B U S I N E S S

Japan to give $ 900m loans to India
New Delhi, January 8
Japan has decided to pledge fresh concessional loans worth $ 900 million to India, informed Japanese Foreign Affairs Minister Ms Yokiro Kawaguchi today. “Last evening , I conveyed this decision to the External Affairs Minister of India, Mr Yashwant Sinha”, she said while addressing a gathering at FICCI this evening.

FICCI president A.C. Muthiah presenting a book 'India and Japan' to Japanese foreign minister Yoriko Kawaguchi at FICCI in New Delhi on Wednesday. — PTI photo

Rate cut can hit BSNL, MTNL revenue
New Delhi, January 8
State-owned telecom operators attempt at matching the tariff regime of private telecom operators by reducing the STD rates appear to have roughed a few feathers in the government with Telecom Minister Pramod Mahajan terming it is a “reactive” decision even as analysts warned that the revenue stream of the operators could suffer a major blow after the rate cut.

• Editorial: The telecom revolution

Kelkar report to cost power consumers dear
New Delhi, January 8
The Ministry of Power has said the tax liability of the power sector would increase by up to 30 per cent if the Kelkar report on direct and indirect taxes was implemented and this could lead to a proportionate increase in the electricity rates.

Bhuna mill refuses to buy sugarcane
Fatehabad, January 8
The refusal by the Bhuna Cooperative Sugar Mills authorities to purchase the COS-767 variety of sugarcane has left farmers high and dry. The farmers are at a loss where they should take their crop as the Bhuna mill is the only mill in the area.

Panel suggests sale of 4 PSUs
New Delhi, January 8
The Disinvestment Commission has recommended privatisation of 4 PSUs including National Buildings Construction Corporation and Cotton Corporation.

Scope for Indian garments good
Ludhiana, January 8
Although Chinese goods dominate markets of the United States of America, yet there is good scope for the Indian goods and particularly the readymade garments including hosiery goods.

Airports upgradation meeting on Jan 13
New Delhi, January 8
After having failed to get a nod from the Cabinet last Friday on the privatisation of airports in the four metro cities, the Civil Aviation Minister Syed Shahnawaz Hussain has held a meeting with Mr Jaswant Singh to identify a “faster route” for the upgradation of these airports to international standards.

Maruti Udyog hikes car prices
New Delhi, January 8
Maruti Udyog today hiked prices of its various models by up to about Rs 5,335 with its mid-size car Esteem reflecting the steepest increase. The prices of its base model Maruti-800 (standard) have been increased by Rs 2,135 in Delhi (ex-showroom) while Esteem LX will cost Rs 5,335 more, a company spokesperson said here.

Eli Lilly slashes insulin price
Chandigarh, January 8
Eli Lilly & Company (India) Pvt. Ltd., which enjoys a share of 25 per cent in the insulin market, a life saving medicine for the diabetes, has decided to slash down the prices of human insulin by over 25 per cent, to capture the growing domestic market. 

Ford launches Ikon NXT
Chennai, January 8
Ford India today launched “Ford Ikon Nxt” series, the latest variants of its successful mid-size passenger car, Ford Ikon. The Ford Ikon NXT, available in three versions, including diesel, is a step ahead of the others with its styling and performance enhancements, Randy Shockley, Vice-President (sales), told newsmen here during the launch.

Oil firms stockpile 40 days of petro product
New Delhi, January 8
Oil companies have stockpiled over 40 days of petroleum product and 15 days of crude oil supplies to meet eventualities of supplies being disrupted in case of war in Iraq, Petroleum Secretary B. K. Chaturvedi said today.

ROUND-UP

IMF predicts global growth at 3.7 pc
Hong Kong, January 8
The IMF expects economic growth worldwide to recover to 3.7 per cent in 2003, with Asia doing even better, although higher oil prices, terrorist attacks and weakness in Japan could foil the global rebound, an IMF spokesman said today.

• Cobra beer set to enter market

• KFC kicked out of China park

• Patni to set up facility in USA

Japan to give $ 900m loans to India
Tribune News Service

New Delhi, January 8
Japan has decided to pledge fresh concessional loans worth $ 900 million to India, informed Japanese Foreign Affairs Minister Ms Yokiro Kawaguchi today.

“Last evening , I conveyed this decision to the External Affairs Minister of India, Mr Yashwant Sinha”, she said while addressing a gathering at FICCI this evening.

“Economic measures were introduced by Japan in response to India’s nuclear testing of 1998, but in October 2001, Japan announced the discontinuation of these measures”, added Ms Kawaguchi.

Assuring Japan’s economic co-operation to India, the Minister said that the co-operation between the two countries in Official Development Assistance (ODA) has produced a multitude of positive outcomes.

“Japan has, so far provided more than $ 400 million for the development of Delhi Metro and among our additional concessional loans are the loans which will further advance this project”, she stated.

Urging India to join the NPT regime, Ms Kawaguchi said it is the cornerstone of nuclear disarmament and non-proliferation.

Pointing out towards the mounting Indo-Pak tensions she said that this has led some major countries including Japan to ask their nationals leave India and the move has resulted in considerable impact on the Indian economy and on the foreign firms operating here.

“Improvement in India, Pakistan relations is vital for Japanese companies here to be able to to conduct stable economic activities”, she said.

She also mentioned environment related issues and said that India should take initiative in developing solutions to various emerging issues in the field of environment such as South-South technology transfers.

Human security, fight against terrorism and global warming are the three issues which merit increased co-operation between the two nations, said Ms Kawaguchi.

Rate cut can hit BSNL, MTNL revenue
Gaurav Choudhry
Tribune News Service

New Delhi, January 8
State-owned telecom operators attempt at matching the tariff regime of private telecom operators by reducing the STD rates appear to have roughed a few feathers in the government with Telecom Minister Pramod Mahajan terming it is a “reactive” decision even as analysts warned that the revenue stream of the operators could suffer a major blow after the rate cut.

“It is a reactive decision rather than a pro-active decision”, Mr Mahajan told newspersons.

Analysts here said that the reduction in the STD tariff by BSNL could adversely affect the revenue stream of the telecom operator.

While official figures were not immediately available, estimates suggest that more than 60 per cent of BSNL’s total revenue comes from the National Long Distance (NLD) traffic. In value terms it stands approximately at Rs 10,000 crore. A 50 per cent reduction in tariffs would essentially mean a fall of Rs 5,000 crore annually.

Sources in BSNL, however, said the telecom operator was expecting to offset the loss in revenue through an increased volume of traffic. Moreover, the loss in revenue will more perceptible only after the fixed line STD rates come down which carries the bulk of the NLD traffic in the country.

At present, only STD rates in cell-to-cell calls have come down.

The correlation between reduced tariffs and increased volume can be gauged from the fact that higher volume of international calls after the tariffs substantially reduced last year. At present, for every six incoming calls from the USA there is one outgoing call from India to the USA — up from a 10:1 ratio about two years ago. Analysts, however, cautioned that the volume in traffic is unlikely to pick proportionately with decreased tariffs in the immediate future.

“There will always be an inertia among callers to increase the frequency of STD calls. At the macro level the increase in volume of traffic will only take place after a time lag, which could prove costly for operators whose majority revenue emanates from long distance calls”, Mumbai-based telecom analyst Mr Dilip Modi said.

Kelkar report to cost power consumers dear

New Delhi, January 8
The Ministry of Power has said the tax liability of the power sector would increase by up to 30 per cent if the Kelkar report on direct and indirect taxes was implemented and this could lead to a proportionate increase in the electricity rates.

The government has taken a slew of measures in the past few years like Accelerated Power Development and Reform Programme and increased incentives depending upon the speed of reforms in the power sector by states and there was need to consolidate these measures further, the sources said, adding that the ministry has written these apprehensions to the Finance Ministry and hoped that these would be considered. PTI

Bhuna mill refuses to buy sugarcane
Sushil Manav

Fatehabad, January 8
The refusal by the Bhuna Cooperative Sugar Mills authorities to purchase the COS-767 variety of sugarcane has left farmers high and dry. The farmers are at a loss where they should take their crop as the Bhuna mill is the only mill in the area. Resentment prevails among the farmers while the mills authorities maintain that the variety of sugarcane was of an inferior variety thus the yield of sugar is also inferior. The sugarcane farmers told this correspondent that the mill had suddenly stopped purchasing this variety of the sugarcane. Though the variety was purchased earlier this month, the authorities suddenly pasted a notice asking the farmers not to bring the variety. The mill authorities told the farmers that as the yield of sugar from this variety was inferior the authorities could not purchase it.

The farmers alleged that in case there was any problem in the variety, the mills authorities could have guided them properly before the sowing season. They alleged that decision of the mill authorities has put them in a quandary.

If they take their produce to private mills in the Uttar Pradesh, it would incur a heavy expenditure on transportation. Further the price of their produce they would get in the Uttar Pradesh would be much lesser than the MSP of sugarcane in Haryana.

Neither the Additional Deputy Commissioner, Mr. C.R. Rana, who holds the charge of the Managing Director of the Bhuna Cooperative Sugar Mills nor Mr. R.K. Malik, Cane Manager, were available for their comments. Mr Wazir Singh, Cane Development Officer, said the Bhuna Cooperative Sugar Mills was the only mill to have purchased this variety of sugarcane this year. Other mills are refusing due to poor yield from this variety. He said the mill had advised against this variety to the farmers two years back but the farmers have been coming with the variety.

Panel suggests sale of 4 PSUs

New Delhi, January 8
The Disinvestment Commission has recommended privatisation of 4 PSUs including National Buildings Construction Corporation and Cotton Corporation.

In the case of Cotton Corporation (CCI) where government holds 100 per cent stake, it said that disinvestment would be conditioned by whether government decides to retain minimum support price (MSP) for cotton. PTI

Scope for Indian garments good
K.S. Chawla

Ludhiana, January 8
Although Chinese goods dominate markets of the United States of America, yet there is good scope for the Indian goods and particularly the readymade garments including hosiery goods. This was stated here today by Mr Gian Chand Dhawan, Managing Director York Export and former Chairman Hosiery Exporters Association after his return from the USA.

Mr Dhawan said that the US markets were flooded with the Chinese goods from sophisticated to common use goods.

He pointed out that lately Indian was also coming up in the garments sector as the quality of the Indian products was good compared with the Chinese garments. However, he regretted that Ludhiana would not be able to get much benefit of the same because the level of delivery of goods and the quality was not upto the expectations of the Americans. The quality of goods being manufactured in Delhi and other places was better than the quality of goods of Ludhiana.

He disclosed that some of the good hosiery units had also come up in Delhi which were manufacturing quality products.

Airports upgradation meeting on Jan 13
Tribune News Service

New Delhi, January 8
After having failed to get a nod from the Cabinet last Friday on the privatisation of airports in the four metro cities, the Civil Aviation Minister Syed Shahnawaz Hussain has held a meeting with Mr Jaswant Singh to identify a “faster route” for the upgradation of these airports to international standards.

During the 30-minute meeting yesterday, it was decided that the Finance Secretary and the Civil Aviation Secretary will meet on January 13 to identify “a specific and fastest possible route” for the upgradation of these airports. The proposals then worked would again be put before the Cabinet for its final clearance, highly placed sources told The Tribune here.

Reports suggest that the Civil Aviation Ministry may seek more funds from the Finance Ministry for the proposed upgradation of the airports besides utilising some of the funds lying with the Airports Authority of India (AAI). The move comes in the wake of Prime Minister asking the Civil Aviation Ministry to finalise the requirement for any budgetary help from the Finance Ministry.

At the Cabinet meeting Atal Behari Vajpayee had sought a fast-track method to privatise the four airports.

Maruti Udyog hikes car prices

New Delhi, January 8
Maruti Udyog today hiked prices of its various models by up to about Rs 5,335 with its mid-size car Esteem reflecting the steepest increase.

It, however, sought to retain its market share by offering insurance cover for Omni, Zen, Alto, WagonR and Esteem for a token premium of Re 1 for the first year. The scheme will be valid till February 28, the company said. PTI

Eli Lilly slashes insulin price
Tribune News Service

Chandigarh, January 8
Eli Lilly & Company (India) Pvt. Ltd., which enjoys a share of 25 per cent in the insulin market, a life saving medicine for the diabetes, has decided to slash down the prices of human insulin by over 25 per cent, to capture the growing domestic market. The company has claimed that the diabetic patents could now buy human insulin for just Rs 145 per vile from Rs 200 to Rs 218. Lilly has decided to pass on the benefits of indigenous production to patients, said Mr Sanjeev Taneja, Director, Corporate Affairs of the company here today.

Addressing a press conference, he said, the company has recently set up a plant at Halol, in Gujarat, with an annual capacity of 3 million viles. Till recently it was importing the insulin from its bulk facilities in other countries. Nova and Pfizer, other competitors in the insulin market are also reportedly following the price cut that would benefit the patents of the ‘world capital of diabetes’ — India.

The company has decided to phase out the animal insulin within one year. Talking about the company’s plans, he said,‘‘ The annual turnover of the Indian subsidiary was likely to reach Rs 150 crore by the end of current fiscal from Rs 120 crore, achieved last year.

Regarding future plans, Mr Taneja disclosed that the company would bring out Xigrius to treat bacterial blood poisoning disease, Ciallius for the treatment of sexual dysfunction and Forteo to treat osteoarthritis disease among women within one year.

Ford launches Ikon NXT

Chennai, January 8
Ford India today launched “Ford Ikon Nxt” series, the latest variants of its successful mid-size passenger car, Ford Ikon.

The Ford Ikon NXT, available in three versions, including diesel, is a step ahead of the others with its styling and performance enhancements, Randy Shockley, Vice-President (sales), told newsmen here during the launch.

The Ford Ikon NXT in the CLXI (petrol) version is fitted with a 1.3 ROCAM engine produced at the Pithampur plant of the Hindustan Motors under a tie-up between the two companies.

The ZXI 1.6 petrol version and ZXI 1.8 diesel version are the two other variants launched under the new Ford Ikon NXT series. The three variants are priced at Rs 5,56,547, Rs 6,56,049 and Rs 7,19,567 in Chennai.

The ZXI version has a different front-end with a body colour surround diamond mesh grille and an enhanced bumper with monochromatic paint treatment. PTI

Oil firms stockpile 40 days of petro product

New Delhi, January 8
Oil companies have stockpiled over 40 days of petroleum product and 15 days of crude oil supplies to meet eventualities of supplies being disrupted in case of war in Iraq, Petroleum Secretary B. K. Chaturvedi said today.

“Oil companies have topped their tanks. The stockpile of crude and product is sufficient to meet country’s demand for two months,” he told reporters here. PTI

ROUND-UP

IMF predicts global growth at 3.7 pc

Hong Kong, January 8
The IMF expects economic growth worldwide to recover to 3.7 per cent in 2003, with Asia doing even better, although higher oil prices, terrorist attacks and weakness in Japan could foil the global rebound, an IMF spokesman said today.

Growth in industrial Asia, outside Japan, should range between 3.5 per cent and six per cent, helped by continued 7 per cent to 8 per cent growth in booming China, said Thomas C Dawson, director of external relations for the IMF.

The IMF estimates growth in Asia, excluding Japan, in 2002 at 4.7 per cent, well above its current estimate for 2002 global growth of 2.8 per cent, Dawson told reporters during a visit to Hong Kong. AP

Cobra beer set to enter market

New Delhi: After a soft launch in April last year, Karan F Bilimoria plans to flood the Indian market with Cobra beer, the largest-selling Indian beer brand in Britain, with plans to infuse an initial £ 10 million to set up a brewery.

Mr Bilimoria — who was recently named in the The Times 10 “People to be Watched in 2003” list — said apart from setting up a brewery, Cobra beer would soon expand its presence from Mumbai, Pune, Goa and Delhi to other cities across India. UNI

KFC kicked out of China park

Beijing: American fast food giant Kentucky Fried Chicken (KFC) has been kicked out of Beijing’s centuries-old former imperial Beihai Park after complaints about its “encroachment” into China’s cultural heritage sites.

The eatery’s 10-year lease with the park expired today and management decided not to offer a new one, officials at the park management office and local media said.

KFC had a prime location to cash in on the tourist trade, just steps from the park’s main attraction, a white Tibetan-style pagoda which is a Beijing landmark. AFP

Patni to set up facility in USA

New Delhi, January 8
As part of plans to expand its Business Process Outsourcing (BPO) operation, Patni is setting up two new BPO facilities in Pune and Woburn, the USA, with a whoppings £ 8.5 million.

“The budgeted capital investment will be around £ 6 million for the Pune facility with an overall capacity of 450 seats while £ 2.5 million for the Woburn operation with 100 occupancies.

“Both the facilities will be operational by May-end,’’ Patni General Manager and BPO Head Sanjiv Kapur said, announcing the company plans here today. UNI

BIZ BRIEFS

Mid-corporate PNB branch
Chandigarh, January 8
PNB has put its mid-corporate branch at Sector 17-B, here on national networking. This branch caters to the need of corporate clients enjoying credit facilities of Rs 5 crore and above. PNB has embarked upon an ambitious plan to inter-connect its 1500-2000 branches under core banking solution at top 100 centres of the country within two years time in strategic alliance with Infosys. This will enable the client being the customer of the bank instead of the customer of a branch and will facilitate to avail any where - every where banking. This was disclosed by Mr Harwant Singh, Zonal Manager, PNB Northern Zone. TNS

Allahabad Bank
Chandigarh, January 8
In exercise of powers conferred under Section 13(12) of the said Mr Deepak Narang, AGM Allahabad Bank, Chandigarh and authorised officer of the bank took possession of House No. 736, Urban Estate, Sector 17, Faridabad belonging to Mr Devkinandan Bombi yesterday. Associated Engineers, Faridabad availed credit facility of Rs 5 lakh on 28.8.2000 from Fataehpur Indira Colony branch and misutilised the loan. This was a recovery measure first of its kind at Faridabad when the Allahabad Bank has become aggressive by way of recovery of its dues from the defaulting borrowers. TNS

Dabur India
Chandigarh, January 8
Dabur India, has signed an agreement Free Markets Inc (Nasdaq: FMKT), the leading provider of global supply management solutions, for using leading edge technologies to execute online markets for its procurement needs. Dabur, with this tie-up, joins the league of leading FMCG Companies in the world who have adopted high-end technologies for reducing costs, providing greater transparencies and optimising procurement efficiencies. TNS

SBI Flexi Loans
Chandigarh, January 8
The SBI has launched “Flexi Loans” for small business houses. Under the scheme, traders, business enterprises, professionals and self-employed persons will be eligible for a term loan of Rs 3 lakh to Rs 20 lakh, with a repayment schedule of 3 to 5 years at a 13.10 per cent annual rate of interest. Mr S.K. Sinha, CGM, Chandigarh Region, disclosed that the loans would be offered with 20 per cent margin money, and borrowers would be free to refund the amount before the time period as well. TNS

Sigma
New Delhi, January 8
Auto component maker Sigma Corporation (India) today said it has set up a tool room and press shop with an investment of Rs 15 crore for export to various countries. PTI

Bajaj Tempo
Chandigarh, January 8
Bajaj Tempo Ltd., has achieved a remarkable 28 per cent growth in sales across its product range upto Q3 (April-December), of the current financial year 2002-2003, over the corresponding period last year. TNS

Whiz-Quiz
Kurukshetra, January 8
Commerce Association of University College, Kurukshetra is organising ‘Whiz-Quiz’ (A mega state level confluence of commerce, economics and management students) on 26 th January in the Assembly Hall of the college. OC