UTI to raise $ 500m
NEW DELHI, Dec 14 — Unruffled by the US-64 crisis, the UTI is confident of mopping up about $ 500 million from the overseas market through its millennium fund in the current fiscal.

Kinetic Motor to get Honda knowhow
MUMBAI, Dec 14 — Honda Rotor Company Ltd and Kinetic Honda Motor Ltd have signed a five-year licence and technical assistance agreement even as Honda has sold its stake in KHML.

Technology show on pollution
NEW DELHI, Dec 14 — Technology is needed as a base and foundation to fight complex pollution problems facing most cities. Minister for Environment and Forests Surech Prabhu said today.

Direct taxes ‘lowest in India’ CHANDIGARH, Dec 14 — Mr A. Balasubramanian member, Central Board of Direct Taxes, said here today that the rate of direct taxes is the lowest in India as compared to developed countries and is at present at an all time low.

Investors disrupt Whirlpool AGM
NEW DELHI, Dec 14 — Whirlpool of India Ltd’s annual general meeting had to be postponed by four hours today as angry shareholders disrupted the proceedings.

Philips snubs FIs
CALCUTTA, Dec 14 — Philips India Limited one of the leading consumer electronics company in the country, today categorically said institutional stakeholders are no different from others and could not be treated preferentially.

Escorts rating under watch
MUMBAI, Dec 24 — The outstanding ratings of Escorts Ltd have been placed under rating watch with developing implications by Credit Rating and Information Services Limited in view of continuing labour strike at the Escorts group.

Satyam, GE float jv
HYDERABAD, Dec 14 — Satyam Computer Services Ltd has entered into a joint venture agreement with GE Industrial Systems, a division of the General Electric Company of the USA for specialised software services.

QS 9000 for SKF

Give farmers stake in road project: PM
Highway to link four metros; body for expressways on anvil
Tribune News Service & PTI

NEW DELHI, Dec 14 — Prime Minister Atal Behari Vajpayee said today farmers, who would have to part with their land for the ambitious 7000 km super highway project, could be made shareholders in the venture, construction on which would begin on January 1.

The government has also decided to link four metros of Delhi — Mumbai, Calcutta and Chennai —with the proposed national highway road development project, envisaging creation of six-lane corridors from Kashmir to Kanyakumari and Silchar to Saurashtra, he said.

Inaugurating “the International Congress on Expressways Development in India” organised by the Ministry of Surface Transport in collaboration with the National Highway Authority of India (NHAI) and FICCI here, Mr Vajpayee said that the money raised for this project through various means would not become part of the general Budget.

The task force on infrastructure is considering innovative means for financing the mega road project.

“I would also like the task force to consider new ways of acquiring land so that the farmers who have to part with their asset for this national project can become stakeholders in it”, he said adding that “ this will let them benefit from future commercialisation of the land so acquired”.

The task force has also recommended merging the existing plan for a golden quadrilateral, which links the four main metros with the highway corridor project “with suitable spurs and interconnections”.

This integrated project will be implemented in phases based on well-recognised priorities and some stretches of the highway will be expressways, Mr Vajpayee said.

Acknowledging that domestic industry and trade “are losing their competitiveness because of the limited transportation capacity”, Mr Vajpayee said that developing expressways would be an important feature of the new integrated national transport policy.

“Building expressways quickly will need not just an acceptable financial package, but also fast clearances, hassle-free buying of land and the adoption of the latest technology”, the Prime Minister said.

Listing out the weaknesses of the road sector in the country, Mr Vajpayee said that currently the road network suffers from three major infirmities. First, the condition of the rural roads is unsatisfactory. Secondly, there is a large imbalance in the road network which in turn has contributed to regional imbalances.

Thirdly, the present network is unable to deliver high-speed and high capacity traffic along high routes that “are critical to our economic growth”.

Earlier, the Union Minister for Surface Transport, Dr M Thambi Durai, said that expressways will be very sophisticated facilities involving the use of latest technology and management methods. A proposal for setting up dedicated organisation for expressway planning and, development and management is under consideration.

Kinetic Motor to get Honda knowhow

MUMBAI, Dec 14 (PTI) — Honda Rotor Company Ltd and Kinetic Honda Motor Ltd (KHML) have signed a five-year licence and technical assistance agreement even as Honda has sold its stake in KHML. Under the agreement, Kinetic Honda Motor Ltd will continue to receive technical knowhow, critical vehicle parts and have an access to Honda’s export markets. All government approvals have been obtained for the transfer of shares from Honda to Kinetic and the actual transfer was expected to be completed before Christmas, Chairman and Managing Director of Kinetic Engineering, A.H. Firodia said.

Honda was committed to provide technical assistance to the company including part supplies, exchange of technicians, exports under the Honda brand name and exclusive rights for the manufacture and sale of Kinetic Honda products under the new agreement. The company would also have access to Honda’s knowhow in meeting the year 2000 emission norms, he added.

Technology show on pollution

NEW DELHI, Dec 14 (PTI) — Technology is needed as a base and foundation to fight complex pollution problems facing most cities. Minister for Environment and Forests Surech Prabhu said today.

While the onus lay on the industry for clean production, awareness must be generated among the people, who are both sufferers and polluters. Prabhu said inaugurating the Enviro International ‘98 trade fair here.

Over 55 leading companies from across the world are showcasing their state-of-the-art environment-friendly technology at the four-day exhibition-cum-seminar, organised by Tafcon Projects and the Indian Institute of Ecology and Environment (IIEE).

Aimed at generating awareness among the Indian industry, government organisations as well as the general public. “Enviro International ‘98” focuses on measures and technologies available to control pollution, conserve energy and increase production. Tafcon Chairman M.L. Wadhwa said in his address.

UTI to raise $ 500m

NEW DELHI, Dec 14 (PTI) — Unruffled by the US-64 crisis, the UTI is confident of mopping up about $ 500 million from the overseas market through its millennium fund in the current fiscal.

“We will launch the millennium fund before March”, UTI Chairman P.S. Subramanyam told PTI here today.

UTI will go ahead with the fund as soon as government approvals relating to exchange risks were received, he said. “We are waiting for government clearance for taking the exchange risk”, he added.

Asked about the impact of the US-64 imbroglio on the country’s largest mutual fund, Mr Subramanyam said “there is no crisis, the portfolios are basically strong but the downtrend in stock markets has affected us”.

The crisis in UTI started amidst reports that the company was dipping into its reserves to pay dividends to its flagship mutual fund scheme leading to huge redemption pressures.

But the government had thrown its full weight behind the financial institution saying that it would give all possible help to meet any eventualities.

Mr Subramanyam said the millennium fund, announced by Finance Minister Yashwant Sinha in his Budget speech 1998-99, would mainly target the Gulf markets.

QS 9000 for SKF

PUNE, Dec 14 (PTI) — SKF Bearings India Ltd today announced that quality management system of the company has been assessed and approved by Lloyd’s Register Quality Assurance (LRQA), India, as being in accordance with the requirements of ISO 9001 (1994) and QS 9000 (1995). The company had been awarded the ISO 9002 certificate in 1993 (subsequently renewed in 1996) by the Indian Register Quality Systems for its manufacturing of rolling bearings, textile machinery, components and marketing and distribution of SKF manufactured or approved products and services.

Mercedes to introduce Chrysler Jeep

NEW DELHI (PTI): The famed Jeep and Grand Cherokee multi-utility vehicles of US auto major Chrysler may well hit Indian roads in the near future as Mercedes Benz India Ltd (MBIL) is considering introducing these vehicles in the country.

MBIL’s plan is the outcome of the worldwide merger — the fourth largest in corporate history — between Germany-based Daimler Benz and Chrysler to form Daimler-Chrysler.

We have already started studies to find out whether Jeep and Grand Cherokee can be brought to India. These are certainly two products from Chrysler that we are looking at,” MBIL Vice-President Jurgen Niegler told PTI.

Honda City

NEW DELHI (UNI): Honda Siel Cars India Limited has recorded a 30.5 per cent surge in sales during November to touch 723 units over 554 in the previous month.

With this, the cumulative sales achieved during the current fiscal touched 6,367 units. The company has as yet sold 7,707 City cars since its launch in January this year.

The sales performance of Honda City during 1998-99 and particularly in November 1998 is far more credible in view of the prevailing market and demand conditions, especially in the premium car segment. The mid-size and luxury segment has been showing a negative growth trend in 1998-99 over the previous financial year.

Bajaj Auto

NEW DELHI (PTI): Four-stroke engine technology which has become the order of the day in India’s two-wheeler industry, is now spreading to three-wheelers too with Bajaj Auto all set to launch its four-stroke autorickshaw.

Bajaj, which had earlier introduced India’s first four-stroke scooter, ‘Legend’, will soon introduce the country’s first four-stroke autorickshaw.

“We are working on a number of models and upgradation of existing models. Four-stroke autorickshaw is one among them, says Bajaj Auto President Madhur Bajaj.

The company will introduce 18 models, including upgradations of existing models, in the next 18 months as part of Bajaj’s strategy to stay ahead in the market.

Maruti unit

NEW DELHI (UNI): Maruti Udyog Limited has decided to close down its now defunct subsidiary —Maruti Sales and Service India Limited — which was formed as a service unit and sales outlet for authorised spare parts and components.

All the functions of this venture have already been transferred to J.J. Impex, a company which was taken over by Maruti about a year ago.

Direct taxes ‘lowest in India’
Tribune News Service

CHANDIGARH, Dec 14 — Mr A. Balasubramanian member, Central Board of Direct Taxes (CBDT), said here today that the rate of direct taxes is the lowest in India as compared to developed countries and is at present at an all time low. Listing salient features of the “Kar Vivad Samadhan Scheme” at a session organised by the PHDCCI, he said the board is leaving no stone unturned in bridging the gap between the tax payers and non tax payers. There has been a big response to the permanent account number (PAN) scheme. At present the number of person who have applied for PAN are more than the number of tax payers listed with the Income Tax Department.

Ms S.P. Kaur, Chief Commissioner, Income Tax, North-West region said that there has to be an attitudinal change in the role and perception of the tax collector and the tax payer, respectively. Arrears in collection of taxes was also because of the judicial process which is slower then the assessment she appealed to chamber’s members to opt for the ‘Kar Vivad Samadhan Scheme which closes on December 31, 1998 as this scheme offers quick and voluntary settlement of cases.

Mr Ashok Khanna, Vice President, PHDCCI said the chamber and its members are interested in increasing the revenue of the department and at the same time would help in isolating cases of tax evaders.

Mr Amarjit Goyal, Chairman, Punjab Committee, while thanking the Member, CBDT, assured that the industry would give a favourable response to the scheme.

Investors disrupt Whirlpool AGM
Rights issue in February

NEW DELHI, Dec 14 (PTI) — Whirlpool of India Ltd’s (WIL) annual general meeting (AGM) had to be postponed by four hours today as angry shareholders disrupted the proceedings.

The AGM was thrown into chaos as irate shareholders of WIL, which is making losses, demanded dividend payments, forcing the company to call securitymen to control the situation.

Today’s AGM was for approving the accounts of the company for 1997-98, reappointment of Garric D’Silva, Managing Director of the company, as Director and increasing the borrowing limit of the board from Rs 500 crore to Rs 600 crore.

The shareholders also alleged that the management had passed various resolutions without the consent of ordinary shareholders .

Even offers from the company to put various resolutions to vote were rejected by them who stormed the dais forcing postponement of the meeting.

Later, a whirlpool spokesman said the trouble was created by some “unruly elements”, who were not genuine shareholders of the company.

All the resolutions on the agenda were passed without any problem when the AGM was reconvened at 4 p.m.. The spokesman said.

There was nothing unusual about the incident as unruly scenes were common at any company’s AGM.

Whirlpool of India Ltd will approach the primary market with a Rs 76 crore rights issue in February to reduce its debt liability.

WIL which currently has accumulated losses to the tune of Rs 220 crore, hopes to wipe out the same by 2001-2 through a restructuring exercise.

Addressing the annual general meeting, the company’s Chief Financial Officer John C. Pinto said “we have already filed the letter of offer with the (SEBI) and plan to hit the market in February”.

The issue will be for existing shareholders at Rs 12 per share in the ratio of 1:1.

The rights issue will raise Rs 76.12 crore and the same will be used primarily to reduce its high debt burden of over Rs 460 crore.

WIL has already received Rs 56.26 crore as advance for the rights issue from the parent company Whirlpool Corporation, which holds 82.33 per cent stake in the Indian subsidiary.

“The parent company’s stake will remain the same after the issue,” Mr Pinto said.

He also said the parent company did not have any plans to increase its stake from the current level.

Referring to accumulated losses by WIL, Mr Pinto said the company was making every effort to reduce its losses and hoped to wipe out the same by 2001-02.

“A major initiative has been launched during the year to reduce the company’s working capital, accounts receivables and there has also been decline in inventories” he informed the shareholders.

WIL had reported losses of Rs 130 crore for the financial year ended March, 31st, 1998, and in the first half of current fiscal it reported a net loss of Rs 60 crore. However, it earned an operating profit of Rs 1 crore in the first half.

Philips snubs FIs

CALCUTTA, Dec 14 (PTI) — Philips India Limited (PIL) one of the leading consumer electronics company in the country, today categorically said institutional stakeholders are no different from others and could not be treated preferentially.

The Managing Director of Philips India Mr H.Ramachandran, at a press conference here, said besides certain specific issues financial institutions (FIs), which jointly control 21 per cent of its equity; would have to be treated on the same plane as other shareholders.

He was referring to the institutions’ demand regarding the sale of the Salt Lake factory to a Videocon subsidiary at a price of Rs 9 crore, that the resolution which was brought forward to get shareholders’ approval at the company’s EGM held here last week should be amended.

The three institutions, the LIC, the GIC, and UTI, objected to the resolution concerning the sale and demanded that the clause subject to the institutions’ approval should be appended to the resolution, which the management subsequently refused to do.

Considering the fact that the three institutions were also major lenders to the company, with total exposure amounting to Rs 30 crore, the Philips Managing Director was hopeful that the company’s relationship with them would not strain as a result.

In fact, he said that he had discussion with the three institutions separately, and relationship had “strengthened” on the contrary.

Escorts rating under watch

MUMBAI, Dec 24 — The outstanding ratings of Escorts Ltd have been placed under rating watch with developing implications by Credit Rating and Information Services Limited (CRISIL) in view of continuing labour strike at the Escorts group.

CRISIL believes that a further prolonging of the strike would have an adverse impact on the performance and liquidity of the company.

Most of the manufacturing units of the Escorts group based in and near Faridabad in Haryana, are facing production losses on account of the continuing labour strike.

Apart from the labour situation, identified as the key rating sensitivities, Escorts is also facing strong challenges on the business front due to decelerating demand in the tractor industry.

The company’s associates, Escorts, in motor cycles and Escotel in the cellular telephony business were also facing difficulty prospects in the short to medium term future.

CRISIL also expects substantially high financial requirements in the near future.

Currently, the company’s various non-convertible debenture (NCD) issues have been rated “A”, implying adequate safety with respect to repayment of principal and interest.

Satyam, GE float jv

HYDERABAD, Dec 14 (PTI) — Satyam Computer Services Ltd has entered into a joint venture (jv) agreement with GE Industrial Systems, a division of the General Electric Company (GE) of the USA for specialised software services.

The new joint venture, Satyam-GE Software Services Private Limited, would provide design and development work in mechanical CAD/CAM/CAE and product software for GE industrial systems global product development activities in Europe and North America, Scott R. Bayman, President and CEO, GE-India and D. Ramlinga Raju, Chairman, Satyam told a news conference here today.

IETF ‘99
CHANDIGARH, Dec 14 (TNS) — Republic of Korea will be the “partner country” and Maharashtra the “partner State at Asia’s largest industrial trade fair, IETF ‘99 (Indian Engineering Trade Fair) beginning on February 12 at Pragati Maidan, New Delhi. This was stated by Mr Pran Talwar, Chairman-Trade Fairs, CII at a reoadshow here today. More than 2,000 exhibitors are expected to participate in the fair Over 150 Korean companies will take part in IETF. Indian companies participating in IETF include Tisco, Telco, Titan, Forbes, Rallis, Voltas, Hero group, Godrej Larsen & Toubro, Greaves, Escorts and Kirloskar group companies.

Vinod Goyal
NEW DELHI, Dec 14 (PTI) — Mr Vinod Goyal today took over as Director (Development) on the Board of Videsh Sanchar Nigam Limited (VSNL). He will be responsible for strategic planning on introduction of new technologies, products and development of plans for the extension of infrastructure.

Citibank
CHANDIGARH, Dec 14 (TNS) — Mr Nanoo G. Pamnani has been appointed Global Consumer Bank Head, Citibank NA, India. He was serving as Chairman of Citibank’s NBFC subsidiary in the country, Citicorp Finance (India) Ltd.

Rs 100 note
CHANDIGARH, Dec 14 (TNS) — The RBI will shortly issue Rs 100 notes in Mahatma Gandhi series bearing the signature of Dr Bimal Jalan, Governor, with capital letter ‘E’ inset in both numbering panels.

PSB
TARN-TARAN, Dec 14 (FOC) — Panjab and Sindh Bank opened its rural development division here today which was inaugurated by Mr Davinder Singh, Deputy General Manager of the bank. This is the bank’s second division in Amritsar district and thirteenth in the state.