Court dismisses Piaggio’s petition KANPUR, Nov 24 — A district court today dismissed Italian two-wheeler maker Piaggio’s petition seeking transfer of the arbitration proceedings with its Indian partner LML to the International Chamber of Commerce, Singapore.

GM unable to bring in $ 50m for Opel

Sterlite plant closed on court’s directive
CHENNAI, Nov 24 — Sterlite Industries (India) Ltd stopped production at its copper smelter plant at Tuticorin, following the Madras High Court’s directive yesterday.

Panel to look into Colgate’s claim
MUMBAI, Nov 24 — The Monopolies and Restrictive Trade Practices Commission has prima facie found the “two-and-a-half times superiority” over undefined ordinary toothpaste claimed by Colgate for its “Colgate dental cream-double protection” to be misleading.

Costliest film from Toshiba
CHANDIGARH, Nov 24 —Japan’s Toshiba, which has a global presence in home entertainment and consumer appliances, has come up with a picture of another kind —China Gate — the most expensive movie ever made in India.

CVC moots electronic clearing
NEW DELHI, Nov 24 — Central Vigilance Commission will very soon make it mandatory for listed companies to switchover to electronic clearing system and nationalised banks to computerise at least 70 per cent of their operations to check growing frauds and irregularities.

Govt expects large inflow of funds

NEW DELHI, Nov 24 (PTI) — The opening up of the insurance sector will lead to a substantial flow of funds for developing the infrastructure sector which required a massive $ 130 billion investment in the next five years, official sources said today.

Giving details of the “unanimous” Cabinet decision on Monday to allow up to 40 per cent foreign equity in the insurance sector, the sources said the idea is to tap the insurance sector which alone, along with the pension sector, could provide the much-needed long-term funds for investment in infrastructure.

Apart from enlarging the insurance market, the purpose of opening up is to bring in new insurance products, technology and funds required to make competition “meaningful and productive,” the sources said.

This objective could be best achieved by bringing in foreign companies and by permitting joint ventures with limited foreign participation where Indian partners would have management control.

The Cabinet also decided to bring a Bill in the winter session of Parliament to set up Insurance Regulatory Authority which will establish requisite “level playing field and stringent solvency and prudential norms for their operation,” the sources said.

According to the Cabinet decision, the government will permit foreign promoters in the joint ventures with equity up to 26 per cent directly or through a company registered in India where it had controlling interest in addition to foreign investment not exceeding 14 per cent by foreign institutional investors, non-resident Indians (NRIs) and overseas corporate bodies.

Appropriate amendments will be carried out in the 1956 LIC Act and the 1972 General Insurance Business (Nationalisation) Act to enable other Indian companies to enter the business of insurance, the sources said.

Industry goes ga ga about it
Tribune News Service

NEW DELHI, Nov 24 — The business community today welcomed the Union Cabinet’s decision to approve 40 per cent foreign stake in insurance companies.

The President of FICCI, Mr Sudhir Jalan, said that the decision is in conformity with what had been expected by insurance players both in India and abroad.

“It augurs well that the government is putting the act together and the contentious issues are being sorted out”, Mr Jalan said adding that it reiterates the government’s determination to reform the insurance sector and to achieve a political consensus.

The CII President, Mr Rajesh V Shah, said that the equity limits would enable both domestic as well as foreign players to participate productively. It would attract only serious players with proven track record and thereby help broaden and deepen insurance coverage.

The opening up of the insurance sector would lead to massive resource mobilisation for social,industrial as well as economic infrastructure programmes and projects.

The President of the Associate Chambers of Commerce and Assocham, Mr L. Lakshman, termed it as a measure that would give shot in the arm to business sentiment at a time when it has hit its nadir.

Besides enhancing the long-term capital availability in the market which would be gainfully utilised in the infrastructure sector, the quality of insurance services, hitherto the monopoly of the public sector, will witness a tremendous improvement, Mr Lakshman said.

Insurance decision boost short-lived

MUMBAI, Nov 24 (PTI) Equities continued to drift lower on the Bombay Stock Exchange (BSE) today on profit-taking and squaring-up positions on the last day of trading for the settlement at the National Stock Exchange (NSE).

The market got off to a better start following the government’s announcement to increase foreign equity element permissible to 40 per cent in the insurance sector. The sentiment was affected by the postponement of the Product Patents and Exclusive Marketing Rights (EMRs) Bills to the winter session.

Activity was also restricted on account of the Assembly elections in the Northern States coupled with the holiday for the NSE tomorrow — November 25.

Players were not willing to increase positions in uncertain conditions with the absence of foreign funds. The rise in the annual rate of inflation to a record 8.85 per cent and the recession in the software companies all contributed to the downward trend.

Reflecting the trend, the BSE sensitive index opened higher at 2925.57, fluctuated between 2901.44 and 2936.74 and closed at 2903.56, with a decrease of 16.01 points from the previous close of 2919.57. The BSE-100 ended with a loss of 7.37 points at 1294.14 from the previous close of 1301.51.

The BSE-200 closed lower at 300.26 and the dollex at 117.82 from the previous close of 301.57 and 118.47 respectively.

The shares of Sterlite Ind were heavily sold with the company seeking legal advice on the closure of its Tuticorin plant. Pharmaceuticals were in good demand. Prices of Glaxo, Associated Brown Bowaries, Parke Davis, Pfizer and Rhone Poulenc all flared up on heavy purchases.

Elsewhere, shares moved in a very narrow range on alternate bouts of buying and selling and ended with small variations either side.

The total turnover on the BOLT system was Rs 1048.94 crores. Satyam Computers was at the top of the list with a turnover of Rs 253.97 crore, followed by ITC Rs 135.81 crore, Telco Rs 74.34 crore, Pentafour Soft Rs 60.02 crore and SBI Rs 58.06 crore.

Satyam Computers edged up by 0.25 to 568.50, Pentafour Soft by 1.75 to 548 and SBI by 0.30 to 157. ITC eased by 1.25 to 700.50 and Telco by 0.30 to 131.30.

Among the index-based scrips, ACC dropped by 22.75 to 972, Castrol by 7.50 to 644, Grasim by 5.80 to 151.90, Hindalco by 12.75 to 529.50, Hind Lever by 13.75 to 1595.25, L&T by 0.60 to 151.70, MTNL by 2.80 to 178.90, Nestle by 6.00 to 408.50, Novartis by 5.75 to 725 and Telco by 0.30 to 131.30. Glaxo firmed up by 18.50 to 563.75, Ind Hotel by 1.50 to 433 and Tata Power by 1.50 to 90.

Among other issues, Cummins Ind declined by 12.30 to 269.50, Dr Reddy by 3.25 to 433.75, EI Hotel by 4.70 to 250.20, Mds Cement by 16.00 to 4234.25, Philips by 4.50 to 144.40, Ponds by 8.00 to 1166, Reckitt Col by 5.50 to 306, SKF Brg by 6.25 to 751.25, Supreme Ind by 3.20 to 167.20, TVS Suzuki by 3.75 to 554, Wartsila by 2.10 to 164.50, Wockhardt by 6.70 to 257.50 and Hind Lever Chem by 4.75 to 339.

Haryana likely to amend policy on
industrial plots
Tribune News Service

NEW DELHI, Nov 24 — The Haryana government is likely to amend its policy on industrial plot allotments.

Senior officials in the Industry Department are in favour of reducing the investment amount of Rs 50 crore for making off the shelf allotment of industrial plots. The new industrial infrastructure development policy has the provision of making off the shelf allotment of plots for industrial projects having Rs 50 crore and above.Under the policy,the procedure for the allotment of plots has been simplified.

Addressing the annual press conference in Haryana Pavilion at the India International Trade Fair here, the Chief Secretary of Haryana, Mr R.S. Varma, said the state was the best destination for investors. He claimed that the investment in the industrial sector in Haryana was increasing at the pace of 20 per cent.

For the first time, the Haryana Government has accepted that the scrapped prohibition policy, which was in force for a year, had contributed to the deterioration in the law and order situation. In response to a question on the impact of the alleged spurt in crime in Haryana on investment, Mr Varma said even if the prohibition policy had added its bit to on the deterioration of law and order, Haryana was relatively more peaceful.

He said the new Industrial policy was aimed at securing a balanced industrial growth with special emphasis on accelerating development of relatively backward areas of the state. Earlier, the policy was incentive-oriented whereas the new policy was aimed at providing better infrastructure for the development of industry. Special attention had been given to the simplification of rules and procedures, elimination of red-tapism and ensuring transparency in decision making, he added.

According to him, the new industrial infrastructure development policy would lay emphasis on maintenance of industrial estates. Among others, he said 700 hectares of integrated industrial model township was being developed with quality infrastructure matching international standards in Maneshar in Gurgaon district. A growth centre at Bawal in Rewari christened as “Investate Bawal” was being set up in an area of 500 hectares. The first phase of this complex covering 125 hectares was already developed and allotted while the development work on the remaining area was in progress.

Referring to the power situation in Haryana, the Chief Secretary reiterated the government’s resolve to make Haryana a power-surplus state by July next. He said with the assistance of the World Bank and its associates to the tune of Rs 5,0000, the government’s ongoing power reform project would be completed successfully. He stressed that as things stood, the possibility of hike in power tariff on account of the reform measures was remote. He debunked the theory that the government would hike the power tariff at the behest of the World Bank.

In response to the condition of roads,Mr Varma said the government would spend Rs 150 crore on their repair in the current financial year.

GM unable to bring in $ 50m for Opel

NEW DELHI (PTI): US auto major General Motors (GM) has expressed its inability to bring in foreign equity of $ 50 million for its Opel car project, a condition stipulated by the government for foreign car companies to operate in India.

General Motors has requested the government for relaxation in the condition and the matter is pending before the Commerce Ministry, sources in the Directorate General of Foreign Trade (DGFT) said on Tuesday.

All foreign car companies, operating independently or in a joint venture, have been asked by the government to sign a memorandum of understanding (MoU) with the DGFT to give an undertaking on indeginisation levels apart from bringing at least $ 50 million in foreign equity.

General Motors is producing Opel-Astra range of luxury cars through General Motors India Ltd (GMIL) — its joint venture with the CK Birla group company Hindustan Motors.

When contacted GM officials declined to comment.

Industry sources, however, indicated that General Motors’ inability to bring in foreign equity emanated from Hindustan Motors’ lack of willingness to come up with matching share in the 50:50 joint venture.

Ashok Leyland

DUBAI (PTI): Ashok Leyland, India’s automobile major, plans to set up a bus and coach plant in the United Arab Emirates (UAE) in collaboration with a prominent business group here.

The Hindujas-owned Leyland, which has been hit by recession in the Indian transport sector, has tied up with Al Swaidan, a subsidiary of the Saeed and Mohammed Al Naboodah group in the UAE.

Diesel Gypsy

NEW DELHI (UNI): Maruti Udyog Limited (MUL) Chairman Yoshio Saito has said the company has for the time being shelved plans to introduce diesel versions of Gypsy and Esteem.

The company would, in fact, concentrate on its existing line-up and work towards strengthening them to meet the onslaught from new entrants in the small car business.

“Dieselisation is not on the priority list for Maruti. We wanted to try the diesel engine with the Zen and now we have decided not to introduce any more diesel models for the time being,” Mr Saito told UNI here.

M&M

NEW DELHI (PTI): Auto major Mahindra and Mahindra (M&M) has introduced an ambulance version of its van “Voyager” at an ex-show room price of Rs 5.76 lakh (Haryana).

The vehicle is equipped with an air-conditioner, five-speed transmission, fully trimmed patient saloon and foldable stretcher-cum-trolly, an M&M statement has said.

Seats for one doctor and two attendants are standard features in the Voyager ambulance. Power points for connecting life saving equipment have also been provided.

Court dismisses Piaggio’s petition

KANPUR, Nov 24 (PTI) — A district court today dismissed Italian two-wheeler maker Piaggio’s petition seeking transfer of the arbitration proceedings with its Indian partner LML to the International Chamber of Commerce (ICC), Singapore.

District and Sessions Judge A. K. Jain conclusively dismissed Piaggio’s petition, saying there was no legal basis to transfer the case to the ICC.

The issue cropped up when the Singhanias, promoters of the country’s second largest scooter company, moved court to acquire the Italian partner’s share in the company, citing a clause in the joint venture agreement (JVA).

The judge in his 64-page judgement said, it was necessary for Piaggio Vespa BV, a subsidiary of Piaggio, to be a signatory to the JVA for transferring the matter to the ICC.

Piaggio’s contention was that Piaggio Vepsa BV was the registered owner of the shares in LML and since it was not a signatory to the JVA, the case be transferred to the ICC.

Sterlite plant closed on court’s directive

CHENNAI, Nov 24 (PTI) — Sterlite Industries (India) Ltd stopped production at its copper smelter plant at Tuticorin, following the Madras High Court’s directive yesterday.

Senior Vice-President (Commercial) Hemant Jalan said the plant was being closed down in stages, and the entire production process came to a halt by about midnight.

He said the company would react to the report of the National Environment Engineering Research Institute (NEERI), based on which the court passed its order after carefully considering its details.

Sterlite makes one lakh tonnes per annum of copper for internal consumption and 3.25 lakh tonnes of sulphuric acid as a byproduct at its Tuticorin unit.

Sterlite Copper has been embroiled in controversy ever since it set up shop in Tamil Nadu with environmental activists calling for its closure dubbing the plant a hazard to the environment.

Panel to look into Colgate’s claim

MUMBAI, Nov 24 (PTI) — The Monopolies and Restrictive Trade Practices Commission (MRTPC) has prima facie found the “two-and-a-half times superiority” over undefined ordinary toothpaste claimed by Colgate for its “Colgate dental cream-double protection” (CDC-DP) to be misleading.

The MRTPC has, therefore, ordered constitution of a three member panel of experts for an overall scientific analysis of CDC-DP, as was done in respect of Hindustan Lever Limited’s claim of 102 per cent better than Colgate dental cream.

“No one has any right to mislead consumers by making unjustified tall claims with respect to any of its products,” the MRTPC said and has directed Colgate not to carry on its advertisement campaign in any form claiming 2-1/2 times superiority of CDC-DP over any other toothpaste.

Costliest film from Toshiba
Tribune News Service

CHANDIGARH, Nov 24 —Japan’s Toshiba, which has a global presence in home entertainment and consumer appliances, has come up with a picture of another kind —China Gate — the most expensive movie ever made in India.

Made in association with Santoshi films, China Gate cost over Rs 20 crore and will be released on November 27 nationwide. The movie has been made with the finest digital technology ever used in Hindi films.

The involvement of ace director Rajkumar Santoshi, world right controller Bharat Shah and talented stalwarts like Naseeruddin Shah, Kulbushan Kharbanda, Danny Denzongpa, Om Puri and Amrish Puri, will make China Gate a right tribute to Akira Kurosawa, one of the greatest film-makers of the world from Japan. Toshiba plans to release the dubbed version of this mega movie in Japan as well.

CVC moots electronic clearing

NEW DELHI, Nov 24 (PTI) — Central Vigilance Commission (CVC) will very soon make it mandatory for listed companies to switchover to electronic clearing system and nationalised banks to computerise at least 70 per cent of their operations to check growing frauds and irregularities.

“I will in a day or two, notify the changes under Section 8 (I) (H) of the CVC in this regard,” Central Vigilance Commissioner N. Vittal told newspersons after the conclusion of his four-hour meeting with the bank chiefs.

The RBI reference rate was Rs 42.43.

Gold falls
NEW DELHI, Nov 24 (PTI) — Gold prices rolled down on the bullion market today on reduced offtake influenced by weak advices from overseas market and closed with moderate losses. Silver was steady on scattered buying support against restricted supply. The following were today’s quotations: silver .999 (ready) 7385 and delivery 7400. Silver coins buyer 10,500 and seller 10,600. Standard gold 4350, ornaments 4200 and sovereign 3750.

Tiny sector
From Our Correspondent
LUDHIANA, Nov 24 — The Federation of Tiny and Small Industries of India has submitted a memorandum to the Prime Minister complaining that no representation has been given to the tiny/small sector in the recently constituted Council of Trade and Industries to facilitate the government’s interaction with representatives of trade and industry.

RBI’s group
From Our Correspondent
LUDHIANA, Nov 24 — Bank of India coordinated a meeting of the RBI’s working group on simplification of procedures for credit delivery to exporters here yesterday. The group, headed by Mr V. Subrahmanyam, Executive Director of the RBI, included general managers of various banks.

Commodities
From Our Correspondent
CHANDIGARH, Nov 24 — Wheat 630 to 635, dara 630 to 632, superior 635 to 638, maize 575, sarson 1950 to 2000, taramira 1800 to 1850, paddy (pr-103) 470, (pr-106) 470 to 475, rice basmati 2800 to 5000, parmal 850 to 1000, sella 850 to 1000, maida (90 kg per bag) 690, suji 690, atta 650 urd (per quintal) 1950 to 2450, urddal 1950 to 2450, moong 2100 to 2550, moongdal 2100 to 2550, moongdhuli 2400 to 2900, masoor 2250 to 2550, malkamasoor 2350 to 2500, kablichanna 2400 to 3400, kalachanna 1450 to 1750, dalchanna 1600 to 1700, arhar 2350 to 3900, rajmashchitra 2750 to 3450. Sugar-M-grade 1480 to 1520, S-grade 1450 to 1490, khandsari 1350 to 1500, gurkhurpa 825 to 925, gurperi 850, shakkar 850 to 1100. Oil sarson (per quintal) 6100, soyabean (per tin 15 litres) 650 to 700, surajmukhi 600 to 700, groundnut 800 to 850, cottonseed 650 to 700.