B U S I N E S S	Sunday,July 5,1998
weather n spotlight today's calendar

Bill to redefine securities introduced NEW DELHI, July 4 — The government today introduced in the Lok Sabha a Bill to enable Sebi to frame regulations with regard to collective investment schemes... UTI announces dividend MUMBAI, July 4 — Unit Trust of India (UTI) today announced 13.5 per cent dividend under Unit Scheme 1995 (US 1995) for the year ended June 30,1998... Pact on Neogal project SHIMLA, July 4 — An agreement for the execution of the Neogal hydroelectric project (15 MW) in the Kangra district was signed here today between the Himachal Pradesh government and Om Power Corporation Ltd.... Take care ofcustomers, bankers told AMRITSAR, July 4 — Mr R.C. Kapoor, Banking Ombudsman of Punjab National Bank for the states of Punjab, Himachal Pradesh and the UT of Chandigarh, today reviewed the position of complaints ...

Electronic corpn’s performance ‘dismal’ NEW DELHI, July 4 — The standing committee on energy has noted with concern that the physical and financial performance of the Electronics Corporation of India Ltd (ECIL) has been “dismal” over the years.... Political stability needed: I-Sec MUMBAI, July 4 — Uncertainty on the political front has added to the macro-economic uncertainties and the depressed sentiments are evident across the equity, debt and forex markets, according to ICICI Securities and Finance Company Ltd (I-Sec).... Govt to protect interests of Maruti staff New Delhi, July 4 — Industrial unrest at Maruti Udyog Ltd (MUL) appeared to be getting over ... Vanaspati units going downhill NEW DELHI, July 4 — The domestic vanaspati industry is facing the shortage of raw material...

Govt to protect interests of Maruti staff New Delhi, July 4 (PTI) — Industrial unrest at Maruti Udyog Ltd (MUL) appeared to be getting over with Industry Minister Sikander Bakht today assuring the agitating employees union of safeguarding their “interests”. The employees union, at a 45-minute meeting with Bakht here, sought a "written assurance" from the minister on their demands of job protection and non-divestment of the government’s stake of 50 per cent in the joint venture with Suzuki Motor Corporation (SMC). Bakht, however, told the union representatives that their intervention on the agreement reached between the two partners was “unwarranted”. Industry Ministry officials indicated after the meeting that the issue is more or less over. Maruti’s employees union, which has called a day’s strike on July 11, later met Labour Minister Satya Narayan Jatiya in this connection. The strike call is to protest the out-of-court agreement between government and SMC that solved the managerial dispute in the Rs 8,600 crore company. “A final decision on the strike will be taken later,” general secretary of the workers’ union, Mathew Abraham said after meeting the minister with a delegation of about 20 workers. “The minister gave us an oral assurance to protect our interests and assured us that he would not be a party to exploit India. He assured us that the government would not divest the stake. But we want a written assurance,” Abraham said. The workers would give a letter to the minister on Monday officially stating their demand, Abraham said. Heavy Industry Secretary, P. Shankar, Joint Secretary and Maruti Director, Pradip Kumar and company Managing Director, R.S.S.L.N. Bhaskarudu also attended the meeting. The Maruti management told the union representatives earlier this week that their proposed strike was illegal and could lead to pay cuts. A day-long strike by the Mul Union in 1995 had resulted in a wage cut for eight days, which was later challenged in the court. The union has been seeking a meeting with Bakht since the agreement in June that halved the term of Bhaskarudu to which Suzuki reciprocated by dropping the case against the government at the international court of arbitration. Vanaspati units going downhill From Gaurav Choudhury Tribune News Service NEW DELHI, July 4 — The domestic vanaspati industry is facing the shortage of raw material. Severe winter, untimely rains and pests and diseases have resulted in an estimated shortfall of about 13 lakh tonnes in the production of mustard, rapeseed, groundnut and cottonseed in 1997-98 as compared to the previous year.This has resulted in the price rise of domestic edible oils by nearly Rs 6000 to 8000 tonne per annnum, industry sources said. Manufacturers have not been able to bridge the deficit in domestic production by higher imports due to continuous depreciation of the rupee. Imports during the first six months (April to November) of the oil year 1997-98 have been lower by 2 lakh tonnes as compared to the corresponding period of 1996-97. In addition external factors like the ban of exports of palm oil from Indonesia, fluctuating and higher price quotations of palmolien from Malaysia and dislocation of work at Kandla port due to the cyclone has contributed to lower imports. Moreover, the industry is now facing the usual problems of the lean season and supplies of domestic oil is unlikely to increase till October. This has increased the dependence on imports of edible oils. The capacity utilisation of the industry has been continuously falling from year to year, sources said. From a healthy 66 per cent in 1987-88, it presently about 35 per cent. Industry sources said that the reason for this sharp decline has been the sales tax incentive policy of state governments. Another crucial factor, sources added, is the imports of vanaspati from Nepal with full exemption of customs duty. The Indo-Nepal Treaty as renewed in December 1996 permits free imports of edible oils and vanaspati into India with full exemption of customs duty. A vanaspati factory in India is required to pay 20 per cent basic customs duty plus 5 per special duty and 4 per cent additional customs duty.This puts the Indian manufacturers at a cost disadvantage vis-a-vis Nepal, sources said. Sources said that the quantum of imports has been rising rapidly from a modest 10 tonnes in April 1997 to an average of 1700 tonnes per month during July 1997 and record 8311 tonnes in February this year. The industry has recently brought this matter to the attention of the Finance Minsiter Mr Yashwant Sinha, and the Minister of Chemicals, Fertilisers and Food, Mr Surjit Singh Barnala, sources said.

Take care of customers, bankers told Tribune News Service AMRITSAR, July 4 — Mr R.C. Kapoor, Banking Ombudsman of Punjab National Bank for the states of Punjab, Himachal Pradesh and the UT of Chandigarh, today reviewed the position of complaints referred to the Banking Ombudsman, Chandigarh. Addressing a seminar on the banking ombudsman scheme organised by Punjab National Bank here, he advised the participants to adopt a positive approach in solving problems of customers. Presiding over the function, the Deputy General Manager of the bank, Mr R. Nambirajan, said that in the fast changing banking scenario and competitive environment, it is imperative to seek customer statisfaction. UTI announces dividend MUMBAI, July 4 (PTI) — Unit Trust of India (UTI) today announced 13.5 per cent dividend under Unit Scheme 1995 (US 1995) for the year ended June 30, 1998. A dividend of 12 per cent has been declared under Grihalakshami Unit Plan (GUP) to all unit-holders as on June 30, 1998 and 14 per cent per annum payable half-yearly for the year ending June 30, 1999 under “IISFUS ’95”, UTI said in a statement here. Under the Senior Citizens Unit Plan 1993 (SCUP 93), pro-rata appreciation of 12 per cent has been announced to all unit-holders as on June 30, 1998 and annuity of 12 per cent to all unit-holders who have completed 58 years of age as on June 30, 1998. Bill to redefine securities introduced NEW DELHI, July 4 (PTI) — The government today introduced in the Lok Sabha a Bill to enable Sebi to frame regulations with regard to collective investment schemes. Finance Minister Yashwant Sinha introduced the Securities Contracts (Regulation) Amendment Bill, 1998 which will amend the definition of "securities" so as to include within its ambit the derivatives and the units or any other instrument issued by any collective investment scheme to the investors. In addition, the Bill also makes a provision for delegating powers to the RBI. At present powers can be delegated to Sebi. The statement of objects and reasons of the Bill, appended to the Bill, said in the last few years there had been substantial improvement in the functioning of the capital market. As the market grows, there is a demand for different instruments which would enable the investors to diversify as well as control the different risks in the capital market. The new instruments in capital market would not only help in diversification of risks but also strengthen and deepen the cash market. Thus there is an urgent need to include the derivatives as securities in the Securities Contracts (Regulation) Act, 1956 whereby trading in derivatives may be possible within the framework of that Act. The statement said that recently many companies especially plantation companies had been raising capital from investors through collective investment schemes. However, there is no regulatory framework to allow an orderly development of this market.In order that the interest of investors is protected, it has been decided that Sebi would frame regulations with regard to collective investment schemes. Pact on Neogal project Tribune News Service SHIMLA, July 4 — An agreement for the execution of the Neogal hydroelectric project (15 MW) in the Kangra district was signed here today between the Himachal Pradesh government and Om Power Corporation Ltd. The agreement was signed by Mr A.K. Goswami, Secretary (MPP and Power), on behalf of the Himachal Government and Mr T.C. Kothari, Chairman, Om Power Corporation Ltd. The Chief Minister, Mr Prem Kumar Dhumal, the Chief Secretary, Mr O.P. Yadav, and other senior officers were also present. The Neogal project is a run of the river type development and envisages construction of a 10-metre long diversion weir, a 1.8 MTR. Diameter, 3057 MTR. long head race tunnel and a surface power house comprising two units of 7.5 MWs each operating under a head of 391 MTR. The project will generate 81.56 million units in 90 per cent dependable year annually and is likely to be completed in four and a half years at a cost of Rs 88 crore. The Himachal Pradesh Government will get free of cost 12 per cent (9.78 million units) of energy generated from the project which will fetch an annual income of about Rs 3 crore in the first year of operation of the project. Mr Dhumal said the government has decided to give top priority to exploit identified hydel potential of the state expeditiously so as to generate income and create employment opportunities. He said the central government has agreed to take up execution of the 2051 MW Parvati hydel project and the 800 MWs Kol Dam project in which the state government would get 12 per cent free power and 38 per cent power on generation cost. He said that the work on 86 MW Malana hydel project in the private sector had also been started from May last. Political stability needed: I-Sec MUMBAI, July 4 (pti) — Uncertainty on the political front has added to the macro-economic uncertainties and the depressed sentiments are evident across the equity, debt and forex markets, according to icici Securities and Finance Company Ltd (I-Sec). Stability in the political situation, unambiguous policy signals as well as clear understanding of the implications of the economic sanctions are necessary to boost market sentiments, I-Sec said in its discussion paper on “balance of payments: trends and prospects”. “A market upturn under this (hopeful) scenario could be as dramatic as the current downtrend,” it observed. Though the fundamental situation appears reasonably comfortable, one must keep in mind that market sentiments may differ from the medium term macro-fundamentals, I-Sec noted. Referring to the Commerce Ministry’s 20 per cent export growth target, I-Sec said depreciation of the rupee would not immediately result in a strong export growth. Though depreciation of currencies of competing Asian countries is one of the factors affecting export competitiveness, the issues behind export growth slowdown are more deep-rooted. The malaise affecting the growth include infrastructure (shortage of roads and ports), regulatory (complicated duty drawback mechanism, export quotas), high inflation and capital costs. Efforts are needed to tackle the malaise rather than to devalue the currency, I-Sec felt. I-sec estimated trade deficit in 1997-98 to be $ 16.5 billion, based on its analysis of the Reserve Bank of India’s trade figures. Noting that the main source of external assistance to India have been the International Board for Reconstruction and Development (ibrd), the International Development Assistance (ida) and that official assistance directly from the USA has been negligible, I-Sec said the threat due to sanctions by the USA is more due to opposition to assistance from multilateral agencies and withdrawals of proposed loans by Japan and European countries. The amount of total flows from these sources for 1997-98 have been estimated at about $ 3.5 billion (Rs 12,500 crore).

Electronic corpn’s performance ‘dismal’ NEW DELHI, July 4 (UNI) — The standing committee on energy has noted with concern that the physical and financial performance of the Electronics Corporation of India Ltd (ECIL) has been “dismal” over the years. In its first report presented to the Lok Sabha today, committee Chairman K. Karunakaran observed that the production and net sales of ECIL had fallen short of the targets during 1996-98 as also its gross earnings, gross profit and net profit. The committee was also “unhappy” to note that unrealistic physical targets had been fixed for the corporation since 1995-96. Therefore, it wanted that targets should be fixed realistically based on the actual performance of the corporation. The committee suggested that the Planning Commission should “extend maximum budgetary support” to the atomic energy programmes since the department had not been able to raise funds from international markets due to the nuclear non-proliferation regime in force since the 1974 nuclear test. The capacity to raise funds from domestic market too was limited. The committee was happy that scientists and engineers were able to make Rajasthan atomic power station-II (RAPS-II) critical, using indigenous technology only. “It is more heartening to note that in spite of embargoes put by foreign countries, the nuclear scientists had been able to demonstrate their skill and capabilities beyond doubt”, the report observed. The standing committee noted that by this “singular feat”, the government was able to save around Rs 200 crore as compared to what would have been the position had the project been handled by foreign agencies/ companies. Furthermore, the commissioning schedule was reduced by as many as six months. The commission hoped that with the commissioning of this unit, the chronic problem of power shortage in the northern grid would be met to a large extent. The committee noted that NPCIL at present was operating 10 nuclear power reactors with a capacity of 1840 MWE. It was pursuing a programme of establishing 10,000 MWE by the turn of this century. In spite of mobilising a substantial amount of funds from the capital market through issue of bonds, the corporation had been “plagued by difficulties in going in for substantial market borrowings because of short maturity period of bonds in the context of longer gestation period (eight years) of nuclear power projects coupled with prevailing high market interest rate on loans.” ‘Withdraw 8 pcexcise duty onpackaged tea’ NEW DELHI, July 4 (UNI) — The consultative committee of plantation associations (CCPA) today met Finance Minister Yashwant Sinha and drew his attention to its representation submitted on June 22 for total withdrawal of the central excise duty of 8 per cent on branded packaged tea. CCPA Chairman V.K. Goenka, who accompanied the delegates from other tea sectors also, told the Finance Minister that the Central excise duty of 8 per cent on packaged tea is likely to result in a price rise of Rs 10 to Rs 12 per kg on the lower priced branded teas. “This can not be consistent with the government’s avowed policy of makingavailable this commodity at consumer-friendly prices,” Mr Goenka added. Labour laws By Praful R. Desai Illegal deductions Q: Can the court interfere with an order which was permitted to attain finality? A: Madhya Pradesh H.C. in Union of India v Competent Authority (1998-I-LLJ-1018) was expressing the view thus. The petitioner No. 2 challenging the illegal deductions made from his salary had filed disputes which were allowed in favour of respondent No. 2. The competent authority held that the deductions on the ground of wrong/forged claim of LTC were illegal. The competent authority directed that the respondent No. 2 entitiled to an order in his favour. The said orders passed by the Competent Authority were not challenged and thus, were permitted to attain finality. As the petitioner was not obeying the directions and was not making the payment to the workmen, he moved an application U/s 21 (2) of payment of Wages Act and prayed to the Competent Authority that the present petitioner be directed to make the payments to him. The Competent Authority held that the present petitioner was bound to make payment in accordance with the final order. Being dissatisfied the present petitioner has filed this petition. Petitioner contends that the orders passed earlier were bad and therefore, the same could not be executed by the competent authority nor it could give directions to make the payments.Respondent No. 2, on the other hand submits that the Court only has to see whether the competent authority was within its jurisdiction while executing the order validly passed earlier. After hearing the parties, the H.C. expressed the opinion that the orders already passed earlier, if put to execution, the Executing Court would not go beyond those orders. An application U/s. 21 (2) of the payment of Wages Act was competent and the Competent Authority was justified in directing the petitioner to make payments. This court held the H.C. would not interfere in such a matter where the petitioner is not complying with the mandatory directions issued by the Competent Authority.With the result, the H.C. dismissed the petition. Tax & You — by R. N. Lakhotia Q: Kindly clarify whether income of Rs 1,20,000 is gross or net after deducting under Section 80L for claiming rebate of Rs 10,000/- by senior citizens. Also please clarify whether there is no maximum limit of income for claiming rebate of Rs 10,000 by senior citizens from Financial Year 1997-98. G.S. Juneja, Patiala Ans: The maximum amount on which on income-tax is payable by a senior citizen is Rs 1,00,000 on his net taxable income because the Income-tax payable on Rs 1,00,000 comes to Rs 10,000. The senior citizen gets a tax rebate upto Rs 10,000. Therefore, all exemptions and deductions should be deducted from gross total income and on the net taxable amount, tax should be calculated and thereafter rebate of tax for senior citizen should be availed of by him. Q: I am a government servant. I have purchased ‘Kisan Vikas Patra’ for Rs 10,000. An LIC policy is also in the name of my husband whose gross income is not taxable. May I get rebate on it.— Kamal Gupta, Rampura Phul Ans: You will not be entitled to any tax deduction or rebate on your investment in Kisan Vikas Patra. However, in respect of policy premimum paid by you on the policy of your husband you will be eligible for tax rebate u/s 88. It is better you should claim the tax rebate on the policy premium for your husband specially when the husband does not have taxable income. Q: I am a Haryana Government employee and my annual income is Rs 1,30,000. I am a chronic heart disease (Mio-Cardial infection) declared by Haryana Government. I have also obtained the chronic heart disease certificate from Chief Medical Officer. I. Kindly advise me whether I can get the tax rebate Rs 15,000 under chronic disease. If yes then how? Whether I have to submit the bills or certificate of C.M.O. only. II. Whether I can claim tax rebate Rs. 14,000 on GPF and NSC only.— R.C. Gupta, Sirsa Ans: As per Section 80DDB deduction is permissible in respect of medical treatment of chronic disease; the deduction is allowed to the maximum extent of Rs 15,000 in respect of the expenditure incurred by the assessee. However, the disease which has been mentioned by you is not mentioned in Rule 11D of Income Tax Rules, 1962. Please note that the list of permissible diseases for the above Section are contained in Rule 11DD. You are advise to refer to said list and if your disease in technical term is coming under one or more specified disease for the purpose of above secton, only then you will be entitled to tax deduction. Apparently the disease mentioned by you is not a part of the diseases which has been approved for the above purpose. Q: I am a Punjab Government employee. In the financial year 1998-1999 I am expecting to receive the salary and arrears as below: Salary 1,92,000 Arrears for theyear 1995-96 1996-97 90,000 1997-98 Please advise me: 1. If a revised statement can be submitted for the year 1997-98 in the year 1998-99 and rebate can be claimed u/s 88 on the arrears received for the year 1997-98. And advise if I am to make investment in advance in the year 1997-98 for availing the rebate u/s 88 on the arrear getting in 1998-99. 2. How the rebate u/s 89(1) can be availed on the arrears of the salary.— P.K. Sood, Ludhiana Ans: In respect of arrear salary your employer can grant you relief u/s 89(1). The tax at source can be deducted after granting the said relief. You may even submit the revised return for the year 97-98. If you have forgotten to claim tax rebate u/s 88 on the arrears you can claim the same by filing the Income-tax return. If you want the entire arrears to be taxed in the current year you can make investment u/s 88 to the extent of Rs 70,000 whereby tax rebate upo Rs 14,000 can be achieved. You cannot make investment today for claiming tax rebate for the earlier years when the arrear is to be added. The tax rebate on the arrear salary can be granted to you by your employer. For full details, please refer to Rule21A of the Income-tax Rules, 1962 dealing with arrears of salary IndusInd Bank Tribune News Service CHANDIGARH, July 4 — The Mohali branch of IndusInd Bank will commence Sunday banking from tomorrow for the convenience of its customers. Business hours for Sunday banking will be 10.30 a.m. to 1.00 p.m. Badal for model plan Tribune News Service CHANDIGARH, July 4 — The Punjab Chief Minister, Mr Parkash Singh Badal, today urged economists and planners to evolve a model of socio-economic development plan of even the remotest area. Interacting with a group of economists from the USA led by Dr Raghavan Parthasarthy, the Chief Minister said that the thrust of the proposed plan should be ending unemployment and proverty, boost to community development programmes, upgradation of human resource development and rapid growth. The economists, including Dr C. Gopinath and Dr Jan Hamoond, later left for Bathinda to give a final shape to the plan. The Chief Minister, during his visit to New York in March, had met this group of economists and had desired for a comprehensive report. Biz briefs Gold recovers NEW DELHI, July 4 (PTI) — Silver continued to move down on the bullion market today following lack of buying along with fresh arrivals and closed further lower. Gold, on the other hand, rebounded on emergence of local buying support. The quotations: Silver .999 (ready) 8020, delivery 8015, coins buyer 10,400 and seller 10,600. Standard gold 4355, ornaments 4205 and sovereign 3550. Office-bearers Tribune News Service CHANDIGARH, July 4 — The following were elected unanimously the office-bearers of Industries Association of Chandigarh: president — Mr Ranvir Uppal; vice president — Mr S.C. Kohli; hony secretary — Mr Roopinder Singh; joint secretary — Mr Umesh Moudgil and treasurer — Mr Jagmohan Lal Mahajan. Andhra Bank MD Tribune News Service CHANDIGARH, July 4 — Mr T.J.A. Ganiga (59) has been appointed Chairman & Managing Director of Andhra Bank. He has pioneered several concepts in nationalised banks such as 12-hour business every day, 7 days a week, senior-citizen counters, one-stop banking, etc. as early as 1973. He holds the distinction of having 1,30,000 accounts in a single branch — a world record. New Chairman Tribune News Service CHANDIGARH, July 4 — Mr Pradipsinh Jadeja has taken over as chairman of Gujarat Narmada Valley Fertilizers Company Ltd (GNFC). New courses Tribune News Service NEW DELHI, July 4 — The Centre for International Managment (CIM) here is starting two new post graduate diploma courses in fashion apparel and information technology of 16 months duration. CIM has an active placement cell which has close links with a large number of small and mid-sized organisations and facilitates placement of graduating students.

| Nation | Punjab | Haryana | Himachal Pardesh | Jammu & Kashmir | Chandigarh | | Editorial | Opinion | Business | Stocks | Sports | Cartoon | | Mailbag | Spotlight | World | 50 years of Independence | Weather | Saturday Plus | | Sunday Reading | Arts Tribune | Health Tribune | Science Tribune | Education Tribune | | Horoscope | Search | Subscribe | Archive | Suggestion | Home | Email |