Right Instant To Go Into Long-Term Oil Contracts Of CII - July 20, 2009

The Confederation of Indian Industry (CII) has said that entering into long-term crude oil contracts and the strategically acquiring oil acreages overseas is necessary for India''s future energy security. The accelerated demand for energy makes it imperative for India to garner assured and continuous supply of energy at reasonable prices through internal efforts and acquiring international acreages.

As per CII estimates, in a business-as-usual 8% GDP growth rate scenario, the demand of Oil would be 328 Mtoe by 2030, a growth of 3.8% year-on-year.

Moreover, the chamber also emphasised that the industry, both in public and private sectors, should collaborate to secure oil equity overseas.

Even though the crude oil price has increased almost 100 per cent since February to reach $70 a barrel, it is still below $100. This is perhaps the right time to secure long-term oil supply deals at an affordable price, said the chamber.

"Ensuring India''s energy security requires active participation from the Indian industry, both public and private sectors, with support from the Government, to secure fuel supply at predictable and affordable prices," said Mr Chandrajit Banerjee, Director-General, CII.

CII Calls For Due Reforms For Promoting Industrial Growth - June 26, 2009

The Confederation of Indian Industry (CII) has called for tax reforms in order to reduce the complications and unproductive time spent by the industry in tax filing. CII has recommended for one rate of corporate tax rather than many cesses and surcharge. Moreover, it has also suggested the abolition of surcharge and cess levied on corporate tax.

"To reduce complications and unproductive time spent by industry in tax filing, it is more efficient to have one rate of corporate tax rather than many cesses and surcharge," CII said in a statement.

Moreover "A component of corporate tax can be set aside for supporting the education needs of the country, without having a separate levy.

In other words, the rates need to be collapsed into the single corporate tax rate," it added.

Besides this, CII also suggested that the rate of depreciation in case of plant and machinery be raised to 25% from 15% and allow full depreciation on assets that have limited life and small costs upto Rs25,000.

Moreover, CII has also recommended bringing ''Goodwill'' under the purview of intangible assets in order to be eligible for depreciation.

It has asked for the restoration of the depreciation rate applicable to hotel buildings to 20% from 10% currently.

Along with this, CII also called for ending the multiple taxation on dividend distribution by a corporate group and its subsidiary.

It recommended that dividends received from overseas entities in the form of convertible foreign exchange in India should be fully exempted.