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Wednesday, April 30, 2008

Jackie sets record straight

Actor Jackie Chan will not forget his recent trip to Chennai soon. He is said to have been greatly troubled by a report on him carried in an English daily after the audio launch of Dasavatharam held recently.

Refuting the allegations made in the report, Jackie has written a long piece on his official website ( www.jackiechan.com) to “set the record straight”.

He writes: “When I saw some of the news reports on the Internet, I was extremely upset. One article accused me of ridiculous things like refusing to drink India’s bottled water — they said I brought my own imported mineral water — and travelling with my own personal chefs because I refuse to eat Indian food.

“There were also reports of my so-called offensive behavior, dismissing the Indian stars and not talking to anyone. What complete nonsense! I have nothing but respect for Indian culture and Indian cinema, and even though I may not know all the stars by name or how to properly pronounce the names of the ones I do know, this has nothing to do with my admiration for them. And saying that I won’t eat Indian food! Nothing could be further from the truth; I adore Indian food, and in fact had two excellent meals on this trip and was so full I could barely leave my seat!”

While reminiscing the nicer moments of his trip to India, he says: “But truly, these irresponsible “reporters” spoiled the memory of my trip, and I am so afraid that when my gracious and wonderful hosts read the lies, they may get the complete wrong impression of me and my feelings about them and about the event.”

Jackie has the following questions for the “irresponsible reporters”:

“To the reporters who wrote those offensive articles, I say this: You say I brought my own water. What brand did I bring? You can find out from the housekeepers at the hotel whether I did such a thing. You say I refused to eat Indian food. Do your research and talk to the three butlers the hotel assigned to my room and ask them what I ate! You say I holed up in my air-conditioned hotel room, ignoring my hosts. Why would I travel all the way to India and refuse to leave my hotel room?”

Dasavatharam producer Oscar V. Ravichandran told The Hindu that the first thing Jackie asked them after he landed in Chennai was when he was scheduled to meet the press.

“He told us that he would need to know the questions in advance as he was not too comfortable speaking English,” Mr. Ravichandran added.

“He made absolutely no fuss at the hotel and was totally cooperative. He obliged photographers and visitors who wanted to take photographs and had south Indian cuisine for lunch, took a small nap and came back at 3 p.m. Later, he sat with Mallika Sherawat and worked on his speech, and took her help to get our names right,” Mr. Ravichandran said.

Jackie, who later got the Chief Minister’s speech translated, was very touched that he had done so much research about his career.

“He felt bad about not having prepared his speech well,” Mr. Ravichandran said.

“At the airport he told me: ‘If you are feeling bad because of the reports about my trip, I am really sorry. I had a wonderful time here and I am overwhelmed by the love and admiration Indians have for me.”

Monday, April 28, 2008

Tata group to examine investing more in State

A third Tidel Park will come up here in the next two years. The Rs.3,000-crore Information Technology park that will come up on an area of 25.27 acres opposite the present Tidel Park will be a joint venture between Tata Realty, the Tamil Nadu Industrial Development Corporation (TIDCO) and Indian Hotels Company Limited.

A Memorandum of Understanding to set up the park and associated facilities was signed here on Monday between two Tata group companies and TIDCO, in the presence of Chief Minister M. Karunanidhi.

At the meeting organised at the Secretariat to sign the MoU, Tata Realty and Infrastructure president R.K. Krishnakumar assured the Chief Minister that the Tatas would deploy a dedicated group of senior professionals to examine the possibility of making further investments in the State in the manufacturing sector. The group would hold discussions with the Industries Department, SIPCOT and TIDCO to discuss the options, he told Mr. Karunanidhi, in response to a query from him.

Assuming the role of one seeking to sell the concept of Tamil Nadu as an investment destination — a role he has donned from the time he took over as Chief Minister in May 2006 — the Chief Minister asked Mr. Krishnakumar: “Why don’t you consider setting up a car manufacturing unit here?” He added: “The Chennai Port is the best port to export cars. You should look at Tamil Nadu.”

The Chief Minister told him that most major car manufacturers had established assembly lines in the State and that the Tatas should consider doing the same.

Mr. Krishnakumar said the Tata Group would consider the suggestion, and immediately told Mr. Karunanidhi that he would set up a group of top professionals from the group to explore opportunities in Tamil Nadu for Tata Motors and other concerns of the group.

Mr. Krishnakumar exchanged the MoU documents with S. Ramasundaram, chairman and managing director, TIDCO. The entity is expected to achieve financial closure by May 27. “Land cost forms the bulk of the investment. Once the land cost is paid we will transfer the title to them,” Mr. Ramasundaram told The Hindu. After the transfer, the process of notification from the board of approval would be sought. This was necessary to get tax exemption for civil works.

The notification was expected around June-end. The firm would work on design and CMDA approvals from then on, and the first phase of the 2.1 million sq ft of IT space was expected to be ready by end-2009.

The remaining 1.5 million sq ft would be ready by early 2011, Mr. Krishnakumar told the Chief Minister. “Make that 2010,” the Chief Minister requested him. Mr. Krishnakumar said this should be possible. When completed, the facility would house firms that employ over 55,000 professionals and support staff.

Friday, April 25, 2008

Jackie comes to town


Hollywood actor Jackie Chan, checking into Hotel Taj Coromandel in Chennai on Thursday. He is in the city to participate in the audio launch of Kamal Hassan’s “Dasavatharam.”

Tuesday, April 22, 2008

A test of sorts for IPL


A city that has savoured cricket’s uniqueness in an erstwhile era will witness the game’s condensed future on Wednesday.

The Indian Premier League Twenty20 series has set foot in many Indian cities, but its biggest challenge lies in convincing cricket’s keenest observers of its purpose. The big question now: Will entertainment for its own sake appeal to Chennai’s cricket lovers?

The agenda for Wednesday is clear. Much before loyalties are sorted out for Chennai Super Kings vs Mumbai Indians, the paying public will be forewarned of the IPL’s essence, with performances by Sivamani and Hariharan, and the presence of brand ambassadors Vijay and Nayanthara.

The idea of entertainment can ill afford to lose itself in the cricket. Entertainment in its different forms has been well-received in the city, but its impact when combined with sport will be put to test through the course of the seven matches here. Independent of the glitz and the glamour, the cricket has to draw crowds.

Former cricketer V.B. Chandrasekhar, Director, Cricketing Activities, of Chennai Super Kings, was quite confident of Chennai’s appetite for entertaining cricket.

Adieu, Admiralty House


The demolition of the Government House here, the oldest building on the Government Estate, has begun.

On Monday, workers were breaking the roof of the heritage building, commonly known as the Admiralty House, with giant hammers. The demolition will be completed in 40 days, according to an official of the Public Works Department, the custodian of the Estate properties. Some other buildings on the Estate will also be demolished, including the old MLAs’ quarters. The official says that as the buildings are vacated, they will be pulled down. The department hopes to complete the demolition of all the identified buildings by the end of next month.

The exercise is being carried out to facilitate the execution of the Rs. 200-crore Assembly complex project.

The government has selected a German-based architectural firm for the Assembly project. As per the present proposals, there will be two blocks – one housing the Assembly complex and offices of the Chief Minister and Ministers and the other accommodating offices of various government departments. While the first block will have ground and six floors, the second is likely to be a high-rise building, having a maximum of 20 floors. The government is planning to commence the construction of the proposed Assembly complex by September.

Till recently, the Government House building was occupied by the different wings of the Police department such as Crime Branch-Criminal Investigation Department (CB-CID) wing, the Economic Offences wing and Narcotics Intelligence Bureau-CID. The wings have been shifted to different places in the city. In the mid-1990s, the building, as a makeshift arrangement, even served as the headquarters of the Police department when the government undertook renovation of the DGP office building on the Marina, which is yet another heritage landmark. Till Independence, the Government House was the residence of Governors. For sometime, it also functioned as the MLAs’ hostel.

S. Muthiah, historian, wrote about the importance of the heritage monument on several occasions in The Hindu. In his column on October 29 last year, he wrote that after the French left the Fort St. George’s buildings in a shambles, Governor Thomas Saunders of the British East India Company in 1752 rented a house belonging to the wealthy Mrs. Antonia de Madeiros just across the Island from the Fort. On August 28, 1753 the Government of Madras bought the house for 3500 pagodas to serve as the Governor’s garden house. Only in 1947 did the Governor’s residence move to the present location in Guindy – Raj Bhavan.

Saturday, April 19, 2008

Solar streetlights for city slums soon

Light gifted by the sun continued to illuminate the Kalvai Karai slum in Tod Hunter Nagar after dusk on Saturday. Sixty streetlights with 18-watt Compact Fluorescent Lamps that automatically get illuminated as the sun sets and switch off when it rises have been set up in the slum in Saidapet at a cost of Rs.11.5 lakh.
“This is a budgetary proposal that has been implemented in record time,” Chennai Corporation Commissioner Rajesh Lakhoni said.

While these solar-powered lamps cost a few thousands more than the ordinary lamps, the cost can be recovered in a year or a year and a half.

Mayor M. Subramanian said that the scheme would result in substantial saving on the Rs.18 crore the local body has to pay the Tamil Nadu Electricity Board (TNEB) every year. The solar-powered streetlights have been proposed for slum areas with narrow roads and would be set up at one location each in all 10 zones.

The standard 20-watt streetlight uses about 19.8 units of electricity a day. The use of one solar-powered lamp as replacement would save 594 units every month.

Currently, all of the over 1.2 lakh streetlights in the city function on electricity drawn from the TNEB lines.

The Corporation has installed more than 4,000 streetlights and 10 high-mast lamps over the last year alone, Mr.Subramanian said. In the current financial year, the local body proposed to install 12,000 streetlights and 23 high-mast lamps.

The Corporation was also set to bring down the current amount of three or four per cent of non-functioning streetlights to zero.

Steps to check price rise in Tamil Nadu

The Tamil Nadu government on Saturday announced a series of measures to combat the increase in the prices of essential commodities. The multi-pronged efforts will include the import of dhal, direct purchase of wheat from the northern States and placing restrictions on the amount of food commodities that can be stocked by traders.

A high-level meeting convened by Chief Minister M. Karunanidhi decided to fix a ceiling on stocks of edible oil and rice that may be maintained both by retail merchants and wholesale traders. The quantum will be fixed soon.

Similarly there will be restrictions in stocking wheat, wheat flour and dhal varieties. Wholesale traders may not stock above 100 tonnes of wheat and 250 tonnes of dhal. For retail merchants, the limit is 3.125 tonnes of wheat and 6.25 tonnes of dhal. The purpose of imposing the restrictions, according to an official press release, is to check hoarding and black marketing.

Kamal in ‘Dasavatharam’ impresses Karunanidhi





With about five days left for the audio launch of Dasavatharam, the latest dope on what seems like one of the most extravagant pre-release events is Kollywood’s latest interest.

Apart from Jackie Chan and other senior artists from different parts of the country, Chief Minister M. Karunanidhi will also participate in the mega event to be held at the Nehru Indoor Stadium. It will later be telecast on Kalaignar TV, industry sources said.

The team showed a trailer of the film to the Chief Minister recently. Mr. Karunanidhi is said to have been very impressed with Kamal Haasan’s efforts and congratulated him with a hug and a kiss. He asked the actor, “Are all those people really you?”

Sources said the actor plays 10 different characters and the story is not about one person in different guises.

It is learnt that the story begins with an episode set in the 12th century, and then looks at coincidences. In this, Kamal plays Nambi, a staunch V aishnavite priest. Lyricist Vaali’s lines - ‘Kallai mattum paarthal kadavul theriyadu, kadavul mattum paarthal kalladi theriyadu…” powerfully describe the character’s devotion in playback singer Hariharan’s voice.

The other characters are an American, a Chinese man, a CBI officer from Andhra Pradesh, an old lady, a leader from Afghanistan, a Scheduled Tribes’ leader, George Bush, a Punjabi and one character, who looks like Kamal normally does.

The film apparently has a very simple screenplay sans usual elements of commercial films such as duets and unwarranted action. The actor has dubbed for all the characters, modulating his voice appropriately. Besides watching a lot of video recordings of George Bush, the actor also put in extra efforts to get his tone and accent right. He also took the help of daughter Shruti while attempting to perfect the accent.
Make-up menace

The make up for the different characters took as long as nine hours. However, it would not stay even for an hour. This meant that the actor started his day at 3 a.m., spent time on make up till noon, started shooting at 1 p.m. and wound up before 2 p.m. He would sit straight and drink fluids using a straw with minimum possible movement of facial muscles to ensure the make up was not disturbed.

The still (used here) is to be blown up to form a backdrop at the audio launch on Friday. It shows Nambi chained and tied to an idol of Vishnu and thrown into the sea.

Guideline Values Tirumangalam


An inconvenient truth in Chennai


For as long as she can remember, little Kannagi has been living among the mountainous heaps of garbage in the Perungudi garbage dump.

Kannagi, who looks seven or eight, cannot count but she knows that the more metal pieces and plastic containers she collects, the more pleased her mother will be. Every day she trudges on hills of garbage, sifting through the waste for material that can be resold.

About 1,500 tonnes of the 3,500 tonnes of garbage generated by Chennai ends up in the Perungudi dump every day. The rest goes to the Kodungaiyur dump yard in north Chennai.

Two weeks ago, the Madras High Court directed the Chennai Corporation to float tenders for an integrated waste management facility in Perungudi. The court also said that all encroachments on the Pallikaranai marsh should be removed.

Even with an integrated waste management facility, life is not likely to change much for children like Kannagi who work as rag-pickers in the dump. At least 30 children can be found among the garbage everyday as they salvage materials for resale.

Most of the children have never been inside a school. The only school bags that they have held are the broken ones they pick up from the trash. A day's labour fetches each of the little rag-pickers Rs. 10-Rs. 20.

The price they pay is much more. Guna, a teenager working in the dump, has a persistent cough due to the exposure to fumes from burning garbage. Another boy has a wound on his leg that has not healed because he has to wade through waste. Used bandages, syringes and old batteries dot the waste heaps.

While children should not be allowed to work, adult ragpickers can be provided with support, says G. Dattatri, a former urban planner with the Chennai Metropolitan Development Authority. At present, rag-pickers play an informal but significant role in waste management. The Corporation can protect the health of adults by providing masks and gloves, he said.

The city is eight years behind in complying with the Municipal Solid Waste Rules of 2000, which stipulate segregation and processing of waste. Garbage dumping in the Perungudi - Pallikaranai marshland has also harmed the ecology of the wetland and burning of wastes has polluted the air.

Exnora Founder M.B. Nirmal called for decentralised solutions to manage waste. "Rather than end-of-the-pipe solutions, source segregation of garbage must be encouraged to reduce the load on the garbage dumps," he said.

Corporation officials said the source segregation concept has been introduced in 10 of the 155 wards in the city. The drive would be extended in phases to the rest of the city in two years.

Friday, April 18, 2008

Murdoch launches Myspace in India

The world's most popular social networking site, MySpace -- owned by News Corporation which is run by media tycoon Rupert Murdoch -- was officially launched in India today.

The site, christened MySpace India, is planning to offer music through its partnerships with SaReGaMa -- the well-known music label owned by the RPG group. MySpace's Chief Operating Officer, Amit Kapur, said: "We are producing a series of albums in association with SaReGaMa for both national and international audiences."

The site will organise a group of 30 aspiring bands from across three cities for the initiative. MySpace India industry alliances including a partnership with India's largest television network Star TV.

MySpace India, which is trying to position itself as an entertainment site too, is a part of the company's rapid expansion which includes a network of 29 international territories.

MySpace's Managing Director (International), Travis Katz, said: "We will be providing the people of India the tools they need to live their lives online and empower them with a launch pad for Indian creators from developers, to musicians to filmmakers, to showcase their talents on the global stage."

MySpace India, said Katz, will deliver content through a range of industry partnerships and product innovations including an alliance with Star TV, India's largest television network, to create an original network television program "Campus Star" featured on Channel V. "The new show, currently airing on television in India, is a nationwide college talent competition featuring celebrity judges and the voting MySpace audience," he said.

In the US, MySpace -- which has around 110 million users -- had recently announced plans for a new online music download service, pitting it directly against Apple iTunes and raising the stakes on the digital media battlefront.

The venture, called MySpace Music, offers free streaming music, MP3 downloads, concert tickets, mobile phone ringtones and band merchandise. MySpace along with music labels like Universal Music, Sony BMG and Warner Music Group have their music catalogs available on MySpace Music. Kapur is not ruling out a similar tie-up for the India market, "We think it will be easy to replicate the partnerships for Indian audiences where the market is much larger for such multimedia content."


MySpace will encourage Indian developers to work with the company in order to develop customized applications for the social networking portal. "MySpace Developer Platform team will be on-site in Bangalore soon to welcome local developers onto the open MySpace platform," revealed Kapur.

MySpace, he insisted, is committed to working with local developers across India and build build local applications for the site's more than 250 million registers users worldwide. To date, MySpace has hosted local "devJAM" developer workshops in Beijing, Tokyo, Seoul, Sydney, London, Berlin, Seattle, Stockholm, and San Francisco.

Tuesday, April 15, 2008

Spots for metro rail stations identified

The locations of stations along the two metro railway lines — one between Washermenpet and the airport and the other between Fort station and St. Thomas Mount — have been finalised. The project work is expected to begin in 2008-09. It is to be ready in six years.

The Delhi Metro Rail Corporation Ltd (DMRC) has identified the land required for them and drawn up the building footprint and alignment. Detailed drawings showing the location along the road and within a given property are ready.

The Japan Bank for International Cooperation, the funding agency, has appointed an independent consultant to study the proposal before granting its final approval and releasing funds. The government will issue land acquisition notices after the proposal is fully and finally approved. The architectural design of the stations will also be taken up at that point.

The total length of the metro line is 46.5 km and the project cost is Rs.9,575 crore. A length of about 20 km will be underground and the remaining part will be on elevated structures. The State government has formed the Chennai Metro Rail Company to execute the project, and the DMRC will be associated with the project till completion.

‘An honour to play for Super Kings’


Muttiah Muralitharan’s big eyes tell several tales. Importantly, they retain their sparkle.

Despite the physical and mental demands of international cricket, the 35-year-old Muralitharan has the enthusiasm of a beginner. Every match is a new day and a fresh experience.

“If you don’t enjoy the game, you should stop playing,” he says. Sport for him is a “nice way of getting to know people.” He adds, “You play for enjoyment, for fun, and the pride of representing your people, country and team.”

It has been no fun though for his 735 and 464 victims in Tests and ODIs. Done in by turn and bounce, they have been consumed by the ‘Smiling Assassin’.

Monday, April 14, 2008

First part of Chennai Circular Corridor set to take off

CHENNAI: Tamil Nadu Urban Infrastructure Financial Services Limited (TNUIFSL) has decided to take up the Adyar River Front Project as the first part of the Rs. 2,300-crore Chennai Circular Corridor.

The financial services firm has decided to clean up the Adyar, use the Adyar Creek, and build a dedicated carriageway on both sides of the river for a Bus Rapid Transport System (BRTS) to reduce traffic congestion. From Ramapuram to Porur-Poonamallee, the BRTS would be on an elevated corridor that would connect with the Chennai bypass (Maduravoyal to Manali). The total stretch from the Adyar to Porur is approximately 11.5 km. The cost per km will be about Rs. 40 crore.

TNUIFSL has sought the State government’s permission to start the feasibility study.

After getting the green signal, it will complete the feasibility report in nine months and the Detailed Project Report (DPR) in three months.

It will go through the competitive bidding route to select the international partners to prepare the DPR.

Smart card system


TNUIFSL managing director and chief executive officer Vikram Kapur told The Hindu: “We don’t want to kill the existing rivers. We are trying to revive them, create enough space and reclaim some area for the development of a park, promenade and carriageway. We also have two or three concepts like a multilayer carriageway for two and three wheelers, or dedicated lines for buses and multi-modal transport. The buses will be of international standards. We will use a smart card-based system.”

According to TNUIFSL officials, the feasibility report would be for the entire alignment and the DPR for the Adyar River Front Project.

The company had done a pre-feasibility study on this corridor and found that it was possible to have four to six carriageways. A final decision would be taken after choosing the international firm.

“We have also drawn up plans to rehabilitate those living in the corridor, so that displacement is minimal and livelihoods are not affected,” Mr. Kapur said.

If everything goes according to plan, commuters would have access to kiosks, solid waste dustbins, and row seating every 200 metres.

nflation control pays off

Retail prices of most edible commodities decline, stabilise.

The government’s inflation control measures have begun to pay off, with retail prices of most edible commodities either declining or remaining stable in the last one month.

However, these prices are still high compared with what they were six month ago and even a year ago. Price of rice, for instance, is still 20 per cent higher compared with the price even six months back.

Moreover, there has been no decline in the prices of rice even after the government banned the export of non-basmati rice and extended the export ban on pulses.

Only sugar prices have increased by Re 1 per kg in the last month, to Rs 18, which is also an increase of Rs 2 per kg, or 12.5 per cent, over the last six months.

Wednesday, April 9, 2008

Proposal to bifurcate Chennai Police

A proposal to bifurcate the Chennai police commissionerate has been forwarded to the State government for approval, according to a senior police official.

As the metro has been witnessing robust growth in the last two to three years, especially in the IT sector, the Police Department wanted to give greater attention to the rising number of complaints about white collar offences and land grabbing.

With the proposed bifurcation, which is expected to be announced by the Chief Minister in the current budget session, the Chennai Police would have over 80 police stations under its jurisdiction. The new Commissionerate would have about 40 police stations, including a few in Kancheepuram police district, under it.

Named as Mount Commissioner’s office, the proposed Commissionerate would have a Commissioner, a Joint Commissioner and three Deputy Commissioners for Ambattur, Madhavaram and St. Thomas Mount, the source said, adding that a DCP (Traffic) would also be a part of the new commissionerate.

After several rounds of discussions, senior police officers arrived at a consensus to entrust the Chennai airport area with the proposed Mount Commissionerate. There were different opinions on the jurisdiction of the IT corridor along the Rajiv Gandhi Salai (Old Mahabalipuram Road), Neelankarai and Thoraipakkam, the source said.

However, senior police officers said the jurisdiction spread over the IT corridor would be entrusted with the new Commissionerate, as it would enable the Mount Commissioner to give focussed attention to the security of vital installations.

Tuesday, April 8, 2008

H1-B visas: US senators question 9 Indian cos

1998: Quota increased to 115,000

2001: Number raised to 195,000

2004: Slides to 90,000 due to slowdown

2007: Capped at 65,000


US Senators Richard J Durbin and Charles E Grassley have sent a letter to nine Indian IT firms, which figure among the top 25 recipients of approved H-1B visa petitions in 2007, seeking detailed information on how each firm uses the visa programme.

The Indian IT firms include Infosys Technologies, Wipro, Satyam Computer Services, Cognizant Tech Solutions, Tata Consultancy Services (TCS), Patni Computer Systems, Larsen & Toubro Infotech, i-Flex Solutions and Mphasis. These firms accounted for nearly 20,000 of the available 65,000 H-1B visas last year.

The senators have also sought information from other prominent firms including Microsoft, Intel, Accenture, Cisco, Deloitte & Touche, J P Morgan Chase and Motorola.

Thursday, April 3, 2008

Mahindra to set up plant near Chennai

Decision comes weeks after the company pulls out of a joint venture with Renault and Nissan for a facility there.

Weeks after opting out of a proposed joint venture with Renault and Nissan Motor for a manufacturing facility at Chennai, utility vehicle maker Mahindra & Mahindra has decided to set up its own plant near the south Indian city.

M&M pulled out of the deal earlier this year and subsequently announced it was setting up a greenfield plant at Chakan, near Pune, with an estimated investment of Rs 1,500 crore, to produce 300,000 vehicles.

Commercial production at Chakan is expected to start in two years, about the same time Renault and Nissan will launch production at the Chennai unit.

Pawan Goenka, president (automotive sector), M&M, told Business Standard that the company is committed to invest in the south, where a new plant will be set up near Chennai. He said company executives were in talks with the Tamil Nadu government on the deal. Plans for the Chennai plant are being finalised and work is likely to begin in 2010.

“We have several business interests in Chennai. Mahindra as a group is very interested in Tamil Nadu. We want to look at Tamil Nadu for the next major expansion of our automotive business,” Goenka said.

Tax shadow over software MNCs

Microsoft studying Rs 700 cr royalty order.

Multinational software firms like Microsoft, SAP and Oracle -- which license software and earn royalty on it from Indian customers – are facing the heat from assessing officers if they have not paid taxes on the gross royalty income.

According to a ruling by New Delhi-based Commissioner Income Tax (Appeal), Microsoft has to cough up over Rs 700 crore in taxes and interest for the period 1999 to 2005.

The case pertains to Gracemac Corporation, a subsidiary of Microsoft. The CIT (A) ruled that the company was liable to pay income-tax on its gross royalty income from licensing of software to Indian customers.

The gross royalty income for the six assessment years is computed to be about Rs 2,240 crore. “The product is licensed, not sold” are the key words. Hence, it is treated as royalty and there's a 15 per cent tax on royalty. However, in response to a notice, Microsoft had filed returns of income for all these years, declaring nil income.

"Microsoft believes it is in full compliance with the Indian tax laws and income-tax treaty agreement between India and the US. This is an appellate order. Microsoft is reviewing the order and we will determine our course of action accordingly," said a Microsoft spokesperson.

This issue is being debated for the last 15 years, say Chartered Accountants (CAs), income-tax experts and analysts. They view this as an attempt to add newer revenue streams.