Castrol to pay 60 per cent interim dividend
MUMBAI, July 29 — Castrol India Ltd’s net profit has increased by nearly 15 per cent to Rs 86.9 crore during the first half of 1998.

Package for revival of PSUs promised

NEW DELHI, July 29 (PTI) — The government today blamed privatisation policies of the previous Congress governments for increasing sickness in the public sector undertakings (PSUs) and assured the Lok Sabha it would formulate a revival package for every sick PSU.

The “Congress promoted both imports and private companies under the name of privatisation which has caused substantial damage to PSUs like Hindustan Cables (HCL),” Communications Minister Sushma Swaraj said intervening in a debate on the non-payment of salaries to employees of some PSUs.

Replying to a calling attention motion on the subject, Industry Minister Sikander Bakht said the government was trying to ensure a revival package for every PSU referred to the Board for Industrial and Financial Reconstruction (BIFR).

Labour Minister Satyanarayan Jatia said his ministry had asked the authorities concerned to clear the rising statutory dues of various PSUs, adding that he was formulating a proposal for timely payment to employees for consideration of the Cabinet.

Initiating the debate, N Bhaskar Rao (Cong) said HCL was suffering on account of drying up of government’s orders following liberalisation as a result of which 5300 employees of the corporation had come on to streets.

Members suggested HCL be shifted from the Industry Ministry to the Communications Ministry so that it could be assured of orders from the Department of Telecommunications.

Bakht said the government was providing non-plan loans to sick PSUs for clearance of statutory dues of employees.

Exports fall by 7 per cent

NEW DELHI, July 29 (PTI) — Finance Minister Yashwant Sinha has expressed concern over the deceleration in exports and said measures will be announced shortly to arrest the slowdown in the sector. He also expressed concern over the inflows from revenue collections in indirect taxes.

Direct tax collections were, however, doing well and industrial growth was better than last year. Exports have declined by 7 per cent in the first two months of the 1998-99 fiscal. Mr Sinha told a Parliamentary Consultative Committee meeting here that negative trends witnessed in increased outflows of foreign exchange had been arrested in July.

Zee Telefilms net rises 45 per cent

MUMBAI, July 29 (PTI) — Zee Telefilms Limited (ZTL) posted an impressive 45 per cent increase in net profits to Rs 12.59 crore during the quarter ending June 30, 1998, as against Rs 8.67 crore achieved in the first quarter 1997-98.

In spite of depressed market conditions, the company’s subsidiary, Ambience Space Sellers Limited (ASSL) booked advertisements worth Rs 73.67 crore for the first quarter, as against Rs 54.11 crore in the corresponding period last year, a rise of 36 per cent.

Buoyed by its porays into lucrative international media markets, sale of programes and other service between April-June ‘98 rose by a whopping 64 per cent from Rs 19.14 crore to Rs 31.33 crore.

During the forthcoming festival season, Zee TV plans to launch four mega serials even as it plans to expand its horizon to ethnic markets in UK, Europe, Africa and USA. It recently launched a full-fledged 24-hour channel in USA.

Castrol to pay 60 per cent interim dividend

MUMBAI, July 29 (PTI) — Castrol India Ltd’s net profit has increased by nearly 15 per cent to Rs 86.9 crore during the first half of 1998 and the company’s board has recommended Rs 6 as the interim dividend for the financial year ending December 1998.

The unaudited financial results were taken on record by the Castrol board at a meeting here today.

Castrol said it posted a strong volume growth of 9.5 per cent during the first half despite very difficult trading conditions.

The company’s sales in the six months amounted to Rs 527.98 crore against Rs 488.97 crore for the same period in 1997.

Castrol said trading conditions are expected to continue to be difficult during the balance of the year.

However, the company is confident that it will be able to continue to grow profitably because of increased focus on business segments, customer management and accelerated pace of innovations in its strong brand portfolio.

Industry welcomes power tariff cut
Tribune News Service

CHANDIGARH, July 29 — The announcement by the Punjab Government today revising the earlier hike of 33 per cent to a reasonable level has been welcomed by trade and industry. The Phdcci has welcomed the steps to be taken by the PSEB in effecting economy in expenditure by Rs 100 crore in 1998-99. The Chamber feels that the setting up of an independent power tariff regulatory commission as announced should be put in position at the earliest.

Mr S.P Oswal, Chairman & Managing Director, Vardhman Spinning & General Mills Ltd said the Chief Minister has shown great understanding of the present economic crisis facing the industry due to the prevailing recession in the economy. The various sectors of the economy represented strongly to the government that the proposed hike of 33 per cent could have acted like a last straw. in spite of the pressure from the PSEB, the government has displayed utmost sympathy for the industry.

The Mohali Industries Association has thanked the Chief Minister for coming to the rescue of the industry by reducing the burden it was to bear on account of the steep hike in the power rates. Such matters should be sorted out through mutual consultations in future too.

Benefits of Green Revolution ‘fading’

NEW DELHI, July 29 (PTI) — Productivity growth rates of major crops in Punjab and Haryana have shown a steady decline raising fears that the success stories of the “Green Revolution” are fading away, says a study.

The productivity growth rate of rice and wheat in these states has come down to about 1 per cent at present from a level of 8.97 per cent during the period 1965-74, the report of fact finding committee, constituted by Indian Council of Agricultural Research (ICAR) says.

The benefits of Green Revolution enjoyed for almost two decades, have started declining now, the committee headed by S.K. Sinha observes.

“It is not possible to continue getting the benefits of the same technology forever. It had to show decreasing returns with time and that time has come,” the committee said.

The stagnation or decline in the productivity growth of rice in both the states may continue if appropriate steps are not taken now, the committee says in its report to ICAR.

There is need to develop alternate strategies, cropping systems and management for a market-oriented agriculture including livestock and commercial crops are developed and implemented, it suggests.

The soil health in Punjab and Haryana is also deteriorating and is a major cause for decline in productivity of cereals, the fact finding committee report said.

In the major rice-wheat regions and southern parts of Haryana and Punjab, the organic carbon content in the soil has declined to 0.2 per cent now from 0.5 per cent in the sixties.

It also says that there is a 10 per cent decline in solar radiations in the north-western India during the last two decades.

Since solar radiations are closely related to crop growth, any decrease in these will significantly reduce agricultural productivity, it says.

The increase in minimum temperature could increase maintenance and respiration requirement of crops and thus further reduce net growth and productivity.

Quoting a study on the groundwater situation in Punjab and Haryana, the committee says if the present system of irrigation cropping continues, 25 to 40 per cent canal command area may get waterlogged and saline.

Referring to farm irrigation, the committee said water management should be given top priority to have maximum productivity per unit water and also for avoiding waterlogging and soil salinity.

This would require scientific utilisation of water in conjuction with ground water, it said.

The problem of soil and water degradation in Punjab and Haryana, like any other part of the country, is a national problem but it acquires a greater importance because these states make a significant contribution to national food security, the report says.

Top service at affordable cost
By Nirmal Sandhu
Tribune News Service

CHANDIGARH: Mr S.S. Thakur, Chairman of HDFC Bank, who was in Chandigarh on Wednesday for the inauguration of his bank’s 39th branch in Sector 35-B, is a soft-spoken banker in the mould of Dr Manmohan Singh, his former boss in the Reserve Bank of India. Self-effacing, Mr Thakur summed up his biodata thus: “After years of service at the RBI and a brief stint at the UN, I took up my present assignment.” He likes to speak more about his bank in particular and banking in general. Excerpts from an interview:

Q. How do you propose to meet the growing competition among banks? Our bank’s philosophy is to provide world class services at an affordable cost. The bank has built a solid foundation for growth based on strong product franchises across defined niche customer segments. Our promoter, HDFC, has set high standards of quality.

Q. What are your plans for this region?
After this branch’s inauguration by the Punjab Governor we are going to Ludhiana this afternoon to open the bank’s 40th branch there. Shortly another bank branch will be opened in Jalandhar. We will open 25 per cent of our branches in the semi-urban areas as is required by the RBI. HDFC Bank is providing 47 per cent credit to the priority sector, including agriculture, against the stipulation of 40 per cent.

Q. How is the bank performing on the financial front?
For the first quarter of the current financial year the bank’s total income is Rs 93.15 crore, an increase of 33 per cent over the corresponding period of last year. On the expense side, interest expenses have gone up sharply from Rs 27.94 crore to Rs 41.16 crore. At an effective tax rate of 30.2 per cent, profit after tax is Rs 20.18 crore against Rs 16.09 crore for the first quarter of the last financial year, an increase of 25.4 per cent.

Q. What special services has the bank lately offered?
The bank has a network of on-line, real time ATMs and phone banking. The bank has also started providing loans against shares. The bank plans to launch a debit card and expand the range of its retail loan products.

Need for export promotion zones
Tribune New Service

CHANDIGARH, July 29 — The Punjab Government needs to set up three export promotion zones at Ludhiana, Dera Bassi-Lalru and Jalandhar to boost exports and achieve the national export target of 20 per cent per annum.

In a communication to the Punjab Government, the PHD Chamber of Commerce and Industry (Phdcci) has suggested that the government should formulate a separate export policy to create a conducive environment and develop infrastructure, besides announcing incentives.

The incentives would be an added attraction for foreign investors to export rather than keep an eye on the domestic market alone. Incentives should be in the form of exemption rather than cash disbursement, the Chamber has suggested.

Industrial units exporting 25 per cent of production should be the criteria for recognition. As a policy priority should be given in the allotment of land, sanction and energising of power connections, NOC from the Pollution Control Board, sanction and disbursement of loans from the state financial corporation on priority and exemption from octroi.

Also, the 100 per cent export-oriented units should be given encouragement, irrespective of being small, medium or large scale. The Union government reimburses central sales tax on purchases from other states to the 100 per cent EOUs. Due to this the EOUs are discouraged from purchasing raw materials from within the state which is against the interest of the local industry and trade also.Hence exemption be given from state taxes and levies such as purchases tax, market fee, rural development cess for procurement of raw materials.

Corporate briefs

DCM Shriram to pay 40 pc
NEW DELHI, July 29 (UNI) — DCM Shriram Consolidated Limited (DDSCL) at its annual general meeting held on July 28 ratified a dividend of 40 per cent for the year ending March 31, 1998. The company had registered a net profit of Rs 23.97 crore for the financial year on a sales turnover of Rs 697.63 crore. DSCL has reported gross sales of Rs 134.17 crore for the first quarter ended June 30, 1998, the operating profits stood at Rs 14.11 crore. The first quarter’s results are not representative as the fertiliser and part of the power plants of the company were under scheduled shut down for preventive maintenance for 27 days. This reduced the contribution by approximately Rs 7.5 crore due to loss of production. Consequently, the company has reported a loss of Rs 4.64 crore for the quarter.

Munjal Showa approves 1:1 bonus
NEW DELHI, July 29 (UNI) — The Board of Directors of the Rs 150-crore auto-ancillary manufacturer Munjal Showa Limited (MSL) has approved a 1-to-1 bonus issue. The board, which met yesterday, also considered the accounts for the first quarter of the current fiscal ended June 30, 1998, company sources told UNI here. The bonus issue was considered in view of the company’s small equity base of Rs 3.99 crore and earnings of Rs 34 per share during the 1997-98 fiscal. With the board’s approval in place, the company would be seeking the shareholders nod for the same at its annual general meeting on August 26, the sources added. MSL has registered a net profit of over Rs 3 crore during the first quarter, up 24 per cent over Rs 2.7 crore in the corresponding period last year.

J.K. Industries growth up
CHANDIGARH, July 29 (TNS)— J.K. Industries Ltd. (JKI) has announced its financial results for the 15 month period ending March 31, 1998. Sales have grown to Rs 1554 crore, an increase of 17.3 per cent on an annualised basis over the previous year. Opening profit of Rs 206 crore annualised growth of 39 per cent. Net profit after tax is Rs 26 crore. JKI has maintained its dividend payment record and has declared equity dividend of 37.5 per cent which works out to 30 per cent for a 12 month full year including interim dividend of 15 per cent already paid. JKI has acquired controlling interest in Vikrant Tyres Ltd. (VTL) in June 1997 which is now its subsidiary. VTL under the JKI management has made a remarkable turnaround with a net profit after tax of Rs 16.46 crore for the year 1997-98 in 10 months. JK Tyre with VTL have emerged the largest manufacturer of truck and bus tyres in India with a market share of 20.5 per cent.

Kinetic Engineering net up
NEW DELHI, July 29 (PTI) — Pune-based two-wheeler manufacturer, Kinetic Engineering Ltd has registered an eight per cent increase in net profits at Rs 1.62 crore in the first quarter of 1998-99. Kinetic recorded a 28 per cent increase in net sales at Rs 51.34 crore during the period compared to Rs 40.12 crore in the same period last year, the company said in a statement today. The net profit in the first quarter of last year was 1.50 crore. The statement said the enhanced performance was due to increase in sales of its latest product, ‘Kinetic K4-100’ and the recent takeover of group company Kinetic Fincap Ltd, formerly 20th century Kinetic Finance Ltd.

Eicher profit falls 17 pc
NEW DELHI, July 29 (PTI) — Eicher Ltd has registered a 17 per cent lower net profit at Rs 5.33 crore in the first quarter of the financial year on a turnover of Rs 139.17 crore. The flagship company of the Rs 950 crore Eicher Group has registered a 3.26 per cent rise in turnover over the Rs 134.77 crore aggregated in the three months of 1997-98, a statement from the company said here today. Net profit of the company was Rs 6.42 crore in the first quarter of last year. Gross profit, however, increased to Rs 11.33 crore in the first quarter compared to Rs 10.9 crore in the corresponding quarter last year.

Eicher Motors records loss
NEW DELHI, July 29 (PTI) — Truck manufacturer Eicher Motors Ltd has posted a 66 lakh loss in the first quarter of the financial year on a turnover of Rs 4.25 crore. The company had made a loss of Rs 1.23 crore in the first three months of 1997-98, a company statement said today. The loss in the first quarter is despite the company outperforming the light commercial vehicle (LCV) segment with a 6 per cent growth. The segment as a whole registered a 13 per cent decline in sales during the first quarter.

Biz briefs

Sansui TV launched
CHANDIGARH, July 29 (TNS) — Sansui movie awards for the best actor and the best actress will be launched in Delhi next month. This was announced here today by Mr Anil Khera, General Manager (Sales and Marketing) of Kitchen Appliances India Ltd, while launching Sansui’s latest “flicker-proof digital 100 colour TV. The worldwide demand for TV sets during this year is estimated to be 127.9 million, while in India 30 lakh CTV sets are expected to be sold this year. Mr Khera said: “Digital TV’s 100 Hz scan system enables the reproduction of twice as many images per second as in conventional TV. It is targeted at the middle and upper middle classes of society.”

Workshop
CHANDIGARH, July 29 (TNS)— The International Metal Workers Federation in collaboration with the JCT Electronics Workers Union and the Employees Union, SAS Nagar, organised a two-day workshop from July 27, here, on Globalisation and its Impact on trade union movement. As many 25 leaders from JCT Electronics and other engineering units participated. Mr A.D. Nagpal, National Secretary, Hind Mazdoor Sabha, inaugurated the workshop which was conducted by Mr S. Somanathan, along with Dr P.P. Arya of Panjab University.

Cadbury
CHANDIGARH, July 29 (TNS)— Cadbury India Limited, has announced the launch of new Cadbury Gold an exclusive-tasting moulded bar with a delicious soft centre. The project is manufactured at Cadbury’s plant at Induri near Pune.

Canara Bank
CHANDIGARH, July 29 (TNS)— The Women Cell of Canara Bank will organise a free entrepreneurship awareness programme on service enterprises for women on August 1 at its office in Sector 34-A, here from 1.30 p.m to 5.30 p.m.

Top branches
CHANDIGARH, July 29(TNS) — Mr Vijay K. Mahajan, General Manager, SBI Chandigarh Circle today honoured 29 branches for their distinguished achievement of having secured “Efficiently run” inspection and audit rating. The branches that were awarded trophies are — Gopal Nagar Amritsar, Haripura Amritsar, Ladha Kothi, Sunam, Sheron, AFG High Ground, Chandigarh, NRI Chandigarh, Bam from Punjab-I Module, Nadaun, Gondpur Banhera, Khaira, Gangath, Kangoo, Dehra, Panchrukhi, Sihuni, Bharmar, HPAU Palampur, Didag, Solan, Rajban, Jaunaji, Chatrokheri, Ahur, Banikhet, Slapper, Namhol from Shimla module and Mendhar Shargole from Jammu module.

Gold improves
NEW DELHI, July 29 (PTI) — Both the precious metals, silver and gold, rebounded on the bullion market today on emergence of buying by local parties in the face of restricted supply and closed with gains. The quotations: silver .999 (ready) 8410, delivery 8400, coins buyer 10.600 and seller 10.800. standard gold 4325, ornaments 4175 and sovereign 3525.