Saturday, November 28, 1998
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B U S I N E S S | Saturday, November 28, 1998 |
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Manch opposes move on
insurance sector
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Lupin profit up 25 pc
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Manch
opposes move on insurance sector NEW DELHI, Nov 27 — The BJP-led coalition Government’s decision to introduce a Bill in the next session of Parliament to permit foreign investment up to 40 per cent in the insurance sector has triggered off criticism from one of its supporting outfits, the Swadeshi Jagran Manch (SJM), which has described the measure as a “betrayal of the people’s mandate.” “The decision flies in the face of the party’s (BJP’s) conduct in opposing the similar effort of the Deve Gowda Government to open the insurance sector as well as its commitment to the Swadeshi ideology”, the All India Joint Convenor of the SJM, Mr S. Gurumurthy, said in a statement. Mr Gurumurthy said that the proposed package for Foreign Direct Investment (FDI) in insurance sector is more loaded against the country than the one proposed by the previous government. The new scheme seems to be designed to make the foreigner the main promoter of private insurance companies in India, who would combine with the local partner of his choice instead of the other way round, he added. The statement said the SJM was convinced that the decision was “unsupportable” on any ground including, as often argued by its lobbyists, that it would bring in large foreign investment. He said contrary to claims that insurance premium would not be allowed to be repatriated, the foreign companies would manage this by taking the reinsurance route. He said the reported decision only confirms the apprehension of the SJM that despite the political change at the Centre, the beliefs and practices of the establishment, of which the new government is an unfortunate prisoner, continue to be the same. Mr Gurumurthy alleged that the BJP-led Government could not even change officials with leanings towards the International Monetary Fund and the World Bank and these officials continued to hold high positions in the administration. “It is as if the previous government continues. If the new government is run by the very officials who were guilty of betraying the country, nothing different can be expected of the new government irrespective of the fact it consists of some good and honourable persons” the statement said. The SJM has decided to approach the people directly and create intense public awareness, which was bound to manifest in the actions of any government, Mr Gurumurthy said. As a first step towards
alerting the people on the issue, the SJM has decided to
stage a dharna in front of Parliament on December three
to protest against the decision. A detailed agitational
programme would be decided by the Rashtriya Parishad of
the SJM, which is scheduled to meet in Patna on January
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India-Sri
Lanka free trade soon NEW DELHI, Nov 27 — India is in the process of working out a Free Trade Arrangement (FTA) with Sri Lanka, Minister of State for External Affairs, Ms Vasundhara Raje Scindia said here today. Addressing members of the FICCI Ladies Organisation (FLO) here, the Minister said that India has a special economic relationship with Nepal and Bhutan and has Special Trade Agreement (STA) with Bangladesh. This, she felt, would facilitate intra-South Asian trade. Urging the business community to build a global Indian brand equity, Ms Scindia said that a brand name gives value addition to the product as also the confidence to the customer in the high-quality conscious global market place. The best way to
effectively project India Inc would be to ensure that
over time an India brand equity is created in a number of
niche areas — both traditional and non-traditional
— like rice, tea, textile, financial services and
information technology. |
Myanmar for
closer cooperation NEW DELHI, Nov 27 — Myanmar is seeking closer economic cooperation with India, particularly in the machine tools and the transport sector. This was conveyed by the Deputy Minister for Industry of Myanmar, Mr U Thein Tun, when he called on the Minister of State for Industry, Mr Sukhbir Singh Badal here today. Mr U Thein Tun is leading
a four-member delegation to India, which includes senior
executives of Myanmar machine tools, automobiles,
electrical and diesel engine industries. Trade between
India and Myanmar during 1997-98 was $ 265 million, which
was 19 per cent more than the previous year. |
MNCs —
yes or no? CHANDIGARH, Nov 27 — Permitting Multinational Companies (MNCs) into the Indian economy will have three interactive influences and act as a catalyst of development. The three influences will accrue in the form of “investment, technology and market” (domestic and international. This will open avenues of employment and give buoyancy to the economic growth and development. The domestic industry will stand to gain as a consequence of a healthy competition benefiting the consumer with better quality as well as variety. Such a permission will improve related services and provide an exogenous stimulus to the growth of the economy without, however, creating the trappings of the external borrowings. These views were expressed by Dr S.S. Johal in his key-note address at a seminar on “multinational and its impact on our industry”, organised by the Society for Business and Economic Promotion, held here today. Punjab Minister of State, Mr Swarna Ram, of higher, secondary and primary education, presided. The hypothesis that Dr Johl built demolished the concept that “Swadeshi” spirit will be diluted and affected adversely. In fact by closing the Indian economy and market to MNC more harm will be done to the domestic industry, which has, since independence remained protected inside a cocoon. He called it “captive market”. Growth of economy depended upon three factors: rate of investment, adoption of the state-of-the-art technology and development and expansion of market, national and international. What has gone wrong is primarily due to the fact the capital formation has been neglected and whatever was mobilised by way of revenue was diverted to revenue outgo (expenditure) for running the government (in New Delhi and states) from day-to-day. His apprehension was that growing trend of “public borrowings” will land the country into a debt-trap. Given the globalisation and liberalisation, India has to “integrate” its market and economy with the world for which domestic resources were negligible. External resources were, therefore, a must. These included donations, grants and borrowings by the government from international agencies and governments or through direct foreign investment. India must remember, no individual or institution will invest here out of “social welfare considerations”. All foreign investment either by NRIs or MNC has to be “profitable business” for which states and New Delhi will have to ensure “conducive, responsive and receptive investment and administrative environment, including political will”. Once MNC come, infrastructure will improve, jobs will be created and the debilitating economic stagnation will end. Opening of car bazar and entry of Pepsi were the two recent examples of how economy has benefited. Dr Johl was very emphatic on roping in “Direct Foreign Investment” and the MNC when he said “no foreign company, firm or business can destabilise or manipulate any political or administrative system, which is internally strong. A weak system however, will not require foreign intervention in the economy to collapse”. What India needs to worry and be wary of are the domestic “bloodsuckers” that flourish under the contrived banner of “swadeshi” and operate in the captive markets that generates blackmoney, gives birth to scandal and scams and in which top politicians and administrators often get involved. Therefore, to checkmate
all this let India welcome MNC and foreign firms and
their collaborators to invest directly or indirectly and
help the domestic industry to expand and grow. |
Directive to financial institutions NEW DELHI, Nov 27 (PTI) — In a bid to check frauds, the Central Vigilance Commission (CVC) today directed nationalised banks and financial institutions to immediately provide electronics clearance services to customers and fixed time limits for sanction of prosecution of officials under the Prevention of Corruption Act. As part of improving vigilance administration in banks, the commission issued an order by which all banking companies and financial institutions under its purview would have to compulsorily offer electronics clearance services to their customers with immediate effect. “This step is visualised as a method of checking fraud because a significant part of frauds in the banks are related to the remittances and collection in the payment system”, Central Vigilance Commissioner N Vittal said. The order also directed that the banks must ensure that 70 per cent of their business was computerised before January 1, 2001. By another order, the CVC
said the competent authorities must give or refuse
sanctions for prosecution of officials within 30 days
from the date of CBI’s request. In the case of
Presidential appointees in which the commission’s
advice is required. The sanction or otherwise should be
communicated within 60 days. |
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NEW DELHI, Nov 27 (PTI) — Punjab National Bank (PNB) is planning to raise about Rs 300-400 crore in the current fiscal through private placement of bonds following postponement of its public issue of shares due to poor market conditions. The bond issue is being considered to meet the (RBI) prescribed capital adequacy ratio (CAR) of 9 per cent by March 2000. Confirming this, PNB General Manager P.K. Gupta said after the bond issue the bank’s car would increase to 9.5-10 per cent from the current 8.81 per cent. RBI in the busy season credit policy had announced that all banks will have to have a minimum car of 9 per cent by March 2000 as recommend by the Narasimham Committee on banking reforms. “We have already written to Finance Ministry and RBI to seek their permission for issuing bonds,” Gupta said adding that the bank hopes to hit the market in January next. He said the coupon rate for the bonds has not been decided as yet and would depend on the prevailing market conditions at the time of the issue. Credit rating firm ICRA Ltd has already assigned ‘AAA’ (triple A) rating for the bond issue, indicating highest safety for timely payment of principal and interest. On the proposed initial public offering (IPO) of the bank Gupta said “we do not think it is the right time to hit the markets looking at the current state of stock markets”. PNB had initially planned
to raise around Rs 550 crore public issue of equity
shares at a premium ranging between Rs 60-75 per share in
January 1998. |
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NEW DELHI, Nov 27 (PTI) — Lupin Chemicals Ltd (LCL) has reported a growth of 35 per cent in net profit to Rs 3.41 crore for the first quarter ending October 1998 compared to Rs 2.54 crore profits in the corresponding period last year. The increase in profit was
despite sales increasing marginally from Rs 25.36 crore
in the previous year to Rs 25.68 crore for the quarter
ending October 1998, company statement said. Gross profit
of the company was also up by 25 per cent to Rs 4.60
crore compared to Rs 3.68 crore during the same period
last year. |
Software professionals in great demand BONN: India should diversify its exports to Germany through the flow of its software professionals whose expertise are in “great demand” in Europe’s largest economy, Chairman of the German-India Business Association has said. Indian exports to Germany despite diversification in the last few years are rather “lopsided” with textiles and leather goods constituting the bulk of this trade, Mr Peter Clasen, Chairman of the OAV (German-Asia Business Association) Country Committee on India said. He said the East Asian financial crisis will certainly make German and other European companies appreciate India more as an attractive trading partner and a long-term investment destination. — PTI Honesty BANGALORE: Microsoft has launched a dedicated hotline to report the illegal usage of software in the city to combat software piracy. Microsoft President Rajiv Nair said the honesty line was the first corporate initiative of its kind to encourage greater public involvement in the fight against software piracy in India. The estimated trade loss due to software piracy in India was 184.66 million per annum, he said. — PTI Speech WASHINGTON: After decades of trying, speech recognition software looks ready to change the world. Three companies — Dragon Systems, Lernout & Hauspie and IBM — are selling remarkably good software that lets you speak into a microphone to dictate documents and control your PC. Only a year ago, the software was still a little rough. But speech recognition programs have improved significantly. Now, demos routinely have someone speaking very fast and the software captures it while rarely getting a word wrong. Some experts predict that it will be only three or four years before speaking becomes a commonly used way to interact with computers or computerised devices such as VCRs, cell phones, ATMs, thermostats, copiers, microwave ovens and other appliances. — USA Today Microsoft NEW YORK: Microsoft has said that the proposed deal between America Online and Netscape Communications, which will combine the world’s dominant online player with the pioneering Internet software company, proved that the software group faced strong competition. “The proposed deal demonstrates a simple truth, that there is vigorous competition in the marketplace and that Microsoft faces resourceful and capable competitors,” said Bill Neukom, Microsoft senior vice-president for law and corporate affairs. Microsoft’s attempt to use news of the possible alliance to its legal advantage came as AOL confirmed that it is negotiating to buy Netscape in a deal which could pose a significant challenge to Microsoft in the race to create “portals” or mega websites offering a plethora of services from news and information to shopping. Should a deal be struck, AOL would pay an estimated $ 4 billion in a share swap for the company. Sun Microsystems, a software rival to Microsoft, would also be a part of the equation. — Guardian Micro fabs HYDERABAD: The national task force on IT has decided to develop micro fabs, a facility to manufacture integrated circuits for security and strategic needs. Task force co-chairman and Andhra Pradesh Chief Minister, N Chandrababu Naidu and convener of the core group, Dr Seshagiri, said the country needs micro fab as micro electronics was making its way into every aspect of life. The subject was discussed
with some multinationals, including Intel, and some of
them showed willingness in this area if the respective
state governments provide them with the necessary
infrastructure,” they said adding that further
details would be worked out in a week’s time. —
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| Credit card CHANDIGARH, Nov 27 (TNS) — Mr Krishan Swaroop, Director of Bank of Baroda, today launched ‘Baroda Kisan Credit Card’ at a function held at its branch at Samrala. Those present at the function were: Mr N R Kannan, Chief General Manager, NABARD; Mr K K Aggarwal, DGM, Bank of Baroda; and Mr Sanjay Popli, SDM. Mr Krishan Swaroop said that to cater the farming and personal needs of farmers, the bank has issued the credit card simultaneously at 15 centres of the country. Exhibition BHEL Nominated Gold firm NDDB chief Award |
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