Wednesday, September 16, 1998
today's calendar
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B U S I N E S S | Wednesday, September 16, 1998 |
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spotlight today's calendar |
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Rs 684 crore more for
Haryana Plan
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SIDBI offers fund for
software units Steel
licences sold |
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Banks told
to deal well with fund flow IDBI
to offer Flexibonds
Radico
Khaitan to enter North Blue
Star bags Rs 5 crore orders Dabur
to sell herbal medicines in USA |
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Rs 684 crore more for Haryana
Plan NEW DELHI, Sept 15 — The Planning Commission today approved an outlay of Rs 2,260 crore for Haryana’s annual Plan of 1998-99, an increase of Rs 684 crore over that approved for the previous financial year. The hike in the outlay will cover expenses for the development of infrastructure, including irrigation, power, roads and road transport. The Plan outlay was approved at a meeting between the Deputy Chairman of the Planning Commission, Mr Jaswant Singh, and the Haryana Chief Minister, Mr Bansi Lal, here. The Planning Commission earmarked Rs 505 crore, 22.3 per cent of the Plan outlay, for generation, transmission and distribution of power. An externally-aided Haryana power restructuring project with an outlay of Rs 180 crore for 1998-99 has already been negotiated for assistance from the World Bank. An outlay of Rs 551 crore, 24.4 per cent of the total outlay, has been provided for the expansion of irrigation facilities in the State. The State is already implementing a World Bank aided water resources consolidation project with an outlay of Rs 350 crore during the current financial year for increasing the irrigation potential in the State. Transport sector which includes construction of roads and bridges and extension of transport services has been allocated Rs 191 crore which is 8.4 per cent of the total outlay. The Haryana highways upgradation project for strengthening the State highways with an outlay of Rs 100 crore during the current financial year has been started. Thus a total amount of Rs 1,247 crore, which is 55 per cent of the Plan outlay, has been earmarked for the development of infrastructure. The Basic Minimum Services Programme, which includes improvement and extension of basic services like primary education, primary health care, and safe drinking water, has also been given a high priority. An amount of Rs 114 crore has been earmarked for the expansion of these services. Agriculture and allied services have been allocated Rs 127 crore while Rs 75 crore has been earmarked for poverty alleviation programmes in rural areas. For the development of village and small industries, an amount of Rs 116 crore would be spent. Social and community services like education, including technical education, health services, water supply and sanitation, welfare of Scheduled Castes and Backward Classes, and women and child development have been given a high priority. An outlay of Rs 590 crore, 26 per cent of the total outlay, has been earmarked for these services. Mr Bansi Lal was
accompanied by the State Finance Minister Mr Charan Dass
Shorewala, Deputy Chairman of the State Planning Board,
Mr Kailash Chand Sharma, Chief Secretary, Mr R.S.Varma,
Principal Secretary to the Chief Minister, Mr L.M.Jain,
Financial Commissioner and Finance Secretary, Mr
A.N.Mathur and other senior officers of the State
Government. |
Penalised for serving bad food NEW DELHI, Sept 15 (PTI) — A popular city restaurant has been penalised by a city consumer court for providing bad food and poor service. The Delhi Consumer District Redressal Commission (Mehrauli), in its order directed “Village Restaurant Complex” to pay a compensation of Rs 5,000 for mental and physical harassment and asked the restaurant to pay the litigation cost to a consumer. Directing KIC Food Products Ltd, proprieter of the restaurant, to refund the amount to the complainant, the court observed that “despite making a hefty payment for food, the consumer did not get quality food which was expected from a restaurant like the one owned by KIC”. Complainant R.S. Bhullar in his affidavit had mentioned that because of bad quality food provided in the restaurant, he suffered gastro-enteritis. Bhullar has also alleged that the manager of the restaurant used foul language against him and his friend. KIC maintained that the district court did not have the jurisdiction to adjudicate the issue. It also maintained that Bhullar did visit the village restaurant complex and had food after taking alcohol. “Under the hangover of liquor, he shouted and abused and to malign, defame and blackmail, he had fabricated the complaint,” KIC held. The consumer, while making the payment for the food, had even recorded a note on the cash memo, reading “Paid for unsatisfactory service and misbehaviour.” KIC held that the complainant under the influence of liquor had created a scene. The court, however, refused to accept this. “If KIC’s version is true in any way, the first thing they should have done was to call the police and hand over the complainant and his companion to them”, Mehrauli District Consumer Court President T.C. Gupta and member Nargis Rajkumar said in the judgement. The court also pulled up KIC for not producing and filing evidence in the court. KIC had failed to produce the restaurant manager, who was present during the incident. The court directed the
restaurant to pay the compensation amount within two
months, failing which the whole amount would be payable
with an interest of 18 per cent. |
SIDBI offers fund for software units NEW DELHI, Sept 15 (PTI) — India has the potential to export softwares worth $ 500 billion as against the current target of $ 50 billion by 2010, Union Minister of State for Agriculture Sompal has said. “The current target for 2010 underestimates Indian information technology’s potential. Our software exports can easily touch half a trillion dollar mark by 2010”, Sompal said at the meet on venture capital funding for software firms here today. Union Secretary of Commerce P. Prabhu, said while Indian exports for software have grown phenomenally, India’s participation in world trade is still meagre. Small Industries Development Bank of India Managing Director Sailendra Narain said that SIDBI has sent a proposal to the government for a national-level venture capital fund to assist small and medium sized software companies. The bank is willing to fund a hitech research and development (R and D) centre for software, it already has committed such assistance for an infotech R and D centre at Noida, he said. “The bank is ready to assist joint efforts like setting up an office to boost software exports to our main markets in north America and Europe”, Narain added. Venture funding for
software firms was not a financing effort but a
partnership between intellectual capital and hard cash
— funds, Ravindra Gupta, Secretary in the Department
of Electronics, said. To incorporate this concept the
government has proposed a change in the Partnership Act. |
NEW DELHI Sept 15 (PTI) — HSBC Securities has rated Indian equity market as the most attractive in the Asian subcontinent and feels India’s stock market will outperform other markets in the region. “India enjoys relatively surplus liquidity conditions, earning outlook is stable while the political risk has subsided in the post nuclear test period,” HSBC Securities, broking arm of the Hong Kong and Shanghai Banking Corporation (HSBC) group, said in its latest Asian strategy update. HSBC feels that in the short term, Indian markets will follow the global trends but will outperform its emerging market counterparts. On various sectors, HSBC is optimistic and expects sectors like downstream oil, food and beverages, information technoloy, personal care and pharmaceuticals to do well in future. It has put steel, cement, hotel. automobiles (four-wheelers) and power in under watch category, indicating these sectors will remain depressed. S&P warning The New York-based credit assessor included seven Asian economies - China, Hong Kong, Japan, Malaysia, the Philippines, Singapore and Taiwan - among the 16 which revealed signs of deteriorating credit quality. The others were Chile, Czech Republic, Egypt, Greece, Israel, Lebanon, Panama, Slovak Republic and the USA. In a report received here, Standard and Poor’s said excessive credit growth and deflating were reasons for concern in all 16 economies. South Korea Among the Asian nations hit by the region’s economic malaise, shell-shocked South Korea has suffered the most dramatic decline in consumption, the Daewoo Economic Research Institute said. Even the USA, following the great crash of 1929, saw its consumption levels decline by only 9.6 per cent. Thailand and Indonesia
will see their consumption levels fall by 14.2 and 20.5
per cent respectively. |
SBI, IDFC ink pact on infrastructure MUMBAI, Sept 15 (PTI) — The SBI and the Infrastructure Development Finance Company (IDFC) have signed a liquidity support agreement for infrastructure projects. The two have agreed to participate in “takeout financing structure” inviting banks to participate in infrastructure financing for a specific term and at a preferred risk profile that suits their own “appetite” with the IDFC standing behind and willing to “take out” the obligation after a specified period. This would ensure that the project achieved its goal of long-term funding though the participants in the loan would alter as the project progresses. Addressing newsmen after signing the agreement today, SBI Chairman M.S. Verma and IDFC Chairman Deepak Parekh said such an arrangement would help finance infrastructure projects at a much faster pace. Such a format would also help other banks to enter into a similar agreement with the IDFC, Verma said adding that Rs 400 crore had been provided for five years under the agreement. The SBI would only pay an agreed fee to the IDFC depending on the project. Due to pressure on capital
adequacy ratio (CAR), prudential norms and mismatch of
assets and liabilities for funding long-term projects,
banks were finding it difficult to finance infrastructure
projects. This new agreement would mitigate the
difficulties of banks, he added. |
Steel licences sold NEW DELHI, Sept 15 (PTI) — The Delhi High Court today issued notices to the Centre, the CBI, SAIL and three other respondents on a petition seeking a CBI inquiry into the alleged irregularities in the sale of duty free advance licences (DFAL) worth Rs 1000 crore by steel units. A Division Bench comprising Justice Y.K. Sabharwal and Justice K.S. Gupta issued the notices returnable by December 14 also to Vishakhapatnam Steel Plant of Rashtriya Ispat Nigam Ltd, Metals and Scrap Trading Corporation and private sector company, Baron Impex Ltd. Senior advocate Gopal Subramaniam urged the court to order a CBI inquiry into the alleged irregularities saying that each and every sale of licence was shrouded in “mystery”. It was necessary to
identify and quantify the loss caused in such
transactions by “misuse of authority, collusion,
fraud and abuse of power by the officials and the power
that be,” Subramaniam said. |
IDBI to offer Flexibonds CHANDIGARH, Sept 15 — The Industrial Development Bank of India (IDBI) will raise Rs 5,000 crore through Flexibonds during the current fiscal year. The first tranche of the public issue of Rs 750 crore, with the option to retain additional Rs 759 crore will open on September 21, the bank’s Executive Director Mr V.P. Singh, told reporters here today. Education Bond is designed
to help an investor to meet the financial requirements of
his/her children’s education. An investor can opt
either, (A) to receive five equal annuities from the end
of wait period of five, seven or 10 years, or (B) a
lumpsum amount, at the end of the fifth, seventh or the
tenth year.IDBI’s other bonds are Regular Income
Bond, and Deep Discount Bond. |
Banks told to deal well with
fund flow NEW DELHI, Sept 15 — The Union Finance Minister, Mr Yashwant Sinha, today called upon the domestic banking industry to better management of external fund flow in order to avoid a South East Asia type shake-out. "If short term flows are deployed for long term needs then a mismatch occurs at the slightest provocation", he said while delivering an address at a conference on "Managing Global Banking – Emerging Perspectives and Lessons for India" organised by the India Banks" Association here today. "It is very easy to fall prey to short term gains and then suffer in the long term", he added. Calling for an international consensus for putting in place a global banking regulatory authority to address the problems arising out of the increased flow of capital across national boundaries, Mr Sinha said at present global banking system "seems to have somehow lost its way." "We have an international banking system which is totally devoid of any discipline at the moment" , he said adding that "there are no rules of the game and no authority to suggest any guidelines". In this system , or the lack of it, the only defence that the country has is the national financial architecture, he said. It was therefore necessary to safeguard the interests of the country by having adequate regulations in place, Mr Sinha said adding that without it the domestic banking industry would find it difficult to face the onslaught of the international system. He, however, said there was no question of India moving into a more sheltered regime. Although the Indian banking system was looked upon as a model for others to follow, yet in a period of time "we have moved steadily, slowly and with a great deal of stability", the Finance Minister said. At the same time, the domestic banks, while deliberating on the international scene cannot completely ignore the rural sector". We also have the barefoot bankers in the rural sector and the huge network of rural bank branches", he said. Calling upon the banks to play an increasingly important role in the financing of rural areas, Mr Sinha cautioned that the "country will not be able to move forward without necessary build up in the rural sector." The rural sector cannot merely rely on the budgetary allocations and the financial institutions have to supplement these allocations in a big way. "There is no way the banking system can turn away from meeting their needs", he said adding that the government was expecting that the agriculture sector would do better this year than last year. Even though the level non- performing assets (NPAs) of banks have not reached "alarming" levels, yet, it is necessary to have a close watch on the NPAs to bring it down to sustainable levels". Each bank has to develop its own ways and means", he said. Mr Sinha also called for speedier modernisation in the banking industry, which means not only technological modernisation but also "modernisation of the mindset of the people working in the banking industry." The Special Secretary (Banking), Ministry of Finance, Mr C.M. Vasudev, said reforms in banking laws was critical for the success of the banking sector. "Reforms in the legal system have not kept pace with reforms in the financial sector." Regarding mergers Mr
Vasudev cautioned that if mergers were not accompanied by
a proper rationalisation of workforce and branch network,
then perhaps, the desired results may not be achieved. |
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NEW DELHI, Sept 15 (PTI)
— Though India is poised to post an all- time high
foodgrain output of 200 million tonnes in 1998-99, the
record will still fall short of the Planning
Commission’s target of 210 million tonnes and the
Agriculture Ministry’s 204 million tonnes target.
Agriculture Minister Sompal attributed the likely decline
from the targeted level to various factors, including
damage to crops due to floods in some parts of the
country. |
Radico Khaitan to enter North NEW DELHI, Sept 15 — After product launches in West Bengal and Uttar Pradesh, Radico Khaitan Ltd (RKL) will enter the northern market in the coming weeks. Speaking to The Tribune, Mr Amar Sinha, President, Sales and Marketing of RKL, said that the company hopes to corner a market share of 6 to 8 per cent by 1999 in both rum and whisky. The size of the Indian liquor market today is 55,000 million cases of which whisky accounts for 350 lakh cases (65 per cent), rum 82 lakh cases (15 per cent), white spirits 28 lakh cases (5 per cent ) and brandy 82 lakh cases (15 per cent). RKL is going to lay more emphasis on brand positioning backed by an aggressive marketing campaign. RKL has tied up with international Scotch giant Whyte and Mackay (W&M). W&M has six brands, which include three Scotch brands and one premium segment brand. Mr Sinha said that RKL plans to double its production capacity in both alcohol and bottled products. To back the marketing network, a new civil marketing division has been put in place in the company with Executive Director Abhishek Khaitan overseeing the operations. RKL recently tied up with six bottling units including NV Distilleries and Breweries in Punjab and Samrat Brothers in Rajasthan. This is in addition to its primary unit, Rampur Distilleries. Asked why the decision on
the joint venture proposal between United Breweries and
United Distilleries had been deferred by four weeks by
the Foreign Investment Promotion Board, Mr Sinha said
that “the present government is not looking at the
liquor segment with an open mind.” |
Blue Star bags Rs 5 crore orders NEW DELHI, Sept 15 (PTI) — Blue Star has bagged orders worth Rs 5 crore to set up refrigerated facilities at Hyderabad, Bangalore, Chennai and Pune airports for storage of fruits, vegetables and flowers. The facilities at the four airports include material handling, civil works, hydraulic work stations, ball transfer units and separate refrigerated graded cold rooms for different products. Currently, 30 per cent of the country’s horticultural production valued at around Rs 3,000 to Rs 5,000 crore goes waste due to lack of proper facilities. The company has captured a sizeable market for cold rooms. Its clients include the Taj group, Kwality Walls and Vadilal, Amul, Pepsi and Coca Cola. Blue Star has also entered
into a tie-up with Europe’s largest chest freezer
manufacturer, Vestfrost, Denmark for marketing its
freezers in the Indian market. |
Dabur to sell herbal medicines in USA NEW DELHI, Sept 15 (PTI) — Dabur India Limited (DIL) has announced plans to set up a separate subsidiary company for launching its herbal medicine range in the international market. DIL’s herbal medicines are already being test-marketed in the USA but the company refused to divulge the launch date. The company had
commissioned a study by management consultants McKinsey
last year to evaluate the opportunities and potential in
the global herbal medicines market, and has decided to
begin its global foray with the US market. “The
first two rounds of the McKinsey study are over and our
comprehensive strategy to go global herbally should be
ready by the year-end”, Vice-Chairman and Managing
Director of Dabur India G.C. Burman told PTI. |
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| AIWA tie-up CHANDIGARH, Sept 15 (TNS) — AIWA of Japan, known for audio and video systems, has entered India through a tie-up with Baron Electronics Private Limited. Its products are sold across the globe. Baron Electronics in turn has an arrangement with Sony Music Magna Sound for CDs and audio cassettes, and 20th Century Fox and Time Video for video CDs and video cassettes. Safety course ‘Hindi
Divas’ UCO Bank Saini Herbal Corporation Bank Forex rates Gold weak |
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