Saturday, September 19, 1998
today's calendar
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B U S I N E S S | Saturday, September 19, 1998 |
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spotlight today's calendar |
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Cellular licence fee
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New
industrial policy |
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Unhealthy packaging for
edible oils US
business leaders oppose sanctions Punjab
sugar mills face cane shortage CLB
to have new Bench for Dunlop Andhra
to have ‘electronic govt’ |
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Cellular licence fee period extended NEW DELHI, Sept 18 (PTI) — The government today announced a five year extension of licence fee period for cellular operators and said it plans to come out with a new national telecom policy soon. The Cabinet has decided to extend the licence fee period of cellular operators in non-Metro circles from 10 to 15 years meeting a long-standing demand of operators, Communications Minister Sushma Swaraj told the Economic Editors’ conference. On the demand for a two-year moratorium on payment of licence fee she said the question of moratorium was not discussed since most of the operators did not comply with the licence agreement conditions. She also announced termination of deemed deputation status of Mahanagar Telephone Nigam Limited (MTNL) and a new national telecom policy after review of the 1994 Telecom Policy. All department of telecom employees on deputation to MTNL at present will be permanently absorbed by the MTNL. She said the extension offered was not applicable to metro operators and basic service operators. The relief was being extended only to those operators who have complied with the terms and conditions of the licence agreement. “It will be extended only for non-defaulters and hence all operators have to make sure that they comply with the terms and conditions of licence agreements.” Ms Swaraj said the ICICI had recommended extension of cellular operators’ licence fee period, while a report from the bureau of industrial costs and prices is awaited within a few days. On the Government’s inability to meet the phone-on-demand by 1997 as promised in the National Telecom Policy, Ms Swaraj said “time has come for a review of the 1994 policy and we will soon come out with a new telecom policy.” The Minister also announced the rent-free telephone facility to all retired employees of the DoT with some ceiling on free calls. The Government, she said, was gearing up to provide internet nodes at all district headquarters, even as the internet service providers (ISP) terms and conditions were being finalised for formalising by the first week of October. Efforts were on for corporatising DoT and all hurdles on the way would be cleared soon. “There are resistance from the employees,” she said, adding, they would be taken into confidence before taking any final decision. On giving powers to the
TRAI she said there was no plan to amend the “TRAI
Act following the recent High Court order.” |
New industrial policy of HP
this year PARWANOO, (Solan) Sept 18 — The Himachal Government will introduce a new industrial policy aimed at exploiting local resources, generating intensive employment opportunities and making the state financially self-reliant by generating additional revenues. The Industries Minister, Mr Kishori Lal Vaidya, while speaking at a CII-sponsored meeting between industry leaders and the Department of Industries, here today, said that a high-powered task force, which was formed a few months back for preparing the draft plan, had completed the basic framework. This was being followed by a series of interactive meetings with industrialists’ associations, labour organisations and other allied interests. The Parwanoo meeting was the first in that context. After incorporating the valid suggestions emerging from these meetings, the proposed industrial policy would be announced before the end of the current year. The new industrial policy, while duly recognising the role of industries in the development of the state’s economy, would lay stress on increasing job opportunities and revenue receipts.Mr Vaidya said the Government also planned to introduce a scheme of providing incentives like subsidies and soft loans to ruralites living on the peripheries of industrial estates for creating housing facilities needed by industrial workers. This would help absorption of local people in industrial units, particularly those living in far-flung areas.Mr Harsh Gupta, Financial Commissioner-cum-Secretary Industries, said the state government would pay increased attention to maintaining the industrial areas and complexes of the state. A master plan for planned development of the Baddi-Barotiwala-Nalagarh industrial belt in the form of a model industrial town was being prepared.The Rs 24 crore export promotion industrial park, Baddi, would be developed expeditiously. Keeping in view the Central Government’s policy, the State Government would welcome the participation of the private sector in the prestigious infrastructure project, which was the largest of its kind in the state. The Government also mooted the setting up of an industrial software park and would welcome suggestions from the industry leaders. This project would be implemented on the lines of the Hyderabad Cybercity project set up in collaboration with Larsen & Toubro. Mr Arun Suri, Chairman,
CII (Northern Region), hoped that the problems of land
acquisition, obtaining of NOCs from various Government
agencies and power availability certificates and speedier
clearance of entrepreneurs’ applications would be
taken note of in the new industrial policy. He laid
stress on evolving bankable schemes for the tapping of
the state’s vast hydel power generation potential. |
Unhealthy packaging for edible oils CHANDIGARH, Sept 18 — Sub-standard raw materials are reportedly used by the packaging industry for vanaspati and edible oils jeopardising consumer health. The reason? The increasing pressure of competition to keep the costs of packaging low. Manufacturers of 15-kg tinplate and plastic containers are guided more by their greed to earn more than supplying safe products. The issue was discussed here recently by experts from Punjab, Haryana, Delhi and reputed container manufacturers like the Tatas and representatives of the Bureau of Indian Standards. Seventy per cent of the containers are required for packing edible oils and 30 per cent for vanaspati. It is mandatory only for the manufacturers of tinplate containers to get ISI certification but there is no such provision for the manufacturers of containers for edible oils as per the Vanaspati and Oil Product (VOP) Control Order. Also the necessary standard specifications are limited only to tin sheet users and there are no such requirements in the case of plastic used to manufacture containers. There is no check on the large-scale import of defective and misprinted tinplates from other countries. Under the Government of India’s faulty policy of allowing free import of all kinds of tinplates”, nearly 1,50,000 tonnes of low cost tinplate has been imported by container manufacturers in the last financial year. The misprinted side of the tin sheet, which contains lead, is turned inside, bringing the edible material in contact with lead and thus making the edible stuff toxic. The recycled tins also lose their coating after tins are used four-five times. In the case of plastic containers, it is unfortunate that instead of using prime quality HDPE ( high density poly ethylene ) granules, some of the manufacturers reportedly use hospital waste, including disposable syringes and saline water bottles and used hawaii chappals for manufacturing plastic containers. The container specialists have urged the government to ensure that only ISI certified tin sheet is used for packaging of both vanaspati and edible oils all over the country. It should be mandatory to use 100 per cent pure HDPE granules for manufacturing plastic containers for vanaspati and edible oils and not let the businessmen’s greed take the toll of consumers’ health. Mr P. Roy, Director of Sales (Coated Products), Tata Iron and Steel Co., Calcutta and Mr S. Bhar, Chief Sales Manager, Tin Plate Company of India, told TNS that the government should take concrete measures to check the use of substandard tinplate, recycled tin containers and plastic waste for manufacturing containers for packing vanaspati and edible oils. They said it was possible to increase the manufacture of 15 kg containers by more than 30 per cent per tonne by using doubled reduced (DR) instead of the single reduced (SR) tin sheet technology/ tinplate technology and thus bring down the cost of containers. This would be possible without sacrificing health standards. But those who have resale value of tin containers in mind do not easily digest new ideas of DR technology. He recalled that the government had banned the recycling of 15 kg tin containers in 1995 but the ban had not been implemented effectively. Strangely, the government withdrew its decision in November last year to enforce the compulsory ISI certification for plastic granules. The decision had remained effective for two years. Mr Jagmohan Khandelia, a
prominent manufacturer, told TNS that the cost effective
high quality tin sheet should be used for containers and
it should be made mandatory. While adulteration was
possible in plastic containers, the tin containers could
be made foolproof from this point of view. |
‘No decision on removing subsidies’ NEW DELHI, Sept 18 (PTI) — The Government has not taken any decision on eliminating subsidies on petro products like kerosene and LPG as suggested by an expert committee on phased dismantling of the administered pricing mechanism (APM), Petroleum and Natural Gas Minister V.K. Ramamurthy said today. “I am not in a position to say if subsidies will not be withdrawn as a big question mark hangs over the issue which is sensitive, I cannot say when it would be done,” he said during his interaction with the Economic Editors at their annual conference here. The Cabinet is yet to decide on the issue, he said adding “you cannot have every decision on the dotted line”. Any unexpected eventuality can arise, he said without however, elaborating further on the issue. During the previous United Front regime, the Nirmal Singh Committee had worked out a five-year time table for phased dismantling of the APM between 1998 to 2002 based on the recommendations of the restructuring group (R Group) headed by the then Petroleum Secretary Dr Vijay Kelkar. The R. Group had suggested sweeping changes to deregulate the hydrocarbon sector with a view to making it more internationally competitive. The APM dismantling started on April 1 this year with price controls on petro products barring diesel, petrol, kerosene, LPG and aviation turbine fuel being withdrawn. The subsidy burden on the
Government on the the two petroleum products LPG and
kerosene is to tune of Rs 7,000 crore every year. Subsidy
on LPG alone work outs to Rs 72 per cylinder and on
kerosene to Rs 4.50 per litre. |
Bids for oil exploration ‘any time’ NEW DELHI, Sept 17 (PTI) — The government will come out “any time now” with the global notice inviting bids (NIBs) for exploration in 48 oil blocks in the country under the liberalised new exploration licensing policy (NELP). Announcing this at the
Economic Editors Conference here, Petroleum and Natural
Gas Minister V.K. Ramamurthy said the Government hoped to
conduct road shows for the blocks sometime in November
this year. |
CLB to have new Bench for Dunlop NEW DELHI, Sept 18 (PTI) — The Company Law Board (CLB) will reconstitute a new bench for taking up the case of the sick Dunlop India Ltd. A new Bench will be constituted as one of the members in the principal Bench, Dr A.K. Doshi was also involved in investigating the books and accounts of the Manu Chabbria company last year. Dr Doshi, currently a member of the CLB, was also one of the Department of Company Affairs (DCA) official to investigate the accounts. The Government, following the investigation filed a petition with the CLB for appointment of nine Additional Directors on Dunlop’s board. DCA in its inspection report had stated that the company had invested more than the funds available with it. DIL had invested Rs 79.14 crore and Rs 91.67 crore in 1994 and 1996 respectively against a surplus of Rs 45.18 crore and Rs 82.63 crore available with it during the same period. It said these investments were in violation of the Companies Act. DIL had also invested funds outside its business mainly out of loan funds composed of secured and unsecured loans aggregating Rs 97.95 crore, Rs 110.09 crore and Rs 98.28 crore in 1993, 1994 and 1996 respectively. Dunlop Counsel S.N. Mukherjee told the Company Law Board that since the core issue of revival of tyre company was with BIFR, relevant consideration should be given to that before taking any decision on appointing Government nominees on the board. The next hearing of the
case is scheduled for November 3. |
US business leaders oppose
sanctions NEW DELHI, Sep 18 — A general consensus is building up in the USA favouring lifting of sanctions against India, top business leaders of that country, including the former US Ambassador to India, Mr Frank G.Wisner, said here today. They also felt that investors across the world were getting disenchanted and losing confidence in India and there was a need for the Government to take bold and decisive action to bolster investor confidence and strengthen the partnership between India and the US industry in key sectors of mutual benefit. Members of the US-India Business Council (USIBC), who during their two-day visit here interacted with the Prime Minister and other senior Government and business officials, said that the US business community was not in favour of sanctions against India and this view was being increasingly endorsed by the Congress and the general public there. Mr Dean R.O’Hare, the Chairman of the USIBC delegation and Chief Executive Officer of one of the world’s biggest insurance companies, Chubb Group, said the US business community, as pledged to the Prime Minister, Mr Atal Behari Vajpayee, in May this year, had done their bit to influence Washington to engage India in a constructive dialogue to foster greater cooperation. He said the purpose of the USIBC members’ visit to India was to confirm that the US firms remain committed to deepen Indo-US trade. The Council is prepared to take a more visible and proactive role in promoting greater public understanding in the USA of the great potential benefits of bringing the world’s two greatest democracies into closer partnership. The US delegation met the Prime Minister, Mr Atal Behari Vajpayee, the Finance Minister, Mr Yashwant Sinha, senior Secretaries, and representatives of the leading chambers of commerce and industry during their stay. The USIBC members shared, with the Indian Government and industry leaders, its serious concern about sagging investor confidence and growing disenchantment among foreign investors, Mr Dean R O’Hare said. “We are concerned about a very serious danger—the loss of investor confidence as a result of unclear policies and bureaucratic obstacles. We see and hear numerous indications of investor disenchantment. Across the board, in each of the core sector, most major investment projects remain stuck” he said. Mr O’Hare pointed out that over $ 500 million in portfolio investment has been withdrawn since June 1998. Wall Street has all but closed it doors to Indian companies. Mr Frank G.Wisner, who was the US Ambassador to India between 1994-1997, said there were many areas where Government policies could boost investment. Areas like power, telecommunications and other infrastructure sectors needed bold initiatives from the Government. Mr O’Hare while acknowledging the inherent strength of India’s economy, which has withstood some of the adversity experienced by other countries in the region, said the urgent need is to launch a truly bold, coordinated effort to bring about a fundamental change in the view of the global investor community and initiate effective steps to permit movement of investment in key infrastructure areas. The USIBC Chairman suggested that the Indian Government should spell out its perception about the role of investors, appoint an interlocutor to work with companies to solve major investment problems and identify select infrastructure areas where investment could flow with the bureaucratic road blocks. The problem is not their with the macro management of the economy. The problem relates to specific areas where investors want to get in, he said. Mr Wisner said the Government should select areas in which there was a wide consensus amongst the various political parties. The business leaders said
Mr Vajpayee’s visit to the US next week could
provide a great opportunity for him to spell out the bold
initiatives of his Government. “We are all looking
forward to it” Mr O’Hare said. |
Punjab sugar mills face cane
shortage JALANDHAR, Sept 18 — The state sugar industry is in for a severe sugarcane shortage during the coming crushing season due to a steep fall in the cultivated area. The state has 21 sugar mills — 14 in the cooperative sector and seven in the private sector. In 1995-96 the cane area in the state was 2.25 lakh hectares, but in 1998-99 the area is a meagre 1.0 lakh hectares, according to Dr R.S. Kanwar, Former Director, Sugarcane Research, Punjab Agriculture University. The Cane Commissioner, Dr M.S. Sonar, admitted when contacted by TNS, that the cane area has declined with farmers opting for alternative cash crops. The scenario is quite dismaying for the 21 sugar mills. The Budhladha sugar mill, which worked only for two seasons, has been lying shut for the past 4 years. The combined crushing capacity of the sugar mills is 90 lakh tonnes per season (November-April). Last year the sugar industry crushed a little over 35 lakh tonnes while this year the expected target is 40-45 lakh tonnes, utilising just 50 per cent of the crushing capacity. The Jalandhar Cane Research Centre has lost a substantial area of land for the construction of a medical college here and has no regular Director. While admitting that research in producing high-yielding cane varieties has been slow, the Cane Commissioner said that the variety COJ64 was produced in 1976 and is still covering 50 per cent of the cane cultivated area in the state. With dwindling land holdings small and marginal farmers are harassed by the sugar mills, which delay payments, thus forcing them into a debt trap. Recently the Doaba area farmers had launched a sustained agitation against a sugar mill at Mukerian, which owed the farmers over Rs 10 crore for over a year. For the farmer to get a remunerative price for his cane crop, the Government of India has a statutory minimum price, which is based on the recovery of 8.5 per cent of sugar. In Punjab, according to the Cane Commissioner, the price is fixed keeping into consideration the cost of cultivation, income from alternative crops,the price fixed by the Government of India and productivity of sugarcane. But farmers allege that
with the soaring costs of cultivation, scarcity of
labour, lack of high-yielding cane varieties and lack of
coordination by the cooperative sector and private sector
sugar mills, more and more farmers will give up sugarcane
plantation in the state. |
Andhra to have ‘electronic govt’ Andhra Pradesh Inc’s CEO N. Chandrababu Naidu, who is in Wasington, has held talks with the IBM officials for setting up an “electronic government” for smooth business transactions in the state. The “elctronic government” will allow a businessman to transact his business without facing any bureaucratic hurdles, says Mr Naidu. Expounding his vision of making Andhra Pradesh a model for the whole country, the Chief Minister says that “electronic government” will go a long way in bringing about efficiency in government operations. PTI. DLF group Intellect Data Systems, a Bangalore-based company specialising in the development of hospitality software, has been selected as the IT solutions partner for all information technology requirements of the DLF hospitality group. The software used in this project will be from the Fortune range, the flagship brand of the company. The DLF group, the Delhi-based real estate major, recently entered the hotel segment through its subsidiary company, DLF Hospitality. The new systems will include touch screen kiosks on club premises of DLF for billing information, business news, share markets updates, club newsletters etc. in addition to an exclusive business centre with online video conferencing and ISDN facilities. TNS SIDBI The website, htpp://www. sidbi. com, will also provide facility to seek clarifications regarding policies of the bank and its functions. Sidbi, one of the top 25 development banks of the world, caters to the financial needs of the small-scale sector by providing loans, grants and marketing facilities. PTI. Online college Dev Samaj College of Education for Women, Sector 36, Chandigarh, went online last week. The site can be accessed at www.dscedu.com and tells in detail all about the college, including the admission procedure, co-curricular activities, hostel facilities and courses available. The faculty member in charge of the college’s computer division, Ms Dolly Arora, claims that this is the first women’s college of education in the region to go online. TNS Internet ads “City Two Thousand (India) Ltd”, an international network marketing company to promote business through the Internet, has begun its operations in India for promoting Internet advertising. According to Mr N.K.
Purohit, Indian promoter of Britian’s “City
2000 UK Ltd”, the Indian company, which will
undertake designing, hosting a web page of business
organisations and individuals in their web site, has been
set up to promote Indian business across the globe at a
bare minimum cost. PTI |
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| NTC mills NEW DELHI, Sept 18 (PTI) — The Government is evolving a fresh package on the voluntary retirement scheme (VRS) for sick national textile corporation (NTC) units, which is estimated to cost around Rs 2,000 crore if the Gujarat pattern is followed, Textile Secretary Shyamal Ghosh said today. Global
Bank Asian Paints Ajanta Godrej Forex rates Gold firm |
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