Cabinet approves
IOC-Petronas jv
NEW DELHI, Aug 26 —The government today approved the formation of the joint venture between state owned Indian Oil Corporation and Malaysian National Oil Company Petronas for importing and marketing cooking gas in India.

Rules for ombudsman notified

NEW DELHI, Aug 26 (PTI) — The government today formally set in motion the process setting up a dispute settlement mechanism for the insurance sector by notifying the rules and regulations on the working of the insurance ombudsman.

Announcing this here, Special Secretary (Insurance) B.K. Chaturvedi told newspersons that the ombudsman will have the powers to settle disputes of up to Rs 20 lakh in both life and general insurance claims, besides granting ex-gratia payments for delays.

An ombudsman each, to be appointed by a committee of the insurance regulatory authority (IRA) would operate from all the seven zones of LIC and his decisions would be binding on the insurance companies though individuals could challenge them in any court, he said.

“A person of High Court Judge’s status including those from quasi-judicial bodies would be eligible to be appointed as ombudsman,” Chaturvedi said.

The government will entertain suggestions and objections on the proposed model for 60 days and “if need be it will make necessary changes in the rules and regulations and appoint ombudsmen in about 15 days after the 60 day period,” he said.

Mr Chaturvedi said the dispute settlement authority may take about three months to settle cases including 15 days each for hearing both the parties.

Functions of the ombudsman will include settling disputes regarding non-adjustment of premia, delay in adjusting premia, and payment of claims.

Mr Chaturvedi said the ombudsman would not take any cases which were pending in the courts.

Currently, in the non-life sector alone, nearly 8.5 lakh claims were outstanding at the end of March 1997 and nearly 40 per cent of these were more than one year old, he said.

Nearly 50 per cent of these claims were from the motor insurance sector and are under various courts.

“These figures do not reflect a sense of urgency in settling the claims and I think this has been one of the results of lack of competition in the sector,” Chaturvedi said in his address at the CII’s conference on insurance.

The appointment of a dispute settlement authority will certainly speed up the process of claims settlement, he said.

The lack of competition has also given rise to a certain degree of complacency in the industry and the quality of service has left much to be desired, he added.

Punjab panel to monitor projects
By Sarbjit Singh
Tribune News Service

CHANDIGARH, Aug 26 — To monitor the clearance of projects under the single-window system set up at Punjab Udyog Bhavan here a committee has been set up under the chairmanship of the Chief Secretary, according to Mr Ramesh Inder Singh, Secretary Industries, Punjab.

Three applications were received at the window in May and seven in June. So far 15 applications have been received and all have been cleared within the stipulated period. According to Mr Darbara Singh Guru, Director, Industries, Punjab, every Thursday a meeting of the executive committee is held to monitor the disposal of applications received through the single-window system. It is attended by officials of the departments concerned.

A personal contact programme has been started with industrialists. Detailed information about the system will be supplied to all concerned. Some entrepreneurs directly approach the departments for clearance of their projects as they do not know about the single-window system.

Mr Ramesh Inder Singh said he had instructed the officials concerned to collect information about the number of applications pending for clearance with the departments concerned before the setting up of the single window system. Such applications would be enlisted by the window system for expediting their clearance.

The single-window system has also been provided at the district level for the clearance of small projects. It is difficult for small entrepreneurs to come to Chandigarh, he adds.

Cabinet approves IOC-Petronas jv

NEW DELHI, Aug 26 (PTI) —The government today approved the formation of the joint venture between state owned Indian Oil Corporation (IOC) and Malaysian National Oil Company Petronas for importing and marketing cooking gas (LPG) in India.

The Union Cabinet, which cleared the proposal today, also decided to recommend to President K.R Narayanan promulgation of an ordinance to notify provisions in the oilfields (regulation and development) Amendment Bill, 1998, an official spokesman said here.

The 50:50 joint venture will develop a 600,000 tonnes per annum capacity LPG import facility at Haldia in West Bengal at a projected cost of Rs 200 crore. The project is scheduled to be completed within 33 months of financial closure.

The Cabinet also cleared the proposal to allow IOC to invest Rs 45 crore representing 50 per cent of the initial cost of the Rs 200 crore project.

Government allows satellite phones

NEW DELHI, Aug 26 (PTI) — The government today decided to allow global mobile personal communications by satellite (GMPCS), thus enabling anybody with a satellite phone to get connected anywhere in the globe.

Equity participation of foreign companies offering the GMPCS, known as “satellite phones”, has been restricted to 49 per cent.

A two-tier licence structure involving a one-time fee and periodical percentage of revenue to (DoT) has been proposed for the licensee, Telecom Commission Chairman, AV Gokak, told reporters here today.

An inter-ministerial committee has been set up with representatives from the ministries of Home Affairs and Defence, the departments of Space and telecom and the Cabinet Secretariat to clear applications after scrutinising security implications.

A second inter-ministerial committee would frame terms and conditions for the licence, which would be issued on a first-cum-first basis without limiting the number of operators. However, there could be a change of policy at a later stage, considering the developments across the globe, he added.

The Government would designate an agency to set up gateways for the satellite phones.

Call to mobilise insurance savings
Tribune News Service

NEW DELHI, Aug 26 — There is a great scope for mobilising long-term savings in the form of insurance in India, Senior General Manager of the ICICI Mr M.J. Subbaiah said here today.

Speaking at an international conference on insurance organised by the CII Mr Subbaiah said India is far behind in mobilising insurance savings. In countries like South Africa and the UK, life premiums constitute over 50 per cent of gross domestic savings and in the USA and Japan it is over 25 per cent, while in India it is only around 6 per cent, he said.

Expressing the hope that the LIC would involve itself in active diversification rather than have 85 per cent of its funds go to low growth generating public sector investments,Mr Subbaiah said that there is a need for a competitive insurance industry in India.

The General Manager International of CGU Plc, Mr Chris Pountain said that in the context of the liberalisation process initiated in India since 1991, open trade was the only progressive way of retrieving the insurance industry.

Giving a bird’s eyeview of the South East Asian crisis, Mr Pountain said India should open up its insurance sector and a platform should be provided for commercial and long term investment opportunities.

Although there was the possibility of the crisis striking India also, yet from an opportunistic point of view, investors were still interested in channelling resources to safer havens like India, Mr Pountain said.

Escorts to invest $ 29m in jvs

NEW DELHI, Aug 26 (UNI) — The Rs 1,414-crore Escorts Limited is planning to invest $ 29 million to form joint ventures abroad by picking up equity in foreign companies.

Besides, Escorts Limited is also moving towards purchasing equity in its group concern Escorts Finance Limited (EFL), company sources told UNI here today.

It also intends to invest around Rs 500 crore in shares and other securities and instruments which may be convertible into shares, of other corporate bodies including companies under the same management. Such investments, however, shall not exceed Rs 500 crore, excluding investments in the capital of subsidiary companies, the sources said.

Keeping in tune with the liberalised policy of government to encourage Indian multinationals and with a view to be globally competitive, Escorts is exploring the feasibility of establishing manufacturing and trading joint ventures and other business operations overseas.

Regarding the company’s decision to pick up stake in EFL, the sources said Escorts Limited would be investing Rs 14.40 crore by subscribing to 1.44 crore equity shares of Rs 10 each for cash at par in EFL.

The purchase would be effected by way of additional equity shares over and above the rights entitlement of 38.19 lakh equity shares offered by EFL on rights basis in the ratio of one-to-one.

ACC to focus on core business

MUMBAI, Aug 26 (PTI) — Associated Cement Companies Ltd (ACC) is actively considering a restructuring programme involving the sale of its power plants and ways to optimise capacity, its Chairman Pallonji S. Mistry said yesterday.

Addressing the company’s 62nd annual general meeting here, he said: “We will take a look at all our subsidiaries, study as to what businesses we want to be in and come to a decision before we meet next”.

On the proposal to transfer its captive power generating facilities at Kymore, Wadi and Jamul to Tata Electric Companies (TEC), he said “we are discussing with TEC and it is too premature to say what the price would be”.

“Dispersal of the 125 MW power generation capacity has its own operational complexities requiring considerable management, time and effort which could be more constructively channelised in the company’s core activities”, Mistry said.

Over the years ACC has invested in activities as diverse as radial tyres, float glass and mining.

ACC was also looking at ways to optimise its cement capacity, “we are looking at a comprehensive programme of greenfield ventures and acquisitions”, he added.

Commenting on the company’s performance, Mistry said “I can’t tell you what the year will be like, if infrastructure picks up, things will improve”.

Eicher to make heavy vehicles

NEW DELHI, Aug 26 (PTI) — Eicher Motors Ltd (EML), a major player in the light commercial vehicle (LCV) segment, now plans to enter the heavy commercial vehicle (HCV) segment and has already developed a prototype.

The prototype, developed indigeneously by the Rs 900 crore Eicher group company, has already been tested successfully at its manufacturing site at Indore.

The feasibility report of this new project of the Delhi based EML has been finalised, group Chairman Subodh K Bhargava told PTI.

Development of the HCV is rapidly progressing and all the investments pertaining to this venture have been initiated, Bhargava said.

The engine of the vehicle has been developed in-house and a state-of-the-art engine testing facility has been successfully commissioned at the plant location, he said.

Mr Bhargava said the indigenously developed engine was fine-tuned with the assistance of Austria-based AVIL.

AVIL had earlier designed engines for the high-end bikes of Royal Enfield, also part of the Eicher group.

Bhargava, however, refused to divulge any details of the vehicle saying it was too premature to announce the vehicle specifications.

The launch will not be affected by the ongoing industrial recession which had resulted in a over 45 per cent crash in the HCV segment and 10 per cent in the LCV segment, Mr Bhargava said.

Though Eicher has a technical tie-up with Mitsubishi of Japan for its LCVs, the Japanese partner did not provide any assistance in the development of the new HCV.

Cabinet clears securities Act proposal

NEW DELHI, Aug 26 (PTI) — The Union Cabinet today approved a Finance Ministry proposal to simplify laws relating to government securities and its management by the Reserve Bank of India (RBI), besides improving customer services by treasuries.

The laws regarding the management of government securities would be done through replacement of the 1944 Public Debt Act with the Government Securities Act, an official spokesman said here.

The law relating to government securities and its management by the RBI is laid down in the Public Debt Act and over the years a number of rigidities had been noticed in the rules.

Procedures prescribed were time-consuming and some of the provisions have ceased to be of relevance in the present context. The public was also put to inconvenience due to archaic procedures in the Act.

In the wake of the sharp rise in volume of public debt, the RBI, agency banks and treasuries were handicapped in improving customer services.

The Public Debt Act deals with limited aspects of government debt such as form of securities, transfer and registration of securities, nomination facilities, procedure for payment in case of death of holders or loss of securities.

Further, the Act dates back to pre-Independence days when marketable debt with which the rules deal made up the entire borrowing of the government.

This is no longer valid as non-marketable debt, liabilities of Central government through national savings scheme, Indira and Kisan Vikas Patras, public provident fund scheme, special deposits of non-government provident funds, reserve funds and deposits were to the tune of 2,78,963 crore on March 31, 1997.

Under these circumstances, the Finance Ministry felt that the Public Debt Act would give a wrong impression that it encompassed all aspects of government borrowing.

The new law would consolidate and revise laws relating to government securities, the spokesman said.

The Cabinet also approved the signing of an agreement with the Maldives Government for cooperation and mutual assistance in Customs matters.

It also cleared the signing of an agreement with Mauritius for promotion and protection of investments.

IndusInd banks on art
By Nirmal Sandhu
Tribune News Service

CHANDIGARH, Aug 26 — It was an inter-caste marriage — first in Chandigarh — between banking and art.

IndusInd Bank’s branch in Sector 8 today opened an art gallery where artists can display their works free of charge.

The opening ceremony was performed by the bank’s Managing Director S. Solomon Raj. The marriage idea was fathered by the bank’s Assistant Vice-President K.K. Sharma, who has returned to the city after a six-month stint in Ahmedabad.

The first to display their works were Panchkula’s Anju Pasricha, whose paintings created a yearning for more, and Mohali’s Harvinder K. whose designer pots lend an ethnic touch to the ambience.

It is becoming fashionable for private banks to indulge in arty pursuits to charm their elite customers.

ANC Grindlays Bank in Delhi offers its walls as display space for lesser known artists. Hong Kong Bank, Bank of America and Citibank too provide display space on their walls.

Duetsche Bank’s Mumbai branch has displayed the works of such prominent artists as Arpana Caur, Jogev Chouadhury, Atul Dodiya and Chittrovanu along with those of German artists.

IndusInd Bank, India’s first private bank floated by the Hindujas on April 11, 1194, during the liberalisation wave, is rated as the best bank in the country in terms of productivity, networth and dividend payout.

Yet the bank’s share price is much lower at Rs 27 than the offer price of Rs 45.

The MD blamed it on poor market conditions, persistent selling pressure by brokers and lack of interest by financial institutions.

With a network of 23 branches, IndusInd proposes to open a branch at Ludhiana in September, and at Shimla and Phagwara later this year, said Mr Solomon Raj in an interview with The Tribune.

Not too well known is the fact that IndusInd is a depository participant with National Securities Depository Ltd. This means investors can buy demat shares through it.

Besides Internet banking, telebanking, cash management services and a special service for senior citizens, IndusInd arranges foreign currency loans for industrial and agricultural processing projects.

Its “Fast Forex” scheme offers the “fastest available remittance facility for foreign exchange to any part of the world,” the MD added.

Maruti board meets without Suzuki

TOKYO, Aug 26 (PTI) — Maruti Udyog Limited (MUL) today held its first-ever board meeting on Japanese soil at the Hamamatsu headquarters of Suzuki Motor Corporation (SMC) in an apparent show of camaraderie between SMC and the government after their year-long bitter tussle.

However, SMC President Osamu Suzuki was a prominent absentee and it was left to Chairman Yoshio Saito to play the host to company and Industry Ministry officials at Hamamatsu, 150 km from here.

When contacted a spokesman for Suzuki Motors said Suzuki was out of the country and refused to give details of what transpired at the meeting.

It is widely perceived that introduction of new models from the stable of the 50 per cent Japanese partner after the MUL technical team’s visit here last month were high on the agenda at the meeting.

The spokesman said the proceedings of the meeting were “strictly confidential”.

The meeting at Japan was to demonstrate the new-found unity between the two partners following their settlement of disputes arising from the appointment of R.S.S.L.N. Bhaskarudu as company Managing Director by the Indian government.

TVS Suzuki
CHENNAI, (PTI): The Rs 1,000 crore TVS Suzuki Ltd. has announced that it will phase out two-stroke vehicle in the next six years to meet the emerging emission norms.

Chairman and Managing Director Venu Srinivasan told shareholders at the company’s annual general meeting here yesterday that TVS Suzuki has tied up with Suzuki Motor Corporation of Japan for the transfer of technology to manufacture four-stroke motor cycles.

The company is all set to launch its four-stroke 150 cc scooter on October 1 this year.

Yamaha
BANGALORE (PTI): Escorts Yamaha Motor Limited, has launched its first four-stroke motor cycle, unveiling its plans to introduce one new model every year and reach a Rs 1,500 crore turnover by 2000 A.D.

The new model “YBX 125” combines fuel economy and high powered performance and has been designed to suit Indian conditions, says the company Executive Director, Bharat Caprihan, and Marketing Director, T. Kent Minami.

The Rs 750 crore turnover company with 22 per cent market share intends to capture 30 per cent of the motor cycle market by the turn of the century.

The motor cycle will cost Rs 44,000 in showrooms in Delhi.

Car designer
NEW DELHI (UNI): Mumbai-based car redesigner Dilip Chhabria has joined hands with Idea, the Italian company which has designed Telco’s much-awaited small car ‘Mint’, to service the Chinese market.@Dilip is designing a model for Idea to be marketed in China. The order is likely to be implemented within 20 days.

Besides, Dilip has also designed models for several Indian carmakers, including Maruti Udyog Limited, Telco, Premier Automobiles, Bajaj Tempo, Mahindra and Mahindra and Scooters India Limited.

Dilip has designed Mahindra’s sports utility vehicle ‘Quadro’, which is slated for launch next year. Besides, he has also provided the designs for Maruti’s five-door Gypsy.

No hike in petro prices

MADURAI, Aug 26 (PTI)— Union Minister for Petroleum and Natural Gas K. Ramamurthy today ruled out any immediate hike in the prices of petroleum products including, LPG, despite a fall in the rupee value. Talking to newsmen here he said the government would continue giving subsidy to LPG for domestic purposes at the rate of Rs 55 per cylinder. The price of crude has hit the rock-bottom of 14 US dollars a barrel. The government will soon appoint about 5,500 LPG dealers in semi-urban area, he said.

HSIDC to have new office
Tribune News Service

PANCHKULA, Aug 26 — The Haryana Chief Minister, Mr Bansi Lal, today laid the foundation stone of the corporate office building of the Haryana State Industrial Development Corporation (HSIDC) here today.

The Rs 8 crore building is likely to be completed by November, 1999. Designed by Mr S.D. Sharma, the building will have four storeys and a basement. Facilities for local area networking will be provided in the building. The Industries Minister, Mr Shashi Pal Mehta, and the Minister of State for Industries, Mr Vinod Kumar Marya, were also present.

Processing units
From Our Correspondent
AMRITSAR, Aug 26 — The textile processing industry is facing a crisis. Ageold technology, poor availability of latest technical knowhow and lack of infrastructure have affected the processing units numbering about 60. It is difficult for them to compete with large units based at Mumbai and Surat. A spokesman of the processing industry lamented that central excise levies have been raised annually, putting a tremendous pressure on the industry. Due to recession most of the processing houses at half of their capacity while almost 20 per cent have been shut down.

Reebok India
Tribune News Service
CHANDIGARH, Aug 26 — Reebok India will organise an “Independence walk” on August 30 from Swastik Vihar to Sector 5, Panchkula. The first 400 persons registered for the walk will get free gifts. Mr Alok Mittal, Superintendent of Police, Panchkula, will flag off the walk.

Transport
CALCUTTA, Aug 26 (PTI) — An ambitious Rs 400-crore Calcutta Transport Infrastructure Development (CTID) project aimed at improving the city’s traffic movement and reducing environmental hazards was today launched at a function here. The project, inaugurated by West Bengal Chief Minister Jyoti Basu by planting a sapling, is being implemented by the Hooghly River Bridge Commissioners with loan assistance from Japan’s Overseas Economic and Cooperation Fund (OECF).

PNB branches
Tribune News Service
CHANDIGARH, Aug 26 — Punjab zone of Punjab National Bank has got the rare distinction in securing ISO 9002 accreditation for its 2 branches namely G.T. Road, Phagwara and Rajpura Township, through Det Norske Veritas Ltd. London, which is founding member of European Foundation for Quality Management, according to Mr S.K. Chawla, General Manager, PNB, Punjab zone.

HP Coop Bank
From Our Correspondent
BILASPUR, Aug 26 — Himachal Pradesh State Cooperative Bank Chairman K.K. Kaushal said at a press conference here yesterday that the bank would now also advance loans for purchasing three-wheelers, photostat machines, and for setting up STD booths.

Gold weak
NEW DELHI, Aug 26 (PTI) — Silver witnessed a second dive on the bullion market today in just three trading sessions this week when it dropped by Rs 190 to touch Rs 7,510 per kilo on stockist offerings in lower foreign advices. Standard gold also declined sharply on fresh arrivals against restricted buying. The quotations: Silver .999 (ready) 7510 delivery 7610. coins buyer 10,400 and seller 10,600. Standard gold 4180, ornaments 4030 and sovereign 3450.

Markets closed
MUMBAI, Aug 26 — All principal markets, including BSE, NSE, OTC bullion, oilseeds, forex, sugar, metals, grains, cotton, pulses and spices remained close today on account of “Ganesh Chaturthi”, besides, sugar and cotton markets will also be closed tomorrow.

Tirupati Chem
From Our Correspondent
MALERKOTLA, Aug 26 — Tirupati Chemicals Limited Malerkotla has been awarded the first Punjab State Safety award for the year 1996 by the Punjab government. The award was presented to Mr M.R. Garg, CMD of the company by Mr Balram Ji Dass Tandon, Labour Minister, Punjab.

Commodities
From Our Correspondent
CHANDIGARH: Wheat 575 to 580, dara 580 to 585, superior 585 to 590, maize 470 to 475, sarson 1700 to 1725, taramira 1300 to 1400, rice basmati 2700 to 4600, parmal 850 to 1100, sella 850 to 1100, maida (per bag 90 kgs) 700 to 725, suji 725 to 730, atta 625 to 700, urd (per quintal) 1400 to 1750, urd dal 1550 to 1850, moong 2200 to 2400, moong dal 2400 to 2800, moongdhuli 2600 to 2800, masoor 2100 to 2250, dalmasoor 2100 to 2400, kablichana 2000 to 3000, kalachana 1300 to 1600, dalchana 1450 to 1550, malkamasoor 2300 to 2600, arhar 2000 to 3200, rajmashchitra 2500 to 3200.