Punjab to have separate IT dept
By Nirmal Sandhu
Tribune News Service

CHANDIGARH, Aug 12 — The Punjab Government plans to set up a separate department for information technology (IT). A proposal to this effect will be discussed by the Cabinet in a day or two.

Announcing this here today, Mr Ramesh Inder Singh, Principal Secretary to the Punjab Chief Minister and Secretary, Industries, told The Tribune that the state government is in the process of formulating an IT policy.

There is also a proposal to constitute “an IT vision group” comprising experts on software and information technology with “northern background” to advise the government. Under this group an IT task force will be set up with representatives of industry and the government.

Commenting on the Confederation of Indian Industry (CII) demand for earmarking 500 acres for IT industry near Mohali, Mr Ramesh Inder Singh said, “land will be no constraint. It all depends on the industry’s response. The IT sector is a priority area with the state government.”

Earlier in the morning a delegation led by Mr Arun Bharat Ram, Chairman, CII (Northern Region), met the Punjab Chief Minister, Mr Parkash Singh Badal, and emphasised the need for creating a hub of information technology near Mohali for which at least 500 acres is required.

Mr Bharat Ram later told The Tribune that the delegation also called on Haryana Chief Minister Bansi Lal, who offered space for IT industry at the Barwala industrial estate being developed by the Haryana State Industrial Development Corporation.

He said the industry today does not look for financial incentives, but for proper living conditions and work environment, basic infrastructure, law and order and quick administrative decisions.

Mr I.S. Paul, Chairman, CII Chandigarh Council, said that agricultural income in Punjab and Haryana is no longer growing as fast as it used to be. This is evident from the facts that the average annual compound growth rate of gross state income of Punjab was higher till 1991-92. After that the compound growth rate of national income has been higher. The net sown area has stagnated at 95 per cent. Productivity of rice has actually gone down.

The services sector provided an alternative. With regard to Punjab, financial services are not feasible. Nor are tourism, media and logistics. For this region IT alone is relevant, he stressed.

In Punjab and Chandigarh alone in computer and electronics there are 1,880 degree and 1,840 diploma holders, besides 4,500 degree holders in electrical, mechanical production etc.

He said the CII intends working in close coordination with all concerned to give a boost to IT in and around Chandigarh. The first step in this direction would be the setting up of an IT centre at the CII convention centre.

Plan to collect Rs 1,600 cr tax
Tribune News Service

JALANDHAR, Aug 12 — The Chief Commissioner of Income Tax, North-West region, Ms S.P. Kaur, said today that in 1998-99 the Income Tax Department has set a target of collecting Rs 1,500 crore to Rs 1,600 crore, while Rs 1,220 crore was collected last year.

Talking to TNS, she said that the North-West region, which included Punjab, Haryana, Jammu and Kashmir and Chandigarh, had only 12.25 lakh income tax payees, while it was hoped that during this year three lakh more income tax payees will be included by the department.

She said the total number of assesses in the country constituted less than 1.25 per cent of the entire population. The scope of widening tax evasion continues to be a serious handicap. To meet this challenge, the Finance Act 1998 has made it obligatory the use of “PAN” in transaction like the purchase and sale of immovable property, motor vehicles, transaction of shares exceeding Rs 10 lakh, fixed deposits of more than Rs 50,000, opening of new bank accounts, applications for allotment of telephone connections, payments to hotels exceeding Rs 25,000.

A new Samadhan scheme has been conceived for “declogging” the judicial system of unmanageable number of appeals in cooperation with tax payers.

J&K Plan outlay fixed at 1,900 cr
Tribune News Service

NEW DELHI, Aug 12 — The Planning Commission today fixed the annual Plan of Jammu and Kashmir for the current financial year at Rs 1900 crore, an increase of 22.5 per cent over last year’s Plan outlay.

This was decided at a meeting between Dr Farooq Abdullah and the Deputy Chairman of the Planning Commission, Mr Jaswant Singh.

The state government’s projection of Rs 1,900 crore for the current year’s annual Plan was accepted by the Planning Commission in total. The outlay includes Rs 87 crore for the completion of all remaining bridges gutted during the period of militancy.

The Plan outlay also included a special component of Rs 25 crore for the conservation of the Dal Lake.

The Commission revealed that Rs 25 crore would be released by the Indian Council of Agricultural Research towards its contribution for setting up an agriculture university at Jammu.

Apart from the Chief Minister, the state was represented by the Finance Minister, Mr Mohammed Shafi, Chief Secretary, Ashok Jaitly and other senior officials.

Haryana targets Rs 2,271 cr tax
From Our Correspondent

YAMUNANAGAR, Aug 12 — Mr R.N. Prashar, Commercial Taxation Commissioner, Haryana, today said that as against Rs 1,904 crore collected through commercial taxes last year the government has targetted to collect Rs 2,271 crore in the current fiscal, thus collecting Rs 367 crore more. Mr Prashar disclosed this at a meeting with deputationists of different industries.

A deputation of Haryana Chamber of Commerce & Industry led by Mr Shiv Partap Bajaj, state president, apprised him of the problems being faced by plywood industrialists in the state.

Another deputation of Jagadhri Metal Association also conveyed him the problems which the metal industries are facing regarding the sales tax. The team was led by Mr Jai Bhagwan Garg, president of the association.

The commissioner assured the deputationists that the government will give them a relief if they help it to increase the revenue.

Industrial production up at 5.4%

NEW DELHI, Aug 12 ( PTI) — Industrial activity in the country showed signs of recovery in the first quarter of the current fiscal with growth rate in industrial production improving to 5.4 per cent from 3.7 per cent a year ago.

As per the latest figures of index of industrial production (IIP) released today, manufacturing sector, which accounts for three-fourth of the total IIP weightage, saw a 5.5 per cent growth rate during April-June compared to 3.3 per cent in the corresponding period of last year.

Canadian MP meets Sukhbir Badal
Tribune News Service

NEW DELHI, Aug 12 — Mr Gurmant Grewal, a member of the House of Commons and Deputy Leader of the Opposition in Canada, called on the Union Minister of State for Industry, Mr Sukhbir Singh Badal, here today and discussed possibilities of increasing economic interaction between the two countries.

Mr Badal told the visiting MP that the relationship between India and Canada was multi-dimensional and with the ongoing liberalisation programme launched by the Indian Government the possibilities of economic interaction have multiplied.

The minister pointed out that investments from Canada have risen substantially in the last five years, reaching over $ 109.8 million in 1997. However, the actual flow of foreign direct investment from Canada was only 5.79 per cent of the approved FDI.

Land of BMWs & begging bowl

THE collapsing economy has not daunted the rich in Pakistan from importing big luxury cars while the poor people are constantly told to tighten their belts.

A Karachi daily has described this phenomenon as a miracle. It appears rich Pakistanis are not willing to help the Nawaz Sharif government “smash the begging bowl.”

Although Mr Sartaj Aziz, a former Finance Minister, had banned the import of luxury cars, as many as 409 BMWs landed at Karachi port. Many more are on their way to Karachi. The importers include many highups in the ruling elite.

The government’s self-reliance fund has not filled up to any helpful height yet. The government took a foolhardy decision to reduce duty on luxury cars from 400 per cent to 125 per cent in the 1998 Finance Bill that has encouraged importers to import more cars unmindful of the foreign exchange situation. And there are allegations that Mr Sartaj Aziz himself is involved in the car business. (UNI).

Courts

NAWAZ SHARIF’s government has decided to set up commercial courts across the country soon with the help of a soft loan from the Asian Development Bank (ADB).

According to Federal Law Minister Khalid Anwer, the ADB has already agreed to Islamabad’s request to appoint a foreign consultant to suggest judicial reforms in Pakistan.

The step to set up the courts is being taken in the wake of various foreign lending agencies demanding their establishment with exclusive jurisdiction to commercial disputes. The government of Pakistan will also provide an alternate dispute resolution mechanism for the quick disposal of commercial disputes.

The World Bank has also shown interest in helping Pakistan to carry out its judicial reforms. The government, he says, will like to bifurcate the judicial reforms in two parts: those funded by the ADB and the others by the WB. (ANI)

MFN status

Pakistan’s denial of most-favoured nation (MFN) status to India is in violation of the World Trade Organisation (WTO) agreement but New Delhi prefers to tread cautiously on the issue.

As a signatory to the WTO agreement, Pakistan cannot deny India MFN status in trade relations, especially after New Delhi has accorded the same to Pakistan. Though Pakistan has not turned down India’s demand, it is yet to notify MFN status.

India has the option of moving the WTO on the issue in case bilateral talks do not yield any solution but the government as of now would not like to take such a drastic step.

The matter was raised during the 10th SAARC summit in Colombo recently and at the SAARC Commerce Ministers’ meeting Islamabad in April last but without any result.

Pakistan’s concern in according MFN status seems to arise from the fact that imports from India are around Rs 500 crore annually, while exports are only Rs 165 crore.

Sanctions

Pakistan may proliferate its nuclear and missile know-how to other Islamic countries if it comes under intense economic pressure following the US sanctions, according to a US Congress research report.

Noting that countries like Iran may seek to exploit their existing relations with Pakistan or India to try to acquire weapons of mass destruction, the report says: “Pakistan may be vulnerable to such overtures if its economy suffers significantly from US sanctions.” (PTI)

Report deals in 15 minutes: Sebi

NEW DELHI, Aug 12 (PTI) — In a move to curb insider trading, Sebi has ordered that negotiated corporate deals be reported to stock exchanges within 15 minutes of their finalisation.

Making the reporting system more stringent, Sebi said all negotiated deals informed to the exchanges and displayed on the screen must include the name of the security, price, quantity, value and name of the brokers involved.

The guidelines require that if the deals are negotiated after the trading hours of the bourses, it should be informed immediately on the next trading day at the start of trading, Sebi sources said.

The capital market regulator has also vested powers to stock exchanges in case of a violation, saying the bourses can prescribe penalties for the violation of the reporting requirements laid down by Sebi.

Exchanges must arrange for dissemination of information relating to the execution as well as cancellation of the negotiated deals on their screens immediately.

The guidelines, issued last week, are aimed at making corporate deals more transparent and to ensure that no insider trading takes place, the sources said.

ITC chief favours self-regulation

CALCUTTA, Aug 12 (PTI) — Leading cigarette manufacturer ITC Limited favours self-regulation in promotional campaigns by companies in the tobacco industry as laid down by the Advertising Standards Council of India (ASCI), the ITC Chairman said today.

Mr Y.C. Deveshwar told the 87th AGM that the company supports the ASCI’s code of conduct but would wait for the entire tobacco industry to take a view on it.

Cigarette, he said, was a legal product and ITC was eager to make the statutory health warning conspicuous on the packets.

Deveshwar was replying to a shareholder’s allegation that ITC’s promotional campaigns associating cigarette with sports was “illegal, immoral, and unethical” and by doing this the company was luring teenagers to take to smoking, which was “criminal.”

The shareholder also said the tobacco major might open the floodgates of litigation and end up paying huge amounts as compensation as in the USA.

Blue Star to spin off software division

NEW DELHI, Aug 12 (PTI) — Blue Star, manufacturer of airconditioners and storage refrigerators, will spin off its software division into a separate company — Blue Star Infotech Ltd, a senior company official said here today.

The new company will be set up with a total equity of Rs 10 crore, company’s President and Vice Chairman Suneel M. Advani said.

“The purpose of spinning off software division into an independent company is to focus more on the immense potential in the field of software,” he said.

The company has already finalised modalities and the structure of the new company which would submit a draft of the proposal to the Mumbai High Court for clearance, Advani said.

Shareholders of Blue Star will be offered one share of Blue Star Infotech Ltd for every three shares of the parent company.

The company was expected to come into being on October 1, this year and would be listed in both NSE and BSE, he said.

“We hope to complete all formalities regarding setting up of the company soon and get it listed by January or February next,” he added.

The new company, according to Advani, would concentrate on offshore software export projects, re-engineering and ERP consultancy services.

Over 250 employees, including 200 engineers from the parent company would join the software company, he said.

Blue Star has also decided to open its second office in the US at Indianapolis with an eye on the huge market for re-engineering and medical imaging services.

The total software export earnings of the country last year had increased by 47 per cent to Rs 20.56 crore.

Blue Star was keen to have a joint venture with York International Corporation of USA for manufacturing centrifugal and reciprocating chillers, Advani said.

Plan to revive 48 PSEs
Tribune News Service

NEW DELHI, Aug 12 — The government has worked out a comprehensive strategy to improve the performance of 48 public sector enterprises (PSEs).

Addressing the Consultative Committee for the Ministry of Industry, Mr Bakht said that out of 23 PSEs registered with the BIFR, sanctioned revival plans are under implementation in nine PSEs where the government has agreed to provide fresh infusion of Rs 382 crore and financial restructuring to the extent of Rs 1535 crore.

In case of nine other PSEs, the BIFR at one stage or the other, reached the conclusion that the companies were unviable and expressed preliminary/final view regarding their winding up.

The government has already given its approval for converting 23 of the 48 PSEs into joint venture companies.

The strategy, the minister said, is to revive the companies so that they would not depend on the government budget but be able to sustain their viability on a long-term basis. Efforts are on to identify suitable partners capable of strengthening the PSU concerned in areas like technology, management, marketing etc.

Employees of sick companies facing closure are not entitled to benefits under the voluntary retirement scheme (VRS). Such employees would be entitled to retrenchment compensation as per the Industrial Disputes Act.

Those who attended the meeting included the Minister of State for Parliament, Mr Sukhbir Singh Badal, and Mr Rameswar Patidar, Mr Shailendra Kumar, Mr Hari Kewal Prasad, all MPs.

Dipping rupee pulls down shares

MUMBAI, Aug 12 (PTI) — Equities continued their slide on Dalal Street today in restricted activity, pushing the popular 30-share BSE sensex below the 2951-resistance level following sustained selling triggered by fears of political instability.

The market was weak at the initial stages with the sensex touching a low of 2924.24 as operators and foreign funds resorted to large sales amidst reports that the government at the Centre had ignored the AIADMK threat by notifying the new draft scheme on Cauvery water sharing.

The BJP’s move was seen by the marketmen as dangerous as AIADMK Chief Jayalalitha had yesterday warned that she would review support if the government failed to notify the original draft scheme of 1991.

The sensex, however, recovered smartly to the day’s high of 2989.92 on buying by financial institutions, who picked up small lots of shares of index scrips like SBI-New and L&T along with software scrips like NIIT, Infosys Tech and Satyam.

The sensex later closed at 2950.80 as against yesterday’s close of 2970.64, netting a loss of 19.84 points. The BSE-100 index eased by 11.48 points to 1319.31 from previous close of 1330.79.

Foreign funds sold shares of ITC, SBI-New, RIL, Tisco, L&T, ACC, Telco and Hindalco.Foreign funds reportedly bought shares of multinational companies like Smithkline Pharma and Reckitt & Coleman.

After opening at 43.02 a dollar, the rupee’s erosion to a record low of 43.25/35 during the trading on forex market led to selling by foreign funds.

Dealers said though the sensex was slightly below its 2951-resistance, the market might improve during the week in case of a better start tomorrow, a situation they were not very hopeful of as marketmen felt that AIADMK would indeed withdraw support.

The BSE-200 and the Dollex were quoted moderately down at 306.16 and 118.71 compared with yesterday’s close of 309.18 and 120.52 respectively.

The volume of business improved by Rs 137.30 crore to 910.15 crore. ITC was the most active scrip with a turnover of Rs 208.54 crore followed by Satyam Computer (Rs 137.59 crore), Zee Telefilms (Rs 57.13 crore), SBI-New (Rs 55.20 crore) and Infosys Tech (Rs 47.39 crore).

ITC was fractionally up at 574 from previous close of 573.50. Satyam Computer eased by 6.75 to 469.50, Zee Telefilms by 11.50 to 597.50 and SBI-New by 4.70 to 190.30. Infosys Tech, however, firmed up by 72.50 to 2608.

Bank unions
MUMBAI, Aug 12 (PTI) — Bankers and bank officers appeared to be on a collision course today as a third round of meetings between them on a new wage negotiation system failed here with bank employees sticking to their demand for continuing with the industry-wide wage settlement mechanism.

RBI Governor
MUMBAI, Aug 12 (PTI) — A US congressional delegation led by Senator Richard Shelby today met the RBI Governor, Dr Bimal Jalan, and discussed the progress of the Indian economy as well as the South-East Asian crisis.

Gabriel
MUMBAI, Aug 12 (PTI) — Crisil has downgraded the Rs 669 million partly convertible debenture (NCD) programme and Rs 350 million NCD programme of Gabriel India Ltd from “AA-” to “A”, as a result of the steep decline in the automobile industry.

Nokia phone
Tribune News Service
NEW DELHI, Aug 12 — A special Indian edition of the new Nokia 5110 was launched today by Nokia to mark the 51st year of Independence. The new phone features a rendition of the tune “Saare Jahan Se Achha” as a ringing tone. The tune has been specially adapted by Pandit Ravi Shankar. Nokia 5110 is the first mobile phone that allows users to change the colour of their phone to suit any occasion. At a ceremony phones were presented to three outstanding veterans by Communications Minister Sushma Swaraj.

Hotel
Tribune News Service
CHANDIGARH, Aug 12 — The Union Tourism Minister, Mr Madan Lal Khurana, will lay foundation stone of a three-star hotel at Anandpur Sahib on August 19, according to the Punjab Tourism Minister, Mrs Jagir Kaur. This will be the first joint hotel project of Punjab Tourism with the Indian Tourism Development Corporation. The government has provided five acres “free of cost” for the 50-room hotel to be constructed at cost of Rs 6.45 crore.

Gold firm
NEW DELHI, Aug 12 (PTI) — Silver prices rolled down on the bullion market today following lack of buying interest against adequate supply and closed with losses. On the other hand, despite lower global advices gold recovered on emergence of local buying. The quotations: silver .999 (ready) 7930, delivery 7930. Coins buyer 10,500 and seller 10,700. Standard gold 4250, ornaments 4100 and sovereign 3475.

Award
Tribune News Service
CHANDIGARH, Aug 12 — Mr S.K. Mahajan, Senior Manager (PR) of Indian Farmers Fertiliser Cooperative Limited (IFFCO), has been presented with best award for his notable contribution in the field of public relations. Mr Santosh Gangwar, Union Minister of State for Petroleum and Gas, gave away this award on August 9 at Bareilly.

PNB
Tribune News Service
CHANDIGARH, Aug 12 — Punjab National Bank Maloya branch today organised a “tree plantation programme” at the local Government High School. Members of the bank staff, students and school teachers planted sapling.

Commodities
From Our Correspondent
CHANDIGARH: Wheat 590 to 595, dara 588 to 590, superior 600 to 605, maize 465 to 470, surajmukhi 1150 to 1350, sarson 1600 to 1650, taramira 1300 to 1400, rice basmati 2700 to 5000, parmal 850 to 1150, sella 850 to 1100, maida (per bag 90 kgs) 690 to 700, suji 700 to 710, atta 590 to 700, urd (per quintal) 1600 to 1850, urddal 1600 to 1900, moong 2300 to 2700, moongdal 2400 to 2750, moongdhuly 2650 to 2900, masoor 2000 to 2400 masoordal 2100 to 2500, kablichanna 2200 to 2800, kalachanna 1400 to 1700, dalchanna 1450 to 1700, malkamasoor 2300 to 2800, arhar 2300 to 2850, rajmashchittra 3000 to 3400. Sugar: M. grade 1510 to 1540, S-grade 1490 to 1510, khandsari 1500 to 1600, gurkhurpa 1150 to 1240, gurperi 1250 to 1300, shakkar 1300 to 1350. Oils: Sarson (per qunital) 4600, soyabean (per tin 15 litres) 690 to 700, surajmukhi 650 to 660, groundnut 700 to 850, cottonseed 600.