Technology fund for textile sector soon
Tribune News Service

NEW DELHI, July 30 — A technology upgradation fund (TUF) of Rs 25,000 crore will be created for the textile industry, the Textile Minister, Mr Kashiram Rana, said today.

Financial institutions like IDBI and ICICI have agreed to contribute to this corpus.

Speaking to newsmen here, the minister said that the TUF has already been approved by a group of secretaries of various government departments including, labour, agriculture and textiles.

The proposal is under consideration of the Cabinet and is expected to be approved shortly, he said adding that the scheme is expected to give a fillip to the indigenous weaving and processing industry which would in turn provide quality inputs for the domestic fabric, made-up industry.

By way of facilitating loans to the textile units for upgradation, the government would bear an interest subsidy of Rs 3000 crore , he said.

The government has appointed an expert group under the chairmanship of Mr S.R. Sathyam of the Tariff Authority of Major Ports to formulate a new textile policy which would contain fresh incentives for the industry.

The expert group is expected to submit the report within six months and the draft policy would be released by the end of this year.

Admitting that there is “something wrong” in the existing government policy, Mr Rana said that the new policy is likely to put emphasis on preparing the domestic industry to face the free trade regime after the phasing out of the multi-fibre agreement in 2004.

The government is also concentrating on the improvement of human resources and strengthening of the National Institute of Fashion Technology (NIFT) and Apparel Training and Design Centres (ATDC).

The government is also going to intensify awareness campaign to make the industry aware about quality, environment, health and safety concerns, he said.

Cabinet clears IT plan

NEW DELHI, July 30 (PTI) — The Union Cabinet has given its “unanimous” approval to the 108-point “information technology (IT) action plan” drawn up by the Prime Minister’s task force on I.T. and software development.

“With this the decks have been cleared for the speedy and time-bound implementation of the 108 recommendations embodied in the I.T. action plan,” the task force said in a statement.

The action plan was earlier studied and approved by the four-member ministerial group set up by the Prime Minister, whose members comprised Human Resource Development Minister (HRD) Murli Manohar Joshi, Finance Minister Yashwant Sinha, Defence Minister George Fernandes and Communications Minister Sushma Swaraj.

The I.T. task force, headed by Deputy Chairman of the Planning Commission Jaswant Singh and co-chaired by Andhra Chief Minister Chandrababu Naidu, was set up on May 22, 1998 to draft the national informatics policy (NIP) and strategise for India’s emergence as an information technology superpower.

The task force also announced the formation of a panel on “promotion of research, development and manufacturing of I.T. hardware in India”. Recommendations of this panel will be forwarded to the Prime Minister before September 1, 1998.

CITCO plans Pinjore trip for senior citizens
Tribune News Service

CHANDIGARH, July 30 — CITCO has decided to offer discounts at its hotels to mark the closing ceremony of the celebration of the 50th Year of Independence, said Mrs Meenakshi Datta Ghosh, Chairperson, in a statement here today.

Chef Lakeview will offer discounts up to 20 per cent on boating and amusement games. A complimentary trip to Pinjore will be organised for people above 65 years.

A sight-seeing trip for trainee teachers of the Chandigarh Administration will be arranged on August 8 and 9.

At the Community Centre in Sector 33 a food festival will be organised on August 14 and 15 from 6 p.m. to 11 p.m.

Amritsar blankets for Zambia
Tribune News Service

AMRITSAR, July 30 — The Chief Minister, Mr Parkash Singh Badal, here today flagged off a consignment of blankets of the Punjab State Industries and Export Corporation for export to Zambia.

Praising the PSIEC, he said the export figure of different goods had touched Rs 3,700 crore during 1998-99.

Tata International has decided to source its part requirements from Punjab, he said.

The focus for exports will be on bicycle parts, blankets, hand tools and sports goods. The process has been initiated by the PSIEC to supply blankets to the Tatas Zambia office.

The blankets have been procured from local units and were inspected by SQS, an international inspection agency.

Mr Ranjit Singh Talwandi, Chairman, PSIEC, said that the PSIEC had been declared an export house and a nodal agency to regulate exports from Punjab.

Mr Ramesh Inder Singh, Secretary Industry, and Mr A.K. Sethi, General Manager, Tata group of companies, also spoke.

Capt Narinder Singh, PSIEC Managing Director, said efforts had been made to sign MoUs with MMTC, STC., HHEC., PEC., etc.

The corporation hopes to supply blankets worth Rs 1 crore in a year’s time. It will also provide “on-line access” to 450 international data bases.

Okara told to frame repayment scheme

NEW DELHI,July 30 (PTI) — The Company Law Board (CLB) today directed defaulting Okara Agro Industries Ltd (Okara) to frame a repayment scheme and seek the permission of the depositors before the approval of the board.

Board member A.R. Ramanathan in today’s hearing also directed the Investor Forum of Okara to reply to the CLB on the legal position of the deposits raised by the company.

Under Section 58-A of the Act, the CLB can take action against companies defaulting in re-payment of fixed deposits only.

It has asked the forum to reply within 15 days to the board so that the CLB can initiate proceedings quickly. The CLB member also directed Okara to submit a report to it, on steps taken by the company for repayment of deposits.

Okara Director Gurdeep Singh, informed the CLB member that the company was facing liquidity problem — the main problem for delay in the repayment to the depositors.

He also said that the company’s Managing Director and Vice-President were in judicial custody, which has also led to the delay.

Regarding the options for repayment of deposits, the Okara director said, the company was willing to transfer the assets in the name of the investor forum.

Okara’s total liability in the form of deposits is to the tune of Rs 70 crore while its assets are worth Rs 80 crore.

The company had earlier framed a repayment scheme for depositors under which 5 per cent of the principal was to be paid to depositors every month.

However, the scheme could not be implemented due to the arrests of the company’s Managing Director and Vice-President.

Okara, a Delhi-based company is engaged in the business of agro-plantation and had raised money under various schemes like Sugam, Suraksha, Suvidha at high rate of interest.

Upto March 1997, turnover of the company was Rs 17 crore and net profit of Rs 21 lakh.

Corporate Seesaw

BSES net profit up 16 per cent
MUMBAI, July 30 (PTI) — BSES Ltd has posted a net profit of Rs 78.66 crore in the first quarter of financial year 1998-99, recording a growth of 16 per cent over the corresponding period of the previous year.During the period, total income also rose to Rs 625 crore from Rs 530 crore in the first quarter of last year.The company has reported a higher gross profit at Rs 132.03 crore compared to Rs 117.08 crore last year.Sale of electrical energy includes sale to the Western India grid (Rs 64.95 crore) and since the entire generation of power at the Dahanu Power Station was being brought to the company’s area of supply, the sale to the grid has reduced to Rs 1.67 crore, the company said.

M&M’s profit dwindles
MUMBAI, July 30 (PTI) — Mahindra & Mahindra Ltd’s (M&M) net profit has dwindled to Rs 35.02 crore during April-June 1998 from Rs 43.44 crore in the corresponding quarter of 1997.The sales and income from operations for the quarter, however, went up to Rs 808.45 crore against Rs 782.69 crore in the same period last year. The sale of vehicles during the quarter inclusive of completely knocked down (CKD) packs and exports, was 15,784 units against 16,502 units in the first quarter last year.The company’s market share of utility vehicles improved to 56.7 per cent during the quarter against 51.7 per cent for the year ended March 31, 1998.Its market share of tractors in the quarter was 27.7 per cent against 27.1 per cent for the full year ended March 31, 1998.

Hind Lever turnover jumps 35 per cent
MUMBAI, July 30 (PTI) — Hindustan Lever Chemicals Ltd (HLCL) has recorded a 35 per cent increase in turnover at Rs 232 crore for the half year ending June 30, compared to Rs 172 crore in the corresponding period of the previous year.The net profit has also improved, recording an increase of 27.5 per cent over last year to Rs 11.69 crore.Despite an impressive increase of over 40 per cent in the sales of DAP fertiliser, the financial performance of fertilisers was flat in comparison to the first half of last year, as the amount of subsidy for kharif remains undecided, the company said.The current ad hoc subsidy is insufficient to cover the higher costs on account of the impact of rupee depreciation, on the import component.

Results

Bata India net soars 150 per cent
CALCUTTA, July 30 (PTI) — The net profit of Bata India Limited for the first half (H1) of 1998 rose 150 per cent at Rs 18.09 crore while profit after tax touched Rs 7.14 crore in the first half of 1997.Net sales of the company rose to Rs 220.2 crore in 1998 h1 from Rs 195.75 crore in 1997 H1.The Bata India Board, which met here today, approved financial results of 1998 H1 and also reviewed the industrial relations scenario at the factory premises in Batanagar, West Bengal.

Rallis India
MUMBAI, July 30 (PTI) — Rallis India has posted a 23.5 per cent growth in net profits to Rs 98 lakh on a turnover of Rs 270.05 crore for the first quarter of this financial year. Growth in turnover amounted to 28 per cent over the corresponding period of the previous year while total sales for last financial year 1997-98 stood at Rs 1206.12 crore. Gross profits, after interest but before depreciation, and tax amounted to Rs 3.84 crore as against Rs 2.40 crore in the previous corresponding period.

GT Bank
NEW DELHI, July 30 (PTI) — Global Trust Bank (GTB) Ltd has registered a 13.87 per cent growth in the net profit at Rs 18.3 crore in the first quarter of the current financial year. The net profit after provisions stood at Rs 18.3 crore as against Rs 16.07 crore in the first quarter of 1997-98, the bank said in a statement here today. Loans disbursed in the first quarter went up by 8 per cent to Rs 1,703 crore as against Rs 1,576 crore in the corresponding period last year.

Corporation Bank
BANGALORE, July 30 (PTI) — The net profit of Corporation Bank for the quarter ending June 1998 had recorded a growth of 40.9 per cent over the corresponding period last year, to reach Rs 51.86 crore. The volume of business in the first quarter saw a growth with deposits at Rs 9710.24 crore, showing an increase of 29.3 per cent and advances at Rs 4251.08 crore, a growth of 49.3 per cent over the same period a growth of 3 per cent.

Wipro
BANGALORE, July 30 (PTI) — Computer major, Wipro’s net profit has increased over steeply to Rs 25.7 crore in the first quarter of the current financial year from Rs. 3.2 crore in the same period last year. The company’s software exports also increased by 73 per cent to Rs 133.1 crore in the first quarter of 1998-99 ending on June 30, a company press release said here today after its board meeting. Wipro’s sales grew by 31 per cent to Rs 345.5 crore from Rs 264.2 crore against the corresponding period last year.

LIC Housing Fin
MUMBAI, July 30 (PTI) — LIC Housing Finance Ltd (LICHF) has increased net profits for the first quarter of 1998-99 to Rs 11.49 crore from Rs 9.14 crore in the corresponding period last year. LICHF’s income during the quarter April-June 1998 was Rs 117.28 crore against Rs 100.99 crore in the same period of 1997. During the first quarter, growth in LICHF’s individual loan sanctions and disbursements stood at 30.61 per cent and 26.33 per cent to Rs 243.49 crore and Rs 216.02 crore, respectively.

SAIL
NEW DELHI, July 30 (PTI) — Steel Authority of India (SAIL) has posted a loss of Rs 311 crore in the first quarter of 1998-99, registering a 147 per cent fall from a year ago.However, sail recorded a sales turnover of Rs 3,192 crore compared to Rs 3,026 crore in the same period of 1997-98.

Biz briefs

Road fund proposed
NEW DELHI, July 30 (TNS) —The Union Surface Transport Minister Dr M. Thambi Dural has suggested the creation of a Road Development Fund (RDF) for national highways (NHs). The fund could be managed by a professional body in the form of a Road Board, he said while addressing the Consultative Committee attached to his ministry. No loan negotiations have been held for any new projects so far. Negotiations for more NH projects are expected to take place after proposals for new projects are completed by the National Highways Authority of India (NHAI) and the ministry. These would cover four laning of nearly 1600 km of NHs, he said.

Liquor ads
NEW DELHI, July 30 (PTI) — Bowing to growing criticism, liquor manufacturers in the country have decided against advertising or broadcasting of advertisements of alcoholic beverages, and commercials on accessories or services using brand names till 9 p.m. The self-regulatory code of conduct evolved by the Confederation of Alcohol and Beverages Companies, however, permits flashing of brand names without any time restriction. The code has taken into account political, legal, cultural and religious sensitivities associated with the marketing and consumption of alcoholic beverages in India, confederation secretary Promod Krishna said.

Jisco
MUMBAI, July 30 (PTI) — Jindal Iron and Steel Company Limited has recorded a marginal fall in its net profit to Rs 7.06 crore for the first quarter this fiscal compared to Rs 7.36 crore during the corresponding quarter of the previous year. Net sales have, however, shown a rise to Rs 264.60 crore as against Rs 222.57 crore, according to the company’s unaudited financial results released today. Interest and finance charges accounted for Rs 15.75 crore as against Rs 9.45 crore, the release said adding that the expenditure had gone up to Rs 231.32 crore as against Rs 197.75 crore in the previous quarter.

Gold falls
NEW DELHI, July 30 (PTI) — Silver and gold fell back sharply on bullion market today on lower international advices. The quotations: silver .999 (ready) 8335, delivery 8315, coins buyer 10,500 and seller 10,700. Standard gold 4290, ornaments 4140 and sovereign 3525.

Vaccine
MUMBAI, July 30 (PTI) — Ahmedabad-based, Zydus Group, has entered into a joint venture with Korea Green Cross Corporation to manufacture the market recombinant Hepatitis-B vaccine in India. Korea Green Cross Corporation is a world renowned player in the field of vaccines and biologicals with an annual turnover of $256 million (Rs 1,100 crore). To start with, the Zydus Group will be launching the Hepatitis-B vaccine under the brand name “HB Vac”. The vaccine is currently marketed in 23 countries worldwide.

Mushrooms
WASHINGTON, July 30 (AFP) — The US Commerce Department has issued a preliminary finding that mushrooms from Chile, China, India and Indonesia were dumped on the US market. Anti-dumping duties would apply only after the department makes a final determination and if the US International Trade Commission finds that the imports injured US industry, the department said in a statement yesterday.

Terminator
NEW DELHI, July 30 (PTI) — The “terminator gene” technology, said to produce seeds that become sterile after one sowing, does not exist in reality and multinational company “Monsanto is in no way involved” with the development of this gene protection technology, a senior company official said today. “The entire terminator gene concept is purely theoretical and does not exist in the real sense.”