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Saturday,
July 26, 2003, Chandigarh, India  
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CDC acquires stake in PTL for 218 cr
Jaswant assures repayment of high
SEBI submits report on bank scrip movements
Industry not to face power shortage: Chautala
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CM for promoting Khadi industries in Himachal
BIS raids to check misuse of ISI Mark
PSEB tops defaulters’ list of Railways Allahabad Bank net profit at Rs 67.97 cr
185 cos identified as vanishing
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CDC acquires stake in PTL for 218 cr Chandigarh, July 25 The government now hopes that it will send a positive signal to investors and help the government to attract large-scale investment. CDC, which is operating in IT, fund management and other areas, is the only company to offer the bid though nine other companies, including Mahindra & Mahindra, TAFE, Eicher, Escorts, SAME, Kirloskar Oil Engines Ltd, Warburg Pincus, had shown interest in the company. Ms Vini Mahajan, Director and Secretary, Directorate of Disinvestment, said the process has been completed successfully in a transparent
manner. The successful bidding in PTL will give a positive signal to MNCs and other companies to invest in the state. The state government felt relaxed as it had got major jolts earlier, when not a single bidder came forward to buy the state government's share in Punjab Alkalies and Chemicals Limited (PACL) and the financial bids for Punjab Communication Ltd had to be rejected due to lower price quoted by the single bidder. According to sources, the state government was expecting a higher bid, but it decided to accept the single bid at a price of Rs 153 per share though the company's share is hovering over Rs 160 at present. It was reportedly informed that it would difficult to expect higher bids in view of the fact that M&M, CNH New Holland, Escorts and other tractor manufacturers had backed out in view of the surplus capacity in the industry. Further, the LIC, the UTI and other financial institutions which had over 40 per cent share in the company had declined to sell their stake. Consequently, the bidder would not get the management control. A section of employees of PTL has, however, expressed apprehension over their future as some of the bidders had earlier said the company would upgrade technology and retrench the surplus staff. However, industry observers said with the onset of a good monsoon and the finalisation of the disinvestment process the company would be able to improve its position in the market.
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M&M opts out of PTL race
New Delhi, July 25 M&M, for which the stake sale offer in the second largest tractor maker was believed to be lucrative as it could have given it the much-required entry into northern India, informed the Bombay Stock Exchange that its Board of Directors today decided not to submit a financial bid for the purchase of the shareholding held by the Punjab State Industrial Development Corporation (PSIDC). M&M, which does not have any manufacturing facility in the North, has a total market share of around 30 per cent in tractors. Punjab Tractors, a very strong player in the northern belts, has a market share of around 18 per cent.
— UNI
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Jaswant assures repayment of high interest debts New Delhi, July 25 “Though I do not want to announce when and how much will be paid in future, our commitment to repay our high interest debt earlier than scheduled remains ... we will continue to follow this prudent policy,” Mr Jaswant Singh told the Lok Sabha during Question Hour. The Finance Minister said even though the pre-payment of high interest external loan involved a large outgo of foreign exchange, the inflow of foreign exchange was completely unaffected and “not even a flutter was felt” in the inflow of foreign exchange into the country as also on the rupee rate. India’s foreign exchange reserves stood at $ 83.3 billion as on July 11 this year and its external debt was estimated at $ 105 billion at the end of last year. “The country’s external debt indicators have progressively improved in terms of both debt-GDP and debt service ratios”, he said, adding that the government had pre-paid high-cost foreign currency loan worth $ 1,342.33 million to the Asian Development Bank and $1,687.8 million to the World Bank. The main reason for an increase in external debt of the country was due to deposits of maturity proceeds for Non-Resident Repatriable Deposition and Non-Resident Special Rupee Deposit schemes to the Non-Resident External Rupee accounts of holders which were discontinued from April 1, 2002. The
quantum of public debt, including internal debt, has been growing over the years on account of large and persistent fiscal deficit being faced by the Central Government, he said. To minimise the external debt of the country, the Centre has followed a prudent debt management policy that focuses on concessional and less expensive fund sources, preference for longer maturity profiles, and enduring vigil on build up of short term debt, pre-mature retirement of high-cost external debt and encouragement of non-debt creating capital flows. To reduce the burden of internal debt, the government is following a comprehensive strategy to achieve moderation in growth of non-plan expenditure and augment non-debt capital receipt, including the tax as well as non-tax receipts, he said. Several initiatives have been taken to restructure the debt portfolio to reduce the interest burden of the debt. “The debt structuring measures, along with the policy of fiscal rectitude, are expected to moderate the public debt burden”, he said.
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SEBI submits report on bank scrip movements
New Delhi, July 25 “A preliminary report (on the volatile price movements in banking scrips) has been received,” Minister of State for Finance Anandrao V Adsul said in written reply to a query. He said SEBI had been asked to complete the investigation expeditiously. “SEBI have been asked to conduct investigation in public sector banks scrips during April-June 2003 to ascertain whether there was any manipulation or violation on the part of any market intermediary/participant,” Adsul said. The bank scrips witnessed a volatile movement following a series of reports that Finance Ministry might attach a premium when the banks’ return a portion of government capital. However, an official release clarified the stand taken by the Finance Ministry, saying that no decision had been taken on the issue (whether to attach premium or not). The bank scrips showed volatile movements with scrips of some banks touching 52 weeks high during the period. This prompted the Finance Minister Jaswant Singh to ask SEBI to conduct an enquiry into the “unusual” movements, though it was devoid of any deadline. In 1994-95, PSU banks were provided additional capital by the government to enable them to meet the stringent prudential norms set by Reserve Bank of India, official sources said. Many PSU banks have been returning a portion of government equity with improvement in their financial performance, in a bid to improve their earnings per share, which could put them in advantageous position if they want to tap markets. Bank of India, Canara Bank and Andhra Bank are among those which returned equity to government while others like Punjab National Bank and Oriental Bank of Commerce are planning to do so.
— PTI
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Industry not to face power shortage: Chautala New Delhi, July 25 “We will ensure that industries do not face any shortage of power. In fact, Haryana is the only state to have reduced the power tariff for the industries,” Mr Chautala told a meeting of FICCI. Two power units of 250 MW each being set up by BHEL at Panipat Refinery will be operational by September, 2004, and another unit of 500 MW will come up at Yamunanagar next year-end, he said at a seminar on ‘Investment opportunities in Haryana’. The state has also planned to spend Rs 4,000 crore over the next three years for the upgradation of transmission and distribution system of power supply. Haryana is also seeking the Centre’s approval for another 500 MW unit for the total additional power supply to the tune of 1500 MW. Haryana is the first state to set up its own Foreign Investment Promotion Board (FIPB) and introduce a single window clearance for investors, Mr Chautala said. “Today, we have acquired a good infrastructure with better roads, uninterrupted power supply, sufficient water supply for the hassle-free functioning of industrial and other units,” the Chief Minister added. Mr Chautala said, “we are also studying the possibility of power generation using the biodegradable waste and will soon send a team overseas for technological collaboration. A Special Economic Zone (SEZ), planned at Garhi Harsaru between Gurgaon and Manesar, will cost Rs 950 crore and an infrastructure development fund is also being created for the purpose. Later in the day, the Ambassador of Japan, Mr Akira Hayashi, called on the Chief Minister to discuss the investments in the state. Japan, the largest investor in India, has 80 per cent of its investment in Haryana.
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CM for promoting Khadi industries in Himachal Shimla, July 25 Presiding over the first meeting of state small-scale industries services board, here today, he said industrial development would be promoted with the twin objectives of generating revenue for the state and employment for the local people. The small scale and tiny industries would be given special attention as they held boost economic activities in the rural areas. The Chief Minister said that special package announced by the Government of India for industrial units in the state would go a long way supplementing states efforts to achieve speedy industrial development. It was decided in principle in the meeting to organise small scale industries day every year to highlight the importance of this sector. Referring to the demand of small entrepreneur regarding concessional rate of tax upto turnover of Rs 45 lakh in Industrial developing areas and upto Rs 60 lakh in industrially backward areas, he said the incentives package would be looked into and the cases of those who had exceeded the limits marginally would also be considered. He said all possible assistance would be given to help revive the sick units. Mr Ram Lal Thakur, the Industries Minister, said small scale, tiny and khadi industrial units needed special protection to enable them compete with the large industrial units. Dr V.P. Gupta, Director of Industries, welcoming the Chief Minister said that state at present had 196 large and medium industrial units and 30,176 small and tiny units. He said after the announcement of new industrial packaging 618 industrial units, 552 small scale and 66 big with an investment of Rs 1060 crores had been registered in the state.
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BIS raids to check misuse of ISI Mark Chandigarh, July 25 Raids were also conducted in Jalandhar where two firms named Aay-Emm Industries & Suman Engg. Corporation dealing with illegal manufacturing of Gun Metal Valves as per IS: 778 under the brand names of ‘Tata’, ‘Marc’, ‘Suman’ and ‘Yes’ were seized and sealed. Balraj Trading Co./Balraj Kumar Co. near Railway Crossing, Malout were found selling cattle feed under the brand names ‘Master Ji’, ‘Dairy Special’, ‘Babaji’ and ‘Hi-Tech’ in different colours of bags for misleading the consumers about the quality. In Jalalabad, two firms were found violating the Quality Control Orders of PFA Act by selling 20 litres of Packaged Drinking Water under the brand names “Natural’ and ‘Kalash’. These include Shiv Shakti Industries and Shivam Mineral & Aqua Industries. Huge quantity of pesticides with spurious ISI Mark under various brand names were seized and sealed by Nalagarh Branch Office of BIS. The raided firm was Goel Agro-Chem (Bombay) of Baddi. Similar raids were carried by other branches at Lucknow, Kanpur, Faridabad under Northern Regional Office of the Bureau, Chandigarh. In these raids 20 litre jars of packaged drinking water and wooden flush doors were seized. According to Mr Sharma all these manufacturers selling goods without having a valid licence from BIS is violation of the Provisions of Section-11(I) of BIS Act 1986. Legal action shall be initiated against these firms. According to BIS Act, use of ISI Mark without a valid licence is punishable with imprisonment up to one year or a fine up to Rs 50,000 or both, he said. The team of Senior Officers of BIS conducted the raids with the assistance of local Police.
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PSEB tops defaulters’ list of Railways
New Delhi, July 25 The next two major defaulters are Delhi Vidyut Board (Rs 181.23 crore) and the Rajasthan State Electricity Board (RSEB) which has to make a payment of Rs 109.19 crore. Replying to a question, Minister of State for Railways Bandaru Dattatraya said the list of outstanding dues was based on provisional figures and the matter had been taken up by his ministry with the Chief Ministers of states concerned in the past. He said some SEBs had cleared part of the dues. The other states whose electricity boards figure in the list of defaulters include Uttar Pradesh (Rs 46.89 crore), West Bengal (Rs 17.22 crore), Madhya Pradesh (Rs 9.91 crore), Maharashtra (Rs 4.62 crore), Haryana (Rs 2.23 crore), Gujarat (Rs 1.58 crore), Andhra Pradesh (Rs 1.32 crore) and Bihar (0.54 crore). Mr Dattatraya said the three power stations among the defaulters are: Badarpur Thermal Power Station (Rs 964.18 crore) NTPC (Rs 25.98 crore) and Damodar Valley Corporation (Rs 8.69 crore). The combined outstanding dues of state
electricity boards and power stations to the Railway was Rs 1814.72 crore as on June 30, this year, he
added. — UNI
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Allahabad Bank net profit at Rs 67.97 cr Kolkata, July 25 The bank’s Executive Director K.K. Rai told newspersons here today that the operating profit during the period was Rs 191.33 crore compared to Rs 107.73 crore during the corresponding period last year showing an increase of over 77 per cent. He said the bank’s capital adequacy ratio went up to 11.32 per cent in the first quarter of the current fiscal — up nearly 1 per cent compared to the corresponding period last year. — UNI State Bank of Indore Indore, July 25 |
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185 cos identified as vanishing New Delhi,
July 25 Prosecutions have been launched against 161 such companies under various provisions of Companies Act, Finance Minister Jaswant Singh said. Loans:
An amount of Rs 5397.56 crore of irrecoverable loans have been written off by Financial Institutions under Public Sector since 2000.
— PTI |
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