Haryana sells murals,
craft
NEW DELHI: Haryana has gone “thematic” in this year’s India International Trade Fair being held at Pragati Maidan here.

US no to blouses NEW DELHI, Nov23 —The USA has imposed an embargo on shipments of ladies blouses from India for overshooting the import quota earmarked by Washington under the category.

Sky is the limit for trade

Assembly elections slow down trading
MUMBAI, Nov 23 — Equities continued their downward march in narrow movements on the first day of the new account on the stock market today as operators and some foreign funds pressed fresh sales alternated by small purchases by domestic institutions at lower levels.

‘NPAs banks’ biggest worry’
CHANDIGARH, Nov 23 — The biggest worry for the banking sector in India has been the fast-growing non-profitable assets (NPAs) which have amounted to Rs 60,000 crore.

7 more PSUs set for disinvestment
NEW DELHI, Nov 23 — The government has referred seven more PSUs to the Disinvestment Commission, including National Mineral Development Corporation and Paradip Phosphates Ltd, for detailed report on disinvestment.

German-US banks for mega-merger
NEW YORK, Nov 23 — Deutsche Bank, Germany’s largest bank, will purchase Bankers Trust, a major US bank holding company, for $ 9.5 billion to create the world’s largest financial-services institution, The Wall Street Journal said today.

Golden Forests projects are uncertain: Crisil

MUMBAI, Nov 23 (PTI) — The collective investment schemes of Golden Forests (India) Ltd have been assigned a Grade-V rating, reflecting an overall high risk profile due to negligible inflows from operations, near total dependence on retail deposits and high costs associated with raising these deposits.

Crisil said in a report that uncertainties associated with the implementation and commercial success of the company’s large real estate projects were extremely high and the company would have to continue to rely on fresh inflows of high cost retail deposits to meet operational expenses as well as repayment obligations on existing deposits.

The Chandigarh-based company, set up for the purpose of carrying out commercial plantation activities, has shifted focus to real estate development and is mainly engaged in the acquisition of large land holdings in cities which it proposes to develop into residential and industrial townships.

The company, which has collected over Rs 700 crore through these schemes, plans to develop townships with facilities for industrial parks, commercial complexes, residential areas, farm houses, hotels, amusement parks and golf courses.

It envisages a time frame of five to eight years on the completion of these projects and the total project outlay was currently estimated to be Rs 3,800 crore.

The ability of the company to complete projects on time and profitably achieve commercial sale appears highly uncertain, Crisil said adding that this was especially so in the light of the absence of a management track record in implementing such large projects in multiple locations.

Crisil said the company has not yet sold any of its real estate properties, resulting in low cash inflows from operation till date. The income from its agricultural operations was negligible, it added.

In the absence of clear accounting guidelines for such collective investment schemes, the company shows a portion of funds collected from investors as development receipts and sets off a part of repayments against these receipts.

As a result, reported levels of investor funds are not an accurate reflection of the actual outstanding liabilities on investor funds.

On a capital base of Rs 10 lakh, the company reported investor deposits of Rs 401 crore, as on March 31, 1997, resulting in high gearing levels.

The land bulk, evaluated by an independent valuer at Rs 1180 crore, does not give adequate comfort with respect to timeliness on repayments.

Further, resource requirements for implementing these projects is substantial and this could put further strain on GFIL’s adverse cash flow situation, Crisil said.

President calls for new farm strategy
Tribune News Service

NEW DELHI, Nov 23 — The President, Mr K.R.Narayanan, today called for evolving a new strategy for agriculture based on integrated genetic and natural resources management, and information and skill empowerment to ensure food security in the 21st century.

Inaugurating the first International Congress on Agronomy, Environment and Food Security for 21st century, Mr Narayanan said there was also a need to introduce as soon as possible an integrated genetic resources management programme based on the Global Convention of Biological Diversity.

At the same time, it is important to have effective legal and educational instruments in place for ensuring biosafety, bioethics and biosurveillance, and for guarding against the plunder of genetic and biological resources, he added.

Addressing over 600 delegates from over 25 countries, including India, he called for positive decisions and proper actions in this regard.

He said food security in developing countries would be further influenced by population and economic growth, infrastructural development, access to modern inputs, market and credits. Agronomists all over the world would have to be at the forefront to meet all these challenges in the coming years.

The Union Minister of State for Agriculture, Mr Sompal, emphasised the importance of enhancing the cropping intensity through sequential and inter-cropping systems to further boost the crop production. He said cropping intensity was only 1.36 in the whole of the country while in Punjab it was 1.7. Conservation of rain water and use of brackish ground water could improve cropping intensity substantially in the rainfed areas, he added.

Haryana sells murals, craft
From Yoginder Gupta
Tribune News Service

NEW DELHI: Haryana has gone “thematic” in this year’s India International Trade Fair being held at Pragati Maidan here. Earlier, products of an industrial unit were clubbed together. This year the organisers have divided the pavilion into various themes. Products have been arranged theme-wise and not dumped for convenience.

A visitor to the pavilion becomes aware of Haryana’s “sankalp” to encourage industry by developing infrastructure. The model of Manesar industrial town by the Haryana State Industrial Development Corporation is a special attraction.

In “Our Industry” 30 participants, mainly small units, highlight the range of products manufactured in the state. “Our World” introduces the visitor to products, like garments, sports goods, cycles, health equipment and shoes.

“Our Home” presents products one needs to make a home. About 20 units have displayed doors, hardwares, garden, living and dining furniture, kitchen and bathroom fittings and kitchen ware and appliances. The visitor moves on to “Our Fields”, “Our Handicrafts” and “Our Vehicles.”

The pavilion has four murals. The Chief Administrator of the pavilion, Dr H.S. Anand, who conceptualised the murals along with designers of the Central Cottage Industries Organisation, says the first mural at the outer wall depicts movement, and dominance of man over machine. The mural of Lord Krishna signifies Haryana as the land of the Gita.

The third and the fourth murals are devoted to the handicrafts and the spirit of cooperation between the people and the government in the form of a handshake.

A “Cyber Cafe” provides latest information on industrial opportunities in the state to entrepreneurs.

The Administrator of the pavilion, Mr Ankur Gupta, sees to it that all trade enquiries are attended to properly.

Seven eminent craftsmen have been given an opportunity to display their creativity. Barring the craftsmen, nobody is allowed to sell their products in the pavilion. It has been a tradition of the Haryana pavilion to discourage the sale of goods which many states allow. The sale of goods, of course, brings more visitors to a pavilion but defeats the purpose of the trade fair — to encourage a lasting relationship between traders and manufacturers. There is a fun corner for children also.

HP floats time-share scheme
Tribune News Service

NEW DELHI, Nov 23 — Tourists to Himachal Pradesh can now enjoy various picturesque locations of the State year after year by making a one-time investment ranging between Rs 15,000 and Rs 1,50,000.

The Himachal Pradesh Tourism Development Corporation (HPTDC) has decided to offer its prime resorts in the State on a time-sharing basis to tourists and investors.

Unlike many other companies across the country, the HPTDC has jumped into the fray armed with a sound infrastructure, having a bed-strength of 1760 and 47 functioning units.

According to the Resident Commissioner of the Himachal Government here, Mr A.K. Mohapatra, the time-sharing scheme is primarily for those tourists who spend part of their holidays every year in the lap of the Himalayas.

The scheme will remain effective for 20 years and has the guarantee of 100 per cent return of investment after 20 years. In case any investor wishes to withdraw from the scheme at an earlier date, 60 per cent of the amount invested will be refunded.

Under the scheme, 52 weeks of the year have been divided into various categories — Premium, High and Normal. Resorts run by the HPTDC in Manali, Kulu, Shimla, Chail, Barog, Chamba, Khajjiar, Dharamsala and McLeodganj, Palampur, Narkanda and Sarahan are on offer under the scheme.

The Managing Director of the HPTDC, Mr P.C. Kapoor, told newspersons here that the concept of time-sharing, which is popular abroad, would enable tourists to change the time, destination and property selected by them with a 45-day advance notice.

The weeks bought by tourists would also be transferable and it would have the potential of commercial exploitation, he added.

US no to blouses

NEW DELHI, Nov23 (PTI) —The USA has imposed an embargo on shipments of ladies blouses from India for overshooting the import quota earmarked by Washington under the category.

All Indian Garment Exporters Common Cause Guild President Chand K Anand told PTI that several lakh pieces of ladies blouses, meant for exports to the USA and worth Rs 40 crore, had been held up for exports due to the embargo.

Textile Secretary Shyamal Ghosh, when contacted, said “we have asked the US authorities for flexibility and adjustment under the category. They are yet to agree to the adjustment”

However, the government was yet to receive official communication regarding the embargo, he said.

Mr Anand, alleging mishandling of the ladies blouses export quota by the Apparel Export Promotion Council (APEC), said information on embargo was received from the USA last week.

Buy vehicles in Chandigarh, sell in Punjab
By P.D. Sharma

THE state government has levied infrastructural cess of 1 per cent on a group of 16 commodities. The automobile and hosiery sectors are included in this. The automobile sector is very sensitive for sales tax revenue. A small difference in rates in Punjab and adjoining states is enough to attract the customer. A cess of 1 per cent has raised the sales tax in Punjab to 5 per cent whereas it is 4 per cent in Haryana; 3.85 per cent in Chandigarh and 3 per cent in H.P. There is no octroi in Chandigarh.

Telcom gives a hefty revenue of Rs 20 crore from its depot in Zirakpur. Earlier when sales tax was 8 per cent in Punjab this revenue went to Chandigarh. After reducing the rate to 4 per cent Punjab started getting the major share. Now with this cess the old situation will revert back.

The bulk of commercial vehicles are purchased by petty drivers through higher purchase mode. The cess of 1 per cent will raise the price of truck by Rs 7000 and with no octroi in Chandigarh this vehicle will be cheaper by Rs 8000 there. This is a hefty amount for the poor purchaser. Obviously the bulk of sale will shift to Chandigarh except for the 200 to 300 vehicles purchased by the Punjab government. Part of the sale, shall shift to Haryana and HP from adjoining places of Punjab.

Take the case of Maruti. The cess raises the price of 800 cc car by Rs 3000/- and of Zen by Rs 4500/- including the benefit of no octroi in Chandigarh. On the other hand in HP the sales tax is 3 per cent and Maruti dealer of Pathankot has shifted to Damtal in HP. He is doing so well that he has been able to sell 180 Maruti cars a month in Ludhiana when local dealers sell an average 125 vehicles. With the cess many brokers have become active to purchase cheaper vehicles from Chandigarh to sell them in Punjab. This is a shear revenue loss to the state government.

Maruti may start direct billing for the customers. In this case the state sales tax shall go to Haryana in addition to Central sales tax of 4 per cent. It is already getting. Similar is the case for scooter which will be cheaper in Chandigarh by Rs 380. Chandigarh dealers have in additional extended a concession of Rs 300-350; enough to attract all customers. Sale of scooters in Punjab is to the tune of 10,000.

Evasion of sales tax is a reality. Here again the state government’s police type enforcement is responsible for this. Goods carriers are intercepted, detained on very flimsy grounds and subjected to heavy penalties up to 30 per cent. Officials are under pressure to meet the revenue targets and have no other option. Here transporters rather than the state government come to the rescue of dealers. A bag of hosiery goods for instance reaches Delhi safely at a freight of Rs 580/- within 12 hours. If the goods go with billing the freight is just Rs 180/- but with no certainty of reaching the destination with fear of penalty in tact. This is the main reason for the heavy leakage of revenue. New industry enjoys exemption from sales tax. Right or wrong it is one side of the story. The downstream industry getting goods from the exempted industrial unit claims Modvat. Exempted tax is taken as deemed credit. This is another major source of revenue leakage and needs to be plugged.

The state government is thinking of activating sales tax barriers as an alternative to Section 14-B of the Sales Tax Act. On the face of it the proposal seems to be viable provided other precautions are taken in consultation with the business community.

A solution to the burning issues has to be found sooner than later.

Assembly elections slow down trading

MUMBAI, Nov 23 (PTI) — Equities continued their downward march in narrow movements on the first day of the new account on the stock market today as operators and some foreign funds pressed fresh sales alternated by small purchases by domestic institutions at lower levels.

The BSE sensitive index was trapped in a narrow range of 2908.16 and 2938.33 before closing at 2919.57 as against last Friday’s close of 2941.39, netting a fall of another 21.82 points.

Foreign institutional investors (FIIs) were reportedly net sellers in some scrips like Nestle, Bajaj Auto, ITC, L&T and some software shares.

Domestic institutions, however, were reported to have bought shares of ITC, ICICI, Hind Lever, L&T, SBI and Bajaj Auto in small quantity at lower levels.

The forthcoming Assembly elections in four States, results of which are feared to affect the political situation in the country, was the main factor for the low volume as most of the operators were watching the developments and keeping away from making fresh commitments.

Dealers also attributed the disinterest among the players to reported slowdown in industrial growth and several other negative factors such as absence of measures to pep up the falling capital market.

Ruling out any improvement in the sentiment only on institutional support, a leading dealer said that operators were expecting some concrete measures by the government to restore the depressed market.

The market is likely to be affected by the election jitters in the current week, a leading broker said.

Badla rates remained almost at the last week’s level but it did not help the market to recover.

The total turnover on the BOLT system was Rs 726.07 crores. Satyam Computers was the leader among the five most prominent traded scrips with a turnover of Rs 164.13 crore. ITC followed with Rs 110.45 crore, Reliance Rs 61.32 crore, SBI Rs 52.61 crore and Pentafour Software Rs 47.65 crore.

Satyam Computers dropped by 17.75 to 568.25, ITC by 5.25 to 701.75, Reliance by 1.90 to 117.50, SBI by 3.90 to 156.70 and Pentafour Soft by 25.75 to 546.25.

‘NPAs banks’ biggest worry’
Tribune News Service

CHANDIGARH, Nov 23 — The biggest worry for the banking sector in India has been the fast-growing non-profitable assets (NPAs) which have amounted to Rs 60,000 crore.

This can be lessened if more stress is placed on better management of the banking system, quicker pace of working system, training of loan-seekers and proper evaluation of projects. Besides, a more personalised relationship between the banker and the customer to reduce the risks of frauds is required.

These observations were made by Prof S.S. Johl, Director, Reserve Bank of India, at the inaugural session of the weeklong management development and special training programme for the senior officers of the Bank of India at the Centre for Research in Rural and Industrial Development (CRRID) here today.

Mr S. Gopalakrishnan, Executive Director, Bank of India, underlined the need for strengthening the integrated treasury system. Mr Rashpal Malhotra, Director, CRRID, stressed the need to scientifically re-examine the role of banking industry in the changing socio-political scenario. Mr J P Gupta, principal coordinator, CRRID, reiterated better social awareness in the banking industry.

Prof Hrishikes Bhattacharya of the Indian Institute of Management, Calcutta, highlighted the emerging trends of risk that will affect the banking industry in future.

7 more PSUs set for disinvestment

NEW DELHI, Nov 23 (PTI) — The government has referred seven more PSUs to the Disinvestment Commission, including National Mineral Development Corporation and Paradip Phosphates Ltd, for detailed report on disinvestment.

“Seven more companies were referred to us few days back and we would be able to submit the report within two to three months,” Commission Chairman GV Ramakrishna told PTI.

The remaining companies are Mineral Exploration Corporation Ltd (MECL), Sponge Iron India Ltd, Hindustan Steel Works Construction, MSTC and Metallurgical and Engineering Consultants.

With the current batch of seven companies, the total number of companies under the commission now stands at 10.

German-US banks for mega-merger

NEW YORK, Nov 23 (PTI) — Deutsche Bank, Germany’s largest bank, will purchase Bankers Trust, a major US bank holding company, for $ 9.5 billion to create the world’s largest financial-services institution, The Wall Street Journal said today.

With more than $800 billion of assets in what would be the biggest trans-Atlantic acquisition in the banking sector, the combined entity would eclipse UBS AG of Switzerland, which has about $ 789 billion of assets, as well as Citigroup Inc., which was formed out of the Travellers group and Citicorp.

The acquisition will create a powerhouse in asset management, with close to $ 700 billion under management.

The deal provides evidence of how the increasingly intertwined global economy is forcing companies to form once unthinkable cross border alliance.

Deutsche Bank’s Chairman Rolf Breuer proposed the acquisition plan to the bank’s Managing Board on Friday, and gained its approval.

Breuer flew to New York over the weekend, with the bank’s backing in hand, in order to meet Bankers Trust board yesterday.

Sky is the limit for trade

Despite little success of the Indo-Pak dialogue, bilateral trade has grown steadily nearly seven times in as many years. But observers say sky is the limit if politics is not mixed with business.

From a mere Rs 100 crore in ’91, bilateral trade has grown to nearly Rs 676.37 crore last year. But the level of annual official trade is only one-fifth of the volume of clandestine trade which totals around $ 2 billion. Were it legalised, Islamabad alone would earn at least $ 60 million by way of revenue.

Even as some Indian strategists point that easing trade barriers for Pakistan will lead to a lobby there insisting on doing business with India, Shahid Hafiz Kardar, a Pakistani trade expert, says “Political will is at the root of slow growth of bilateral trade.”

One of the biggest impediments is the environment of hostility and fears anchored in socio-political psyche through years of indoctrination through media and history books, notes Kardar, who has represented Pakistan at several business fora. — PTI

Vegetables
Vegetable prices in Pakistan are touching dizzying heights with tomatoes joining onions in becoming luxuries in the diet of the common people.

Tomato prices touched a record Rs 48 per kg at retail shops in the Capital on Sunday. In the last one week, the price of the vegetable has fluctuated between Rs 32 and 40 per kg.

Hoarding, artificial price hikes by wholesale traders and shopkeepers and the government’s failure to prevent these are being blamed for their hardship caused to the common people.

Much like India’s onion crisis this year, Pakistan’s vegetable crisis is also said to have been caused by a measure of trade mismanagement, with the country importing onions after having earned a record amount from exporting them. — IANS

Tea takers
Pakistan is the third largest consumer of tea in the world, but 60 per cent of it comes from Kenya. Had Pakistan sourced all its consumption from Sri Lanka and India, it would have saved a whopping $ 110 million annually in the process.

And it’s not as if Pakistani goods would stand no competition here. The adverse balance of trade in favour of Islamabad last year only shows how sweet Pakistani sugar can be for Indians. Not to mention the onions that India can bank upon during times of shortage. — PTI

Still in crisis
“Pakistan continues to face a deep economic crisis”, says Shahid Javed Burki, the World Bank’s Vice-President for Latin America and the Caribbean region.

“A new IMF arrangement followed by new lending by the multilateral banks and (rescheduling) agreements with the members of the Paris and London clubs will certainly pull the country away from an economic disaster”, adds Burki, who was caretaker Finance Minister of Pakistan for 90 days from November, 1996.

“But the relief provided will be only for a short term.”

An IMF team was recently in Islamabad. The IMF team and the Pakistani Government clamped a media blackout on the talks. — PTI

Grain exports
Pakistan is aiming to transform itself from a foodgrain importer into an exporter by the start of the new century. The country has spent a whopping $ 2.52 billion in importing 14.46 million tonnes of wheat in the past six years, says a Food Ministry report.

Experts say Pakistan had become self-sufficient with 19 million tonnes of wheat production during fiscal year 1997-98. However, the government is importing 2.2 million tonnes to avoid any shortage while 1.2 million tonnes of wheat have already been lined up.

Experts say Pakistan can boost annual wheat yield to over 20 million tonnes in a year or two if the government announces incentives for farmers such as a hike in support prices, provision of subsidy on fertilisers, seeds and electricity, they say. — IANS

US $ Rs 42.42/43
Sterling £ Rs 69.91/93
Deuts Mark Rs 24.88/90
Jap Yen (100) Rs 34.97/99
The RBI reference rate was Rs 42.38.

Gold picks up
NEW DELHI, Nov 23 (PTI) — Both precious metals, silver and gold, picked up on the bullion market today on emergence of buying and closed with small gains. Marketmen said fresh buying in the absence of adequate supply also improved the market sentiment. The following were today’s quotations: silver .999 (ready) 7375 and delivery 7405, silver coins buyer 10,500 and seller 10,600, standard gold 4355, ornaments 4205 and sovereign 3750.

ST notification
From Our Correspondent
LUDHIANA, Nov 23 — The Punjab Government has issued a notification that sales tax cases with turnover up to Rs 20 lakh will be decided in a summary manner. According to Mr Ashok Kumar Juneja, vice-chairman of the Punjab Pradesh Beopar Mandal, the notification will come into force from July 22, 1993.

Nominated
Tribune News Service
CHANDIGARH, Nov 23 — Mr B.K. Mehan and Mr Vinod K. Peshawaria have been nominated members of the Central Excise Regional Advisory Committee for the Organised and Small-Scale Sectors, Central Excise Commissionerate, Chandigarh-I, Respectively, for 1998-99.

Promoted
Tribune News Service
CHANDIGARH, Nov 23 — Mr Jagdish Kumar, Chief Manager of the State Bank of India, Panchkula, and Mr K.S. Talwar, Chief Manager of the SBI, Sector 7, Chandigarh, have been promoted Assistant General Manager.

Commodities
From Our Correspondent
CHANDIGARH, Nov 23 — Wheat 630, dara 632 to 635, superior 638 to 640, maize 570 to 580, sarson 1800 to 2000, taramira 1900 to 1950, paddy-pr-103 470 pr-106 470 to 480 rice basmati 2800 to 5000, parmal 850 to 1000, sella 850 to 1000, maida (per bag) 690 suji 690 atta 660 urd (per quintal) 2000 to 2500, urd-dal 2000 to 2500, moong 2200 to 2600, moongdal 2200 to 2600, moongdhuli 2500 to 3000, masoor 2300 to 2600, malkamasoor 2500 to 2600, kabli chana 2500 to 3500, kalachanna 1500 to 1800.