 |
| Monday,
July 16, 2001, Chandigarh, India   
|
Maruti to
invest 550 cr in new van Real GDP
projected to grow by 6.3 pc Low-cost
technology for power plants 81 sectors record below
10 pc growth |
|
|||||||||||||||||||||||||||||
Suzuki
Max 100 to cost 30,000 Damodaran
is UTI Chairman ‘Make
stamp duty uniform’
Open offer to buy
Carrier Aircon stake
Will
the rally continue?
Kudos for Lara Croft
film
|
|
Maruti to invest 550 cr in new van New Delhi, July 15 “Fresh capital expenditure of Rs 550 crore will be made this year, mainly to launch a new vehicle Every,” the officials told PTI
here. Maruti, an equal joint venture between the government and Japan’s Suzuki Motor Corp., is expected to launch a local version of Suzuki’s 1300cc Every van in the domestic market this
year. The company will, however, make the investments from internal accruals and not resort to fresh borrowings, they
added. “About Rs 350-400 crore is generally spent on launching a new model. The rest of the money will go towards upgrading the existing equipment,” the Maruti officials
said. “Our turnover should be about Rs 11,500 crore for this fiscal. We also expect to make a turnaround,” they said adding that the company had recorded a turnover of Rs 9,250 crore during
2000-01. However, Maruti had incurred net losses of about Rs 250 crore over the operating profits during the fiscal ended March 31, 2001, due to falling sales and pressure on
margins. During 1999-2000, the company had recorded a 36.8 per cent fall in net profit at Rs 330 crore over Rs 552 crore in the previous
fiscal. However, its turnover went up by 15.4 per cent to Rs 9,673 crore over Rs 8,181 crore in 1998-99.
Maruti had invested Rs 2,000 crore over the last three years to launch new models like the premium small cars Alto and WagonR and the mid-size sedan Baleno besides upgrading existing models like Zen and
Esteem. Maruti Managing Director Jagdish Khattar had earlier said an aggressive localisation plan would be pursued for the new cars like Alto, WagonR and Baleno along with cutting costs to record a profit in this
fiscal. The company officials, however, declined to disclose details on the company’s voluntary retirement scheme which is likely to be launched in this
fiscal. The VRS is expected to trim the company’s over 5,500 strong workforce, one of the largest in the Indian automobile industry, and enhance
profitability. Maruti’s car sales during 2000-01 had declined by 13.3 per cent at 3.44 lakh cars against 3.97 lakh cars last fiscal following steep competition from other car makers like Hyundai, Ford and
Telco. Its marketshare had also declined to about 58 per cent from 62 per cent in
1999-2000. During 2000-01, total industry car sales had declined by 7.4 per cent at 5.9 lakh against 6.38 lakh units in the previous
fiscal. Maruti’s car sales during April-June 2001-02 had, however, increased by 16.5 per cent at 57,404 units over 55,709 units in the same quarter last fiscal.
PTI |
|
Real GDP projected to grow by 6.3 pc
Kolkata, July 15 The review has also warned that in spite of a recovery of agricultural production from two years of decline, the industrial and investment climate of the country, however, continues to be gloomy. According to the review, the current fiscal started on a weak note, and the performance of most infrastructure industries as well as the industrial sector had reported “very poor” growth in the first two or three months. Cautioning that there was a remote possibility in the reversal of trends in the coming months, the review said that this would be mainly due to poor demand for industrial goods, in addition to the low rates of investments and consumption. Commenting that poor industrial demand would continue till there was a rise in farm incomes, the review said there had also been an erosion in urban wealth caused by a decline in asset values. With this level of domestic demand, the industrial sector is expected to grow by more than 4.5 per cent during the current fiscal, the review said. Adding that there were expectations of a robust growth in agriculture due to the forecast of a good monsoon, the CMIE review said as per crop-by-crop analysis, this sector was likely to grow by 9 per cent in 2001-02. This good agricultural growth prospects would likely spur the services sector, which is expected to grow by 7 per cent.
PTI
|
|
Low-cost technology for power plants PUNJAB
will soon take up construction of 130 mini hydel power plants which will utilise “canal drops (falls)” existing in the system built and in
operation. Punjab Minister for Science & Technology, Chiranjee Lal Garg visited France, Austria, Norway, Holland and England and said it has been possible to obtain “new technology” offered by the western
countries. The power plants built with the technology offered have been found to be in operation for over eighty years without any trouble and the maintenance cost of such power plants is
‘low’. This technology will be very cost effective, as the cost of installation of one MW power plant will be Rs 1 crore and it will come down further if the installed capacity of the power plant is increased
beyond 1 MW
figure. According to Mr Garg he had seen power plants with installed capacities of 1 to 20 MW in operation in
Europe. Present day estimates of mini power plant put the cost around Rs 5 crore to Rs 6 crore. If the figure ‘quoted’ by Mr Garg is correct it would “revolutionise” the technology in
Punjab. Details about the technology being offered and by which country is yet to be made public as experts of PEDA (Punjab Energy Development Agency) Chandigarh, are working on the data obtained by the Minister during his foreign
tour. Looking back we find that during 1980’s a high power committee led by Mr Vasant, the then Chairman, PSEB, made a similar trip and came to conclusion that for the mini hydel power plants to be installed in the Punjab Canal System, the most appropriate technology would be the S-type Turbine with speed increaser and synchronised generator.’ With the technology four mini-hydel power plants were built in Nidampur, Rohti and Thui on the Ghaggar branch, each having installed capacity of 0.8 MW and at Dhadhur on the Sirhind canal having capacity of 1.5
MW. For manufacture of the needed units a ‘plant’ was set up near Nidampur on the Patiala-Sangrur road in which the Punjab Government had a stake in addition to Crompton & Greaves it was known as PPGM (Punjab Power Generation Machines), but the whole experiment “failed”. The performance of these power plants were regarded as “low” and the World Bank in its report observed that all future mini hydel plants should be handled by PEDA and not by the
PSEB. PEDA has undertaken building of 7 new mini power plants on the Sirhind Canal System but discarded “without any ceremony” the S-Type Turbine Technology selected by the Vasant Committee. The new technology adopted was the “Syphon Type Turbine” with computer-controlled system and all power plants will be controlled from a central
plant. Now even this technology is being discarded without assigning a reason and new technology selected by Mr Garg is being adopted. It would be justified that PEDA should record the reasons for discarding the new technology and discarding the one which is not so old and yet under
trials. Garg observed that the mini power plants would be built on the ‘BOOT’ (Build-own-operate & transfer) principle by the private sector. Builders would run the power plants for a 5-year period before transferring the power plant to the Punjab Government. The electricity produced would be bought back by the PSEB at the rate of Rs 3.01 per
kwh. |
|
81 sectors
record below 10 pc
growth New Delhi, July 15 The sectors that have registered high to excellent growth include Refineries (15 pc), Diesel (12 pc), LPG (44 pc), PCs (20 pc), Energy Meters (30 pc), Motor cycles (17 pc), M & HCVs (16 pc), Air-Conditioners (15 pc), Vanaspati (18 pc), Drugs & Pharma (12 pc), Earthmoving Construction equipment (18 pc), Colour picture tube (12.5 pc) and Precision tubes (15
pc). Some of the sectors that have registered a negative growth include Sugar (-20 pc), Cars (-8 pc), Scooters (-18 pc), Mopeds (-54 pc), Power Cables (-10 pc), Transformer (-4.1pc), Switch Gears (-26 pc), Cigarettes & Tobacco (-15.8 pc), Washing Machines (-5 pc), Transmission Line Tower (-14 pc), Textile Machinery (-27 pc) and LCVs (-23
pc). The Associations Council of the CII (ASCON) has been bifurcated into separate councils namely Manufacturing and Services, to impart greater focus to the two sectors. The need for creating a separate council for the manufacturing sector called the “m-ASCON” has been felt especially with the increasing competitive pressures on Indian manufacturing in the wake of trade and tariff liberalisation.
The overall contraction in demand was clearly evident in the survey. The CII survey of 105 industry sectors in the manufacturing segment is based on feedback from member companies as well as 96 affiliated associations, which, in most cases account for 65 per cent of the total industry output.
UNI |
|
|
At 3, he created a website Hyderabad, July 15 At an age where most children don't even know what a computer is all about, Ajay Puri is a master of the latest Microsoft products and can even make Web
pages. Sitting in his father's lap, the whizkid demonstrated his extraordinary skills at the Administrative Staff College of India (ACSI) here and earned thunderous applause from the audience. The ASCI runs specialised courses for middle and senior level bureaucrats and
managers. Puri, who hopes to follow in the footsteps of Bill Gates, has been certified by the Guinness Book of World Records and the Limca Book of Records as the world's youngest Web
designer. Puri made a Power Point presentation with pictures and sound, gave a graphical presentation using Microsoft Excel, drew an organisation chart and created his own Web pages during the
demonstration. Puri was three years old when he created his website, www.microsoftkid.com. Since then, life has been a roll. He met Bill Clinton when the former U.S. President visited Hyderabad last year. Now, he wants to meet the other Bill. In the meantime, he is happy that Gates has sent him a signed copy of his book "Business@Speed of
Thought." From President K. R. Narayanan and Prime Minister Atal Behari Vajpayee to former Thai Prime Minister Chuan Leekpai, many are the dignitaries who have complemented Puri for his skills.
IANS |
|
Suzuki Max 100 to cost 30,000 Chandigarh, July
15 Mr Manjyot Gill, Area Sales Manager of TVS Suzuki, who performed the launching here said the motor cycle is not only economical to buy but also gives mileage at 63 km per litre and costs Rs
29,999. The company tops in market share for the moped range and scooterette segment and it also plans to launch another 4-stroke motor cycle TVS Victor in September, said Mr Gill.
|
|
Damodaran is UTI Chairman New Delhi, July 15 While the government is working a bail out package, analysts said restoring investor confidence would the herculean task for the new incumbant. A 1971 batch IAS officer, Damodaran, an Officer on Special Duty in the RBI, has been appointed for one year, official sources said
today. His appointment has been made by the Finance Ministry in consultation with the IDBI, which is the largest shareholding in the state-owned mutual fund
manager. Damodaran takes over from K. G. Vassal, who was appointed acting Chairman. |
|||||
|
‘Make stamp duty uniform’ Chandigarh, July
15 The group has also appealed to the Finance Minister to either abolish Form 37(I) or increase the prescribed limit for Chandigarh to the minimum of Rs 50 lakh for the purpose of obtaining a NOC from the income tax authorities before a transaction of
property. The present limit of Rs 20,00,000 for Chandigarh city under Section XX-C of the Income Tax Act, making the transferor and transferee of a property obligatory to obtain an NOC from the income tax authorities needs to be increased in view of the present value of the real estate in the city.
|
|||||
Open offer to buy Carrier Aircon stake New Delhi, Jul 15 The offer, which opened on July 2, is slated to close on July 31 and cites adverse financial position of Carrier Aircon and consequent need to pump in money, technological expertise and new products as chief reasons for the Mauritius based company to jump in the fray.
In case the acquires succeed in mopping up 49 per cent equity, Carrier Aircon will become a closely held company and cease to be listed on Indian
bourses. At present, while Carrier Corporation holds 51 per cent controlling equity stake in Carrier Aircon 28.7 per cent equity is held by NRIs/overseas corporate bodies/resident individuals while the remaining 20 per cent equity rests with the
public. Modi Rubber Modi Rubber
(MRL) acquisition saga has taken an interesting turn with company sources indicating that the 11.32 per cent stake held by foreign institutions’ could actually be an indirect equity stake of George Soros man - Purnendu
Chatterjee. “FIIs together hold 11.32 per cent stake in MRL. This is held via Quantum and Endowment Fund (4.83 per cent), Niketan Traders (3.99 per cent) and Marlyn Resource (2.52 per cent),” company sources told PTI today adding “this appears to be Chatterjee’s indirect
holding”. The open offer, at Rs 90 per share, closes tomorrow. Tisco Tisco is looking for acquisition opportunities in selected steel and allied business
fields. “We are endeavouring to identify acquisition opportunities in selected steel and allied business fields, and diversification into promising areas that will provide synergy to existing business,” Tisco officials said.
PTI
|
|||||
Will the rally continue? THREE important developments took place during the past fortnight: the introduction of a reformed system of trading in the stock market, the poor performance of US-64 and its freeze and the better-than-expected performance of software
companies. First, the performance of the information technology companies during the April-June quarter. Infosys’ net profit shot up by 50 per cent and revenue by 70 per cent. Satyam’s net profit was up by 141 per cent with its total income higher by 75 per cent. Hughes Software System announced a 101 per cent growth in its net profit. Mastek also announced good results. The market responded to these results by raising the sensex by 150 points in a week. Yet, the gains would have been higher if profit-taking and sales by financial institutions on last Friday had not pared the prices of these
scrips. Will the bull rally continue? I do not think so. If we compare the sensex data during the past fortnight, it is revealed that there has not been any substantial gain. On the last working day in June, the sensex closed at 3457 points and on the last Friday, i.e. July 13, it stood at 3,454 points. There are a number of factors inhibiting the bullish favour in the stock market. First, even though the information technology scrips will continue to do well, but their profit margins will continue to fall every subsequent quarter. The managements of these companies, which have announced excellent results last week, admit that the billing has been under pressure on their products in the USA and elsewhere. The Economic Times has commented that a comparison of the April-June quarter results with the preceding January-March results reveals that Infosys improved its results by 5.1 per cent and Satyam by 8.7 per cent, while Hughes may be down by 15.4 per
cent. The economy is not doing well and the industrial growth rate for the April-June quarter is only 2.6 per cent. The performance of the corporate sector is bound to be affected by poor industrial growth rate. The positive factors are: good monsoon and moderately good performance by some sectors of the industry. It is also normal that the market sentiment is stiffled when Parliament holds its session.
Another factor inhibiting the upward movement in the stock market is the new reformed system of trading. The volumes continue to be very low. The Business Standard has reported that volumes have dipped by 43 per cent under rolling settlement. Options and futures trading have yet to pick up. The brokers all over India are highly dissatisfied with the new system. Many terminals have been surrendered. Even Bombay Stock Exchange brokers have made a representation for improving the conditions of work and brokerage
rates. Another factor mitigating against the bull rally is the US-64 imbroglio. It has disheartened the investors and cut down inflow to the mutual funds. The UTI is bound to liquidate its holdings whenever the market conditions improve. The mutual funds are losing their clientage
too. Book profit when the market is high and pick up fundamentally good shares when they are available at attractive investment rates. Some of these scrips will be discussed in this column next fortnight. |
ty
R. N. Lakhotia Q.
“Throughout HP other than some specified area, all H.P. Government employees have got Rs 200 pm as hill compensatory allowance (HCA). So please clarify that this type of allowance are exempt from Income
Tax.” Dr Sunil, Hamirpur Ans: As per Rule 2BB, HCA is fully exempt from income-tax. You are requested to go in greater detail through the provisions of the said Rule 2BB so as to get the details of compensatory allowances and exemption in different
places. Q: I am a Punjab Government employee and having 26 years of service and want to get VRS. Please clarify whether V.R.S. benefits (Ex-gratia), gratuity, leave encashment and E.P.F. are taxable or not. I have purchased a L.I.C. policy and premium will be paid by Commissioner P.F. from my E.P.F. contributions. Please clarify whether I can get tax rebate on it or
not. Inderjit Kumar, Chandigarh Ans: The amount received under V.R.S. up to Rs 5 lakh is fully exempt from income-tax. Similarly, gratuity amount to the extent of Rs 3,50,000 is exempt from income-tax. Likewise, leave encashment at the time of retirement is exempt up to Rs 2,40,000. The amount received from employees provident fund is fully exempt. The tax rebate on insurance premium paid by Commissioner (PF) from your PPF contribution will not be eligible for tax rebate because to be eligible for tax rebate u/s 88 the payment has to be paid out of the income of the assessee. Q: I am on foreign deputation to the Government of Bhutan since Nov 18, 2000. I will be going back to my parent department in India on Nov 17, 2003. Kindly let me know my Tax liability in India for the accounting years 2000-2001 and
2003-2004. J. Kharbanda, Bhutan Ans: You will be liable to make payment of income-tax in India in respect of your foreign income for the accounting year 2000-2001. For subsequent years you will become NRI. Hence no income-tax will be payable for subsequent years in India. |
sti
Kudos for Lara Croft film Hamburg, July 15 “Since the successful launch of the film in the USA, the sales of the computer games have climbed several times over,’’ says Theodossios Theodoridis of Hamburg-based software game producer Eidos
Interactive. His firm creates the computer games upon which the films are based. Eidos is also now counting on a boost in sales, even if there is no new Tomb Raider game available now to coincide with the release of the movie.
DPA Chandigarh Mr Alec Erwin, Minister of Industry and Trade of South Africa, will inaugurate the
show. A 15-member CEOs’ delegation will also participate in the show. The delegation includes Mr N.R. Narayana Murthy, Chief Executive Officer & Chairman of Infosys Technologies, and Mr Syamal Gupta, Chairman, Tata International
Limited. As a follow-up to the “Made in India” show, CII will organise sectoral missions to different countries of Africa in the next 12 months.
TNS Eliminator launched Bangalore “Leveraging Kawasaki’s expertise in aircraft, jet engines, ships, heavy machinery and formula motorcycles, Bajaj has offered the real flavour of motorcycling with the cruiser styled eliminator”, a company statement said.
PTI |
bb
Hartron network FII net buyers Inflation rises Canara Bank LPG outlets Seminar held |
 |
| Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Editorial | | Business | Sport | World | Mailbag | In Spotlight | Chandigarh Tribune | Ludhiana Tribune 50 years of Independence | Tercentenary Celebrations | | 121 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
