a strong growth over the last two months. For the fortnight ended October 12, the year-onyear growth in loan disbursal had dropped 5 per cent. Surely, no one will complain about RBI Governor Y.V. Reddy’s move.

(Amit Mukherjee)

RBI bans stiff deposits

The move comes close on the heels of the new Resettlement and Rehabilitation policy that offers more generous terms for the oustees as well as allows greater flexibility to the developer to acquire land. It allows the oustees to take 20 per cent of the rehabilitation grant as shares in the project.

(Rishi Joshi)