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|December 21, 1998||
A few days ago, Rediff reported how the government has been shying from its commitment to convert the Department of Telecommunications into a corporation.
Now, ghosts from New Delhi's past are returning to haunt. The Prime Minister's Council on Trade and Industry has called for splitting the Rs 170 billion DoT into five entities: four zonal operating companies and a long-distance corporation.
The council's infrastructure subject group that was headed by Tata Sons Chairman Ratan Tata has recommended refocusing government attention and policies in infrastructure sectors like telecom, power and surface transport.
The Tata subject group has called upon the government to evolve an integrated policy to...
Related to the information technology industry, another group on knowledge-based industry has recommended changes in foreign exchange regulations, including making an export earner's foreign currency accounts fully convertible on capital account thus allowing investments in start-ups abroad.
Listing a 17-point agenda on foreign exchange regulations, the group, headed by Infosys chief N R Narayanmurthy, states permission should be given for downloading from the Internet, opening of bank accounts abroad and opening of non-trading offices abroad.
This apart, it has said that the time limit for realising export proceeds should be extended, a ceiling must be put on agency commission payable on exports and export on extended credit terms should be allowed.
Making a case for taxation of employees' stock options and amendment of Section 73 of the Companies Act where issuance of employee stock options is concerned, the panel has said that 'A proper regulatory framework should be created for structuring of the venture capital funds. There is a need for a tax efficient vehicle for setting up of VC funds.'
The panel points out that throughout the world, pension funds and insurance companies invest in VC funds and thus in India too a policy framework should be created to help existing and new VC funds to raise funds.
'It could be done in the form of tax incentives, permitting pension funds and insurance companies to contribute at least 5-10 per cent of the corpus to VC funds with proven track record," the group suggests.
Since sweat equity enables entrepreneurs to get value for their intellectual capital, the panel has said that the government should amend the law to remove the concept of 'par value' of shares in India so that entrepreneurs fully avail of themselves of the advantages of sweat equity.
Earlier: - Compiled from the Indian media
- Compiled from the Indian media
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