The Tribune...Business

	B U S I N E S S	Tuesday, July 21, 1998
weather n spotlight today's calendar

Cycle complex to be set up near Ludhiana
CHANDIGARH, July 20 — The Punjab Chief Minister, Mr Parkash Singh Badal, today asked the industrialists to create research and development wings in their units to upgrade technology and produce quality items to compete in the global market...

No single statute for mutual funds
MUMBAI, July 20 — Government is not keen on a common statute for Unit Trust of India (UTI) and other mutual funds, Finance Secretary Montek Singh Ahluwalia said here today...

RBI to issue guidelines for IT sector
NEW DELHI, July 20 — The RBI is soon going to come up with a policy on working capital requirements for the information technology(IT) software and services sector, the Secretary, Department of Electronics (DoE), Mr Ravindra Gupta...

Punjab power tariff hike opposed
CHANDIGARH, July 20 — The industry has reacted sharply to the increase in the power tariff in Punjab.CII Punjab State Council Chairman Rakesh B. Mittal criticising...

ERP solution launched
CHANDIGARH, July 20 — Punjab Communications Ltd (Puncom), Ramco Systems and Microsoft today announced the launch of a high-end ERP solution for organisations in Punjab, Haryana, H.P. and Chandigarh ...

Magsaysay award for Thai tycoon
SINGAPORE, July 20 — A Thai business executive, who made his oil company profitable by helping rural community organisations become gasoline dealers, has won the 1998 Ramon Magsaysay Award for public service...

Govt seeks investment in power transmission
NEW DELHI, July 20 — The government today sought to allow private investment in the power transmission sector through amendments to electricity laws, but assured that this would not lead to privatisation...

ICICI records 53 per cent growth
MUMBAI, July 20 — The ICICI has recorded a 53 per cent growth in disbursements at Rs 4225 crore and a 140 per cent growth in approvals of Rs 9135 crore during the first quarter of 1997-98...

Cycle complex to be set up near Ludhiana
Tribune News Service
CHANDIGARH, July 20 — The Punjab Chief Minister, Mr Parkash Singh Badal, today asked the industrialists to create research and development wings in their units to upgrade technology and produce quality items to compete in the global market.
Presiding over a meeting of the Punjab Export Promotion Board, the Chief Minister said a delegation of the industrialists will be regularly sent to advanced countries under the self-financing scheme to study latest developments and import skills.
A meeting of industrialists and exporters would be held on the 1st of every month to remove impediments in the way of the export industry.
Mr Parkash Singh expressed satisfaction over the steep rise in the exports to the value of Rs 3,700 crore during 1997-98 against Rs 3,100 crore in 1996-97. He was concerned about the fall in the export of cycles and auto parts last year.
The research and development centre set up for improving technology in cycle manufacturing at Ludhiana would be reactivated by associating experts from Taiwan and other countries. He announced a grant of of Rs 10 lakh for the centre.
The Chief Minister also announced the setting up of a cycle manufacturing complex near Ludhiana. He directed the Ludhiana DC to identify 300 acres or so within a month for the project. A new policy for the allotment of industrial plots is on the anvil.
It was decided to refund the market fee and rural development fund charged on the paddy purchased for the export of rice, Basmati and non-Basmati within two months. This decision will be effective from the date of issue of notification.
Mr Ramesh Inder Singh, Secretary Industries, said interactive web site of Punjab has been launched to make entrepreneurs across the world aware of the policies of the state government as also to provide them vital background information on Punjab.
A “single window” clearance system and “udyog sahayak” have also been started to ensure that clearances needed for setting up units are given by different departments in a time-bound manner.

RBI to issue guidelines for IT sector
Tribune News Service
NEW DELHI, July 20 — The RBI is soon going to come up with a policy on working capital requirements for the information technology(IT) software and services sector, the Secretary, Department of Electronics (DoE), Mr Ravindra Gupta, said here today.
The policy document is expected to outline detailed guidelines about financing of small and medium enterprises(SMEs) in the IT, about venture capital, differential pricing of shares and buy back of shares.
The government is also going to allow SMEs to establish partnership firms under the Indian Partnership Act , he said, adding that the department has already suggested amendments to the Company Law, the Income Tax Act and Sebi guidelines to boost the sector.
The government is also expected to come out with a separate set of cyberlaws and is considering necessary amendments to the India Telegraph Act for facilitating electronic commerce.
The new set of cyber laws will be designed primarily to deal with computer crime and copy right issues, Mr Gupta said adding that a monitoring committee headed by the Cabinet Secretary is going into the details in this regard.
The government is also working out a mechanism which would enable and encourage offshore companies to set up base in India. Simultaneously, entrepreneurial development programmes would be carried out in India to develop new units, he said.
The IT services sector has the growth potential to achieve exports worth Rs 50,000 crore during the next 10 years and generate employment for 10 lakh people.
The IT enabled services include application areas of data processing in accounting and finance, stock exchanges, medical transcription in health services, digitization in utilities like power, water, graphic information systems publishing, creation of web pages, multi-media etc.
As per a survey conducted by Electronics and Computer Software Export Promotion Council, the market potential for IT enabled services worldwide is double the size of the software and services market which is now estimated at $ 500 billion.
The council, with the support from the DoE and the Ministry of Commerce is going to organise roadshows in the USA, Canada and West Europe as these areas are potentially large markets for Indian software exports.

No single statute for mutual funds
MUMBAI, July 20 (PTI) — Government is not keen on a common statute for Unit Trust of India (UTI) and other mutual funds, Finance Secretary Montek Singh Ahluwalia said here today.
There is a voluntary understanding between SEBI and UTI on conforming to certain standards and bringing mutual funds under a common Act might require drastic restructuring, he said.
“UTI which is currently governed by the UTI Act is subject to inspection by the Sebi and let us give this arrangement a chance”, he said in his inaugural address at the fourth annual seminar on mutual fund industry.
However, a structural change in the mutual fund industry is to be expected, with UTI’s dominant position being challenged.
Speaking at the seminar, Dr P.J. Nayak, Executive Trustee and currently in charge of UTI, expected reforms in the management of pensions and provident funds to provide the requisite impetus to the growth of the mutual fund industry.
Mr Ahluwalia noted that the growth of pension funds would provide competition to mutual funds as an investment avenue.
Though the potential of the mutual fund industry is huge, prospects were weak, said UTI Executive Director Basudev Sen, adding performance of the sector depends largely on macro environmental factors.
Mutual funds should make in-roads into the provident fund sector by taking up management of provident funds for a fee, said former Chairman UTI, Dr S.A. Dave.
Provident funds, such as the Employees’ Provident Fund, Coal Miner’s Fund and Seamens’ Fund are managed by mutual funds for a fee though they do not classify as assets of the fund, but that day is not too far, he added.

Punjab power tariff hike opposed
Tribune News Service
CHANDIGARH, July 20 — The industry has reacted sharply to the increase in the power tariff in Punjab.
CII Punjab State Council Chairman Rakesh B. Mittal criticising the 33 per cent hike in the tariff for industrial and domestic sectors, said it would make the industry in Punjab incompetitive and unviable.
The CII said: “Industry cannot be made to pay for the inefficiency of the Punjab State Electricity Board and the lopsided economic policies being pursued by the Punjab Government in terms of free electricity and water for the agricultural sector.
The CII favoured the creation of a Punjab state electricity regulatory commission as suggested by Mr P. Kumaramangalam, Union Minister for Power. Unfortunately this proposal is not acceptable to Mr Parkash Singh Badal.
The availability of power at competitive rates was till recently one of the few positive factors for Punjab in terms of attracting fresh investment. The hike in power tariff will severely affect fresh investment inflows as also ruin the existing industry, Mr Mittal added.
The Phdcci said the hike in the power tariff would ruin the Punjab industry which was already under the impact of tremendous recession
Phdcci Punjab chapter chairman Amarjit Goel said Punjab, being land-locked, suffered many locational and other disadvantages. He urged the Chief Minister not to go ahead with the hike without consulting the industry.

ERP solution launched
Tribune News Service
CHANDIGARH, July 20 — Punjab Communications Ltd (Puncom), Ramco Systems and Microsoft today announced the launch of a high-end ERP solution for organisations in Punjab, Haryana, H.P. and Chandigarh at a conference attended by representatives of leading private and government organisations.
Puncom and Chennai-based Ramco Systems have entered into an agreement to provide the internationally, accepted Marshal ERP solution in this region.
Mr A.S. Gill, Managing Director of Puncom, said that industries in this region are showing keen interest in ERP solutions and this is reflected in the high participation in the event by the corporate elite.
Ramco Systems’ vice-president (Asia Pacific) D.L. Kulkarni said the Marshal ERP solution was ideally suited for organisations seeking to enhance organisational capability.
Mr Prashant Singh from Microsoft stated that the close co-operation between Ramco Systems and Microsoft had ensured that the benefits of adopting the latest technologies from Microsoft are available to users of the Marshal ERP.
Puncom also announced the availability of international leased line connectivity in Chandigarh through its tie-up with VSNL.
Mr J.S. Ghumman, the head of Puncom’s information systems division, said Puncom would provide the industry with a local implementation partner for their ERP requirements.

Magsaysay award for Thai tycoon
SINGAPORE, July 20 (PTI) — A Thai business executive, who made his oil company profitable by helping rural community organisations and cooperatives become gasoline dealers, won the 1998 Ramon Magsaysay Award for public service, the award body said today.
Sophon Suphapong (52), President of Bangkok Petroleum Ltd (BPL), was cited for “stimulating his country’s rural economy by helping hundreds of rural cooperatives and community organisations own and operate their own businesses as affiliates of one of Thailand’s major oil companies”, Kyodo reported from Manila.
Sophon, who has been President of BPL since 1985, established an image for himself and his firm as being socially responsible.

Govt seeks investment in power transmission
NEW DELHI, July 20 (PTI) — The government today sought to allow private investment in the power transmission sector through amendments to electricity laws, but assured that this would not lead to privatisation.
Outlining objectives of the Electricity Laws (Amendment) Bill, 1998, in the Lok Sabha, Power Minister P.R. Kumaramangalam said, “we only want to facilitate private investment in transmission sector, but real operations will be under government and its agencies.”
Moving the Bill for consideration, he said it seeks to define transmission as a “distinct” activity under the Indian Electricity Act, 1910, and the Electricity Supply Act, 1948, and to empower the Central Electricity Regulatory Commission to grant transmission licence for inter-state transmission of energy.
Licence could also be granted by state governments or the state electricity regulatory commission for intra-state projects, he said.

ICICI records 53 per cent growth
MUMBAI, July 20 (PTI) — The ICICI has recorded a 53 per cent growth in disbursements at Rs 4225 crore and a 140 per cent growth in approvals of Rs 9135 crore during the first quarter of 1997-98.
Infrastructure sector accounted for 33 per cent of approvals and 21 per cent of disbursals, while approvals and disbursals to the oil, gas and petrochemical sector amounted to 7 per cent and 11 per cent, respectively.
ICICI’s regular project finance assistance to the traditional manufacturing sector amounted to 30 per cent of approvals and 33 per cent of disbursals.
Foreign currency loans accounted for 13 per cent of total approvals and 9 per cent of total disbursals during the period under review as compared to 18 per cent and 11 per cent respectively, for the previous corresponding period in 1997-98.
The overall healthy business growth achieved by ICICI during the quarter ended June 30, has been on account of emphasis on the infrastructure sector and by offering solutions to meet the treasury requirements of Indian corporates, it said.

Biz briefs

Coop sector
NEW DELHI, July 20 (TNS)— Twentysix MPs have called for reforms in the Indian cooperative sector. At a meeting organised by the Cooperative Initiative Panel (CIP), the MPs, including Mr Suresh Prabhu, Dr Balram Jakhar and Mr Shivraj Patil, said that the cooperative sector is neglected, irrespective of the fact that it is alone can solve the problems faced by farmers.

Fuel device
CHANDIGARH, July 20 (TNS) — Chandigarh-based Jas & Co, today launched a fuel economiser cum pollution control device for two wheelers. Mr J.L. Bakshi president of the company, claimed that the device — STPC 2000 — could reduce petrol consumption by 21 per cent.

Raunaq Intl
CHANDIGARH, July 20 (TNS)— Raunaq International Limited inter-alia to consider taking on record the unaudited financial results for the quarter ended June 30 will be held on July 24, 1998 at New Delhi.

New scheme
NEW DELHI, July 20 (PTI) — Bank of Baroda today launched a unique scheme “BoB money back deposit”, a scheme positioned between a recurring and flexible deposit, a bank statement said here today. The new scheme is for a period of 36 months with a minimum deposit of Rs 500 per month and in multiples of Rs 100 with no upper limit, it said. The new scheme was launched today to coincide with the bank’s foundation day.

Hyundai
NEW DELHI, July 20 (UNI) —Hyundai Motor India Limited (HMIL) has tied up an over Rs 500 crore rupee loan, from ICICI and about half-a-dozen nationalised banks, as against a requirement of Rs 476 crore. This loan forms over 20 per cent of the company’s first phase project cost of Rs 2,300 crore. The loan has been finalised on an interest rate which varies from 14 per cent to 17 per cent. ICICI, SBI and the Union Bank have been the major lenders to the Korean car manufacturer.