Punjab’s land policy to check speculation
CHANDIGARH, Nov 25 — To check real estate sharks, the Punjab Government has notified a new land allotment policy for the allotment of industrial plots or land both in the existing or upcoming industrial estates.

Hindustan Lever, Fena lock horns
NEW DELHI, Nov 25 — The Monopolies and Restrictive Trade Practices Commission has directed the Director General, Investigation and Registration, to initiate an inquiry into a complaint against Hindustan Lever Ltd by the Rs 100-crore Indian detergents major, Fena.

Japanese giant inks MoU with Punjab
IOC to set up Rs 6,000 cr petro complex at Bathinda
Tribune News Service

NEW DELHI, Nov 25 — Indo-Japanese economic relations, which had soured after India conducted the Pokhran nuclear blasts in May this year, got a major boost today with Japan’s corporate giant, Itochu Corporation, signing a memorandum of understanding with the Punjab Government to tap huge investment potential in the State.

The MoU, signed between the Industries Department of Punjab and Itochu Corporation in the presence of Mr Parkash Singh Badal here, is the first major initiative taken by a Japanese company after that country took a tough posture.

The Chief Executive Officer of the $117,672 turnover company, Mr T. Ota, said the tie-up with the Punjab Government demonstrates the faith of Japanese companies in India.

The MoU envisages cooperation between the Punjab Government and the Japanese company for tapping the investment potential in the infrastructure sector, including power, Food and Processing, electronics, information technology, refineries and petrochemicals.

The exact amount of investment in the State would only be known after the Japanese company conducts a detailed study and identifies the potential areas for investment.

Mr Badal said the State Government was also making efforts to bring liquefied natural gas (LNG) to Punjab. After laying the foundation stone of Guru Gobind Singh Refinery at Bathinda, Mr Atal Behari Vajpayee had already directed Gas Authority of India to complete a demand survey within three months. The project, estimated to cost Rs 700 crore, will help revive sick industry in Mandi Gobindgarh and Batala.

The Principal Secretary to the Chief Minister, Mr Ramesh Inder Singh, told TNS that there were around 2,100 sick industrial units in the State which formed 5 per cent of the total units. Several units hit by the high cost of diesel and coal would benefit with the availability of LNG and there was scope for their revival. It would also be a boon for bulk purchase industry and consumers of cooking gas in North India, he added.

Mr Badal announced that the Indian Oil Corporation has also shown keen interest in setting up a Rs 6,000 crore petrochemical complex at Bathinda. It proposes to manufacture 500,000 tonnes of ethylene and other downstream products for which main feed stock would be naptha from the Guru Gobind Singh refinery. Naptha being the key to the viability of petrochemicals complex, the IOC project is all set to materialise, he added.

Punjab’s land policy to check speculation
By Gobind Thukral
Tribune News Service

CHANDIGARH, Nov 25 — To check real estate sharks, the Punjab Government has notified a new land allotment policy for the allotment of industrial plots or land both in the existing or upcoming industrial estates.

It is bad news for those cornering industrial plots and selling them at huge premium. The Industries Department estimates that 60 to 70 per cent of the land meant for industrial units get blocked. Influential persons grab plots for real estate purposes and not for putting up units. The new policy tries to stop this.

Mr Ramesh Inder Singh, Secretary Industries, told TNS that the new policy will check speculators and ensure plots to genuine entrepreneurs.

Under the new policy, the allottee will be issued a Letter of Intent (LoI) in the first instance and he will be required to get the project appraised regarding techno-economic feasibility from financial institutions, scheduled commercial banks or other public sector consultants and submit the appraisal report to the developing agency within three months of the issue of LoI. The developing agency will hand over possession of land to the allottee on submission of the appraisal report.

Payment terms have been liberalised. Under the new policy an applicant will be required to deposit 10 per cent of the cost of a plot as earnest money with the application as against 20 per cent earlier. Another 30 per cent of the cost of the plot will have to be deposited within 45 days from the date of issue of LoI and the remaining 60 per cent shall be deposited in 6 equal half yearly instalments. The developing agency will give a rebate of 10 per cent in case of lumpsum payment, by the allottee.

The Punjab Small Industries & Export Corporation has so far developed about 8,200 plots of various sizes. Of these more than 7,200 plots have already been allotted. However, about 40 per cent of the allotted plots are lying vacant.

The allottee, under the new policy, will be required to commence production after completing construction of the factory building within three years from the date of issue of possession. However, under exceptional circumstances, the allottee can get extension for additional six months upon payment of an extension fee equal to 6.5 per cent of the cost of the plot. If commercial production is not started within the admissible/extended time period, the plot allotment will be cancelled. No transfer of the LoI will be admissible. However, transfer of plots will be allowed by the developing agency, if the unit of the allottee has remained in commercial production as envisaged in the project reports at least for two years.

Applications for allotment of plots will be processed within 90 days of the closing date of receipt of applications by the developing agency.

In the new policy provision has been made to set apart 15 per cent of the plots from 1000 sq. yards but less than 2500 sq. yards, besides 30 per cent of plots of 2500sq. yards and above, and up to 2 acres for allotment under off-the shelf scheme. Besides 10 per cent of the plots have been reserved for non-resident Indians and export-oriented units. Allotments under off-the shelf scheme will be made by a committee under the chairmanship of the Chief Secretary.

Mr Ramesh Inder Singh said that the PSIEC is developing new focal points at Abohar, Tanda, Muktsar, Bathinda, Pathankot and Mohali. Land in all these places has already been acquired and development work is in progress. Besides new focal points are also planned to be developed at Dera Bassi, Lalru, Kohara, Machhiwara, Phillaur, Goraya, Amritsar, Malerkotla, Dhuri, Kapurthala, Mansa, Malout, Samana, Faridkot, Dhariwal and Batala, besides a new focal point for NRIs at Mohali.

Hindustan Lever, Fena lock horns
From P.N. Andley
Tribune News Service

NEW DELHI, Nov 25 — The Monopolies and Restrictive Trade Practices Commission (MRTPC) has directed the Director General, Investigation and Registration, to initiate an inquiry into a complaint against Hindustan Lever Ltd (HLL) by the Rs 100-crore Indian detergents major, Fena.

The MRTPC has asked for investigation as to whether “Wheel” contains any lemon, as claimed by HLL. Fena and HLL have locked horns over the former’s latest audio-visual advertisement campaign for its brand “Superpower Fena Detergent Powder”.

In its complaint submitted to the MRTPC, Fena has alleged that HLL’s advertisement for its popular brand “Wheel” detergent powder and “Wheel” detergent cake, which use lemon as the USP is “false and misleading”. Fena has argued that after having tested “Wheel” in chemical laboratories, it has been found that the detergent uses only the odour of lemon and does not contain organic acid, which is the chief cleaning agent in lemon.

Earlier, HLL had put an objection to Fena’s latest advertisement campaign on Doordarshan which showed a modern daughter-in-law urging her traditional mother-in-law to move beyond the old perception of lemon to a greater reliance on modern scientific findings. In a letter written to Prasar Bharati, HLL had claimed that the imagery of lemon is closely associated with “Wheel” and “Fena” has indulged in unethical practices by targeting lemon in the publicity campaign for its detergent powder.

HLL had also strongly urged the corporation to take corrective action by withdrawing such a “disparaging film”. Fena, however, felt that such a claim by HLL is not tenable as the product claim is wrong as lemon is not an ingredient in “Wheel”.

Earlier, Fena had alleged that HLL, through a space-selling agency, was trying to scuttle its advertisement. According to them, HLL was using its muscles to blackout its campaign as it was thought to be detrimental for the brand-image of “Wheel”, which is the largest selling detergent brand of HLL.

The agency, which had booked time for HLL on Doordarshan, had threatened to withdraw the commercials of HLL from some of the popular serials in case Fena’s advertisement was not dropped.

The stage, however, is set for what could cause embarrassment to the Rs 8,000-crore HLL.

Telco to roll out petrol Safari

NEW DELHI, Nov 25 (PTI) — At a time when other auto makers are coming out with diesel variants of their vehicles, Telco is planning to roll out petrol versions of its popular multi utility vehicles (MUV).

The auto major is currently working on the petrol variants of Safari, Sierra and Estate and these MUVs will be launched after Telco’s small car Indica hits the roads in the second week of December, company sources told PTI here.

The petrol variants would have a higher BHP of 140 vis-a-vis 70 BHP of its diesel counterparts. However, both the versions would have the same engine displacement of 1948 cc.

The sources said Telco had no plans to wheel out its best selling MUV — Sumo — with a petrol engine. There were no immediate plans for a soft-top Sumo either, they added.

The Estate model, after a brief absence from the market, would soon make a comeback with added features like Turbo charged engine and better interiors, the sources said.

Estate model, priced over Rs 5 lakh (in Delhi) had made a retreat from the market owing mainly to the poor sales.

The petrol variants would be launched in this financial year itself, they added.

Indica, Telco’s first offering to the Indian middle class family, is also the first petrol vehicle from the company known mainly as a truck manufacturer.

Commercial production of the new car has commenced at the Pimpri plant near Pune. Both diesel and petrol versions of Indica would be simultaneously launched in three variants each to take on similar cars from Maruti, Hyundai, Daewoo and Fiat.

Telco has already put in place 51 dealers across the country for the small car, besides roping in Tata Finance and ANZ Grindlays Bank to provide customer finance.

Proposal to delink SIDBI from IDBI

NEW DELHI (PTI): The government has decided to de-link Small Industries Development Bank of India (SIDBI) from Industrial Development Bank of India (IDBI) to make it more effective in giving credit to small scale industries.

This decision was taken at Monday’s Cabinet meeting, an official spokesman said adding a Bill would be introduced in the winter session of Parliament to amend various provisions of 1989 SIDBI Act for this purpose.

Presently SIDBI is wholly owned by IDBI which is also major shareholder in State Finance Corporations (SFCs).

To equip SIDBI to pay its apex role in SSI credit provision more effectively, SIDBI will be delinked from IDBI and IDBI shareholding SFCs will be transferred to SIDBI, the spokesman said.

SIDBI’s authorised capital stood at Rs 500 crore and its paid up capital is Rs 450 crore which is wholly subscribed by IDBI.

The spokesman said it was proposed to enhance the upper limit of authorised capital to Rs 1000 crore consisting of Rs 750 crore as equity share capital and Rs 250 crore as redeemable preference share capital.

GT Bank

CHANDIGARH, (TNS): Global Trust Bank (GTB) has tied up with American Express to distribute US $ denominated American Express Travellers Cheques. In the first phase these cheques will be available shortly, to GTB’s customers from four branches of the bank in Mumbai — Nariman Point, Cuffe Parade, Opera House and Bandra besides the F.C. College Road branch in Pune. Later the cheques will be introduced across various GTB branches across the country in a phased manner.

Citi bank

NEW DELHI (UNI): Citibank has submitted an aggressive expansion plan before the RBI which includes permission to open 100 branches in various Indian cities. Citibank NA Chief Executive Officer — India, David Conner said that the bank had chalked out ambitious plans for the country notwithstanding the restrictive RBI policies in regard to allowing foreign banks to open branches.

Bank of Baroda

NEW DELHI, (PTI): Bank of Baroda (BOB) has proposed to tap the international markets next year through the Global Depository Receipts (GDR) to further expand its capital base.

We are talking with merchant bankers to raise capital with a $ 60-80 million GDR issue in the next financial year in order to keep the capital adequacy ratio (CAR) at international levels” BOB sources said.

They said the bank proposes to float GDR to provide cushion with adequate CAR as in the next few years the bank expects its deposits to grow at 20 per cent annually.

SBI office

MUMBAI, (PTI): The State Bank of India (SBI) has set up a representative office at Sydney in Australia to focus on marketing and liaison activities in the Oceania region.

The representative office would focus on being a facilitator for expanding and reinforcing the existing banking arrangements, including those for trade-related credit for Indian imports from the exports to Australia.

The bank expects to promote two-way trade between India and Australia.

KCB Bank

MUMBAI, (PTI): Prince Philippe of Belgium inaugurated the first Indian branch of $ 175 billion KCB Bank N.V. in the metropolis to extend full-scale domestic and international banking products to corporates in India.

KCB, the first operational Belgian Bank of the Indian sub-continent, was active since 1995 in external commercial borrowings of Indian corporates, the bank’s Managing Director Herman Agneessens told the media.

Mobil
CHANDIGARH, Nov 25 (TNS) — Mobil organised a “product awareness campaign” in the city today after achieving success in Himachal at Shimla and Parwanoo. According to Mr Gautam Duggal, Territory Manager, the campaign would help customers in selecting the right lubricant. Mobil plans more such campaigns in the near future.

Award
CHANDIGARH, Nov 25 (TNS) — Cepham Milk Specialities Ltd. has been given the APEDA export award for the second year in succession. The company’s exports amounted to Rs 20 crore.

Forex rates
MUMBAI, Nov 25 (PTI) — The following were interbank forex and RBI rates (in rupees per unit):

U.S.$ Rs 42.42/43
Sterling £ Rs 70.50/52
Deutsche Mark Rs 24.94/96
Jap Yen (100) Rs 35.08/10

The RBI reference rate was Rs 42.42.

Gold steady
MUMBAI, Nov 25 (PTI) — Silver prices continued to slide down due to poor industrial offtake even as gold held steady on scattered dealings at the bullion market here today. The rates: Silver Rs 7420, delivery 7425. Gold standard 4330, and ornaments 4005.

Reliance
CHENNAI, Nov 25 (PTI) — Reliance Power today said its 500 MW lignite-based power project in Tamil Nadu had been granted escrow cover facility from the state electricity board and negotiations for a state government guarantee to the project were in an advanced stage. The Tamil Nadu Electricity Board has offered escrow cover to the project and in addition to that. “We are formulating the modalities of a state government guarantee,” a senior official of Reliance Power told PTI here.