The Tribune, Chandigarh, India

Opportunities galore to expand economic links
Geetanjali Gayatri in SYRIA
Tribune news service

November 26
After leading a goodwill mission to the UAE, Indian President Pratibha Devisingh Patil, today, arrived on a four-day state visit to the Syrian Arab Republic.

Her visit assumes special significance since this is the first ever visit of by an Indian President to Syria. On her arrival the President was received at the Damascus International Airport by the Minister of Presidential Affair, Syria, Mansoor Aazam. Representatives of the Indian population, totaling just over 1,000 including families, were there to receive her at the airport.

She visited the historical Ummayad Mosque later in the day. President Patil is scheduled to meet President Assad tomorrow. She will also meet the Speaker of the People's Assembly, Mahmoud Al Abrash, and the Prime Minister of Syria, Naji Otri.

Unlike her visit to the Gulf where no agreements were signed, several Memoranda of Understanding (MoUs) including those on cultural exchange are likely to be signed.

Her talks with President al-Assad are expected to give a new momentum to the bilateral relations in all fields, particularly on expanding economic and commercial cooperation. The President’s visit is aimed to bolster a political dialogue between the two countries and discussions are expected on bilateral, regional and international issues including West Asia peace process.

President Patil will also meet Syrian businessmen and industrialists to find new prospects for bolstering and developing economic and commercial relations between the two countries. Syria is an important country for India’s energy security needs.

While India will be looking at agreements to meet some of its energy security needs with support from Syria, the two countries, which traditionally share friendly ties are expected to ‘diversify’ in other sectors to increase the modest bilateral trade of $500 million. With Syria intending to open its markets and embark on massive development, there would be plenty of opportunities for India for the two countries to expand its economic links.

Syria has already backed India’s demand for a permanent membership of the United Nations Security Council and Syria has tried to act as a moderator for toning down Pakistani rhetoric in the Organisation of Islamic Countries, diplomatic sources said.

Punjab focuses on alternative energy at Delhi trade fair
Jangveer Singh
Tribune News Service

Punjab industries minister Manoranjan Kalia (centre) with his department secretary SS Channy (left) at the Punjab Pavilion at the International Trade Fair in New Delhi. A Tribune photograph

Chandigarh, November 26
Punjab has showcased its leadership role in alternative energy sources at the India International Trade Fair (IITF) at Delhi and used solar and hydel energy facades at its pavilion besides even displaying a funky ‘green’ rickshaw to present a completely different look from the ‘saag and makki ki roti’ days.

A collage in the façade of the Punjab pavilion depicts how solar and hydro energy are transformed into electricity along with a miniature replica of the Bhakra Nanga dam, India’s first hydro electricity generation project.

The exterior also has a visual representation depicting use of solar panels for generating solar energy in remote villages besides a unique innovation - a panel showing water being drawn from a well using a solar powered motor.

Green Cabs, an initiative of the Graduates Association of Fazilka, which has started a ‘dial a rickshaw’ service in the town, was also showcased with a rickshaw model. The rickshaw is much lighter than the traditional one and has more luggage space besides a safety belt for the commuter as well as a FM radio.

The pavilion inside has an array of products ranging from solar tunnel lighting to solar generated household lams. Resource efficient bricks as well as initiatives of the Punjab Agriculture University, Ludhiana including use of bio agents to obtain high quality produce free from pesticides residues have also been showcased.

Industries and Commerce minister Manorajan Kalia, who went around the pavilion yesterday evening, said the State continued to make progress on the industrial front despite the fact that special packages given to neighbouring States had slowed down the pace of industrialization. Presiding over the function, which also celebrated Punjab Day, Kalia honoured Puducherry Lt Governor Iqbal Singh on the occasion.

State Public Relations Director D S Mangat said students of NIFT showcased their projects while there was brisk sale of handicrafts at the ‘bazar’ housed in the pavilion with innovations in ‘phulkari’ embroidery catching everyone’s attention. Master craftsmen in various art forms also showed off their wares.

CBI probes 21 cos in home loan scam

New Delhi, November 26
The Central Bureau of Investigation (CBI) said on Friday it was probing 21 companies for possible links to a bribes-for-loans scandal that has hit bank shares and hurt the country's image as an investment destination.

The scandal, in which eight financial executives have so far been arrested, is one of several to dog the government of Prime Minister Manmohan Singh, putting to the test the ability of one of the world's fastest growing emerging economies to crack down on corruption.

Shares in banks and real estate companies — the two sectors with companies that have so far been implicated in the graft probe — fell sharply on Friday as the scandal unfolded, underperforming a negative Mumbai market. Analysts said the scandal, which comes a few days after Singh had to defend his government in another graft scandal involving telecoms licences sold too cheaply, could harm investor sentiment.

"This is just unfolding at this point in time. These are very serious issues which impact investor sentiments," said Nitin Jain, Singapore-based principal of fund manager Kotak Mahindra.

"If we can clearly say that we have done something right at this point in time and do proper things at this point in time then it's salvageable but otherwise it does have a potential to impact investor sentiments towards India from a medium term perspective," Jain said.

Investors, so far, remain keen to tap into a country with a young and fast-urbanising population of 1.2 billion. On Friday, a senior official with the Central Bureau of Investigation (CBI) said notices had been sent out to 21 medium to large companies, including real estate firms to provide information about their possible link to the scandal.

Two days earlier, the CBI arrested five officials from state-run listed lenders, including the chief executive of LIC Housing Finance, accused of taking bribes to facilitate large corporate loans. — Reuters

Loan Scam
Sebi probes insider-trading in shares of cos party to scam

Mumbai, November 26
Market watchdog Sebi has initiated a probe into possible front-running and insider trading in shares of over two dozen companies, including some blue chips, by entities and persons involved in the housing-finance scam unearthed by CBI.

The initial findings, when corroborated with the charges made by the CBI, indicate towards a lage-scale front-running deals or shares being purchased or sold in these companies on the basis of prior knowledge about investment decisions being made by large institutional investors, a senior Sebi official said.

These large institutional investors could be LIC, whose Secretary (Investments) figures among those arrested by CBI in connection with the multi-crore scam, as also those investors who participated in share or debt placements arranged by investment banking and financial services firm Money Matters, sources said.

The probe would encompass large dealings and any irregular spurt in volumes or prices of shares of all the companies where these institutional investors had bought or sold shares over the past two years, they said.

The top officials of Money Matters, a fast growing entity that boasts of having served a number of top-level corporate entities in the past including the likes of Tatas, Ambanis and Birlas, have emerged as the focal points of the scam.

Sources said that though the arrested official of the country's largest insurer LIC could have been used (by Money Matters) in terms of revealing the investment decisions already taken by the PSU, he might not have been in a position to know upcoming decisions by the company or influence its investments in stocks. — PTI

VK Sharma is new LIC Housing Finance CEO

New Delhi, November 26
LIC Chairman T S Vijayan today said that V K Sharma will take over as the CEO of its housing finance arm early next week. Sharma has been chosen to replace LIC Housing Finance CEO Ramachandran Nair, who was arrested by the CBI on charges of involvement in housing-loan bribery case on Wednesday.

“V K Sharma has been appointed as LIC Housing Finance CEO... he will take charge early next week," Vijayan told reporters here.

Sharma is currently in charge of LIC's South Zone operations.

LIC had convened an urgent board meeting yesterday in the wake of the arrest of Nair and the insurer's Secretary (Investment) Naresh K Chopra.

After the board meeting, Vijayan had said that Chandrasekhar, who is the senior most general manager at the LIC Housing Finance, would be the officiating CEO of LIC Housing Finance. — PTI

Intex plans to tap PE route
Sanjeev Sharma
Tribune News Service

New Delhi, November 26
Intex Technologies, a mobile phones and electronics company with revenues of Rs 600 crore is considering to tap the private equity route to raise funds.

Ramesh A Vasvani, executive vice chairman, Intex Technologies told The Tribune that it will be giving the mandate to an investment banker for raising funds through private equity for the company’s expansion plans through the amount was not disclosed.

Intex remains an unlisted company and its funding has been mainly through internal accruals, banks and vendor support.

The company has been growing at a compounded annual growth rate (CAGR) of 40 per cent over last five years and has a turnover of Rs 600 crore. The company expects the close the current financial year with a revenue of Rs 800 crore, Vasvani said.

On the proliferation of numerous brands in the mobile phone segment, Vasvani said that there are 30-35 homegrown players and this phenomenon will be replaced by consolidation as some brands will die a natural death while others may be bought over. Intex has around 2-2.5 per cent market share in mobile phones.

He said the company has been increasing its penetration in smaller towns which have shown strong growth and is offering a value for money proposition. Computer peripherals and mobile handsets have become the largest verticals for the company in terms of revenues.

‘No recalling of loans’

New Delhi, November 26
The finance ministry has not suggested recalling of corporate loans under scanner in the financial bribery scam, the financial services secretary R Gopalan said on Friday. Another finance ministry official reiterated that no such move has been made by the ministry.

"To the best of my knowledge we have not suggested anything like this", the official said, who did not wish to be named, told Reuters.

The official said that no instruction has been issued by the finance ministry to banks to reduce their exposure to realtors. He also said that raising provisioning requirements for realty loans following the bribery scandal was a decision that will be made by India's central bank, the RBI. — Reuters

SBI plans a branch for the youth
Suresh Dharur/TNS

Hyderabad, November 26
The State Bank of India (SBI) plans to open the country’s first exclusive branch for the youth in Hyderabad shortly. Complete with a round-the-clock coffee shop, snack bar, book shop and scintillating music, the ‘Youth Branch’’ will offer a banking experience for the customers.

SBI officials in the city are scouting for a suitable location in the up-market Banjara Hills and Jubilee Hills areas to set up the exclusive branch.

“The idea is to dispel the notion among the youth that SBI is a typical public sector bank with age-old customs meant only for old and retired customers. The new concept is to attract the youth in a big way,” Zonal Manager (Hyderabad) K Shiv Kumar said.

Besides all the paraphernalia, the branch’s banking products will also be customized keeping in mind the profile of the target customer- the youth.

“We are planning to introduce a special saving account called “Yuva” exclusively for the youth with special incentives and attractive interest rates. The bank branch will remain open till late hours for the young professionals to get access to banking facilities. There will be an ATM facility as well,” Kumar said.

“We have already recruited younger staff for the new branch. We will be rolling it out in the next three months and depending on the response, we plan to replicate the same in other parts of the country in due course,” Kumar said.

“We are planning to outsource facilities like coffee shop, restaurant, music and video parlours and book store. We will take into consideration the preferences of our business partners before finalising the location,” Kumar concluded.

Bihar verdict to worsen labour shortage
KS Chawla

Ludhiana, November 26
The landslide victory for JDU-BJP alliance headed by Nitish Kumar in Bihar has caused lot of apprehension among industrialists about the availability of labour. They feel new government would create more employment opportunities for the Biharis in Bihar, resulting into less inflow to Punjab.

However, a redeeming feature of Punjab’s industry is that automation has been introduced in all sectors of the industry to meet labour shortage.

The Mahatma Gandhi National Rural Employment Guarantee Scheme has impacted the supply of labour to Punjab’s industries pretty badly. Migration from Punjab and UP has practically stopped.

The textile industries in the state, particularly the knitwear and dyeing industry are mainly dependent on migrant labourers. They perform different jobs including cutting, sewing, embroidery and washing and ironing.

Vinod Thapar, President, Knitwear Club, said the knitwear industry is facing shortage labour shortage to the extent of 50 per cent.

Thapar says that the central government has a number of schemes for training rural youth, but local youngsters were unwilling to be trained. The training is particularly meant for the below poverty line (BPL) and educated rural youth. They have made efforts to enroll the youth but have not met with much success.

Abhiraj Chawla, a young entrepreneur, disclosed that in the knitwear industry a worker can earn up to Rs 10,000 per month depending on the nature of job he performed. The labour was employed on contractual basis.

Nestle files appeal against Rs. 1.25 crore tax evasion case
Kulwinder Sandhu
Tribune News Service

Moga, November 26
The local manufacturing unit of Nestle India has filed an appeal before the Deputy Excise and Taxation Commissioner (appeals) at Bathinda against the department’s recovery notice of Rs. 1.25 crore for evasion of VAT on the purchase of skimmed milk. An official of the Excise and Taxation Department said that the appeal would come up for hearing before the DETC (appeals) on coming Monday.

The appealing authority has directed Nestle authorities to deposit 25 per cent of the amount. As per the rules, any appeal against tax evasion is accepted only after the appealing party deposits 25 per cent of the assessed tax.

Till today evening, the last working day before hearing on appeal, Nestle has failed to deposit 25 per cent amount of the total tax evasion assessment. Instead, it has written to authorities concerned of the Excise and Taxation Department to adjust this amount from Rs 44-lakh, which was pending for refund with the department.

Earlier, Nestle wascdirected by the department to pay Rs 1.25 crore within 30 days, otherwise, legal action would be initiated to recover the amount.