Thursday, November 12, 1998
today's calendar
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B U S I N E S S | Thursday, November 12, 1998 |
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spotlight today's calendar |
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Industrial growth slumps to
3.6 per cent |
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‘Germans see India as
market’ NABARD
loan for Punjab roads |
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Thermal
centenary celebrations planned LIC
records growth in business |
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Industrial growth slumps to 3.6 per cent NEW DELHI, Nov 11 (PTI) —Finance Minister Yashwant Sinha’s prediction of an industrial revival in September has not come true as official data shows a decline in growth rates during the month to 1.4 per cent from 4.17 per cent in August. Overall industrial growth based on official data declined to 3.6 per cent for the first six months of 1998-99 from 6 per cent a year ago. All three major sub-sectors of the index of industrial production (IIP) — manufacturing, mining and electricity — showed sharp decline in September compared to August figures. Manufacturing sector grew by only 2 per cent as against 4.2 in August and electricity grew 2.6 per cent compared to 6.8 per cent while mining recorded a negative 4.9 per cent growth compared to 0.6 per cent in August. On an annualised basis, overall IIP (base:1993-94=100) and its three sub-groups showed an even greater slump. The overall growth of 1.4 per cent during September 1998 was far below 8.5 per cent recorded last September. Similarly, manufacturing sector’s growth last year was a robust 8.7 per cent compared to just 2 per cent this year and electricity grew by 9.3 per cent in September 1997 compared to 2.6 per cent this year. Poor performance during September has further pulled down cumulative growth figures with the manufacturing sector growth declining to 3.4 per cent from 6 per cent a year ago and mining sector posting negative growth of 0.4 per cent in the first half compared to 5 per cent last year. However, half-yearly growth of electricity showed a small improvement over last year at 7.7 per cent compared to 7.2 per cent during April-September 1997. Among sub-sectors of manufacturing industry, growth in consumer goods, accounting for more than one-fourth of the IIP weightage, slid into the negative in September at minus 4.6 per cent and pulled down cumulative growth to 0.8 per cent in the first half against 2.5 per cent last year. Both consumer durables and non-durables posted negative growth rates of 2.5 and 5.2 per cent compared to 9.8 and 12.2 per cent respectively posted last September. Cumulative growth rates fell to 0.4 and 1 per cent for the first half against 6.3 and 1.5 per cent respectively a year ago. Basic goods also had a negative growth of 1.4 per cent in September resulting in half-yearly growth of 2.6 per cent. The sector grew by 7.6 per cent and 7 per cent respectively in the month of September and in the first half. There was some improvement
in growth rates of capital goods and intermediate goods
in September at 8.5 and 8.2 per respectively compared to
7.2 and 7.1 per cent.
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‘Germans see India as market’ CHANDIGARH, Nov 11 — India is ranked ahead of China and Indonesia in offering profitability to investing companies, said Mr K.S. Rana, a former Ambassador to Germany, here today. Addressing a CII-organised seminar on “Indo German investment,” Mr Rana spoke on the economic scene in Germany, German industries’ interest in India and cross-cultural variations. India’s location, he said, is important for German companies to service West and South-East Asia. Indian market is the prime attraction for them and not the “buyback” offer. Lack of transparency and bureaucracy’s addiction to the “case-by-case” approach creates doubts. “The process of decision-making is terrible”, he said. “Even fast-track projects take five years for clearance”. Mr Paul Weise, Director of DEG German investment and development company, who explained in detail DEG’s functioning, said: “Money turns the world around. Workers earn it, taxes take it, women spend it, forgers fake it, robbers seize it, the rich increase it, gamblers lose it — everyone of us could use it. Money is the best substitute for credit and that’s why bankers lend it”. Mrs Dorris Frank, Project Manager, India DEG, listed five phases of materialising a project proposal: (1) The sponsor develops a project proposal which contains the core idea of a JV; (2) The sponsor seeks a JV partner: (3) The sponsor and potential JV partner engage in negotiations; (4) Negotiations are completed and the JV agreement can be signed; and (5) important question is whether the JV really materialises. Mr I.S. Paul, Chairman,
CII, Chandigarh Council, said exports account for 30 per
cent of the GDP of Germany, a developed country, while in
India the relevant figure is just 10 per cent. |
NABARD loan for Punjab roads CHANDIGARH, Nov 11 — NABARD has sanctioned Rs 4113 lakh loan assistance to the Punjab Government for the development of the drainage system in Faridkot, Muktsar and Ferozepur districts and repair of roads and bridges in Faridkot, Moga and Muktsar districts. The road project envisages the reconstruction and strengthening of 24 rural roads and construction of six bridges at a cost of Rs 2359 lakh. NABARD has committed to provide Rs 2,123 lakh. The project will improve connectivity to 134 villages and 63 marketing centres, provide employment of 10.80 lakh mandays and will be completed by March 31, 2000. The drainage project is
for constructing a 61 km Wahabwala Drain in Faridkot,
Muktsar and Ferozepur districts at a cost of Rs 2,937
lakh. |
Banks told to help farmers CHANDIGARH Nov 11 — Punjab National Bank, convener bank for Haryana, today convened a meeting to review relief measures to farmers affected by rains in Haryana. Mr R.P. Gupta, General
Manager, PNB, said that Haryana experienced unprecedented
rain and floods resulting in the loss of crops worth
about Rs 3000 crore as per the estimates drawn by the
Department of Revenue, Government of Haryana. Mr Gupta
asked bankers to implement the RBI guidelines for
farmers. Mr S.K. Gupta, General Manager, RBI Delhi,
suggested that the bankers could consider short-term
loans for the next crop and even the existing short term
loans could be converted into term loans if required. |
Khadi exhibition inaugurated CHANDIGARH, Nov 11 — The Sector 34 lawn adjoining the petrol station is the venue for those on the lookout for khadi products. Till December 13, items from the remote villages of the region have been brought at one place by the KVIC for the consumer at a 30 per cent discount. The discount on khes, durries, jackets, gowns, silk, quilts, mattresses, dress material, honey, ayurvedic medicines etc is facilitated by the various grants-in-aid in the form of rebate offered by the state governments. Khadi officials today informed Mr Ranjit Singh Talwandi, Chairman of the PSIEC, who inaugurated the exhibition, that the Rs 5 lakh rebate was too meagre and like other States, Punjab should hike it to at least Rs 50 lakh. Even as the Badal
Government is considering to better the lot of the
weavers, spinners, beekeepers and the lakhs of
handicrafts makers, if at all, the common man can do the
needful in a better way — by buying the goods and
having the satisfaction of filling the pocket of the
producer and not the middleman. |
NEW DELHI, (PTI): Maruti Udyog Limited (MUL) will discuss introduction of new models at its board meeting this Thursday as part of the Rs 8600 crore joint venture carmaker’s efforts to safeguard its market leadership. The meeting assumes significance as Union Industry Minister Sikander Bakht had discussed new models and technology transfer with Suzuki Motor Corporation (SMC) Chairman O Suzuki on November 4 at Hamamatsu in Japan. The minister had remarked that SMC should hurry up with the introduction of new passenger car models in India to make up for the time lost due to the company’s legal battle with the Government, its joint venture partner in MUL. BMW bullish NEW DELHI (UNI): German luxury carmaker BMW AG is still bullish on India despite the delay in receiving approvals from the Indian Government. BMW is still awaiting for some approvals from the Indian Government and there is no question of pulling out of the country, BMW Asia spokesman Ramesh Divyanathan told UNI. On the delay in going ahead with the project, MRT Divyanathan said, “consistent and committed investments such as whether to invest in a country’s auto industry always takes time. This is partly because of the numerous parties involved and the legal framework one is required to work within. If the legal framework changes, this requires new discussions with virtually all parties again. Initially, India had a developing auto policy, with a case-by case discretionary approach. But with the new MoU policy, there exists a binding framework. However, any subsequent changes in regulations means that BMW and its partners again need to make changes in its own calculations and proposals. BMW now awaits for some approvals from the Indian Government.” Awards for Matiz NEW DELHI, (UNI): Daewoo Motor’s latest offering — the 796cc Matiz — has bagged two international awards for the best small car at the British International Motor show in Britain and the world’s most beautiful car at the L’Automobile Pin Bella Del Mondo contest in Italy. The jury of the Institute of British Carriage and Automobile Manufacturers (IBCAM) contest selected Matiz as the best small car for the design award. The award was given for the product itself and not just the package, a statement issued here said. The ‘world’s most beautiful automobile’ contest was organised under the aegis of Automobile SRL. Matiz won the contest in the small division comprising saloon car with two to five doors. It was declared the most beautiful car from among Fiat’s Seicento, Renault’s Twingo 2, New Clio and Nissan’s New Micra. The award giving ceremony would be held in January at the Polytechnic of Milan, Italy. Car finance NEW DELHI, Nov 11 (UNI) — ICICI Limited has finalised a 16 per cent interest on both the booking amount and the final loan for Daewoo Motor India Limited (DMIL)’s 796cc small car Matiz. Besides, ICICI is also offering interest rate concessions on the final loan to the extent of 1 per cent to its existing bond holders and Anagram Finance Customers, institution sources told UNI here. Concessions ranging to
about a quarter of a per cent would also be offered to
existing Cielo owners and women, the sources added. |
Thermal centenary celebrations
planned NEW DELHI, Nov 11 — Thermal power generation, which accounts for more than 72 per cent of India’s installed capacity, turns 100 per cent in 1999. Starting with a 1 mw steam generating plant in 1899, with the Calcutta Electric Supply Company, thermal capacity has grown to 64,000 mw as on date. To celebrate the first
centenary of the thermal power in India, Council of Power
Utilities (CPU) and Central Board of Irrigation and Power
(CBIP) in association with the Ministry of Power. CEA,
NTPC, State Electricity Boards, other utilities and power
plant equipment manufacturers are organising Thermal
Centenary Celebrations 1999 to commemorate 100 years of
thermal power generation in India.
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LIC records growth in business JALANDHAR, Nov 11 — Mr G. Krishnamurthy, Chairman, Life Insurance Corporation of India (LIC) stated here today that the half yearly working results of the corporation for fiscal 1998-99 have been quite encouraging. He said that the corporation has registered a good growth in business as at September 30, 1998, be it individual or group and pension business. Mr Krishnamurthy said that
LIC had covered a total of 46,51,219 lives generating a
new business premium income of Rs 791.57 crore under both
individual and group business showing a growth of 14.14
per cent in terms of lives and 35.54 per cent in terms of
new business premium income. The performance under
individual business reflected growth rates of 13.7 per
cent in terms of policies, 21.6 per cent in terms of sum
assured and 27 per cent in terms of first premium income. |
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| Deutsche Bank CHANDIGARH, Nov 11 (TNS) — Deutsche Bank and Nippon Life Insurance Company (Nippon Life) today announced the formation of a strategic alliance. The alliance will allow for the joint development and distribution of European mutual fund products aimed at the Japanese market and the distribution of Japanese mutual fund products in Europe. SBI
office Autoprint LPG van MBAs Forex rates US $ Rs 42.27/28 The RBI reference rate was Rs 42.28. Gold firm RBI counter Canara Bank |
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