Hard to get bank loans, say industry leaders
NEW DELHI, Aug 14 — Is the banks’ obsession with following rigid lending norms strangulating the Indian industry? Yes, say a majority of industry leaders.

No customer PAL, this car company!
CHANDIGARH, Aug 14 — The Premier Automobiles group is in the dock for inordinate delay in refunding car booking amounts to its customers. According to one calculation out of a 2,600-odd complaints filed before the city’s district consumer fora nearly 800 relate to this group.

Normal monsoon brightens prospects
NEW DELHI, Aug 14 — A bumper foodgrains output is likely this kharif season following eleventh successive normal monsoon, increased area under kharif crops and better pest and disease surveillance system, Agriculture Ministry officials say.

Haryana to set up power commission
Notification on electricity regulatory commission soon
From Jatinder Sharma
Tribune News Service

ROHTAK, Aug 14 — The Haryana Government has decided to set up a state electricity regulatory commission. A notification to this effect will be issued any time.

The members of the commission will be administered the oath of office on Monday by the Governor, Mr Mahabir Prasad.Two state corporations — Transco and Geneco — to look after the transmission and generation of electricity respectively will also become functional simultaneously.

Both these corporations will be in the government sector as provided in the Haryana Electricity Reforms Act, which got assent of the President on February 20, 1998.

The appointment of chairman and Managing Directors and other functionaries to run the corporations is likely to be made in a day or two. The distribution of electricity, however, will remain with the HSEB till the government decides to set up Discom — distribution company.

The Haryana Electricity Reforms Act, 1997, envisages the constitution of a three-member regulatory commission from among the persons recommended by a selection committee headed by Lt-Gen (retd) O.P. Kaushik.

According to sources, the committee has recommended the names of Mr Raghubir Singh, Mr H. V. Goswami and Mr R.K. Ailawadi, all retired IAS officers, and Mr Ranjit Issar, IAS, for the post of Chairman of the regulatory commission.

As per provisions of the Act, one of the members will be an electrical engineer with adequate experience either in generation, transmission or distribution of electricity.

The third member will have the qualification and adequate experience in economics, commerce, finance, accountancy, law or administration.The Act provides that every member will hold office for five years from the date of his appointment as a member or until the age of 65 years.

As per Section 6(1) of the Act, the first three members will be appointed for a varying period of three, four and five years respectively so as to avoid the retirement of all the members at the same time and ensure continuity in the functioning of the commission.

A task force is likely to be constituted within a week to distribute the assets and manpower (employees and engineers).While the Regulatory Commission will decide the tariff and regulate the purchase, distribution, supply and utilisation of electricity, the policy directions will be issued by the state government in “consistence with the objects sought to be achieved by the Act.”

Vidyut Prasaran Nigam CMD
Tribune News Service

CHANDIGARH, Aug 14 — The Haryana Government today appointed Mr Ranjit Issar, Chairman, Haryana State Electricity Board, Panchkula, as Chairman-cum-Managing Director, Haryana Vidyut Prasaran Nigam, Panchkula, with immediate effect.

Hard to get bank loans, say industry leaders
Tribune News Service

NEW DELHI, Aug 14 — Is the banks’ obsession with following rigid lending norms strangulating the Indian industry? Yes, say a majority of industry leaders.

According to industry leaders, the strict norms laid down by the RBI for the banks, especially those relating to non-performing assets (NPAs) and group lending, has become a big hurdle in the industry’s efforts to come back on the rails.

Present norms stipulate that even if one company of a group does badly then loans are refused even for the good ones of the group.According to Prof A.M. Khusro, Chairman of the 11th Finance Commission, at a time when Indian industry is experiencing recessionary trends the banks should become more flexible in making available credit.

They should forget about NPAs at this stage and come forward to help industry revive, he says.However, the former Finance Minister, Dr Manmohan Singh, is of the opinion that the banks cannot afford to take risks and they have to follow prudential norms to keep their balance sheets in the black.

Veteran industrialist and former President of the Ficci, Mr S.K. Birla, in a recent meeting of leaders of banks, financial institutions and industry, said that group lending norms of the banks was one of the main constraints in the revival of the industry.

“Massive infusion of cash into the system is required to trigger off the revival”, he said. Mr Birla said banks and FIs should be given sufficient liberty rather than binding them with set rules.

The President of the Ficci, Mr K.K. Modi, took up the issue with the Finance Minister, Mr Yashwant Sinha, saying the banks should forward loans to at least those companies which are doing well.

The present policy of group lending should be done away with and the group companies having NPAs should be penalised.Mr Modi informed the Finance Minister that the second quarterly results of a majority of Indian industries is bound to be dismal unless immediate steps are taken to rectify the deficiencies in the system.

The banks and financial institutions say they are aware of the problems faced by industry. Mr P.V. Narasimhan of the IFCI has assured industry that the FIs would be proactive and were willing to lend after consideration of viability of loan seekers.

He agreed that group concept of lending needed more sophistication but added that the NPA standards should not be diluted as it was a very good indicator of the financial health of the economy.

The FIs and banks have also given an assurance to industry that the projects affected by sanctions would be given added weightage while deciding on lending proposals.

India’s first mobile phone in train
Tribune News Service

CHANDIGARH, Aug 14 — Essar Cellphone has become the first cellular service in India to offer mobile fax and E-mail connectivity on board the Indian Railways.

The new Swarn Shatabdi Express will ply between New Delhi and Amritsar and will offer on board mobile telephony to its passengers. The train will be flagged off tomorrow by the Railway Minister.

The on rail mobile phone service is the first service of its kind to be offered by cellular operator in India. A fixed cellular terminal (FCT) with an Essar Cellphone roaming card will make this facility possible. A GSM booster has been placed to boost the signal strength inside the compartments.

A call meter with a printer will print out receipts for the passengers availing this service. The air time charges from passengers availing the mobile phone facility will be charged at the rate of Rs 8.40 per minute along with the applicable toll charges and a service charge of Rs 12 per call.

On Sundays and national holidays the air time charges will be Rs 4.20 per minute.

No customer PAL, this car company!
From Gobind Thukral
Tribune News Service

CHANDIGARH, Aug 14 — The Premier Automobiles group is in the dock for inordinate delay in refunding car booking amounts to its customers. According to one calculation out of a 2,600-odd complaints filed before the city’s district consumer fora nearly 800 relate to this group.

A few years ago, Premier Automobiles Limited (PAL), Mumbai, had opened bookings for its small car called Uno, projected as a viable alternative to Maruti 800. Media hype and goodwill for the Fiat brand had helped PAL collect crores of rupees.

Bookings for another car 1.38 D added more to its kitty.Around the same time PAL collaborated with Peugeot to make the Peugeot 309 car in India and floated a separate company, Pal-Peugeot Ltd.

This company also collected a few crores through car bookings. The production schedule got delayed. When car deliveries started, the vehicle was not received that well and there was no big premium.

This led to large-scale cancellations of bookings. As per its own terms and conditions, the company was to refund the amounts within 60 days of the cancellation, along with interest ranging from 9 per cent to 12 per cent.

But the company defaulted and consumers moved consumer courts.While some were lucky in getting the refund, others had to approach the court again. Mr Yogesh Tandon of Sector 37 has not been paid despite court orders in his favour.

Mrs Amarjit Jodhan’s refund cheque was dishonoured. Mrs Anjli Aggarwal received the principal amount only after court orders. Mr Jaspreet Singh of Mohali got no refund even after the orders.

Ms Rekha Sharma deposited the booking amount of Rs 21,000. Since she did not get the priority booking number, her case lingers.Mr Pankaj Chandgothia, President of the Aware Citizens & Consumer Endeavour, says that the filing of complaints against the PAL group started in late 1996.

After July, 1997, more than 100 complaints were being filed each month in Chandigarh alone.The consumer-courts have in a large number of cases directed PAL to refund the booking amounts along with interest plus costs of up to Rs 2,000.

Some have got their dues, while others are forced to file execution petitions as the company is not complying fully with the directions. In the case of Uno car, refunds are being made by Ind Auto Ltd., the successor of PL, but the amount of interest and costs are being denied.

And for Peugeot 309, Pal Peugeot Ltd., is refusing in some cases to refund the principal amount in spite of orders of the various fora.“As things stand, the UT District Forum may have to open a special counter to deal with PAL refund cases”, quips Mr Chandgothia.

Normal monsoon brightens prospects

NEW DELHI, Aug 14 (PTI) — A bumper foodgrains output is likely this kharif season following eleventh successive normal monsoon, increased area under kharif crops and better pest and disease surveillance system, Agriculture Ministry officials say.

Despite the drought conditions reported in some parts of the country, agronomists feel that the overall situation is quite normal this year.Better and wider distribution of rain patterns, slow and long showers and cool temperature for longer period have brightened the prospects of bumper output this year, they point out.

Major kharif crops such as rice, cotton, sugarcane and oilseeds have covered more area under cultivation this year as compared to previous year.

Water reservoir position is also quite satisfactory this time and rainfall has improved in deficit areas such as parts of Bihar, Western Orissa and Eastern Madhya Pradesh.If the present trend continues, the foodgrains production this year may cross the 1996-97 record production of 199 million tonnes and this year’s target of 204 million tonnes, experts feel.

The Agriculture Ministry has prepared contingency plans for each state in case of scanty rains or pest attacks. The ministry is monitoring the crop situation on a daily basis and no incidence of pests or diseases attacks has been reported so far, Additional Secretary and head of weather watch group of the ministry, J.N.L. Srivastava told PTI.

Though area under cotton cultivation has gone up, the final figure is expected to be short by 50,000 hectares in Punjab due to waterlogging in certain districts, sources in the Agriculture Ministry said.

The kharif output is, however, not expected to be affected because farmers have shifted to paddy cultivation. The loss in cotton would be met by the gain in paddy.The better crop prospect is also because of excessive hot weather conditions during May and early June this year which helped in destroying the pests life cycle.

The kharif crop is less prone to pest attacks this time.

Move to relocate polluting units
Tribune News Service

CHANDIGARH, Aug 14 — The process to shift polluting units from populated areas in Ludhiana, Amritsar and Jalandhar has started.

Addressing a press conference here today, Mr Sucha Singh Langah, State Minister for Industries, said 300 industrial plots developed by the Punjab Small Industries and Export Corporation (PSIEC) had been allocated to electroplating units, which are considered highly polluting ones, in Ludhiana.

A new phase was being developed in Amritsar where polluting units would be shifted from within the city.

The corporation with a turnover of Rs 141.85 crore earned a profit of Rs 6.12 crore during 1997-98.Mr Ramesh Inder Singh, Secretary, Industry, said that the corporation would invite application from entrepreneurs for the allotment of 335 plots in the phase VIII-B, focal point at SAS Nagar.

Package for 1000 MW power projects soon

NEW DELHI, Aug 14 (PTI) — The government will soon come out with a package for setting up 1000 MW mega power projects in public and private sector, Finance Minister Yashwant Sinha said today.

“The details of the package is being worked out by the group of ministers and we will soon take it to Cabinet for approval,” Sinha told newsmen after signing of the counter guarantee for the 250 MW Neyveli power project in Tamil Nadu.

The government was also reviewing the 40 per cent cap on raising resources domestically by independent power producers (IPPs) Power Minister P.R. Kumaramangalam, who was also present at the ceremony, said.He refused to divulge details saying the matter had to be placed before Cabinet after a group of ministers reviewed it.

The counter guarantee for the $ 1.2 billion Hinduja project to set up a 1040 MW power plant in Visakhapatnam in Andhra Pradesh was “almost ready”, Sinha said.

IA flights changed
By Our Correspondent

NEW DELHI, Aug 14 — Some of the Indian Airlines and alliance air flights from Delhi have been rescheduled until August 31 due to operational reasons.The departure of flights CD-407/408 (between Delhi-Agra-Khajuraho-Varanasi), CD-473 (Delhi-Jaipur-Jodhpur-Mumbai), CD-493 (Delhi-Udaipur-Aurangabad-Mumbai) and CD-469 (Delhi-Raipur-Nagpur-Delhi) has been postponed on Tuesday, Thursdays and Saturdays.

On Mondays and Fridays, flights IC-877/878 (Delhi-Bhubaneshwar-Delhi), IC-403/403 (Delhi-Bangalore-Delhi) will operate to delayed departures.On August 15, flights IC-186 and IC-167 (Delhi-Mumbai) have been combined with IC-182 with departure at 9.30 a.m. and IC-405 with IC-184 with departure at 8.30 p.m.

On Tuesdays, Thursdays and Saturdays — flight CD-407 will leave Delhi at 11.15 a.m. reaching Varanasi at 2.10 p.m., the return flight IC-408 will depart from Varanasi at 2.35 p.m., and reach Delhi at 5.30 p.m.Flight CD-473 will leave at 12.30 p.m. and reach Mumbai at 4 p.m. Flight CD-493 will leave at 5.30 p.m. and reach Mumbai at 9.50 p.m., CD-469 will depart Delhi at 5.40 p.m.

J.B. Chem net up 37 pc
MUMBAI, Aug 14 (PTI) — J.B. Chemicals and Pharmaceuticals Limited has fared well during the year ended March 31, 1998 with its net profit increasing sharply by 37 per cent to Rs 27.05 crore as compared to Rs 19.81 crore in the previous year. The gross profit was placed at Rs 35.80 crore and the profit before tax, after interest and depreciation was Rs 27.50 crore as compared to Rs 30.70 crore and Rs 20.89 crore in the previous year respectively. Based on the strength of the performance, the directors recommended a final dividend of 25 per cent, bringing the total dividend payable for the year to 50 per cent on the enhanced capital of Rs 7.26 crore as against 40 per cent paid last year. The board has also recommended issue of bonus shares in the ratio of 1:1 to the existing shareholders. The latest earnings per share (EPS) on the enhanced capital stands at Rs 37 and the book value of share works out to Rs 146 per share as against Rs 30 and Rs 117 respectively.

Hindustan Diamonds to pay 20 pc
NEW DELHI, Aug 14 (PTI) — Hindustan Diamond Company Limited (HDCL) today paid a dividend of Rs 28 lakh to the government as part of the 20 per cent dividend pay-out announced by the company to its shareholders. The cheque towards the payment was made to Commerce Minister Ramakrishna Hedge by HDCL Chairman and Managing Director Virendra Singh here, an official press release said. HDCL, supplier of rough diamonds to manufacturers-exporters of polished diamonds, had reported a 3 per cent RIS in turnover during 1997-98 at Rs 561 crore.

Bharati Telecom gets Rs 26 crore order
NEW DELHI, Aug 14 (PTI) — DoT has awarded an order for the supply of seven lakh telephone instruments worth Rs 26 crore to Bharti Telecom which quoted the lowest price in the bidding for 24 lakh instruments invited recently. Bharati’s ‘Beetel’ brand was quoted Rs 369.98, which was the lowest bid. Managing Director Rakesh Mittal said Bharati Telecom had received an order for 19 lakh phones, of which 14.25 lakh instruments were for DoT and MTNL.

Mobilink, Iridium tie-up
NEW DELHI, Aug 14 (PTI) — Leading paging service provider Mobilink has entered into an agreement with the Indian Arm of the Iridium LLC to offer global paging service in the country, a senior company official has said. Under the agreement reached between Mobilink and Iridium India Telecom Ltd, the former would provide Iridium LLC’s world paging service in areas where it is operating presently. “Mobilink will act as a service provider for the Iridium world page service in cities where we are operating on our own and with other service providers,” Pravin Kumar, Managing Director of Mobilink, said. The DSS Mobile Communication company, known as ‘Mobilink’ provides paging services in ten cities now, and recently joined hands with two domestic paging service operators — Punwire and Beltron — to reach out to another 120 cities.

BIFR package for Dunlop
CALCUTTA, Aug 14 (PTI) — The West Bengal Government is not in favour of the present management of Dunlop India Limited and was looking for a ‘right entrepreneur’ to take over the company after revival, State Finance Minister Asim Dasgupta has said. The SBI and United Bank of India, which were among the consortium of banks providing funds for the revival, have said that they will not involve themselves in Dunlop’s revival if its present management continued. IDBI, the lead operating agency for Dunlop, has received a revival package for the company from the BIFR which it would study in another six weeks, he said.

Spice offers new tariff package
CHANDIGARH, Aug 14 (TNS)— Spice Telecom has introduced a new tariff package, Spice Lucky 5. It is so called because the air time rate is Rs 5 per minute for both outgoing and incoming calls for all times of the day. A subscriber saves almost Rs 12 per minute on the standard DoT tariff during peak hours. The tariff has a fixed monthly fee of Rs 555 and is available in all cities where Spice has coverage. Significantly this tariff is also available on Spice Telecom’s pre-paid cash card, Spice Quickie. Under the offer, subscribers are required to pay a fixed monthly membership fee of only Rs 555 and, in return, they avail the benefit of airtime rate of Rs 5 per minute for both incoming and outgoing calls.

Biz briefs

Gold rises
NEW DELHI, Aug 14 (PTI) — Both the precious metals, silver and gold, recovered on the bullion market on local buying support in the face of a rise in prices in the international market. The quotations: Silver .999 (ready) 7855 delivery 7890, coins buyer 10,500 and seller 10,700. Standard gold 4270, ornaments 4120 and sovereign 3475.

VAT in Delhi
NEW DELHI, Aug 14 (TNS)— The Delhi Government has finalised a draft legislation for introducing value added tax (VAT) in Delhi from 2001. This was announced by Delhi Sales Tax Commissioner, Mr Sanat Kaul, at a meeting of the Delhi Committee of PHD Chamber of Commerce and Industry. The VAT will replace the local sales tax at the first instance.

Kirt awards
CHANDIGARH, Aug 14 (TNS) — Three employees of Punjab Alkalies and Chemicals Ltd. (PACL) bagged the Punjab Kirt Awards. Mr Kamal Kumar Sharma (technician) got the Kirt Veer Award, Mr Jaspal Singh (technician) the Kirt Shiromani Award and Mr Sunil Kumar (JE) the Kirt Veer Award.

Courses
LUDHIANA, Aug 14 (FOC)— The Small Scale Industries Service Institute, organised a programme on “industrial development of electronics production” which concluded here yesterday. Mr P.S. Grewal, who presided over the function, said the courses offered by the institute were of great help to the unemployed youth, who could start a business of their own.

OBC
FEROZEPORE, Aug 14 (FOC)—The Ghall Khurd branch of Oriental Ban of Commerce (OBC) has adopted Jawahar Singh Wala village under comprehensive village development programme. Additional Deputy Commissioner (Development), Mr Ramesh Kumar Ganta, inaugurated the programme yesterday.