EU takes India to WTO over car part policy
BRUSSELS, Oct 6 — The European Union launched a World Trade Organisation action against India today over its rules on imports of vehicle parts. Meanwhile, Indian textile exporters received a shot in the arm with the EU deciding not to impose anti-dumping duties on unbleached cotton grey fabric from India, a report from New Delhi said.

Agricultural tech
project launched
NEW DELHI, Oct 6 — A national agricultural technology project that seeks to revolutionise agriculture research systems in keeping with the latest technology trends was launched here today.

Each Pakistani
under $ 400 debt
LAHORE, Oct 6 — With the country’s national debt crossing the 2.8 trillion rupee mark this week, each Pakistani is under a debt of over Rs 22,000 ($ 400 official statistics released here show.

Flour mills allowed
to import wheat
NEW DELHI, Oct 6 — A Directorate-General of Foreign Trade notification said the free import of wheat could be made directly or through state-owned agencies STC, MMTC and Project and Equipment Corporation.

How about off-shore banking?
NEW DELHI (ANI): A note prepared by the PHD Chamber of Commerce and Industry has urged the government to realise the economic benefits of off-shore banking.

Punwire launches new services NEW DELHI, Oct 6 — Leading paging provider Punwire today launched a range of value-added services including stock market bulletin and general news to ‘Page Me’ subscribers in 11 states across the country.

Public spending doesn’t help poor: World Bank
WASHINGTON, Oct 6 — India’s anti-poverty programmes and public spending on health and education are missing their mark, consuming significant resources but yielding little gain in raising living standards of the poor, the World Bank says in a new report.

• Tax cuts in Japan
• G-22 meet opens
• IMF for controls
• Haryana loan

EU takes India to WTO over car part policy

BRUSSELS, Oct 6 (Reuters) — The European Union launched a World Trade Organisation (WTO) action against India today over its rules on imports of vehicle parts, a European Commission spokesman said.

The 15-nation EU had asked for formal consultations with India, the first step in the WTO’s disputes settlement procedure.

The EU objects to India’s policy of prohibiting imports of certain vehicle products by companies which do not meet minimum export and local content criteria.

The EU maintains that the measures break WTO rules and distort international trade by giving companies which benefit from them an unfair advantage over their European competitors.

The Indian Government grants local joint-venture companies special licences to import automotive components and finished vehicles provided they use a minimum proportion of Indian components and that their exports of vehicle products balance out their imports.

Following an agreement negotiated with the EU under the WTO, India is committed to phasing out its import restrictions on cars by march 31, 2002, the commission said.

A date with the old & beautiful
Tribune News Service

CHANDIGARH, Oct 6 — Old beauties like Austin and Citroen will compete for attention with young things like Matiz and Santro at the Auto Show — first-ever in Chandigarh — being held in the Sector 17 Parade Ground from October 9 to 11.

The oldest of the lot is Austin 1927, whose proud owner, Ravi Mann, recalls how its previous lover had to lose it since he could not afford a garage in Calcutta after retirement and did not trust his son for its care.

Refurbished, the cars were displayed at the Lake Club parking for newspersons this morning.

Having a nostalgic look at B. Mancoo’s 1938 Citroen, an 89-year-old still active lady, Malvinder Kaur, remembered her younger days when her father drove her in a Citroen.

Why this fascination for the old? “I have a sentimental attachment with my car”, says Daljit Singh Chahal. “My Ford Sedan (1934) was bought by my father for Rs 3,300. During partition, we drove it from Lahore to a village near Ludhiana. I brought home my bride in this car”.

Each of the seven vintage and classic cars and five mobikes on display had a history.

There is a Sector 24 mechanic called Kaka, who owns four bikes - the oldest being Zenith, 1917. “If a motor cycle mates with a cycle, the outcome will be a Zenith”, said auto enthusiast Kishie Singh.

When a youngster was asked — “If you have to elope with one of these whom will you choose?” — he pointed to Tejinder Singh’s 1952 disposal low-bonnet jeep with American side-valve engine run on a 6 volt battery. It was cute.

“I use it for hunting”, said Tejinder.

“Girl-friends or ....”

“Both”, he smiled.

If you like these beauties, credit the CII and the Association of Indian Automobile Manufacturers for putting up the show.

Seventy other exhibitors will display consumer items like personal care products and domestic appliances. All big names that need no introduction.

Agricultural tech project launched
Tribune News Service

NEW DELHI, Oct 6 — A national agricultural technology project that seeks to revolutionise agriculture research systems in keeping with the latest technology trends was launched here today.

The Union Minister of State for Agriculture, Mr Som Pal, while launching the World Bank-aided project, the biggest of its kind in the world, said the project marks a new chapter in India’s agriculture research and extension services.

The project conceived and developed by the Indian National

Agricultural Research System in association with the World Bank, is designed to bring reforms towards technology generation, assessment and refinement before the same is disseminated to farmers.

According to the Director General of the Indian Council for Agriculture Research, Dr R.S. Paroda, the revitalisation of the research systems would help the country’s agriculture production keep pace with the projected increase in population in the next century. It is estimated that India’s population would increase by 30 million by 2020 and 50 million tonnes of additional grains would be required to feed them. This means six to seven million tonnes of additional production of grains every year.

The major objectives of the project are:

— To revitalise the national technology generation, assessment, refinement and dissemination systems;

— Address location, specific production system problems for which technical solutions exist; -Strengthen frontier areas of research to take advantages of modern tools now available;

— Conserve natural resource base and enhance productivity of these resources;

— Strengthen management tools, procedures and development of information management systems, suited to national needs;

— Strengthen national capacity in research and extension management, policy planning, priority, monitoring and evaluation to meet current and emerging needs of agricultural development.

The key project innovation is the establishment of an Agricultural Technology Management Agency (ATMA) in 24 pilot districts distributed between six states, including Punjab, Himachal Pradesh. Maharashtra, Bihar, Orissa and Andhra Pradesh.

Each Pakistani under $ 400 debt

LAHORE, Oct 6 (ANI) — With the country’s national debt crossing the 2.8 trillion rupee mark this week, each Pakistani is under a debt of over Rs 22,000 ($ 400 official statistics released here show.

The net indebtedness of Pakistan, with a population of 130.5 million, has exceeded Rs 2.883 trillion, or 104.4 per cent of the gross domestic product (GDP) of Rs 2.76 trillion as against 83.9 per cent of the GDP in just over five years.According to the latest estimates, the country’s GDP as of June 30 last was Rs 2759.525 billion and the national debt stood at Rs 2883 billion.

This includes Rs 1,185 billion of domestic debt and 34.62 million dollars of external debt (per cent value Rs 1731 billion).For every one rupee downward adjustment, the debt servicing burden would go up by Rs 13 billion i.e., Rs 5 billion for external debt and the rest for every dollar of the forex accounts every if paid in rupees.

By the end of fiscal 1997-98, Pakistan’s national debt was 93.4 per cent of the GDP.In comparison India was 85.5 per cent (domestic debt 78.1 per cent, external 7.4 per cent), Indonesia 47.1 per cent (domestic 1.1 per cent, external 46 per cent), South Korea 12.2 per cent (domestic 10.4 per cent, external 1.8 per cent ), Malaysia 47.1 per cent (domestic 41.6 per cent, external 5.5 per cent), Nepal 111 per cent (domestic 24.4 per cent, external 86.6 per cent), Thailand 4.9 per cent (domestic 1.4 per cent, external 3.5 per cent), Turkey 40.5 per cent (domestic 17.2 per cent, external 23.3 per cent), and Sri Lanka 98.5 per cent in 1993.In case of the world’s strongest economy, the USA, the national debt is estimated at 60 per cent of the GDP.

The Maastricht Treaty, however, makes a country ineligible to join the European Currency Union (ECU) if the national debt is more than 55 per cent of the GDP or the fiscal deficit is more than 3 per cent of the GDP.

Flour mills allowed to import wheat

NEW DELHI, Oct 6 (PTI) — The government today allowed free import of wheat by the roller flour mills. A Directorate-General of Foreign Trade (DGFT) notification said the free import of wheat could be made directly or through state-owned agencies STC, MMTC and Project and Equipment Corporation (PEC).

The free import will be allowed only for meeting the milling purposes. The flour produced could be either sold domestically or exported. Meanwhile, the government may allow export of wheat next year in view of the record foodgrain production likely to be achieved in the current year, the Agriculture Minister, Mr Sompal, said here today.

A shot in arm for textile exporters

NEW DELHI, Oct 6 (PTI) — Indian textile exporters received a shot in the arm with the European Union (EU) deciding not to impose anti-dumping duties on unbleached cotton grey fabric (UCGF) from India.

Textile Minister Kanshi Ram Rana here today quoted a message from the Indian Mission at Brussels as saying that eight EU countries voted last night against the imposition of the anti-dumping duties while six voted in favour and one abstained.

The EU had already imposed 16 per cent provisional anti-dumping duties on the UCGF imports from India, but it would have become operational only if the imposition of the anti-dumping duties was made definitive before October 9.

Punwire launches new services

NEW DELHI, Oct 6 (PTI) — Leading paging provider Punwire today launched a range of value-added services including stock market bulletin and general news to ‘Page Me’ subscribers in 11 states across the country.

The value added services offered at no additional cost to subscribers also include daily horoscope, bullion market information, information on moves, train and flight timings, help line services, sports modules and wake up calls.

Chairman and Managing Director of ‘Page Me’ Gurupal Singh said with the launch of these value added services, paging would become an information source that could enhance business and social lives.

How about off-shore banking?

NEW DELHI (ANI): A note prepared by the PHD Chamber of Commerce and Industry has urged the government to realise the economic benefits of off-shore banking.Calling for a proper legal framework for administrating off-shore banking and ensuring secrecy to investors, the Chamber has said that off-shore centres will help stimulate the internationalisation of the local economy.

Such centres will attract not only foreign investment, but also encourage the flow of valuable financial, commercial and industrial intelligence.An off-shore bank is a bank operating physically and technically from India but catering to deposits from non-residents. These transactions are not governed by Indian tax laws like FERA etc. The off-shore bank can, however, lend or invest in India. India would thus have the advantage of attracting foreign funds for investment in infrastructure, the chamber added.For a developing nation like India, where capital is scarce, an off-shore centre could provide a trans-national substitute till the development of its own domestic capital market, the chamber said.

Hindi award
CHANDIGARH (TNS): Mr S.S. Kohli, CMD of Punjab & Sind Bank, has been awarded the “Ahindi Bhashi Hindi Sewi Award” by the Madhya Pradesh Rashtar Bhasha Prachar Samiti for promoting Hindi. The award was presented by Dr Bhai Mahavir, Governor of Madhya Pradesh, at a special function held at Bhopal recently.

PSB
FATEHGARH SAHIB, (FOC): Mr T.R. Sarangal, Deputy Commissioner, inaugurated a rural development division of Punjab and Sind Bank here on Tuesday. He called upon the banks to simplify the procedure for loans. Mr Bharpur Singh, Chief Manager, stated that a new credit card facility for farmers had been started.

Canara Bank
CHANDIGARH (TNS): Canara Bank has opened a fully computerised savings branch in Sector 40-C, Chandigarh. The branch was inaugurated by Dr G. Vajralingam, UT Secretary Finance. Mr H.D. Pai, General Manager of the Bank, said the branch will provide credits, consumer loans, education loans, safe deposit, lockers and other deposit schemes.

Tax cuts in Japan

TOKYO, Oct 6 (PTI) — Japanese Prime Minister Keizo Obuchi today announced tax cuts of about $ 50 billion, besides asking his Cabinet to prepare a fresh revival package of $ 80-90 billion to revive the country’s ailing economy.

Obuchi announced the decisions after a cabinet meeting this morning amid mounting pressure — both domestic and international — to become an “engine” pulling other ailing Asian economies out of their recession.

IMF for controls

WASHINGTON, Oct 6 (PTI) — In a significant policy shift, the IMF has favoured the use of capital controls in an economic crisis and suggested a cautious move towards capital account convertibility.

“We need to strengthen our advice to countries on the pre-conditions for an orderly liberalisation of the capital account”, IMF Managing Director Michel Camdessus told the fund’s interim committee.

“Recent experience suggests that the requirements for a successful liberalisation of portfolio flows are much more demanding than had been generally recognised”, Camdessus told the committee yesterday.

G-22 meet opens

WASHINGTON, Oct 6 (AFP) — US President Bill Clinton has exhorted countries to work together to stave off the spreading financial crisis as he opened talks among 26 industrialised and emerging economies here.

“Clearly this is not a task for the G-7 alone,” Clinton yesterday told Finance Ministers and Central Bank Governors alongside end-of-year meetings of the World Bank and the IMF.

“This is an issue that affects every nation in the world.”Attending the meetings were Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong, India, Indonesia. Italy, The Netherlands, Japan, South Korea, Malaysia, Mexico, Poland, Russia, Singapore, Sweden, Switzerland, South Africa, Thailand. Britain and the USA.

Public spending doesn’t help poor: World Bank

WASHINGTON, Oct 6 (UNI) — India’s anti-poverty programmes and public spending on health and education are missing their mark, consuming significant resources but yielding little gain in raising living standards of the poor, the World Bank says in a new report.

The central finding of the report “Reducing poverty in India: options for more effective public services,” is that the success of education and public health in reaching poor people depends not only on more spending but on improving the quality of services they receive.

Targeting government spending to primary education, reducing communicable diseases, improving water and sanitation, and reducing household insecurity through public works programmes would do most to reduce poverty.Are the poor benefitting from public spending?According to the report, on the whole, public spending on education does not benefit the poor, who either do not send or do not keep their children in school on an equal footing with the better off.

Fewer than half the children from poor households enroll and when they do, only one in five of them completes basic education. Poor girls, in a stark contrast that highlights gender barriers, are only one-eighth likely to complete grade VIII as their female counterparts among the better off.

4:5 ratio for Nahar Exports, Nahar Fibres merger

CHANDIGARH, Oct 6 (TNS) — Nahar Exports and Nahar Fibres have announced the share exchange ratio for the merger of the two companies. Four fully paid-up equity shares of Nahar Exports are proposed to be exchanged with five fully paid-up shares of Nahar Fibres. The ratio for two fully paid-up shares of Nahar Exports has been proposed at five partly paid-up shares of Nahar Fibres. The merger move has made no significant impact on the share prices of the two companies.

Sundram Fasteners eyes US cos

NEW DELHI, Oct 6 (UNI) — Sundaram Fasteners Limited is planning to acquire companies in the USA over the next five years. It has already shortlisted around four to five companies as part of its acquisition plans and is working out modalities, the company’s fastener division President Sampathkumar Moorthy told UNI here today.

Crisil downgrades Mukand

MUMBAI, Oct 6 (PTI) — Crisil has downgraded the ratings of Mukand Limited’s Rs 1.01 billion and Rs 0.4 billion debenture programmes. The revised rating of “BBB Plus” indicates that the degree of safety regarding the timely payment of interest and principal, on the instrument, is moderate. The rating agency has also withdrawn the rating assigned to Mukand’s Rs 0.75 billion commercial paper programme.

Corn Products’ name changed

NEW DELHI, Oct 6 (PTI) — Corn Products Company (India) Ltd has been renamed as International Bestfoods Ltd. The change follows the renaming of the parent company CPC International Inc to Bestfoods in January this year, after the spin-off of its corn refining operations, CPC India said in a statement.

Haryana loan
Tribune News Service

CHANDIGARH, Oct 6 -- The Haryana Government today notified the 50th issue of the Haryana State Development Loan, 2008, of Rs 64.28 crore. The loan would be raised an interest of Rs 12.50 per cent annum from October 12, payable half-yearly.

Gold slips
NEW DELHI, Oct 6 (PTI) — Prices of both silver and gold fell sharply on the bullion market today on lack of buying interest, mainly influenced by global trend, and closed with notable losses. The quotations: Silver .999 (ready) 7620, delivery 7620, coins buyer 11,100 and seller 11,200. Standard gold 4380, ornaments 4230 and sovereign 3650.

ICRA rating
CHANDIGARH, Oct 6 (TNS) — ICRA has assigned an A1+ rating to the commercial paper programme of CMC Limited. The rating indicates highest safety. The prospect of timely payment of debt/obligation is the best.