States Major and Medium Industries Minister Murugesh R Nirani today said that discussions would be held later in this month with Mahindra and Mahindra, which has been invited by the State to establish a tractor manufacturing or any other automobile unit in Belgaum.

Have the leaders read the comments on the previous post, may it be anything but Belgaum should get this M & M plant. Pray for it Belgaumites.

Source: PTI

It was a Wednesday in 1920 when the first branded iron plough came out from the Factory of Kirloskar’s at Kirloskarwadi (Maharashtra) will turn 90.

The township of the Kirloskars — as the word literally means — was set up near Kolhapur in 1910 March 10 as Maharashtra’s second and the country’s third such project. Its a 100 hundred year legacy of the Kirloskar’s and the company has not deferred paying dividend even for a single year from 1937.

The Kirloskar Saga began from Belgaum and if in 1910 and if Laxmanrao had not been ousted from Belgaum may be Belgaum would have been a different place. T he civic authorities then annexed their land and The Raja of Aundh, near Kolhapur, Pant Pratinidhi, offered land in his fiefdom: 32 barren acres, inhabited by snakes, where the only vegetation left was cactii.

Read the complete story on Kirloskar posted earlier- Kirloskar success story roots from Belgaum

If the then civic authorities had not ousted the Kirloskar’s from Belgaum, the 100 year legacy would have been created in Belgaum and today Belgaum would have been a different place. May what you want to say but it is our sheer bad luck. Till today now is interested in coming and setting up shop here.

After the hike and no relief from the union budget the state budget will take away more than that will remain with you.

1% Hike in VAT from the next Financial year

Life time tax for cars and bikes to go up

13% Tax on vehicles priced above 5 Lakhs

15% Tax on Tobacco products.

Luxury tax increased

VAT rate 4% increased to 5% on all goods except declared goods.

VAT rate of 12.5% increased to 13.5%

VAT rate of 12.5% on tobacco products increased

to 15%.

Levy of VAT on tobacco products on MRP basis.

some exceptions

Tax on Masala Powder Mixtures, Macaroni, Sports Trophies, Shields and Medals, all kinds of scrap,

Electric generators of less than 15 KVA, railway concrete sleepers, school bags costing up to Rs

200, reduced from 12.5 % to 5 %.

The minimum annual turnover limit for registration increased from Rs. 2 lakhs to Rs. 5 lakhs.

The maximum annual turnover limit for opting for Composition Tax Payment Scheme increased from Rs.15 lakhs to Rs.25 lakhs.

Annual turnover limit for compulsory audit of accounts of dealers increased from Rs.40 lakhs to

Rs.60 lakhs.

Optional scheme for dealers in medicines to pay tax based on the MRP even on sale of other goods.

What Belgaum gets:

An amount of Rs.10 crore will be provided for establishing new chilling plants in Gulbarga and Belgaum divisions.

An amount of Rs.5 crore will be provided for establishing a veterinary college in the name of Shri Bhaurao Deshpande at Athani in Belgaum district.

Infrastructure facilities of the Karnataka Sugar Institute at Belgaum will be improved. This institute will be named after the late Sri S. Nijalingappa.

Necessary action has been initiated for developing airports with private participation in tier-two cities of the State, like Belgaum, Bijapur, Gulbarga, Bellary and Shimoga.

The World Kannada Conference scheduled to be held during the last year was postponed due to various Budget 2010 – 11. It is proposed to hold the same on a grand scale in Belgaum during 2010-11. An amount of Rs.10 crore will be provided for this purpose.

Rs.2 crore will be provided for construction of Kannada Samskruthi Bhavana at Belgaum.

To complete the Suvarna Soudha construction work in Belgaum, which is progressing fast, Rs.150 crore is being provided during 2010-11.

Life for Narendra Murkumbi, Managing director of Shree Renuka Sugars has been dream run in the past few years. After acquiring companies globally he is now found himself a place in the World Economic forum – Young Global Leaders list declared on March 3, 2010.

The Belgaum boy is taking his company Shree Renuka Sugars to new heights and at the same time, the name of Belgaum as well. Narendra is making a mark on the global front and in no time we should see his company in the fortune 500 list.

The Forum of Young Global Leaders is a unique, multistakeholder community of exceptional young leaders who share a commitment to shaping the global future. Each year the World Economic Forum identifies 200-300 extraordinary individuals, drawn from every region of the world. Together, they form a powerful international community that can dramatically impact the global future.

See the complete list of honorees

Sujay Nimbalkar has compiled these reviews of the union budget 2010-11 by different  chartered Accountants of Belgaum.

CA. B.B.Chandargi
Chairman of Belgaum Branch of Institute of chartered Accountants

Income Tax
1.The increase in Slab rate will be benefiting the particularly the middle class Tax Payers in the Income range of Rs.3.00 Lakhs to Rs.8.00 Lakhs leading to a Savings of Rs. 50000 in tax.
2.Also the proposed weighted deduction of 200% on Research activities to will give a major boost to Technology & Industrial growth.
3.Farmers have been benefited as the effective rate of Interest now on will be 5 %
4.The Increase in Tax Audit limit  for Business and Professionals will reduce the paper work as well as the Income tax procedures for Small & Medium enterprises.
5.Charitable Institutions can also carry out Non Charitable activities upto a limit of Rs. 10 Lakhs, this will mean better activities in the nature of public interest.
6.Companies subject to MAT will have to pay additional 5% i.e total 15% as Mat (Minimum Alternate Tax).

Excise Duty  :Excise duty is not favorable for large car buyers
Introduction of few more services under the Service Tax net will boost the service tax revenue of the Govt but it is not a welcome by those service providers.
However the large amount of Fiscal Deficit of our economy  is cause of concern.

CA. Sanjay D Shirguppe
Practicing chartered Accountant, Belgaum

The Basic Exemption  Limit in case of Service should have been increased ( on the lines of increase in Income Tax Limit)  to Rs.15 Lakhs from the present limit of Rs. 10 Lakhs thereby relieving the small service tax providers from the efforts of Registration under Service Tax rules and following the procedures thereon.
However the agricultural interest rate of 5 % to farmers is favourable.
The levy of additional duty of Re.1 per liter on Petrol and Diesel will indirectly lead to rise in the prices of other commodities and services resulting in increase in Inflation. Also I don’t see any steps taken by our Government to bring down the present inflation.

CA Vinay B
Practising Chartered Accountant Belgaum

Our  BUDGET 2010, in the backdrop of rehabilitating economies all over the world was being viewed with greater anticipation to pave the road ahead for growth and development. The budget in a very acute sense projects this with following proposals:
Change in income tax rate slabs to the advantage of individual tax payers.
Reduction in surcharge to corporate tax payers.
Abolition of Commodities Transaction Tax.
Retention of same rate of service tax.
Extra boost for investment in Infrastructure Bonds.
Establishment of agencies to monitor the implementation of infrastructure projects.
Other successful programmes of past years revamped to suit the future requirements (NREGS, APDRP, ICDS, SHG, etc.)
However, the budget was condemned by opposition parties on various issues and this happens to be the first budget that led to walkout of opposition parties.
The major short comings in the budget can be owed to the following:
Increase in excise duties and fuel prices.
Postponement of GST to one more year.
No changes in the basic tax rate of corporate tax payers.

The theme of this budget lies in creating demand through surplus funds in the hands of consumers (individuals) through reduced direct taxes and then charging them for consumption through the way of indirect taxes.

In view of all the above, I opine that no budget would satisfy everybody, as it is only a balancing act of Government Revenues and Expenditures, and keep check of the fiscal deficit, which in the current budget is on the higher side at 6.8% of GDP. There is no need to despair and criticize the budget, as other reforms are due in the near future. I am sure that the coming times will bring better reforms and a lot of growth in infrastructure. The present budget is only a half hearted signal in this direction. I hope for better reforms in times ahead.
CA Nikhil Shevade, Kolhapur

The much awaited (as always) Union Budget was kept before the Parliament by the Finance Minister Shri. Pranab Mukherjee on 26^th February 2010, which can be termed as a relief oriented budget. This time, however, the aspirations were high due to the global economic meltdown. The year 2009-10 has been a very difficult and testing year for India. The FM had to take certain stern steps and had to keep in mind the fiscal deficit before coming out with the proposal. Fiscal deficit was seen at 4.8 per cent and 4.1 per cent in 2011-12 and 2012-13 respectively as per the Economic Survey.

Salient features of the Budget 2010-2011 in Taxation:

1. Direct Taxes:
   1. FM prunes tax rates:
      Income up to Rs 1.6 lakh – Nil, Income above Rs 1.6 lakh and up to Rs 5 lakh – 10 per cent
      Income above Rs 5 lakh and up to Rs 8 lakh – 20 per cent
      Income above Rs 8 lakh – 30 per cent.

New tax rates would offer relief to 60 per cent of tax-payers.

The increase of minimum personal taxation slab of 10% up to Rs. 5.00 lacs will pave the way for better tax compliances and revenue generation for the Government.

1. 1. Income Tax department ready with two—page Saral—2 return forms for individual salaried assesses. The introduction of SARAL II Form will enable the small tax payers to file their return without difficulty.
   2. The relief upto Rs. 20,000/- under 80 CCE would suitably boost infrastructure sector while simultaneously providing tax relief. This deduction is in addition to the deduction limit of Rs. 1,00,000 already allowed under section 80C.
   3. The Budget has given some thrust to conversion into LLP (Limited Liability Partnership) without attracting Capital Gains Tax. However, the restrictions and preconditions may be reviewed to provide full benefit to the conversion of such entities.
   4. While he has left the base rate of 30% the same for corporate taxes, he has cut the surcharge from 10% to 7.5%. This marginal reduction of surcharge will give relief to corporate entities and partially offset the increase in MAT Tax which is raised from 15% to 18% of book profits.
   5. The thrust given on research and development by enhancing the weighted deduction from 150% to 200% is welcome since it will boost research activity.
   6. No disallowance under S-40(a)(ia) will be made if after deduction of tax during the entire previous year, the same has been paid on or before the due date of filing of return of income specified in sub-section (1) of section 139.
      Removal of genuine hardships in this area of TDS is welcome. This amendment is proposed to take effect from the Assessment Year 2010-11 and subsequent years.
   7. Implementation of the much talked about Direct Tax Code from April 2011.
   8. FBT (Fringe Benefit Tax) remains withdrawn.
2. Indirect Taxes:
   1. The increase in Central Excise Rates by 2% would augment tax revenues while bringing convergence with GST rates.
   2. Procedural reforms in placing reliance on CA’s certificates for input credits, amendment in demand provision would reduce litigation and give widespread relief.
   3. Certain accredited news agencies exempted from service tax
   4. Service tax to remain 10 per cent
   5. 10 per cent central excise duty on all non-petroleum products.
   6. 7.5 per cent duty on petrol, diesel, crude restored. Hence petroleum prices will rise.
   7. Government is actively engaged in finalising structure of Goods & Service Tax (GST Act) regime; hopes to implement it from April 2011.

The Budget skillfully balances the need to step up the economic growth on one side, check inflation on the other side and also address the socio-economic needs of the nation. I welcome the Budget however the fiscal deficit and food inflation control measures have to be taken.

Belgaum based Shree Renuka Sugars is on a acquiring spree and today have finalized on a major second acquisition in Brazil of Eqiupav.

The deal is of the size of Rs.1500 crores and will be funded by internal accruals, warrants and debt.

It Outbid Hong Kong based Noble group in the deal.

Shree Renuka Sugars is a Belgaum based company with Murkumbi as its promoters with its registered office at Camp.
Source: Bloomberg

More than 100 companies in Bangalore create more than 80% of the semiconductor in the state. To encourage the growth oft his industry else where in the state, a new Karnataka Drafts Semiconductor Policy was laid down today at the ISA Vision Summit 2010, by CM B. S. Yeddyurappa.

The policy is drafted in such a way that govt. shall ensure that its objectives are met. It will be a role model for other states to follow. The focus will now not only be Bangalore but also Tier-II and Tier-III cities like Hubli-Dharwad, Belgaum, Gulbarga, Mysore, Mangalore.

More than 30% of the total potential in the semiconductor industry would be tapped in the state, which would lead to creation of numerous job opportunities, he added.

Source: Channeltimes

You all have heard of Auto expo being held in the metros and now its the turn of Belgaum. Later in March this year The Lions Club of Belgaum along with Yash Communication will organize a mega Auto Expo. The District Industries Centre, Belgaum is supporting the event.
This is for the first time that such an event has been planned for Belgaum.
The theme is “Mobility for All”  with special vehemence on the need for environment-friendly fuels/ vehicles, joint ventures, brand promotion.
Belgaum has a lot of local automobile component and related industries and this kind of expos will definitely give it a lift.
Funds raised from this event by the Lions Club will be used of eradication of  reversible blindness.
For details and to book space, interested persons may contact Ph: 9341109635, 9242350197.
Source: TheHindu

GAIL (India) Limited has completed the route survey for its 1400 Km Dabhol – Bengaluru gas pipeline project for supplying natural gas to Karnataka.

GAIL has completed the route survey of the total length of the pipeline network and the tendering process for line pipe procurement will start shortly.
GAIL is currently implementing 1,389 km, 30 inch diameter Dabhol-Bengaluru pipeline at an investment of Rs. 4543.43 crore with a design capacity of 16 MMSCMD.

In part “A” of the first phase, 402 km pipeline will be laid from Dabhol to Gokak along with spur lines to Belgaum and Goa at an estimated investment of Rs.1593.47  crore and is scheduled to be completed by 2011-12.

In part, B of the phase I, 570 km pipeline will be laid from Gokak to Bengaluru (KPCL, Bidadi) along with spur lines / feeder lines to Bengaluru at an estimated investment of Rs. 2,463.91 crore and is scheduled to be completed by 2011-12 / 2012-13. In phase II of the project, 417 km spur lines / feeder lines will be laid to Ratnagiri, Kolhapur, Sangali,   Bijapur, Dharwad, Devangere, Harihar and Tumkur at an estimated investment of Rs. 486.05 crore and is scheduled to be completed by 2012-13 / 2013-14.

India’s biggest sugar refiner, city based Shree Renuka Sugars is in the race to acquire a majority stake in Brazil’s Equipav Group for an estimated $300 million (Rs 14 billion).

If successful, this would be Renuka Sugar’s second acquisition in Brazil.
The company has submitted bids for the sugar and alcohol assets of Equipav Group along with other global players.

In November 2009, Renuka Sugars had bought Brazil based sugar and ethanol producer Vale Do Iva (VDI) for $82 million.

Renuka Sugars, primarily a refiner, operates eight sugar mills, five owned and three leased, in Karnataka and Maharashtra. The company’s shares on the BSE closed at Rs 233.45, up 0.89% from last close.

Factions is not a design house. It has a rare capability of executing every assignment with conceptual clarity & thoughtfulness. This enables the organization to provide solutions for critical behavior of the target audience. Strong market presence and proximity to the final audience helps Factions to provide strategic conceptual solutions that are reflected in their result-oriented designs.

Factions was started a decade ago in Aurangabad by Vishal Sadarjoshi after collecting valuable experience from Lowe Lintas and Kaleidoscope, the leading advertising agencies in India. To provide the best of services and serve the regional areas with the latest trends, Factions shifted its base to Pune after one year. Within a short span of time, Factions spread its wings to Mumbai, Sangli, Kolhapur, Goa and other parts of Maharashtra and Karnataka as well; because of its conceptual and budget based approach.

Roots of Belgaum were calling Vishal to come back and set up shop here and he realized that Belgaum could be a great option because of its strategic location and cost effective work force. Hence, the design studio of Factions was shifted to Belgaum at Mahatma Phule road. Six months of training was given to localities’ from Belgaum with a fine arts background and now  Factions, Belgaum takes care of the entire portfolio of over 45 brands in Maharashtra and Karnataka.

Not many will dare to shift shop from a metropolis to a smaller city as Belgaum but Factions did so with an aim of averaging costs and emerge as leaders in the smaller towns. Soon Factions Corporate Communications is planning an office in Bangalore to cater ever growing demands of corporate clientele in south India.

Factions executes everything under the roof for a organization from designing a logo, taking it forward with stationery, brouchers, paper ads, jingles, video ads, corporate films, model & product shoots, conferences, Celebrity & Model management  to an event organization you name it and they will arrange it.

They are in this business for a decade now and with names like Videocon Dhoot Hospital Aurangabad, The Haute company Pune, Waterwheel resorts USA, Samruddhi Industries, Sangli, Kalika Steels, Jalna, SKF Bearings Pune, Jehangir Hospital Pune, Taxiads Norway, Amrut Pharma Belgaum, Vega Auto Belgaum  are just to name a few.

Excerpts of an interview with Vishal Sadarjoshi:

Questions:

Q. When and how did Factions start? (Elaborate from beginning)

Factions was planned, conceived and started over several cups of coffee, brainstorming which often looked like battles and dreams that always looked so realistic. Factions was born in presence of millions of scribbled papers, a dedicated ash tray and zillions of ideas. Factions was conceptualized in the year 2000 in Aurangabad in a hotel. We used to work in the nights after the hotel used to shut down.

Q. Why did u plan to start shop in Belgaum?

Being from this place, I was always sure of finding intellect here. A small study proved that there were people with talent, which was often wasted in photo studios. Also shifting did not hamper the working of any of our existing clients.

We hail from Chickodi, and my father has spent most of his childhood in Belgaum. My uncles stay here and there are many relatives around. In addition, Pune was becoming very hectic for my parents and they always wanted to shift here. It is only that my transition took a little while or we would have shifted here a couple of years ago.

Q. People in your industry normally flee to metros as there is lot of scope, but in your case, it is otherwise, why?

Exploring the unexplored has always been the mantra of Factions. In addition, SCOPE is not an area or region dependant factor. Advertising or promotion is a need of everybody who wants to expand and grow. Along with this, we have our representation in Pune, Jalna, Aurangabad, Sangli, Bombay and Bangalore. This takes care of our client satisfaction and service.

Q. How many employees are here at your design centre in Belgaum?

Six employees and three management members.

Q. What are the challenges you are facing in Belgaum?

The first and the most important aspect were to train the designers. Talent was there but nobody knew about advertising. Software’s were all known but the conceptualization had to be developed, which at times was very frustrating as we were used to working with skilled and professional manpower.

Secondly designing here was done by printers, so there was no DESIGN CHARGE applicable. In addition, our business being designing, it was very difficult to educate the clients.

Q. Cost wise, Belgaum is cheap but what about clients and delivery?

Through our work and effective presentations, we are already associated with major top ad spenders in Belgaum. In addition, our other clients are very delighted as we can offer faster service and high quality jobs from here. Initially we had to call people from Pune and Bangalore to do our critical assignments. Now everything is in-house and well organized.

Q. Now how many in Belgaum will make a Video ad of 30 secs, so how do you plan to enter the market?

Actually, it is a need of every business house. Cable viewing is exceptional in Belgaum. However, it depends on the vision of the business owner.

The major hindrance is the cost factor. Businesses here tend to work with low quality and low cost production parameters. This will definitely not happen with factions. We will work at the best quality level only. We will wait until somebody understands the value of a conceptual video presentation. Our efforts are on through presentation and storyboards to educate the clients. As it is, our clients from other regions are keeping us very busy with these activities. Therefore, we can afford to go slow with Belgaum on this aspect.

Q. How was your experience concerning the talent pool in Belgaum?(with respect to your field)

Dedication and speed is something that is not associated with Belgaum as far as our field is concerned. Talent is there but there is reluctance in its application. However, the people with us have developed a lot and are sure to improve further.

Q. If Belgaum market does not click do you plan to shift base again?

It has already clicked…so there is no question of shifting. Yes,…we will definitely expand and start more offices in the required regions.

Q. Your thoughts on this website?

Uday nothing much to explain as Google can throw out your traces all over. It is not a site…it is a dedication. I think so much of devotion is amazing. Allaboutbelgaum.com is now Belgaum personified. Every reference, every change, every new thing, lands here first. I should thank you for giving us something that lifts the standards of talents in Belgaum.

This could be the best for North Karnataka as huge amount of investors have been asked to pen shop here.

The State High-Level Clearance Committee (SHLCC) presided by Chief Minister B S Yeddyurappa on Tuesday cleared the investment in many areas. They are as Follows:

• GAIL will lay 746-kms of gas pipeline from Dhabol to Belgaum and Bangalore at a cost of Rs. 4,544 crore.
  • Zuari Fertilisers and Chemicals will set up a urea plant with a capacity of 11.55 million tonnes per annum in Belgaum at a cost of Rs. 4,565 crore.
  • Surya Vijayanagar Steels and Power Ltd will set up an integrated steel plant at a cost of Rs. 20,000 crore in Bagaklot.
  • Arcelor Mittal will invest Rs 50,000 crore to set up a six million-tonne mega steel plant in North Karnataka. The company was offered eight places in North Karnataka, of which two have been short-listed. The company has asked for 4,000 acres for the project. The plant is expected to generate employment for at least 20,000 people. The Rs 30,000 crore phase-I will also include a 750MW thermal power.

This is good news for Belgaumites as most of these industries will give employment to locals here and after these industries set shop here there will be overall development.