Santro target missed
NEW DELHI, April 1 — The ongoing recession in the automobile market and major price drops announced by Maruti and Fiat have resulted in a 11.7 per cent shortfall in Hyundai Motors India Limited’s October-April Santro sales target of 20,000 units.

Hydrocarbon Vision 2025 established
NEW DELHI April 1 — The government today announced the setting up of a high level group under the chairmanship of Finance Minister Yashwant Sinha to work out a framework for creating a India Hydrocarbon Vision 2025.

S. C. dismisses BPL petition
NEW DELHI, April 1 — The Supreme Court today dismissed a petition by BPL Ltd challenging a MRTPC order restraining the company from advertising its alkaline batteries as “the longest lasting in the world.”

NABARD disburses Rs 1,909 crore aid
CHANDIGARH, April 1 — The Chandigarh Regional Office of NABARD in 1998-99 has disbursed a record sum of Rs 1908.94 crore as refinance support and financial assistance to banks and State Government in Punjab and Haryana for activities in investment credit, production credit and rural infrastructure.

42 pc growth by Bank of Punjab
CHANDIGARH, April 1 — Bank of Punjab has achieved over 42 per cent growth in business during the financial year 1998-99. The deposits have grown to Rs 1758 crore from Rs 1320 crore at the close of last financial year on March 31. At the same time the credit has grown by over 63 per cent from Rs 520 crore to Rs 850 crore.

Sensex sheds 54 points on squaring up
MUMBAI, April 1 — After a better start, equities turned weak bringing down the sensex by 1.44 per cent on the stock market today due to selling pressure in the form of squaring up by operators and lack of fresh purchases from Financial Institutions.

Punjab to privatise hotels
Industrial estate at Machchiwara planned
Tribune News Service

CHANDIGARH, April — The Punjab Department of Tourism has thrown open certain Tourism Development Corporation hotels and restaurants to the private sector.

These are Hotel Amritsar International, Hotel Amaltas in Ludhiana, a 20-room resort complex in Ropar, the Phagwara and Kartarpur tourist complexes.

A pre-feasibility study has been undertaken for converting Hotel Amaltas into a starred hotel in partnership with a reputed chain of hotels.

A number of roads and bridges are also earmarked for private sector investment through the Roads and Bridges Development Board. These are: (a) Rahon to Machhiwara; (b) Sandhwanbate to Malsian (Nakodar)-river bridge and road; (c) Machhiwara to Matewar-(river bridge and road); (d) Dinanagar to Narot Jaimal Singh-(river bridge and road); (e) Chandigarh-Ludhiana-Moga corridor-expressway; (f) Chandigarh to Patiala; (g) Ludhiana to Ropar; (h) Patiala to Sirhind; (i) Ludhiana bypass; (j) Hoshiarpur to Jalandhar road.

Punjab Urban Development Authority (PUDA) has also identified a number of projects for securing external investment in the coming year 1999-2000. These are (a)channelling the Patiala ki Rao in Mohali, (b) a leisure and entertainment complex in Mohali, (c) a non-toll road connecting Mohali to the Delhi-Chandigarh highway coupled with the development of land alongside this access.

Pepsu Road Transport Corporation (PRTC) proposes to privatise bus stands at Patiala, Bathinda, Kapurthala, Sangrur, Faridkot, Phagwara and Ludhiana

The Punjab Small Industries and Export Corporation (PSIEC) proposes to develop a 2000-acre industrial estate at Machhiwara in Ludhiana district in the private sector. The Punjab Health System Corporation plans to develop a super speciality hospital in Punjab as a joint venture with a private sector partner.

‘Restructure’ power sector
Tribune News Service

CHANDIGARH, April 1 — Top economists — Dr Montek Singh Ahluwalia, Dr Rakesh Mohan and Dr Ashok Lahiri — today suggested to the Punjab Government to adopt user charge mechanism to finance basic infrastructure and opposed the State policy of providing free power and water supplies. They all agreed: people are willing to pay for better services.

Participating in a discussion on infrastructure, attended among others by Mr Parkash Singh Badal and senior Punjab Government officials, Dr Ahluwalia said people needed to be told: if you want better services, pay for them.

Set up a depoliticised regulatory authority like TRAI to rationalise tariffs, he suggested. The user charges — that is power, water rates — should not be raised by the government.

Politically motivated lower charges have depleted the resources of the Central and State Governments. Private investment will not flow into infrastructure projects until reasonable returns are guaranteed.

Dr Rakesh Mohan, Director General of the National Council of Applied Resources, asked the government to find out who actually benefits from subsidies. Half the homes in the country do not have power supply. So subsidy on power goes to the relatively better-off.

Ludhiana, he said, is the fourth in the country after Delhi, Mumbai and Pune to have maximum number of rich people. To tap private savings municipal bonds can be considered.

Dr Ashok Lahiri, Director, National Institute of Public Finance and Policy, said the relative superiority of Punjab is going down. Between 1991-96 the State’s growth rate has slowed down.

To tone up resources, he suggested restructuring of the power sector to minimise losses and ensuring cost recovery in infrastructure projects. The cess on petrol should have been extended to diesel too.

Mr Rashid Jalani, CMD, Punjab National Bank, said banks have short-term funds which can’t be used to fund long-term infrastructure projects. Some supporting mechanism is needed to ensure money flows into infrastructure.

Mr Pradeep Singh, Sr Vice-President, Infrastructure Leasing and Financial Services Ltd, said assets and services don’t get created by following subsidy policy. The poor are penalised most as subsidies are soaked up by the better-off. Reliance Industries is the biggest beneficiary of cotton subsidy, he added.

Earlier, the Finance Minister of Punjab, Capt Kanwaljit Singh, said taking an all India base of 100, Punjab index ranks at 191.4, which is the highest in the country. The State requires a minimum investment of Rs 5,000 crore a year in the next five years to sustain a 6-7 per cent growth rate of the economy.

Hegde rules out Re devaluation
Tribune News Service

NEW DELHI, April 1 — Union Commerce Minister, Ramakrishna Hegde today rejected the industry’s demand that the exchange rate should be adjusted stating that the “adjustment should be left to market forces”.

“The present exchange rate is realistic and the rupee has been stable for some time”, Mr Hegde told reporters on the sidelines of special interactive session with exporters organised by the FICCI here.

The Commerce Minister had yesterday said that rupee devaluation should not be resorted as the rupee has been stable in its value during the last one year. “In my view rupee devaluation should not be resorted to as it is not the only solution”, Mr Hegde said yesterday while announcing the modified exim policy for 1999-2000.

The President of FICCI, Mr Sudhir Jalan, said that a realistic exchange rate policy is needed to boost the export sector.

“A slow realistic exchange rate policy would be advantageous and the export sector again will be on an upward mobile path”, Mr Jalan said.

Earlier speaking at the session, the Commerce Minister said that policies need to have a longer term perspective for better results.

“Many of us obsessed with short term results and we think a little loss of revenue will affect the finances of the country”, Mr Hegde said.

Referring to export finance credit rates, which was increased to 10 per cent after it was reduced last year, the Commerce Minister said that last year the Finance Ministry could be convinced about the real and long term benefits the country would have by lowering the interest rates by 1 per cent.

Describing the modified exim policy 1999-2000 as “watershed”, Mr Hegde said that it was important to realise that a growth in exports would be beneficial for the country both in terms of forex earnings and improving the position in the world economy.

Mr Hegde said that there should be “complete understanding” between Revenue Department and the Commerce Ministry.” Any discordant note will be at the cost of the country’s export”, he said.

Forex reserves touch $ 31 b

NEW DELHI April 1 (PTI) — India’s foreign exchange reserves have touched $ 31 billion US dollars at the end of March 31, 1999, Finance Minister Yashwant Sinha said here today.

Market sentiments were buoyant and the East Asian crisis has led to only a marginal withdrawal of foreign investments in India, Sinha told the visiting 10 member United States congressional delegation led by Congressman Richard Gephardt, minority leader, US House of Representatives.

The government was streamlining procedures to attract more foreign investments in core sectors like technology and infrastructure with a gradual policy shift towards an automatic regime for inviting foreign investments, Sinha said according to an official release.

Inviting US investments in the capital, technology and core sectors in India, Sinha told the delegation that the intellectual property rights (IPRs) and the Copyright Acts would be further amended to help facilitate more liberal regime in trade and commerce.

India was committed to abide by international trading obligations including the World Trade Organisation (WTO).

Mentioning the recent initiatives taken by the government in insurance, coal and lignite sector, telecom, power, ports and roads, the Finance Minister said that most of these measures bore the stamp of political consensus.

He also apprised the delegation of the steps taken by the government to control prices of essential commodities, inflation and the rural thrust given in the 1999-2000 Budget.

‘Corporatise Railways’
Tribune News Service

CHANDIGARH, April 1— Dr Montek Singh Ahluwalia, member, Planning Commission, today suggested the creation of a railway tariff regulatory authority.

Addressing a CII meeting here today, he called for corporatisation of the Railways with “freight” and “passenger” traffic being treated as two separate entities. The Railways must resort to competitive bidding for its entire sourcing.

Since tariffs structure in India cannot be indexed with the US dollar, the attempt of the government policy framework should be to spread FDI in such a manner that no single project has a foreign debt exposure of more than 20 per cent.

Dr Ahluwalia felt that the IRA Bill, even if passed in the Budget session of Parliament, would not make insurance funds immediately available for infrastructure development.

Earlier, Mr Sunil Kant Munjal, Chairman-designate, CII (Northern Region), said a level-playing field is crucial for private sector participation. He urged the Government to create independent, autonomous, fair-minded and duly empowered regulatory bodies.

Mr I.S. Paul, Chairman, CII Chandigarh Council, stated that Rs 800 thousand crore was required to upgrade the existing infrastructure to a reasonable level.

Santro target missed

NEW DELHI, April 1 (UNI) — The ongoing recession in the automobile market and major price drops announced by Maruti and Fiat have resulted in a 11.7 per cent shortfall in Hyundai Motors India Limited’s October-April Santro sales target of 20,000 units.

The company managed to sell 17,647 cars during the 1998-99 fiscal — 2,350 units lower than the target. However, Hyundai is hopeful of meeting its 50,000 unit sales target set for the 1999-2000 fiscal, Mr J.H. Kim, Executive Director (Marketing and Sales), Hyundai Motor India, told UNI here.

“The Indian market did not grow as per our expectations. And to add to it, other players in the segment announced major price drops. This led to the small shortfall in meeting our target,’’ he added.

However, the company sold 4290 Santro cars during March 1999, which is the highest till date in a single month and represents a 98.8 per cent surge over the sales in February this year, a statement issued here today said.

Hydrocarbon Vision 2025 established

NEW DELHI April 1 (PTI) — The government today announced the setting up of a high level group under the chairmanship of Finance Minister Yashwant Sinha to work out a framework for creating a India Hydrocarbon Vision 2025.

The group, constituted by Prime Minister Atal Behari Vajpayee, will identify short-term and long-term measures for exploration, production and transportation of hydrocarbons in the country with a view to optimising domestic resources.

It would formulate a credible plan for restructuring the public sector oil companies including their disinvestment, an official release said here.

The other members of the group include the Petroleum and Natural Gas Minister, the Minister for External Affairs, the Deputy Chairman, Planning Commission, representatives of Tata Energy Research Institute and the Indian Institute of Petroleum of Dehra Dun.

The Secretary to the Prime Minister will be the Member Secretary of the group with the Secretaries of Petroleum, Finance, Commerce and Surface Transport Ministries will be the special invitees.

S. C. dismisses BPL petition

NEW DELHI, April 1(PTI) — The Supreme Court today dismissed a petition by BPL Ltd challenging a MRTPC order restraining the company from advertising its alkaline batteries as “the longest lasting in the world.”

A three-Judge Bench comprising Justice SP Bharucha, Justice SP Kurdukar and Justice RC Lahoti dismissed the petition after hearing BPL counsel TR Andhiarujina who contended that MRTPC did not take into account the Swedish laboratory tests which were in favour of his client. The bench observed that if the Swedish laboratory tests were in its favour, the company better raise the matter before the MRTPC which has passed only an interim order restraining the company from publishing the claim on the battery jackets and advertisements.

The MRTPC in December last year had granted an interim injunction on a complaint filed by Duracell India which said the advertisement by its competitor BPL was misleading and without basis amounting to unfair trade practices.

NABARD disburses Rs 1,909 crore aid
Tribune News Service

CHANDIGARH, April 1 — The Chandigarh Regional Office of NABARD in 1998-99 has disbursed a record sum of Rs 1908.94 crore as refinance support and financial assistance to banks and State Government in Punjab and Haryana for activities in investment credit, production credit and rural infrastructure. Banks in Punjab and the State Government availed Rs 920.14 crore assistance while the banks in Haryana and State Government availed Rs 988.80 crore as financial assistance said Mr N.R. Kannan,CGM, NABARD in a statement.

The credit support in investment credit aggregated Rs 688.48 crore out of which banks in Punjab availed Rs 400.25 crore financial assistance and banks in Haryana Rs 288.23 crore.

The production credit (i.e.financial assistance for short and medium term, mainly for crop loans) was availed to the extent of Rs 1,096.95 crore by the State Co-operative Banks (SCBs) and Regional Rural Banks (RRBs) in Punjab and Haryana.

The rural infrastructure credit assistance was availed of to the extent of Rs 97.72 crore by the Government of Punjab and Haryana, with Punjab availing Rs 79.39 crore loan assistance and Haryana Rs 18.33 crore. Fresh project sanctions during the year were Rs 270.92 crore (Punjab 152.93 crore and Haryana 117.99) crore with loan assistance of Rs 218.29 crore (Punjab Rs 115.87 crore and Haryana Rs. 102.42 crore). The main projects sanctioned were for drainage, flood protection, irrigation and rural roads.

42 pc growth by Bank of Punjab
Tribune News Service

CHANDIGARH, April 1 — Bank of Punjab has achieved over 42 per cent growth in business during the financial year 1998-99. The deposits have grown to Rs 1758 crore from Rs 1320 crore at the close of last financial year on March 31. At the same time the credit has grown by over 63 per cent from Rs 520 crore to Rs 850 crore.

In spite of the sluggish economical situation, the bank has made profits and paid dividend regularly since the first year of operation. The bank will celebrate its 4th anniversary on April 7.

The overall customer base of the bank grew by 21.7 per cent to 2.58 lakh from 2.12 lakh customers, a year ago. This was largely on account of the bank’s renewed focus on retail banking.

Bank of Punjab was recently ranked as 5th best bank among 97 in the country (Business India January 11-24,1999).

Sensex sheds 54 points on squaring up

MUMBAI, April 1 (PTI) — After a better start, equities turned weak bringing down the sensex by 1.44 per cent on the stock market today due to selling pressure in the form of squaring up by operators and lack of fresh purchases from Financial Institutions (FIs).

Foreign Institutional Investors (FIIs) were reportedly net buyers in only software scrips, particularly Satyam Computers and Digital Equipment.

The Bombay Stock Exchange (BSE) sensitive index opened marginally up at 3750.22 but later met with a strong resistance and was quoted at the intra-day low of 3684.18 before closing at 3686.29 as against yesterday’s close of 3739.96, netting a fall of 53.67 points. The BSE-100 index moved down by 17.50 points to 1633.87 from the previous close of 1651.37.

Operators attributed the selling pressure to the last day of the current settlement in view of a holiday tomorrow on account of “Good Friday” as well as fears of high badla at the Calcutta Stock Exchange.

Dealers said operators had discounted the government’s fresh round of trade reforms in its modified exim policy announced yesterday, effect of which is expected to be seen only on Monday when the new account begins.

Speculators were active in ACC scrip which fluctuated in a wide range of 1509.75 and 1424.00. They were also picking up side stocks like Supreme Ind, Videocon Int, BPL Ltd, GE Ship, Ashok Leyland and Godrej Soaps. 

Most of the heavy weighted index scrips like Hind Lever, Tata Steel, ITC, SBI, Ranbaxy and L&T suffered a sharp setback contributing to the sensex losses.

In the specified group, Hind Lever Chem, Supreme Ind, Cummins India, Indian Rayon, Philips, Wockhardt, Sun Pharma, Finolex Cable, Digital Equipments and Ashok Leyland hit the upper price band after exhausting the daily price limit.

The BSE-200 index and the Dollex were quoted remarkably down at 376.14 and 147.59 compared with previous close of 380.01 and 149.11 respectively.

The volume of business, however, was sharply up at Rs 1730.77 crore compared to yesterday’s turnover of Rs 1493.21 crore.

Pentafour Software remained the most active scrip with a turnover of Rs 447.51 crore followed by Satyam Computer (Rs 161.63 crore), ITC (Rs 71.84 crore), Digital Equipment (Rs 65.50 crore) and ACC (62.71 crore).