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	B U S I N E S S	Sunday, July 26, 1998
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HC decision on cellular services hailed
NEW DELHI, July 25 — Mr Virendar Mohan Trehan, President, National Telematics Forum, said in a statement that the forum had always maintained that the market should be free and hailed the High Court decision on cellular services.

Essar introduces E-mail facility
NEW DELHI, July 25 — Essar cellphone subscribers here will now be able to receive E-mail directly on their mobile phones from any one, anywhere in the world.

Ficci seeks more powers for Trai
NEW DELHI, July 25 — The Federation of Indian Chambers of Commerce and Industry (Ficci) has said that the importance of the Telecom Regulatory Authority of India (Trai) should not be diluted as it would send wrong signals to investors.

Ford Motor gets nod to set up software unit
NEW DELHI, July 25 (PTI) — The Foreign Investment Promotion Board (FIPB) today cleared proposals of advertising firm Lintas Inc, USA to increase control in its Indian subsidiary and Ford Motor Company’s move to set up a software company.

Haryana budget leaves ST untouched
CHANDIGARH, July 25 — The Haryana budget has belied expectations of the industry as the sales tax rates have not been reduced, despite an increase in the revenue by over Rs 700 crore a year after the abolition of prohibition

Bhutan assures India on trade ties
THIMPHU, July 25 — Bhutan has assured India that the recent change in the system of government will not affect the bilateral trade between the two countries and New Delhi will continue to be the main development and trade partner of the Himalayan kingdom

Mahindra Voyager launched in Chandigarh

‘Sebi should improve liquidity in markets’

HC issues notices to DoT, Essar

Fashion designers receive accolades

PIA seeks better amenities

Career exhibition

HC decision on cellular services hailed
Tribune News Service
NEW DELHI, July 25 — The Delhi High Court judgment upholding the contention of the Department of Telecommunication in respect of MTNL getting into cellular mobile services in Delhi and Mumbai will help in a healthy competition as MTNL, with vast technical resources, will provide a baseline not only for technical efficiency but also in holding the price line.
Mr Virendar Mohan Trehan, President, National Telematics Forum, said in a statement that the forum had always maintained that the market should be free. The High Court decision is well in line with the expected trend to be followed in the liberalised trade.
Mr Trehan said the value added service was perhaps the most important aspect in telecommunication as the real infrastructure was provided more by value added service rather than basic service.
The basic service of telephone does provide the highway connection but without value added services being available easily by the consumer, such services cannot be best used. Therefore, availability of value added service to MTNL will be a boon to the users in Delhi and Mumbai which caters for major chunk of revenue for the Corporation, Mr Trehan said.
He also suggested that the government at this time should make MTNL indeed a public corporation as soon as possible and perhaps option to buy shares of MTNL should also be given the employees so that they form a better work force and feel a role participation in the new scenario.
The High Court verdict will also help to clarify the role of the regulatory body as well as DoT as such. Now onward Telecom progress would be in the right direction, Mr Trehan added.

Ficci seeks more powers for Trai
Tribune News Service
NEW DELHI, July 25 — The Federation of Indian Chambers of Commerce and Industry (Ficci) has said that the importance of the Telecom Regulatory Authority of India (Trai) should not be diluted as it would send wrong signals to investors.
In a communication addressed to the Ministry of Information and Broadcasting , Ficci said that it is in long term interest of the telecom sector that more powers be given to Trai.
The lead role taken by the Federal Communication Commission (FCC) in the USA and the office of the Directorate General of Communications in UK in nurturing the telecom sector in their respective countries needs to be well understood, Ficci said.
Regarding the Indian Telegraph Act 1885, Ficci said that it needs to replaced. With the induction of new technology and competition in this sector, it should no longer remain exclusively within the domain of the government, it said.
Regarding the problems being faced by the telecom operators, Ficci observed that the government should take into account the huge investments that are required in cellular and basic services.

Essar introduces E-mail facility
Tribune News Service
NEW DELHI, July 25 — Essar cellphone subscribers here will now be able to receive E-mail directly on their mobile phones from any one, anywhere in the world.
Essar cellphone, which has operations in Punjab, Haryana, Rajasthan, Uttar Pradesh (East), has introduced the Cell Mail service on an experimental basis in New Delhi and the facility would be extended to other centres later.
The service, jointly developed in association with AWORLD, a leading e-mail service provider in India, would enable regular Essar cellphone customers to have an E-mail address without having a computer or internet connection. This service is made possible by the Short Message Service facility and is handset dependent.
The service would be available at a nominal fee of Rs 75 per month and the customers would be able to get unlimited messages in their phones.
According to the Chief Executive Officer of Essar cellphone, Dr Erich Buerkler, the company plans to introduce reverse E-mail facility in the future which would enable customers to reply back the E-mail messages through their handsets.

Haryana budget leaves ST untouched
Tribune News Service
CHANDIGARH, July 25 — The Haryana budget has belied expectations of the industry as the sales tax rates have not been reduced, despite an increase in the revenue by over Rs 700 crore a year after the abolition of prohibition.
In a statement here yesterday the Phdcci said the sales tax rates should have been rolled back after a ban on liquor sales was imposed in 1996 in order to compensate the loss of revenue. The sales tax rates were increased on many commodities.
Motor parts attract 10 per cent sales tax in Haryana when it is 4 per cent in Punjab and 5 per cent in Delhi. Aerated water in Haryana attracts a sales tax of 20 per cent as against 12 per cent in Punjab and 7 per cent in Delhi. On high speed diesel the sates tax in Haryana is 10 per cent whereas in Punjab it is 4 per cent, on the cement it is 12 per cent in Haryana but 10 per cent in Punjab, Delhi and Uttar Pradesh. Even student exercise books are subjected to 10 per cent sales tax which is nil in Punjab and Delhi.
The Chamber expected abolition of octroi in the current budget as was announced by Rajasthan. The octroi duty rates were revised upward when prohibition was introduced in Haryana. The industry in Haryana was expecting more relief in view of the recent substantial hike in the power tariff from June 1998.
The Phdcci welcomed the steep increase of 61 per cent in plan development expenditure with emphasis of power, roads and irrigation sector.

Bhutan assures India on trade ties
THIMPHU, July 25 (PTI) — Bhutan has assured India that the recent change in the system of government will not affect the bilateral trade between the two countries and New Delhi will continue to be the main development and trade partner of the Himalayan kingdom, Trade and Industries Minister of Bhutan Khandu Wangchuk said here.
Till 1994 there was negative trade balance between the two countries, but with increase in generation of power from Chuka Hydel project and export of ferro silicon, a parity in trade between India and Bhutan has been achieved, he told PTI.
He said, in 1996, Bhutan’s export to India was to the tune of Rs 316 crore, which constituted 95 per cent of its total export while import from India was Rs 279 crore during the same period.
During the Eighth Five Five Year Plan of Bhutan the main emphasis would be on generation of hydro-electric power for which an agreement with India was signed for setting up of 1020 mw Tala power project, Mr Wangchuk said.
The project would involve an expenditure of Rs 1500 crore at the 1993 price level, the minister said.
With the commissioning of tala project, Bhutan’s total revenue from hydel power projects would go up to 65 per cent from the existing 30 per cent, he added.
Asked why Bhutan had not given thrust to tourism industry, Mr Wangchuk said the government as a policy, had decided to go for low-volume and high-quality tourism because of infrastructure constraint.

Mahindra Voyager launched in city
Tribune News Service
CHANDIGARH, July 25 — The Mahindra Voyager was launched by Mr Arun Sekhari, Secretary, State Transport Chandigarh, here last evening. Mr Atul Tandon, Area Manager, M&M Chandigarh office and Mr Abhijeet Dhodapkar said that the company is going to provide a special emphasis to its sales and service facilities.
Earlier Mahindra Voyager, a multipurpose AC/Non-AC dieselised van was launched at Zaheerabad plant in Andhra. The company has undergone a triangular arrangement with Mitsubishi Motors Japan and Samcore (S. Africa) to introduce L-300 Mitsubishi model in India.
The 8/9 seater vehicle is equipped with powerful/renowned diesel engine XE 3 P (72.2 BHP) and 5 speed BA 10 gear box. The vehicle is also equipped with unique flaxi seating arrangement.
Mr Chandan Banerjee, and Mr Vineet Arora of M&M, Financial Services Ltd. explained that the attractive instant finance facility has been specially offered to promote the vehicle.

Ford Motor gets nod to set up software unit
NEW DELHI, July 25 (PTI) — The Foreign Investment Promotion Board (FIPB) today cleared proposals of advertising firm Lintas Inc, USA to increase control in its Indian subsidiary and Ford Motor Company’s move to set up a software company.
The proposal of Daewoo Power to allow ABB energy venture as a 50 per cent joint venture partner also got the go-ahead among 30 proposals, worth a total foreign direct investment of Rs 210 crore, sources at FIPB said here.
The largest foreign investment proposal cleared today was that of Midal Cables, Bahrain, to invest Rs 63 crore for the setting up of a 100 per cent subsidiary to manufacture aluminium wire rods, conductors for transmission projects.
Lintas India Ltd’s proposal was to increase the stake of parent company Lintas Inc, USA, from 40 per cent to 49 per cent.
FIPB, however, rejected the proposal of Daimler Benz AG of Germany seeking waiver of dividend balancing in its joint venture with Telco to manufacture commercial and utility vehicles.
The proposal was rejected because waiver of dividend balancing was not permitted within the policy guidelines, the sources said.
The proposal by Ford Motor Company and Ford International to set up a wholly-owned computer software company in Chennai was approved, the sources said.
A foreign investment of Rs 10 crore was envisaged in the proposal. Ten proposals, including that of Ford, in the software sector got the nod today.
Two proposals of non-banking financial companies (NBFCs) were cleared, amounting to a foreign investment of Rs 30 crore, the sources said.
Prime Broking Co India Ltd has been allowed to bring in about Rs 21 crore to start share, stock and debt broking in the country.
Another proposal by South Asian Financial Exchange Ltd, envisaging an investment of Rs 12.5 crore, to do NBFC activities in the country has also been cleared.
The proposal of Daewoo Anchor seeking clearance for paying technical fee for Daewoo Electronics was deferred by the FIPB as the limit sought by the Korean company was more than the prescribed norms.
US-based Cincinatti Milacron today obtained the nod of FIPB for enhancing capital base of Milacron Private Limited, Ahmedabad, by Rs 10 crore .
The foreign partner is increasing its equity stake in the Indian company from 74 per cent to 86 per cent.

‘Sebi should improve liquidity in markets’
NEW DELHI, July 25 (PTI) —The Securities and Exchange Board of India (Sebi) should take necessary measures for improving liquidity in the stock market, derivatives committee Chairman L.C. Gupta has said.
“Not much attention has been placed by Sebi in improving the liquidity and it should focus in this area in order to keep the integrity of the markets”, Gupta said here yesterday at a book release on “Stock markets and financial journalism” by former Deputy Editor of Economic Times, Mr S.K. Aggarwal.
The Sebi also needs to re-focus on its regulatory role and think what it is doing, he said.
“Not much importance has been put by Sebi on governance of stock exchanges, an important issue of the market”, he said adding investor has lost confidence in stock markets which needs to be revived.
Former Finance Minister Manmohan Singh while releasing the book said there is need for strategic regulation along with improving the disclosure norms and quality of governance of companies.
“Checks and balances is very important on the corporates as in the liberalised economy financial markets does not operate perfectly as stated in textbooks”, he said.
It is important to have code of conduct in financial markets as investment in this sector is likely to double in next few years, Singh added.

HC issues notices to DoT, Essar
CHANDIGARH, July 25 (PTI) — Several mobile phone users have moved the Punjab and Haryana High Court against Essar, the cellphone operator for Punjab Telecom Circle, for “illegal withdrawal” of outgoing call service from Chandigarh for subscribers of Ludhiana and Jalandhar.
Now when the mobile phone subscribers of Ludhiana and Jalandhar come to Chandigarh, they cannot make a call to their cities from the Union Territory as well as in Chandigarh itself, the court was told.
At the time of giving SIM cards in Ludhiana and Jalandhar, the DoT connectivity was available only in Chandigarh, meaning thereby that a subscriber could make and receive a call in any of three cities, but this service was terminated abruptly by Essar on July 10, the petitioner, Sanjeev Sharma of Jalandhar told the court.
Admitting the petition, a Division Bench comprising Justice V.K. Bali and Justice B. Rai issued notices, returnable by August 12, to the DoT and Essar company. “SIM cards issued to the petitioners clearly says that the service would be available at Chandigarh also, they cannot stop the facility to subscribers (petitioners) at Chandigarh”, the judges said in their order.
Seeking penal action and cancellation of Essar’s licence the petitioners pointed that the reason given by Essar was that the DoT had prohibited the making of outgoing calls as its inter-city service had not been launched commercially in Ludhiana and Jalandhar. The company also refused to show the DoT ruling and to give in writing that the withdrawal of service was due to DoT guidelines.

Fashion designers receive accolades
Tribune News Service
NEW DELHI, July 25 — Indian apparel exports could reach new heights with top Indian fashion designers receiving accolades in the world’s main fashion centres of New York, London and Paris.
The three centres were locations of road shows organised recently by the Apparel Export Promotion Council (AEPC) and the Ministry of Textiles on the occasion of the 50th year of India’s independence. Led by celebrity designers like Ritu Beri, Ravi Bajaj, Suneet Verma, J.J.Valaya and Rina Dhaka, the road shows named “Oorja” (energy) effectively showcased India’s strength in fashion designing.
According to the Textiles Secretary, Mr Shyamal Ghosh, the tremendous response from the international fashion world to the Indian road shows gave an indication of India’s preparation for the year 2005, when the global garment trade would be unshackled and competitive strength would be the key factor in developing brand image.
The fashion shows were organised at a time when the Indian industry has started shifting to high fashion which realises unit value in the middle and upper segments of the market.
The fashion shows were organised in prestigious centres in the three cities, including the Metropolitan Club in New York, the Parklane Sheraton hotel in London and the exotic Le Carrousel Du Louvre in Paris. High priests from the fashion world were present at the shows and they were highly appreciative of the progress made by India in fashion designing.
Mr Ghosh explained that outward processing traffic, where fabric was cut and sent for value addition to a third country, was increasingly becoming the trend in the world and in these shows Indian exporters had managed to strike some strategic alliances.
Mr Hari Kapoor of the AEPC said that the majority of the designs displayed in the shows abroad had a tinge of India’s rich heritage. The uniqueness and diversity of the country was displayed in the clothes that the models wore at the shows.
For instance, Ritu Beri’s collection was a mix of ethnic and western styles with the silhouettes being simple and basic. Suneet Verma displayed the innovative use of indigo vegetable dyes and block printing enhanced with gold and silver embossing. J.J.Valaya’s collection fused the material and spiritual traditions of India—the opulence and grandeur of its Maharajas and the simplicity of its saints.
The Indian readymade garment industry accounts for almost 14 per cent of the total foreign exchange earned by the country. The export of garments, which netted Rs 1503 crore in 1986-87 went up to Rs 16,729 crore during 1996-97, a ten fold increase in a decade. The major markets for Indian garment exports have been the European Union and the U.S. which together account for 68.30 per cent of the total garment exports.

PIA seeks better amenities
From Our Correspondent
PARWANOO, July 25 — The Parwanoo Industries Association (PIA) has urged the state government to improve the amenities in Parwanoo Industrial town and provide more incentives to the industrialists keen to set up industries in the state.
The industrialists in the executive body meeting held here today discussed various problems being confronted by the industries. Mr Arun Suri President, PIA said that the unplanned industrial development has added to the insanitation in Parwanoo.
The Industrial plots according to him are according to him are inadequate to set-up effluent treatment plants.Shortage of power and other power related problems, such as voltage fluctuation, according to the industrialists is also common.

Career exhibition
CHANDIGARH, July 25 (PTI) — Creative Insight Promoters, an event management group, has organised a three-day career exhibition from July 24 here where computer education companies and institutes dominate the exposition.
Students along with their parents thronged the exhibition in which immigration and education consultancy company, WWICs and fashion institutes like NIFD and ITFT are also participating. WWICs held several counselling sessions for students desirous of migrating to Canada for higher education with an intention to settle there permanently.
In Canada, higher education is comparatively economical with plenty of employment opportunities, said Devinder Sandhu, Senior Director, WWICs. National Institute of Sales and Indian Express have also set up their stalls to educate students about management training courses and about books and journals.

Biz briefs
ITC Hotels approves 30 pc
Tribune News Service
NEW DELHI, July 25 — ITC Hotels Ltd. has announced a 30 per cent dividend for the year 1997-98. The company had a turnover of Rs 130.85 crore as against Rs 130.71 crore in 1996-97. Net profit, however, came down from Rs 31.05 crore to Rs 26.21 crore last year. Foreign exchange earnings went up by six per cent over the 1996-97 in rupee terms. The Chairman of the company Mr Y. C. Deveshwar said that the parent company ITC Ltd., would take over from ITC Hotels the Mumbai project which is now under construction. In addition, ITC Ltd., will also participate in projects in Parel (Mumbai) and Bangalore investing a total of Rs 1000 crore.

Nagarjuna Fertilisers turnover up
NEW DELHI, July 25 (PTI) —Nagarjuna Fertilisers and Chemicals Ltd (NFCL) turnover has increased by 37 per cent to Rs 194.27 crore in the first quarter of the current fiscal as against Rs 141.82 crore in corresponding period last year. While gross profit was Rs 61.34 crore and profit before tax of Rs 33.12 during the period against Rs 50.14 crore and Rs 30.63 crore respectively posted during the April-June last year. Company’s production also increased by 55 per cent as it produced 2.47 lakh tonnes of urea during April-June 1998 as compared to the production of 1.59 lakh tonnes of urea in the same period last year company statement said.