Subject: Levy of service tax on educational institutions- regarding

Circular No. 107/01/2009 – ST

F.No137/23/2007-CX.4

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

***

New Delhi, dated 28^th January 2009

Subject: Levy of service tax on educational institutions- regarding

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Various educational institutions impart training and conduct courses in different fields. Many of these institutions issue certificates/degrees/diplomas to the candidates upon their successfully completing such courses. Apart from government run or aided institutes imparting education, training or coaching, there are several private run institutes or centers, which impart education/ training/ coaching, teach skills, help in preparing for competitive examinations or run classes on various subjects. Service tax is leviable on services provided by ‘commercial training and coaching centers’, since the year 2003. Over a period of time, certain doubts /disputes have arisen in the field in respect of the chargeability of service tax on the fees/ charges collected by such institutes and education centers. Some of such issues have been discussed below.

2. COMMERCIAL NATURE OF INSTITUTE

The first issue arises from the very name i.e. Commercial training or coaching center’. Many service providers argue that the word ‘commercial’ appearing in the aforementioned phrase, suggests that to fall under this definition, the establishment or the institute must be commercial (i.e. having profit motive) in nature. It is argued that institutes which are run by charitable trusts or on no-profit basis would not fall within the phrase commercial training or coaching center and none of their activities would fall under the taxable service. This argument is clearly erroneous. As the phrase ‘commercial training or coaching center ‘has been defined in a statute, there is no scope to add or delete words while interpreting the same. The definition commercial training or coaching center has no mention that such institute must have ‘commercial’ (i.e. profit making) intent or motive. Therefore, there is no reason to give a restricted meaning to the phrase. Secondly, service tax, unlike direct taxes, is chargeable on the gross amount received towards the service charges, irrespective of whether the venture is ‘profit making, loss making or charity oriented’ in its motive or its outcome. The word “Commercial” used in the phrase is with reference to the activity of training or coaching and not to the nature or activity of the institute providing the training or coaching. Thus, services provided by all institutes or establishments, which fulfills the requirements of definition, are leviable to service tax.

3. POST SCHOOL EDUCATION

3.1 Determination of taxability of education, other than school education is more complex and poses more questions. This is because, it covers an entire gamut of educational courses, such as formal higher education (i.e. bachelors, masters, doctoral, post doctoral course), specialized education, vocational education, language (including foreign language) courses etc. These vary in terms of their content; purpose; scope; and the type of institutes or establishments, which impart them.

3.2 The system of statutory recognition of educational establishments or institutions in India is still in the state of evolution. As regards university education, University Grants Commission (UGC) is the apex regulating body. As per the objects of the University Grants Commission Act, 1956 (which established UGC) the said Act is ‘to make provision for the co-ordination and determination of standards in Universities and for that purpose, to establish a University Grants Commission’.

·

As per the definition, in terms of Section 2(f) of the Act, a University means a University established or incorporated by or under a Central Act, a Provincial Act or a State Act, and includes any such institution as may, in consultation with the University concerned, be recognized by the Commission in accordance with the regulations made in this behalf under this Act. . Therefore, all universities which are a creature of a State or Union Act fall within this definition of ‘University’.

· Further, Section 3 of the Act, explains the scope of a ‘deemed university’ and defines that the Central Government may, on the advice of the Commission, declare by notification in the Official Gazette, that any institution for higher education, other than a University, shall be deemed to be a University for the purposes of this Act, and on such a declaration being made, all the provisions of this Act shall apply to such institution as if it were a University within the meaning of clause (f) of section 2.

· Also, UGC, with the approval of Central Government and under the Recognition of College in Terms of Regulations, 1974 framed under the UGC Act, can grant recognition to a college or institution run by a trust, a registered society or a body corporate or body incorporated under Central or state Act as an institution affiliated to or form as constituent member with a university, providing education up to a bachelors degree, masters degree or diploma of a duration of minimum one academic year

· As per National Policy on Education, 1986, a scheme of autonomous colleges was promoted. In the autonomous colleges, whereas the degree continues to be awarded by the university, the name of college is also included. These colleges develop and submit new courses of study for approval by the university. These autonomous colleges are fully responsible for the conduct of examination.

As all these institutions or establishment are either created or recognized in terms of the power conferred by statutes, they would fall in the category of institutes/ establishments which issues diploma or certificate recognized by the law for the time being in force. As regards issuance of degree, section 22(1) of the said Act, provides for right of conferring or granting degrees only by a ‘university’ (as defined above) or a ‘deemed university’ (as defined above).

3.3 In addition, for recognition of professional courses, promotion of professional institutions and providing grants to various programmes, a number of ‘professional councils (Such as All India Council for Technical Education-AICTE, Medical Council of India-MCI, Indian Council for Agricultural Research-ICAR, Bar Council of India-BCI) have been created through independent Union Acts. Since, inter alia these councils are entrusted with ensuring norms and standards of the courses, physical and instructional facilities, undertaking assessment etc., they have also been provided with powers to make subordinate legislations (i.e. through notifications, circulars, rules) that the institutions or the establishments within their ambit must abide. In case of default, the councils have the power to derecognize an institution or establishment or a particular course being conducted by them, even if they are recognized as a university, a deemed university or an affiliated college. If an institution or establishment is derecognized, then such institution or establishment cannot be called to be an institute or establishment which issues any certificate or diploma or degree or any educational qualification recognized by the law for the time being in force. With the result, the courses conducted would fall under the ambit of ‘commercial training or coaching centers’ and would be charged to tax. It may however, be noted that for exercising such power, there should be a valid rule / notification / circular, prescribing the minimum requirements or standards as also the consequences of default.

3.4 All India Council for Technical Education-AICTE, was started in 1945 with the objectives stated above. Based on the recommendations of a ‘National Working Group’ (constituted by the Government of India) that AICTE be vested with the necessary statutory authority, it was given legislative support through an Act, called the AICTE Act, 1987. AICTE, using the powers conferred on it through 1987 Act, issued the ‘AICTE (Grant of Approval for Starting New Technical Institutions, Introduction of Courses or Programme and Approval), Regulation 1994. Theses were amended in the years 1997 and 2000. Under Regulation 4 (Requirement of Grant of approval) of these Regulations, AICTE prescribed that,-

“After the commencement of these regulations,-

a. No new Technical Institution or University Technical Department shall be started; or

b. No course or programme shall be introduced by any Technical Institution, University including a Deemed University or University Department or Collage; or

c. No Technical Institution, University or Deemed University or University Department or College shall continue to admit students for Degree or Diploma course; or

d. No approved intake capacity of seats shall be increased or varied;

Except with the approval of the council.

The powers to issue regulations for approval are conferred on AICTE under Section 23 read with Section 10 of the AICTE Act.

3.5 In 2003, when service tax was first imposed on commercial training and coaching centers, the AICTE regulations required that for (a) starting or establishing new technical institutions; (b) introduction of additional programmes; or (c) increase in ‘intake’ in the existing programmes of AICTE approved institutions, a ‘no objection certificate’ from the concerned State government /UT would be required (notification F.37-3/Legal (iii)/2002 dated 10.09.2003). This notification does not prescribe any certification for existing institutes or establishments, which did not introduce any additional programme or did not increase in ‘intake’ in an existing programme. Thus, at that stage, not having a AICTE approval for such existing institution or establishment did not make them ineligible for being an institute or establishment which issues any certificate or diploma or degree or any educational qualification recognized by the law for the time being in force. Thus, if otherwise recognized or accepted, this sole reason of absence of AICTE approval did not cause such institutions or establishments to be within the service tax net. On 6.01.2005, vide notification No. F.37-3/Legal/2004, the previous AICTE Regulations was replaced by new Regulations. These Regulations expanded the scope and stated (Regulation No. 5) that no new technical institution of the Government, Government Aided or Private institution shall be introduced; no new courses or programs in technical education shall be introduced or no variation of intake shall be effected or no existing technical institution of the Government, Government Aided or Private institution shall conduct any technical course without prior approval of the council. The Regulation No. 7 of these Regulations also stated that the council shall, in every year publish the names of approved technical institutions, conducting course in technical education, the course and programs approved by the council and the number of seats permitted for each course etc. These Regulations were again superseded by another set of Regulations issued vide Not. No. F-37-3/Legal/2004 dated 28.11.2005, where the requirement of grant of approval by AICTE was further elaborated to specifically include universities, deemed universities and any admission authority etc. Vide notification No. F-2-1/2006 U.3 (A) dated 5.04.2006 the Central Government issued clarification regarding the role and the powers of AICTE and UGC with respect to ‘Deemed to be University’. From the above it emerges that from the year 2005 onwards, a technical institution or establishment (which is otherwise recognized being a university, or affiliate college) not having AICTE approval cannot be called to be the one issuing any certificate or diploma or degree or any educational qualification recognized by the law for the time being in force and thus be within the ambit of service tax. However ‘Deemed to be University’ have been exempt from this requirement. As per the said notification for the institutes ‘Deemed to be University’, it is not a pre-requisite to obtain the approval of AICTE to start any programme in technical or management education leading to an award, including degrees in disciplines covered under the AICTE Act, 1987. However, such institutes are required to ensure the maintenance of the minimum standards prescribed by the AICTE for various courses under the jurisdiction of the said council.

3.6 Similar would be the situation in case of other Statutory Councils.

3.7 A related issue is, that since the concept of recognition of an educational qualification in India has been dynamic in nature (i.e. the degree/ diploma/ certificate an institute or establishment may be recognized by the law at one time and not recognized at other, due to change in legal provisions) the taxability of the courses conducted would depend on the legal status of such institute or establishment at the point of time when such service is provided (i.e. course is conducted). It cannot be said that once recognized an institute or establishment would remain so even in future or was so in the past.

3.8 Many a time private institutes conduct courses and issue diplomas or certificates in collaboration with certain foreign institutes universities. In many cases private enterprises conduct campus interviews of the students of such institutes and offer them jobs. Such certificates / diplomas may be accepted for higher education abroad. However, such a certificate / diploma cannot be called as the one ‘recognized by the law for the time being in force’ unless such a diploma/ certificate has been specifically recognized by the statutory authorities such as UGC, AICTE. Consequently, such institutes would not fall under the exempted category and would be subjected to tax.

4. VOCATIONAL TRAINING INSTITUTE

The vocational training institutes are exempted from service tax vide notification no. 24/2004-ST, dated 10.09.2004 (as amended). By definition, such institutes should provide training or coaching that imparts skill to enable the trainee to seek employment or undertake self-employment, directly after such training or coaching. Disputes have arisen in respect of institutes that offer general course on improving communication skills, personality development, how to be effective in group discussions or personal interviews, general grooming and finishing etc. It is claimed that such training or coaching improves the job prospects of a candidate and therefore they are eligible for exemption as ‘vocational training institutes. However, a careful reading of the definition shows that the exemption is available only to such institutes that impart training to enable the trainee to seek employment or self-employment. The courses referred to above do not satisfy this condition because on their own such courses do not prepare a candidate to take up employment or self-employment directly after such training or coaching. They only improve the chances of success for a candidate who already has the required skill. Therefore, such institutes are not covered under the exemption.

5. CONCLUSION

All pending cases may be disposed of accordingly. In case any difficulty is faced in implementing these instructions, the same may be brought to the notice of the undersigned.

(Gautam Bhattacharya)

Commissioner (Service Tax)

CBEC, New Delhi

Rate of Daily Allowance for staff side member of JCM

Three IAF pilots die in test flight crash near Bangalore

IANS
BANGALORE: Three Indian Air Force (IAF) test pilots died Friday when the prototype aircraft Saras of the state-run National Aerospace Laboratories (NAL) crashed near Bidadi, about 30 km from Bangalore, IAF sources said."The Saras aircraft, which took off from the HAL airport in the city at 2.55 p.m. on a test flight, crashed around 4.05 p.m. in a field near Bidadi on the outskirts of the city. The Bangalore rural police told us all the three pilots died after the aircraft caught fire," an official of the IAF's aircraft systems & testing establishment (ASTE) told IANS on phone.The deceased pilots were Squadron Leader Ilairaj, Wing Commander Praveen and Wing Commander Shah.The 14-seater multi-role Saras is an indigenous aircraft, designed and developed by the Bangalore-based NAL for use by the military and civil aviation sector. NAL is a constituent of the Council of Scientific and Industrial Research (CSIR)."The new version of the aircraft was on a regular test flight. It had a smooth take-off from the HAL runway where ASTE is located. About an hour later, the aircraft lost contact with our air traffic control (ATC). We learnt about the crash from the police," the official said on condition of anonymity.The IAF has rushed a rescue team by helicopter to the crash site.With NAL director A.R. Upadhya away in Hyderabad, officials associated with the Saras project declined to comment, saying only the director was authorised to speak to the media."The director is rushing back to Bangalore from Hyderabad. We will get back with details," a NAL official said.

Allotment of Government Residences- Entitlement as per 6th pay Commission

TIPS FOR BOOKING RESERVED TRAIN TICKET IN ADVANCE - PIB Release

A reserved ticket may be booked for any train on the Indian Railways network from any originating station to any destination (subject to distance restrictions and availability of quotas) at any of the Computerised Reservation Centre, across the country. Tickets for onward and return journey may also be booked from any Computerised Reservation Centre.

Tickets may be got reserved 90 days in advance, excluding the date of journey at the rain originating station. At intermediate stations where the train arrives the following day, reservation can be done 91 days in advance. In the case of some intercity day express trains, the advance reservation period is less.

The reservation status will be clearly indicated in the ticket. The status can be either confirmed or RAC or waitlisted or combination thereof. If the ticket is confirmed, coach and berth numbers will be mentioned on the ticket in all classes other than First Class and AC First Class. In case of First Class and AC First Class, the word “Confirmed” will be printed alongside the class of travel. If the ticket is in RAC (Reservation against Cancellation)/Waitlisted status, the same will be mentioned on the ticket. As passenger holding an RAC ticket can board the train. He will be provided with sitting accommodation initially and allotted a berth (in case of passengers not turning up) in the train. Waiting list passengers are not supposed to board the reserved compartment.

While every effort is made to ensure a comfortable, hassle-free journey, Indian Railways are not liable to compensate a passenger due to non-provision of reserved accommodation or for any losses suffered due to late running of trains and other such unintended eventualities which are not willful or deliberately perpetrated.

For the convenience of the passengers, Indian Railways have exclusive counters where they can reserve their tickets through credit card. This facility is presently available only at important Computerised Reservation Centres. A additional service charge of Rs. 30/- is levied when reservation of tickets is done on a credit card.

Reserved tickets can be booked through mobile phones also. The procedures for booking is similar to that of booking tickets through internet. For details, the website www.irctc.co.in may be visited.

Tickets may be booked through the authorized Rail Travellers’ Service Agents (and Railway Tourist Agents), on payment of prescribed charges. No separate reservation quotas have been assigned to these agents and their staff has to take their turn in the queue at the Reservation office for purchasing rickets like any other passenger. Addresses and phone numbers of these Travel Agents can be obtained from the Station Managers.

Central secretariat Service Rules 2009 Notified

Building cost index w.e.f 1/10/2008

Vacancy at IIIT Allahabad, Last date 27/3/2009

CAT comes to aid of whistleblower

Hiral Dave, Rajkot

Says Central Vigilance Commission bowed to influence, failed to protect officer who blew the cover

In a strongly worded order, the Central Administrative Tribunal (CAT) has slammed the Central Vigilance Commission (CVC) for bowing to the “influence of the powers that be”, and for failing to protect an officer who blew the whistle on a multi-crore land scam at the Kandla Port Trust (KPT).

The whistleblower, Manoj Ranjan Kumar, an IES officer, was deputy chairman at KPT. He had to fight a year-long legal battle after he prepared a confidential report exposing a land scam involving top KPT officials.

It related to 1,000 acres of land belonging to KPT, given free to private companies for use without charging any amount as lease. At the heart of the controversial deal was a salt company operating from the KPT land without paying a penny to the government. The total loss suffered by KPT on this account was estimated to be over Rs 190 crore per annum, which, interestingly, exceeded even the port trust’s annual turnover of Rs 180 crore.

With the lid off the scam, Kumar was ordered to go on leave for three months in January 2008, along with the then chairman Janardhan Rao and three other senior officers. The shipping ministry ordered a CBI inquiry but Kumar, on his part, moved the CVC with his report and documents. The CVC did nothing.

In August 2008, the CAT ordered Kumar to be repatriated to KPT, but the shipping ministry issued no orders to enable him to join back. So, Kumar approached the CAT again. Since then, he has been without a posting, and no salary.

In its 113-page order, the CAT has now asked the shipping ministry to pay a token fine of Rs 25,000 and compensation of Rs 25,000 to the officer, while indicting it for harassing Kumar.

The CAT order says that removing the officer from KPT by the ministry was done as ‘a substantial number of people, wielding power, felt threatened and insecure on account of the reports he had made of the scam’.

Now the CBI is investigating the scam, but three important files prepared by Kumar that are considered capable of leading to the prosecution of the higher ups are missing. A police complaint was filed on this account by the KPT but no one was arrested.

A saga of harassment, injustice; says CAT
“None of the reports submitted by the applicant is false, yet the ministry had the audacity to state that instead of devoting his time to the development of the port, he was making frivolous complaints. In our view, he has been meted great injustice. Facts of the case do clearly reveal his agony, harassment and humiliation. We are of the view that he deserves cost which we here by quantify at Rs 25,000. Even this cost may not compensate him in view of marathon litigation forced upon him,” the CAT order says.

The CAT's indictment of CVC
“If the reply would have been filed by the CVC, we are of the view that it would have no choice, but to support the case of the applicant. We may also draw an inference that it is because of the influence exerted by the powers that be that CVC has not filed a reply. We are distressed to note that the applicant, because of his bold stand exposing misdeeds, corruption and irregularities, instead of being protected by the system, had in fact been victimised. The applicant, in our view, required the protection of CVC. If the system may not protect the applicant, in our considered view, the court must come to his rescue. Otherwise, no whistleblower will ever dare to expose corruption. A whistleblower without protection, where higher ups may be involved, may always be a victim himself,” the CAT order said.

Sreelatha Menon: Researchers sans borders

A global net-based project for finding a new TB drug sets the pace for research into poor man's diseases that don't attract big money.

Call it Science 2.0 or merely science without borders. What the Department of Science and Technology (DST) of the government of India has devised to tackle lack of adequate research into drugs for key diseases amounts to just that.

Drugs and diseases are split into haves and have-nots when it comes to attracting funds for research. So, while 399 drugs for treating cancer are under development and a total of 136 drugs are being developed for cardio-vascular conditions, only six drugs have been developed for tuberculosis (TB), which affects a third of the global population. And all of these six drugs were discovered in 50s and 60s. The reason for this is that a poor man’s disease fetches little money and a TB drug with a $300-million market does not lure drug companies, which won’t invest anything in a market that is worth less than a billion dollars, say scientists.

So, the DST’s Council of Scientific and Industrial Research (CSIR) is resorting to open source drug research for TB through its Open Source Drug Discovery (OSDD) Project. It has created a web-based platform that taps scientists, students and researchers across the world, creating a global laboratory that is as fenceless as a paddy field, as its mentor, Dr Samir Brahmachari, director-general of CSIR and former director of Institute of Genomics and Integrative Biology (IGIB), puts it.

The Rs 150-crore OSDD project has so far registered 700 participants from 130 cities. About 56 live projects are visible on the site today. One of the key components of the portal is SysBorg (Systems Biology of Organisms), a wiki-based collaborative research environment where ideas can be shared and project results recorded in an open-lab notebook. Today, SysBorg hosts the largest database on Mycobacterium Tuberculosis, the TB bacteria, thanks to the OSDD’s community laboratory.

Dr Anshu Bharadwaj, a scientist at the IGIB, recently published results of one of the projects completed in collaboration with students and researchers from across the country. The project decoded 400 of the 4,000 genes of Mycobacterium Tuberculosis.

A lone researcher can take years to do it, but she, along with 12 students from Vellore, Chennai, New Delhi and Faridabad has already published the findings on the site, which was launched only last September. Now, someone will validate these against various compounds.

Another researcher has published the targets for some of the genes, that is, areas which are to be targeted with compounds to eliminate the bacteria without harming the human host. Yet another project has shortlisted compounds that are to be tested against the biological targets. Normally, these happen in a linear fashion, points out Bharadwaj. But here, everything is happening simultaneously and so the road to success or failure may be shortened, she says.

Projects are being posted by people from institutes ranging from National Institute for Health in the US, Institute of Life Sciences, Hyderabad, to Chennai’s Anna University. There are 56 live projects online attracting students and researchers.

The CSIR now plans to adopt 30 colleges, whose infrastructure will be upgraded and whose students will work on new experiments required for its project, rather than repeating the experiments being done at their colleges for decades.

The CSIR is thrilled at the prospect of creating a new generation of trained research manpower. Before many of these researchers complete their graduation, they would have publications in their name, some a gene in their name, and so on.

Science can’t get younger than that.

Courtesy: Business standard

MINISTRY OF SCIENCE AND TECHNOLOGY LOK SABHA UNSTARRED QUESTION NO 524 ANSWERED ON 24.02.2009 PAY SCALES (S.O-NFS) IN CSIR

Will the Minister of

SCIENCE AND TECHNOLOGY

be pleased to state:-

(a) whether the CSIR has been taken into consideration the modifications and clarifications made by the Government in the date of adoption of the scheme granting Non-functional pay scale of Rs. 8000-13500 to the Section Officers; (b) if so, the details of implementation of the scheme by CSIR; (c) whether the said scheme is not being implemented in accordance with the approvals granted by the Government; (d) if so, the reaction of the Government thereto and the steps being taken to ensure proper implementation of the scheme by CSIR; (e) whether any complaints have been received by the Government regarding tardy i mplementation of the Scheme and against the spirit of the Government approvals thereto; (f) if so, the details thereof; and (g) if not, the time by which the scheme is likely to be implemented ?

ANSWER

MINISTER OF SCIENCE AND TECHNOLOGY AND MINISTER OF EARTH SCIENCES (KAPIL SIBAL) (a) No Sir, as the scheme formulated by Department of Personnel and Training was specific to Section Officers of Central Secretariat Services, Ministry of Finance, Department of Expenditure did not agree to extend it. (b) The Non Functional Scale of Rs 8000-13500 was implemented in respect of Section Officers w.e.f. 03.10.2003, based on the approval given by the Governing Body of CSIR in its 166th meeting held on 16.02.2006 and the decision dated 17.05.2007. (c) Ministry of Finance, Department of Expenditure, did not agree to extend Non Functional Scale to the CSIR as the scheme was specifically formulated by Department of Personnel and Training for Section Officers of Central Secretariat Services. (d) The issue regarding grant of Non Functional Scale to the Section Officers was taken up with Ministry of Finance, Department of Expenditure both formally and informally and it was not agreed to by the Government. (e & f) Yes Sir. Representations from the employees and references from Director Central Institute of Medicinal & Aromatic Plants (CIMAP), Lucknow and Hon’ble Members of Parliament were received for implementing the Non Functional Scale of Rs 8000-13500 notionally from 1.1.1996 with actual benefit from 3.10.2003. Details of same are given in Annexure I. (g) In view of the observations of Ministry of Finance, Department of Expenditure, Non Functional Scale of Rs 8000-13500 could not be extended notionally wef 01.01.1996.

Credit/Debit Card transactions-Security Issues and Risk mitigation measures -RBI

RBI/2008-2009/387
RBI / DPSS No. 1501 / 02.14.003 / 2008-2009	February 18, 2009
The Chairman and Managing Director / Chief Executive Officers All Scheduled Commercial Banks including RRBs / Urban Co-operative Banks / State Co-operative Banks /. District Central Co-operative Banks
Madam / Dear Sir
Credit/Debit Card transactions- Security Issues and Risk mitigation measures
The use of Credit/Debit Cards has been increasing in the country. We have been reviewing various options to enhance the security of online card transactions. After extensive consultations with banks/card companies, it has been decided as under: 2. It would be mandatory to put in place with effect from August 01, 2009: i) A system of providing for additional authentication/validation based on information not visible on the cards for all on-line card not present transactions except IVR transactions (for which separate instructions will follow). ii) A system of "Online Alerts" to the cardholder for all 'card not present' transactions of the value of Rs. 5,000/ and above. 3. Banks are advised to strictly adhere to the instructions and time discipline indicated in this circular. Non-adherence to the directives shall attract penalties prescribed under the Payment and Settlement Systems Act 2007 (Act 51 of 2007). 4. This directive is issued under section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007). 5. Please acknowledge receipt.
Yours faithfully
(G. Padmanabhan)
Chief General Manager

Age limit for dependent children of government servants for avaling medical facilities- GoI OM Dt 25th Feb,2009

Advertisment of Vacancy by Autonomous Organisation

Deputation of Central Government Employees to ex-cadre posts under Central/State Governments and on Foreign Service to Central/State PSUs/AB

DAVP Advertisement Rates Hiked

The Ministry of Information & Broadcasting has enhanced the existing rates for the DAVP advertisements. The revision of advertisement rates was under consideration of the Ministry on the demand of captains of media industry. The Ministry had taken up the matter with the Ministry of Finance, which has now given its concurrence for the following fiscal stimulus package for the Print Media:

(i) Waiver of 15% Agency Commission on DAVP advertisements till 30th June, 2009.

(ii) 10% increase in the current DAVP rates (to be paid as a separate element and designated as ‘special relief’) subject to documentary proof of loss of revenue in non-governmental advertisements as compared with the same period last year. This would also be available only till 30th June 2009.

New Millennium Indian Technology Leadership Initiative (NMITLI) Scheme -PIB

As a part of New Millennium initiative, the Government mounted a farsighted R&D Programme named ‘New Millennium Indian Technology Leadership Initiative (NMITLI)’ in Public-Private Partnership mode in 2000-01. The programme was announced as part of the Union Budget in the year 2000. The responsibility of conceptualizing, evolving and implementing the programme has been assigned to the Council of Scientific & Industrial Research (CSIR).

The trigger for NMITLI programme was:

• From incremental innovation to disruptive innovation;

• Tolerance for risk taking and failure;

• Best minds in India to take up the grand challenge for collaborative excellence; and

• Technology leadership.

The NMITLI focus is to:

• identify niche areas where India can gain leadership in about 10-15 years;

• develop projects involving best brains of the country through a rigorous process;

• build knowledge network of partners from public funded institutions and private industries;

• develop new methods of working together for collaborative excellence;

• focus on proof-of-concept; and

• provide a pipeline of cutting edge Indian innovation for conventional technology financing bodies as against the ‘usual safe bets.

Today, the New Millennium Indian Technology Leadership Initiative (NMITLI) is the largest public-private-partnership effort within the R&D domain in the country. It looks beyond today’s technology and thus seeks to build, capture and retain for India a leadership position by synergising the best competencies of publicly funded R&D institutions, academia and private industry. The Government finances and plays a catalytic role. It is based on the premise of consciously and deliberately identifying, selecting and supporting potential winners. NMITLI has carved out a unique niche in the innovation space and enjoys an excellent reputation.

NMITLI has so far evolved 57 largely networked projects in diverse areas viz. Agriculture & Plant Biotechnology, General Biotechnology, Bioinformatics, Drugs & Pharmaceuticals, Chemicals, Materials, Information and Communication Technology and Energy. These projects involve 80 industry partners & 270 R&D groups from different institutions. Approximately 1700 researchers are engaged in these projects. These 57 projects cumulatively have had an outlay of approximately Rs. 500 crore.

NMITLI Achievements:

The programme has generated about 100 international patents and 150 publications in peer reviewed journals. The important achievements are:

• Paradigm shift in leather processing-From chemical to biochemical route

• Pilot plants for separating cellulose, hemi-cellulose and lignin from bagasse

• Pilot plants for producing lactic acid from sugarcane juice

• Bio-informatics software viz. Bio-Suite, GenoCluster, Bio-SuiteC and Darshee

• Developed three variants of SofComp (Simple office Computer) devices including Mobilis

• Anti-psoriasis formulation in Phase-III Clinical Trial

• Lysostaphin in Phase-II Clinical Trial

• Anti-tuberculosis molecule in Phase-II Clinical Trial

• poly herbal formulations for diabetes, arthritis and hepatic disorder

• Micro-PCR based immuno-diagnostics for detecting eye infections

• Development of new plant varieties of Mentha piperita

• Development of Triple-Play broadband technology

Key components of CCEA Note:

Enthused by the success of the programme and on the recommendations of several committees, Government has approved the expansion of NMITLI programme to experiment newer models of innovation development. The key components of the proposal are:

Funding along with industry (50:50 Initiative)

There are many Indian companies who are doing financially very well but do not have the necessary expertise and intellectual resources to develop focused network projects for development of technologies/products in their line of activities. Their efforts need complementation from suitable R&D institutions and guidance from recognized peers to develop and commercialize newer technologies/products. Therefore, NMITLI will leverage its experiential base to encourage and assist such companies for developing network projects for those companies in product/technology development through a specific scheme called ‘NMITLI 50:50 initiative’.

Co-financing with Venture Capital funds

Many venture capitals are limited in scope and risk taking, due to lack of domain knowledge within the organization. Venture Capitals are therefore interested in joining hands with NMITLI, which has strong domain knowledge base, to jointly finance projects. Such projects would be identified and evolved following the procedures established by NMITLI. The funding would be joint with pre-determined ratio, but not more than 50% contribution from NMITLI. These projects are envisaged to be monitored by a joint team of experts as per the NMITLI monitoring mechanism. The proposed funding would follow the venture funding norms. The successes and failures resulting from the projects will be shared on equitable basis.

Setting up of NMITLI innovation centres in selected areas for long term sustained efforts

Some areas need long term sustained support with requisite human resource as well as infrastructure, assembled at one place to cross the threshold of intellectual barrier in order to generate globally competitive technologies and products, IPR, and high quality publications. It is envisaged to set up ‘NMITLI Innovation Centres’ in PPP mode for sustained efforts in some selected areas for example, Photovoltaics, Fuel Cells, White LEDs, Industrial Enzymes, Medical Implants, Vaccine development, Seed Development etc.

Support to post NMITLI projects

Despite the excellent R&D and developments, the technologies and products developed in the laboratory do need market seeding, pilot plant studies to refine the development. The companies need CSIR’s hand holding to develop and package the technologies/products further. The concept of ‘Post-NMITLI’ will fulfill the objective of providing financial and technical assistance for pre-commercialization related activities such as scale up, pilot plants, field trials, market seeding of products, market surveys, etc.

Acquisition of early stage relevant knowledge / IP for portfolio building

External ideas / leads / IP acquisition are assuming greater significance in the chain of innovation and mind to market. The availability of a large number of unencumbered IP (being developed in several laboratories globally) is providing a fillip to this approach. Several countries across the globe are striving to take advantage of the diversity of creativity available in different parts of world and integrate with its own developments to bring out new products / processes for global competitiveness. Since NMITLI aims to provide the Technological Leadership to the Indian industry, it becomes imperative for NMITLI to adopt such practices to achieve its objectives. Such acquisitions shall be in chosen areas with a view to creating a portfolio where NMITLI projects are in operation.

Crossing the geographical boundaries

It is increasingly being felt that to achieve leadership in niche technology areas, relying totally on internal expertise and capabilities may not be adequate. To achieve the objective of global leadership, it would be helpful to broaden the programme by bringing in international expertise. The international expertise may be in the form of expert advise of international experts at various stages of project development and implementation, involving international companies for product/technology development and commercialization at global scale, and engaging research institutions and/or CROs across the globe where Indian expertise need outside complementation.

Joint development and support of projects with other departments of science and technology as well as economic ministries

Many government departments are engaged in research and development activities in areas of relevance to them. These activities often have considerable degree of overlap with other scientific departments. However, these departments’s expertise is limited to undertake multi-disciplinary projects in cutting edge areas requiring wide-spectrum of intellectual and infrastructural inputs. Such multi-disciplinary areas need expertise, inputs and concerted efforts from all concerned government departments to generate IPR, technologies and products besides high quality publications. Therefore, part of the NMITLI funds will be utilized to generate inter-departmental projects in the XI FY Plan. The proposed scheme apart from generating intellectual capital, technologies and products in cutting edge areas would act as a catalyst to bring better co-ordination among various departments of government in the R&D sphere.

Relaxing the condition of more than 50% shareholding by Indians/Non-resident Indians

Many oversees companies through their R&D efforts using local resources, produce goods for local as well as overseas consumption and are thus contributing to the growth of Indian economy. They also employ Indian workforce. In some areas, such companies are better equipped to upscale the technology/products and sell it under their brand name. Further, they can become a vehicle for taking Indian technologies and products into global market easily thereby contributing more to Indian economy. The provision permits relaxation of the condition of more than 50% shareholding by Indians/Non-resident Indians to become an industrial partner in NMITLI projects.

Flexibility to convert loan into equity

Launching a new product or setting a knowledge based new venture requires investment on many fronts particularly for capital-intensive infrastructure, manpower, technology costs, working capital etc. Governments all over the world, particularly in developed countries endeavor to support entrepreneurs in different ways to ease the burden of initial investment. The industrial partner under NMITLI has to invest for commercialization of technology/products and at the same time has to return the loan to CSIR albeit in installments. This burden of loan repayment can be further reduced by converting loan into equity. Therefore, with this provision and on the request of industrial partner, loan given to it may be converted into equity.

Advantages of NMITLI Expansion:

As others are emulating, NMITLI is endeavoring to position higher in the innovation development. The proposal will therefore:

 enable CSIR to experiment newer models of innovation development in Public-Private-Partnership (PPP) mode, which could later become models for others to emulate;

 encourage to develop products / processes based on innovation and thereby help Indian industry emerge as a technology leader in the identified domain;

 encourage venture capital funds to venture into more risky R&D areas;

 act as a catalyst to bring better co-ordination among various departments of government in the R&D sphere and avoid unnecessary duplication, apart from generating intellectual capital, technologies and products in cutting edge areas; and

 enhance national competitiveness.

New govt staff to get family, disability pension: Govt

23 Feb 2009, 2232 hrs IST, PTI NEW DELHI:
The government on Monday approved temporary measures to provide benefits like family and disability pension to staff recruited after January 1, 2004.

"The Cabinet has decided that on a provisional basis existing rules in respect of these special pensionary benefits, which apply to government servants prior to January 1, 2004 will also apply to those recruited after that date", Home Minister P Chidambaram told reporters after the meeting.

The government employees, except defence personnel, who have joined the service after January 1, 2004 are covered by the defined pension scheme which does not address situations like dying in harness, indirect pension, family pension and disability pension, the Minister said.

Pending report by the high level task force looking into the issue and formulation of new rules, the temporary provisions would continue, he said.

Bidding not an end in itself: Allow single bid projects

Government is considering a proposal to permit single-bid road projects to go through. Earlier, the railways had thought of seeking Central

Vigilance Commission (CVC) protection before awarding diesel and electric engine manufacturing projects to sole bidders, but eventually decided to do it in-house.

Clearly, these instances indicate the process of awarding projects seems to have become more important than getting the project started quickly. The basic idea behind competitive bidding for any project is to give an opportunity to everyone and, through a market mechanism, obtain the least cost solution.

Clearly, to the extent there is an open bidding the first purpose of giving an opportunity to everyone has been served. If only one bidder chooses to participate in such a bidding, then so be it. The second issue is more important. In a single-bidder situation, the lack of competition would mean the quoted price may not be the best from the perspective of the one inviting the bids or awarding the project.

In such an event, there are two choices, both entailing some costs. One, the entire process can be aborted and bids called again. There is direct calculable costs of this action, escalation in project cost through delay and the loss of opportunity; there is a also the lesser cost of the bid process itself. As opposed to this, if the project is awarded to the sole bidder, the only cost is the possibility of a better price discovery, if there were more bidders. However, there is no way of knowing if in a multiple bid situation the price discovered would have been lower.

Therefore, it makes sense to award a project even if there is only a single bidder. However, the government must make an internal assessment of costs or tariff, depending on the nature of the project, and set a sort of reserve price. If the single bid betters the reserve price then the projects should be awarded.

In the current environment when investment sentiment is extremely poor, the priority should be to facilitate projects and not get too caught up in procedures. The bid documents should provide for the possibility of projects going to a single bidder and the CVC would do well to ensure that such awards do not become controversial.
Courtesy: Economic Times

Vacany at Department of Biotechnology, last Date 1/4/2009

VIRTUAL ISSUE

Hosts liable only for own content on Net
Manoj Mitta | TNN

New Delhi: While internet users may face libel for what they write themselves, the “intermediaries” who host such content are liable only if they are consciously complicit to the offence or fail to remove the offending material immediately after it is brought to their notice by the authorities.
This is evident from the amended Information Technology Act, which came into effect barely 20 days ago. Hence, when the Supreme Court rebuffed this week an internet user’s plea to quash criminal action, it steered clear of making any observations about the corresponding liability of intermediaries.
The new Indian law is in keeping with the international trend of limiting the liability of intermediaries to situations where they act as “publishers” (with scope to moderate or edit the content) rather than as “distributors” (aggregators of information like libraries and book shops).
Accordingly, the amended section 79, which was in the Bill that was passed by Parliament in December 2008, says that where the intermediary in effect acts as no more than a distributor, he “shall not be liable for any third party information, data or communication link made available or hosted by him.”
Section 79 provides that the intermediary is exempt from liability in all cases where:
the function of the intermediary is limited to providing access to a communication system over which information made available by third parties is transmitted or temporarily stored or hosted;
the intermediary does not (i) initiate the transmission, (ii) select the
receiver of the transmission, and (iii) select or modify the information contained in the transmission;
the intermediary observes due diligence while discharging his duties under this Act and also observes such other guidelines as the Central Government may prescribe in this behalf.
An ‘‘intermediary’’ has been defined in the amended law as “any person who on behalf of another person receives, stores or transmits that record or provides any service with respect to that record and includes telecom service providers, network service providers, internet service providers, web-hosting service providers, search engines, online payment sites, online auction sites, online market places and cyber cafes.”
The elaborate safeguards for intermediaries contained were drafted in the wake of the industrywide scare spread by the 2004 DPS-MMS scandal, which led to the arrest of the CEO of auction site baazee.com where a CD containing the salacious clip was offered on sale by a user.
Conversely, section 79 says that the immunity against criminal liability shall not apply in cases where “the intermediary has conspired or abetted or aided or induced whether by threats or promise or otherwise in the commission of the unlawful act.”
But the police had sought to justify the CEO’s arrest by accusing him of taking too long to remove the CD from the auction site. Now the amended section 79 stipulates that the intermediary is liable to criminal action where “upon receiving actual knowledge, or on being notified by the appropriate government or its agency that any information ... the intermediary fails to expeditiously remove ... that material’’.
Courtesy: TOI

Vacancy at NIFT , Last date 12/03/2009

Important Instructions

Candidates should read the instructions and conditions carefully, before applying.

For posts to be filled up on Deputation basis :

Candidates working in Government Ministries/Departments/Organizations/PSUs/Autonomous Bodies/Universities/Research Organizations should apply through proper channel alongwith ACRs and Vigilance/Cadre Clearance for consideration. No fee is required to be paid. Appointments will be on standard deputation terms and condition as issued by DOPT from time to time. The maximum age limit for applying on deputation for all posts is 56 years as on last date of receipt of applications.

Candidates should ensure that they fulfill the qualification/experience requirements given below, for applying on deputation basis.

How to apply:-

Application forms can be downloaded from the NIFT website (www.nift.ac.in). Applications in the prescribed proforma should be addressed to Registrar (Establishment), National Institute of Fashion Technology, NIFT Campus, Hauz Khas, Near Gulmohar Park, New Delhi-110016. The last date of receipt of the applications is 12th March, 2009.

Eligibility requirements for posts on Deputation basis

S. No.	Name of the Post	Pay Band + Grade Pay	Centres	Eligibility Criteria
1.	Director	PB 4 - Rs. 37400-67000 + 8700 (GP)	Patna, Delhi, Kolkata, Rae Bareli, Head Office, Kannur, Kangra.	Officers of the rank of Dy. Secretary/Director or in Senior Scale in Govt. of India from All India Services, Other Central Services and State Civil Services
2.	Registrar	PB 3 – Rs. 15600-39100 + 7600 (GP)	Kolkata, Patna, Kannur, Bangalore, Kangra	Officers of the Central Govt. / State Govt. / UT/ Autonomous Organization / PSUs holding analogous post on regular basis in their service / department or with atleast 5 years of service in the scale of Rs. 10000-325-15200 with relevant experience in dealing with Establishment & Administrative matters.
3.	Deputy Registrar	PB 3 – Rs. 15600-39100 + 6600 (GP)	Head Office	Officers of the Central Govt. / State Govt. / UT/ Autonomous Organization / PSUs holding analogous post on regular basis in their service / department or with atleast 5 years of service in the scale of Rs. 8000-275-13500 with relevant experience in dealing with Establishment & Administrative matters
4.	Deputy Registrar (Finance & Accounts)	PB 3 – Rs. 15600-39100 + 6600 (GP)	Bhopal, Patna, Kannur, Shillong, Gandhinagar, Kangra.	Officers of the Central Govt. / State Govt. / UT/ Autonomous Organization / PSUs holding analogous post on regular basis in their service / department or with atleast 5 years of service in the scale of Rs. 8000-275-15200 with relevant experience in dealing with Finance and Accounts matters.
5.	Executive Engineer	PB 3 – Rs. 15600-39100 + 6600 (GP)	Delhi, Kolkata, Rae Bareli, Chennai	Must have atleast 3 years experience as Assistant Executive Engineer (Civil) in CPWD / PWD or related Government organizations/ autonomous bodies/ PSUs/ reputed private industries holding analogous post on regular basis in their service / department.
6.	Deputy Director	PB 3 – Rs. 15600-39100 + 6600 (GP)	Head Office	Officers of the Central Govt. Services holding analogous post or with at least 3 years of service in the pay scale of Rs.8000-275-13500 or 5 years in Rs.6500-200-10500 with relevant experience in dealing with Administration, Establishment, Vigilance & Legal matters
7.	Head Resource Centre	PB 3 – Rs. 15600-39100 + 5400 (GP)	Kolkata, Rae Bareli, Gandhinagar	Officers of the Central Govt. / State Govt. / UT/ Autonomous Organization / PSUs holding analogous post on regular basis in their service / department or with at least 5 years of service in the pay scale of Rs. 6500-200-10500 with relevant experience in Library Management holding analogous post on regular basis in their service / department.
8.	Accounts Officer	PB 3 – Rs. 15600-39100 + 5400 (GP)	Kolkata, Patna, Delhi, Rae Bareli, Bhopal, Kannur, Kangra	Officers of the Central Govt. / State Govt./UT/Autonomous Organization / PSUs holding analogous post on regular basis in their service / department or with at least 3 years of service in the scale of Rs. 6500-200-10500/- (pre revised) with the relevant experience in Accounts, Purchases and Finance.

Vacancy of Deputy Chief Accounts Officer at DDA , Last Date with in 45 Days

Cancellation charges under Tatkal Ticket System

A flat refund of 25% of total fare charged on the ticket, excluding Tatkal charges is granted on cancellation of confirmed Tatkal ticket, which are presented for cancellation upto 24 hours before the schedule departure of the train. Thereafter, no refund is granted on cancellation of confirmed Tatkal tickets.

However, full refund of fare and Tatkal Charges is granted on the tickets booked under Tatkal Scheme in the following circumstances:-

1. If the train is delayed by more than 3 hours at the journey originating point of the passenger & not the boarding point if the passenger’s journey originating point and boarding point are different;

2. If the train is to run on a diverted route and the passenger is not willing to travel;

3. If the train is to run on diverted route and boarding station or the destination station or both the stations are not on the diverted route;

4. In case of non-attachment of coach in which Tatkal Accommodation has been earmarked and the passenger has not been provided accommodation in the same class;

5. If the party has been accommodated in lower class and does not want to travel. In case the party travels in lower class, the passenger will be given refund of difference of fare and also the difference of Tatkal charges, if any;

In case of wait list/partially confirmed Tatkal tickets, refund rules of normal tickets are applicable.

This information was given by the Minister of State for Ministry of Railways, Dr. R. Velu in a written reply in Lok Sabha today.

Don’t compel customers to drop cheques in boxes: RBI to banks

Banks have further been asked to create customer awareness by displaying on the cheque drop box itself that “customers can also tender the cheques at the counter and obtain acknowledgment on the pay-in-slips”

PTI

New Delhi: With a number of incidents of cheque theft from the drop boxes coming to light, the Reserve Bank has asked the banks not to force their customers to drop the cheques in the boxes only, Parliament was informed on Wednesday.
“(The) Reserve Bank of India (RBI) has informed that a few such incidents have been reported by the complainants to the offices of the banking ombudsman,” minister of state for finance P.K. Bansal said in a written reply to the Lok Sabha.
RBI has further reported that the details of such cases are not compiled separately as they are categorised as 8(1)(a) of the Banking Ombudsman Scheme, 2006, i.e. non-payment or inordinate delay in the payment of collection of cheques, he said.
“RBI has advised the banks that they should ensure that customers are not compelled to drop the cheques in the drop box,” the minister said.
Banks have further been asked to create customer awareness by displaying on the cheque drop box itself that “customers can also tender the cheques at the counter and obtain acknowledgment on the pay-in-slips”.
The banks have also been advised to make absolutely full proof arrangements accounting for the number of instruments each time the box is opened so that there are no disputes and the customer’s interest are not compromised.